Baker v. Cummings

8 App. D.C. 515, 1896 U.S. App. LEXIS 3188
District of Columbia Court of Appeals·Decided May 19, 1896·No. No. 565·Published·Cited by 1 cases

Opinion

Mr. J ustice Morris

delivered the opinion of the Court:

Thex'e are eight assignments of error. Six of them, it is conceded, were made upon the former appeal, in which they were decided adversely to the appellant. By their renewal here it was not sought to renew the discussion of them, but only, it seems, to preserve them for another tribunal. Only the seventh and eighth assignments were argued at this hearing. By comparison of these assignments with the seven exceptions taken by the appellant to the auditor's report, it will be seen that several of these exceptions .have been waived or abandoned.

By the exceptions here insisted upon and the assignments of error thereupon based, two questions are raised: 1st. Whether the appellant is entitled to compensation for his personal services in the prosecution of certain claims constituting part of the partnership business and comprising the most important element in the accounting between the parties; and, 2d. Whether it was proper to allow interest in the decree from July 1, 1895, on the aggregate balance of principal and interest found by the auditor to be due on that day from the appellant to the appellee.

[520] I. With reference to the first question, the auditor in his report has well stated' the law and the facts as follows:

‘‘A claim was presented by the defendant for compensation for personal services in obtaining, prosecuting, and collecting these inspector claims on- the basis of the difference between one-half and one-third of the net fees, which claim was subsequent!)' amended by the .substitution of a claim. for personal services in obtaining, prosecuting and collecting inspector cases subsequent to September 6, 1886, the amount so claimed being forty-two thousand seven hundred dollars, and against the objection of the plaintiff’s solicitors I received evidence touching the extent and character of the said services as well as of their value, which testimony'is returned with this report. This claim is presented and urged upon the ground that the decree annulling. the sale of September 6, 1886, does not restore the status of the partnership as to the inspector cases, but only entitles the plaintiff to an equitable portion of the fees realized in said cases • and that, in the ascertainment of that portion, the extra services rendered by the defendant in •procuring, prosecuting and collecting these claims after the date of said sale and assignment and rendered in the belief that the plaintiff had no further interest in- the said claims ■ should be compensated for, .especially as that belief was apparently acquiesced in by the plaintiff during the entire period. Cases are cited in which extra compensation has been allowed by courts to a surviving or remaining partner for services rendered in continuing and conducting the part- ■ nership business after the death or withdrawal of his co-partner, but each of these cases is that of an absolute dissolution of the partnership relation. In this case, in my judgment, the decree of the court annulling the assignment or sale has the effect of reinstating the partnership as it existed prior to that sale, as to the inspector cases, and to continue that partnership until the complete or general dissolution, in September, 1889. In this view of the case we must treat this claim of the defendant as that of one mem[521] ber of an active, existing partnership for an extra share of the profits realized from the joint business, on the ground of contributing to that business a greater amount of time- and service than his copartner, a claim which cannot be maintained under any authority of text-writers or adjudicated cases, so far as -my inquiry extends. I have therefore to exclude this claim from allowance in my account.”

The auditor was undoubtedly right in his conclusion; and the court below very properly affirmed his finding. Any different conclusion would have allowed the appellant to benefit by his own wrong, inasmuch as the pretended sale and'transfer to him of September 6, 1886, was his own wrongful act. Exceptional cases there are, of course, in which a partner might justly be allowed extraordinary compensation for his personal services ; but no such exceptional case is here presented. The inspector cases, so called, seem to have constituted a portion of the partnership business to which the special attention of the appellant was to be given in any event; and he seems to have done no more in regard to them after the illegal transaction of September 6, 1886, than it was his duty to do if that transaction' had never been attempted.

Comment on the extravagant character of a claim of $42,700 as a compensation for personal services in the collection of the -sum of. $97,8 20.14, is somewhat precluded by the admission of counsel in argument that they do not seriously contend for that amount, but only that the appel- - lant should be allowed to go before the auditor for some compensation for. his personal services. We think the auditor and the court below were entirely right in declining to recognize any claim whatever to compensation in the premises.

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Baker v. Cummings, 8 App. D.C. 515, 1896 U.S. App. LEXIS 3188 (D.C. 1896).

8 App. D.C. 515 (Baker v. Cummings) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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