Borden-Aicklen Auto Supply Co. v. Folse Service Station

6 La. App. 1, 1927 La. App. LEXIS 320
CourtLouisiana Court of Appeal
DecidedFebruary 12, 1927
StatusPublished
Cited by254 cases

This text of 6 La. App. 1 (Borden-Aicklen Auto Supply Co. v. Folse Service Station) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Borden-Aicklen Auto Supply Co. v. Folse Service Station, 6 La. App. 1, 1927 La. App. LEXIS 320 (La. Ct. App. 1927).

Opinion

MOUTON, J.

These three consolidated suits were brought against the Poise Service Station as a commercial partnership alleged to be composed of Joseph M. Folse, Jr., and E. M. Gordon. Judgment is asked against the alleged partnership, and individually, against the members, which it is averred, constitute the firm. Folse admitted in his testimony that the Fols.e Service Station was a co-partnership composed of himself and Gordon as members. Having admitted his membership in the firm and not having disputed the respective claims of the plaintiffs, judgment was accordingly rendered against him, and he is therefore eliminated as a defendant in these cases.

Gordon denies the existence of the alleged partnership or that he is liable to the plaintiffs in any amount.

The district judge refrained from deciding whether a partnership existed, but held that Gordon, by his acts, representations or conduct, had held himself out as a partner in the Folse Service Station, which had the effect of inducing plaintiffs to honestly believe that the Folse Service Station was a partnership of which Gordon was a member, and that he was therefore responsible to the plaintiffs for the advances made by them to the Folse Service Station.

The first question presented for decision is as to whether or not such a partnership existed and as to whether Gordon was a co-partner.

We first address ourselves to a discussion of this proposition, because, if such a partnership existed when the advances were made by plaintiffs, Gordon would be unquestionably liable, and there would be no necessity for us to pass on the question upon which the lower court rested its judgment.

Folse testified that his agreement with Gordon, a verbal one, was that Gordon would furnish everything for the Folse Service Station; would give him $20.00 per week in advance as a salary; that they would divide the profits equally, and that he would be manager of the station.

Gordon denies that such a partnership was ever formed or that he was a partner therein. The version given of the agreement by Gordon is that he agreed to finance Folse in putting up the Service Station to the amount of $1500.00 to be paid by Folse in weekly installments of $35.00 with 8 per cent interest on the money loaned. Gordon and Folse are equally positive in these, their contrary and conflicting statements in reference to the contract into which they entered.

The evidence shows that Gordon paid for most all of the equipments that went into the Folse Service Station. He says, he paid for the equipments because he had promised to do so with the $1500.00 he had engaged himself to advance Folse. It is-shown that Gordon advised plaintiffs, who were selling these equipments, not to advance too much to Folse. Because he was solicitous about the amounts that would be advanced to Folse, counsel for plaintiffs contend that this manner of acting on the part of Gordon shows that he had a proprietary interest in the station and that he was a partner.

As we read the evidence, the interest shown by Gordon in the purchases Folse [3]*3was making, was prompted by a desire to see that Folse would not buy in excess of the $1500.00 for which he had obligated himself to respond. Gordon, it is shown, took no written security when he advanced this money to Folse. This fact is referred to by plaintiffs as being rather peculiar in a transaction of this importance. Gordon explains this by saying that Folse had promised to furnish security but had failed to do so. Folse denies this and as a matter of fact, contradicts Gordon in every important particular. It also appears that after the station was closed, Gordon sold a wrecker that he had bought for it, and also offered to sell other tools or accessories he had furnished Folse. Plaintiffs’ counsel say that this sale and offer of sale by Gordon show that he was acting as a proprietor or co-partner. The .things Gordon sold or offered to sell, the evidence shows beyond question, had been bought and paid for by Gordon. It is clear that he had not authority to dispose of them in that manner. He frankly admits that he was perhaps mistaken as to his right to thus handle this property, but he says he honestly believed it was his, as he had bought and paid for it, although the evidence shows he had purchased it for Folse.

It was simply, as we read the evidence, the result of a layman’s misconception of his rights, grounded on the idea that it belonged to him because Folse had not paid him for it and does not show that Gordon was acting in the quality of a co-partner. It seems also that Folse was laboring under the same error, as he permitted Gordon to dispose of the equipments as his individual property. Reference is also made by counsel for plaintiffs to the fact that Gordon took from Guidry a lease, in his name, of the property on which the service station was established. Gordon explains that he took it because Guidry would not rent it to Folse. It is shown that Folse paid the rent for the first two or three months, and then refused to continue the payments. It was then that Gordon (paid the subsequent rental for a couple of months, and ordered the key of the building returned to Guidry. If the property had been rented for the pretended partnership, why should Gordon have paid the rent? He paid it because he considered this a personal obligation he had incurred for Folse’s benefit.

Counsel for plaintiffs point also to the fact that Gordon, who lived in Jefferson parish, was a frequent visitor at the station, coming there tw.o or three times a week. It can not be successfully gainsaid that he had a vital interest in the success or prosperity of the station, as he had advanced Folse a considerable sum for which he had not obtained the security he had been promised. It is a fact, however, that during these visits it does not appear that Gordon ever examined the hooks of the service station or inquired into its affairs. If it had been a partnership in which Gordon was a .member, it is not likely that he would have failed to look into the business it was carrying on, so that he might have protected himself against the debts for which he would have been responsible, and that he might obtain his share of the profits.

The evidence shows that Miss Blouin was appointed by Gordon to represent his interest at the service station. She was authorized to sign checks in conjunction with Folse for the affairs of the station. When she got through there as the representative of Gordon, she turned $48.00 over to him, and which he says, he applied to the interest which had accumulated on the money he had loaned Folse.

The evidence shows that in thus appointing Miss Blouin, Gordon was actuated by a desire not to have Folse incur further [4]*4debts in (purchases he might make. He was acting under the impression that he had a right to do this for the protection of his proprietary interest in the equipments' for which he had paid. This was undoubtedly a mistaken idea into which he had fallen. Although this was a misconception on his part, it nevertheless does not show that his intention was to act as a partner in the affairs of the station. We emphasize the foregoing statement, as it is well recognized that a partnership is formed only by the intention of the contracting parties and that even when the profits are divided between the parties, this fact does not make them partners, unless they intend to create a partnership. 30 La. Ann.

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Cite This Page — Counsel Stack

Bluebook (online)
6 La. App. 1, 1927 La. App. LEXIS 320, Counsel Stack Legal Research, https://law.counselstack.com/opinion/borden-aicklen-auto-supply-co-v-folse-service-station-lactapp-1927.