Bays v. Johnson

92 S.E. 792, 80 W. Va. 559, 1917 W. Va. LEXIS 68
CourtWest Virginia Supreme Court
DecidedMay 15, 1917
StatusPublished
Cited by7 cases

This text of 92 S.E. 792 (Bays v. Johnson) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bays v. Johnson, 92 S.E. 792, 80 W. Va. 559, 1917 W. Va. LEXIS 68 (W. Va. 1917).

Opinion

Lynch, President:

To recover against R. M. Johnson and W. C. Barnes a balance alleged to be due on a contract of sale to them as partners of timber to be manufactured into staves, ties and other articles of trade, plaintiff at December rules, 1913, brought assumpsit, and against Johnson only obtained judgment for an amount less than that claimed in the declaration, and Barnes recovered a judgment for costs against plaintiff, who brings the case here for review.

One hundred dollars of the consideration for the timber was paid equally by the defendants, who united in two notes •for the residue, one for $900 and the other for $1000, upon a stipulation for partial payments when and as quantities of [561]*561Readings, staves and ties in carload lots were prepared for market, with the provision that no shipments were to be made until the ratable value thereof was paid, as a credit on the amount due the vendor.

Barnes sought and by the verdict was' permitted to escape liability upon the partnership transaction, on the ground that he and Johnson, with the knowledge and assent of the plaintiff, terminated the partnership relation a short time after the contract of purchase was.entered into, and that the dealings between the plaintiff and Johnson after the dissolution were such as effected the release of Barnes from the contract obligation.

The severance caused by the retirement of Barnes from the partnership, the continuance of Johnson in the performance of the contract, with the acquiescence of the plaintiff, the dealings between him and Bays as to the partial discharge of. the contract and payment of the consideration by the issuance and acceptance of cheeks, a settlement by them of the accounts arising out of these transactions in the absence of Barnes and without notice to him, and declarations by the plaintiff to Johnson and others than Barnes to the effect that Barnes was discharged from liability for the contract price of the timber, were relied on at the trial to relieve Barnes from the joint debt, and doubtless, under the instructions given, had that effect. All the checks given and accepted, were paid promptly, except the last one for $962.65, and it remains unpaid. It was protested for want of funds to- the credit of Johnson in the bank on which it was drawn.

The plea in virtue of which proof as to these facts was admitted over objection simply averred that Barnes was not a member of the partnership when the last check was given and the action brought. This plea did not present an issuable or material fact; because, conceding the facts to be as pleaded,, they did not discharge or exonerate Barnes from the payment of the joint liability. The authorities uniformly hold that the dissolution of a copartnership does not ipso facto release a partner from payment of a debt contracted by the firm before his retirement. Burdette v. Greer, 63 W. Va. 515, 15

[562]*562L. R. A. (N. S.) 1019 and notes; Barnes v. Boyers, 34 W. Va. 303.

Moreover, although the facts pleaded were proved, they (are insufficient to operate as a discharge; because, it is not averred or proved that the plaintiff for any consideration deemed valuable expressly agreed to release or discharge Barnes from payment of the partnership debt. An express agreement to release a pre-existing debt or contract, to be effectual and binding, must be founded upon.a valuable consideration. Lumber Co. v. Friedman, 64 W. Va. 151, 159; McConnell v. Hewes, 50 W. Va. 33, 39. But it appears conclusively and unequivocally, indeed without the semblance of (contradiction or controversy, that Bays, although repeatedly requested, persistently refused to consent to exonerate Barnes from the debt incurred by him and his partner. The defendants agree that when applied to for the purpose Bays refused to consent to the release, indeed even to consider the proposal. They say he would not even look at the paper purporting to be a written release. Plaintiff says he declined to ■ entertain the proposition, and did nothing intended to effect ■ that result. So that apparently there was not an express (•.agreement for such a release, or any agreement having that Abject in view.

In the face of this unquestioned and conclusive proof of an emphatic declination even to treat with the defendants on that subject, it is argued that the acts and conduct of the plaintiff in dealing with Johnson, the acceptance and collection of his checks except the one in controversy, and the delivery to him of the joint note for $900 upon the acceptance of the check subsequently protested, together worked an implied release of the copartner. But the assumption is not .at all likely or reasonable that plaintiff intended by implication to do what he unequivocally declined to do upon the ■application of the interested parties. If Bays intended to look to Johnson only for payment of the consideration, and not to him and Barnes jointly, he doubtless would have •signed the agreement to that effect when presented for his •signature. Why he should do indirectly what he persistently ■declined to do expressly seems not to be within the region of ■reason.

[563]*563What are the facts relied on from which it is argued arises the inference wholly inconsistent with the positive refusal so to imperil recovery under the original contract! They are statements said to have been made by the plaintiff to Johnson alone, or to him and others than Barnes alone or jointly during negotiations between them for the sale of the timber purchased but not severed from the land, or declarations that Johnson assumed to pay and had paid plaintiff all that was due him under the contract of sale, and that Barnes need not feel any anxiety as to his liability under the contract for the same reason. If these conversations occurred, the statements were made between the date Johnson delivered the last check to the plaintiff in July and October 12, the date agreed upon for its presentation at the bank for payment. The declarations could not have been made earlier than July or later than October 12. They could not be true, if made either before the first or after the .second date. The' balance for which that check was given was not ascertained until in July; and certainly plaintiff would not admit the discharge of any security he had for the joint liability after the protest of the check. This proposition hardly bears the impress of business sagacity or acumen. These statements, interpreted in the light reflected by the circumstances surrounding the transaction, readily can be explained only upon the assumption that, as Johnson had promptly paid all other checks given for the same purchase when and as presented to the bank on which they were drawn, plaintiff evidently acted upon the belief that Johnson would not suffer the dishonor of the last check issued by him. And no doubt it was upon this supposition, one not at all unreasonable, that Bays predicated the statement that he had no further claim against the timber men.

But, to constitute an express waiver or release of a vested right, the agreement therefor must, as we have said, rest on. a valuable consideration. If implied, the facts and circumstances out of which the implication arises must clearly and sufficiently be proved, the burden resting on him who asserts a waiver. Lumber Co. v. Friedman, supra. The conduct and declarations imputed to plaintiff he was not permitted to deny [564]*564or explain — on what theory, principle or doctrine is not apparent.

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Bluebook (online)
92 S.E. 792, 80 W. Va. 559, 1917 W. Va. LEXIS 68, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bays-v-johnson-wva-1917.