Baker v. . Brown

65 S.E. 520, 151 N.C. 12, 1909 N.C. LEXIS 180
CourtSupreme Court of North Carolina
DecidedSeptember 15, 1909
StatusPublished
Cited by10 cases

This text of 65 S.E. 520 (Baker v. . Brown) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baker v. . Brown, 65 S.E. 520, 151 N.C. 12, 1909 N.C. LEXIS 180 (N.C. 1909).

Opinion

Walker, J.

Tbis action was brought by the plaintiff to dissolve a partnership existing between him and the defendant, and for an account and settlement of the business and affairs of the partnership. There was evidence tending to show that the parties were engaged, as partners, in conducting “a general mercantile, sawmill and lumber business.” The defendant averred in his answer and introduced evidence to show that the firm was engaged only in a mercantile business and that the “sawmill and lumber dealings” were not a part of the transactions of the firm. He also alleged that the partnership was dissolved in 1899, more than three years before this action was commenced, and pleaded *14 the statute of limitations in bar of the action. Tlie plaintiff alleged that the firm was not dissolved in 1899 and never had been dissolved, but that the business was discontinued and he took possession of its assets for the purpose of paying its outstanding debts and liabilities. The defendant also averred that the plaintiff had agreed with him to take the assets of the partnership and assume and pay its debts. There was a controversy between the parties as to whether the “hotel and lot at Kelford” were purchased with funds belonging to the firm, but this matter was settled, as will appear by the judgment, and is eliminated from the case. The plaintiff set up the records in former suits as an estoppel or res judicata, but these records are not before us and their contents do not in any way appear. This defense, therefore, fails because there is no evidence to sustain it.

The defendant moved to nonsuit the plaintiff, which motion was overruled.

The defendant then requested the court to charge the jury as follows: “The defendant contends that the plaintiff’s evidence is uncertain, not strong, not positive, and that it is not supported by other witnesses. He also contends that his evidence is clear and positive, and that it is supported by disinterested witnesses. That is for you'(the jury) to determine. The law has a rule for weighing all testimony. If witnesses are in all respects of equal character and credit, the law attaches greater weight to the evidence of the witness who is positive and supported than it does to the evidence of one who is doubtful or undecided and unsupported. With the rules of law as your guide, you are to ascertain the quality and character of the evidence in this case.”

This the court gave, but refused to give the rest of the instruction as requested and which is as follows: “If you find by the greater weight of the testimony that plaintiff’s testimony on the fourth issue is not positive and is unsupported, and that the defendant’s evidence is positive and supported, then you will answer that issue ‘Tes.’ ”

The court submitted certain issues to 'the jury, which, with the answers thereto, are as follows:

1. “Is the plaintiff’s cause of action barred by the statute of limitations?” Answer: “No.”

2. “Was the lumber plant and its business, including the purchase and manufacture of timber and lumbér, embraced in the partnership of Baker & Brown?” Answer: “Yes.”

3.' “Were the hotel and lot at Kelford purchased with any of the funds of the partnership of Baker & Brown, in whole or in part?” Answer: “Yes; in part.”

*15 4. “Was there a dissolution and settlement of the partnership, and did Baker, the plaintiff, agree to assume the debts of the partnership, take the property of the firm and other property, and release Brown, defendant, from all liability on account of said partnership ?” Answer: “No.”

5. “Did the plaintiff, Baker, receive from his partner, Brown, sufficient assets of the firm of Baker & Brown to pay the debts of said firm?” Answer: “No.”

Upon motion of the plaintiff, the answer to the third issue was set aside, and the plaintiff consented that said issue should be answered “No,” which was done.

There was evidence supporting the respective contentions of the parties in respect to the issues submitted by the court. The defendant moved for a new trial; the motion was overruled and judgment entered upon the verdict for the plaintiff. The defendant, in a}3t time, excepted to the several rulings of the court, which were adverse to him, and appealed from the judgment.

The defendants motion to nonsuit the plaintiff, because the action is barred by the statute of limitations, was properly overruled. If this be the proper method of raising that question, as to which we express no opinion, there was abundant evidence to show that the action was not barred. Indeed, there was scarcely any evidence to the contrary. If there was such evidence, it was the province of the jury to pass upon the conflicting proof and determine, under instructions of the court, as to the law, whether the action was barred.

It is well settled by the authorities that partners stand in a fiduciary relation toward each other. The same rule and tests are applied to the conduct of partners as are ordinarily applicable to that of trustees. In law the functions, rights and duties of partners, in a great measure, comprehend those both of trustees • and agents. We so held in Patterson v. Lilly, 90 N. C., 82. Deferring to that case, when discussing a question similar to the one now before us, Justice Burwell, in Faison v. Stewart, 112 N. C., 332-344, said: “When within the scope of the business of the firm, a partner does any act in the name of the partnership, he binds all his associates, for he is in all such matters their agent, as they are his. And where a partner takes into his possession or borrows from the firm or appropriates to his own use any of the assets of the copartnership, he assumes towards the other partners the position of a trustee, and is bound to account with them for the assets so taken or appropriated or borrowed, whenever the other partners make demand upon him so to do.” There must be some action taken by the one partner against the other, such, for example, as a demand for an account and settle *16 ment, in order to terminate this fiduciary relation before tbe statute of limitations will begin to run (Rencher v. Anderson, 95 N. C., 208; Rhyne v. Love, 98 N. C., 486) ; and in this connection it may be well to quote wbat is said by Justice Ashe in Patterson v. Lilly, 90 N. C., p. 87, as to the nature of this trust relation subsisting between partners, and as to how it may be ended: “Where the trust is direct, it is a well-established rule, belonging exclusively to the jurisdiction of courts of equity, that, so long as the trust subsists, the right of the cestui que trust cannot be barred or excluded by the trustee by virtue of the length of time-during which the latter-has held possession. Yet it is a rule quite as well settled that where the fiduciary character of the trustee has ceased or been put an end to by his repudiating the rights of the cestui que trust, as by assuming absolute ownership over the property or by refusing to account for the same, then the statute does apply, and the cestui que trust must bring his action within the time prescribed or be barred,” citing Angel on Limitations, secs. 468 and 174.

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Bluebook (online)
65 S.E. 520, 151 N.C. 12, 1909 N.C. LEXIS 180, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baker-v-brown-nc-1909.