Bosworth v. Johnson

119 A. 753, 45 R.I. 86, 1923 R.I. LEXIS 15
Supreme Court of Rhode Island·Decided March 9, 1923·Published·Cited by 3 cases

Opinion

Sweeney, J.

This is an appeal from an interlocutory decree entered October 13, 1922, ordering certain patent *87 rights belonging to the copartnership sold; appointing a receiver to receive an assignment of said patent rights and to make a sale thereof; and ordering him to deposit the liet proceeds of such sale in the registry of the court. The decree orders the copartners to execute and deliver to said receiver proper assignments of said patent rights. The respondent, deeming himself aggrieved by this decree, filed his claim of appeal therefrom October 18, 1922, and has duly brought the cause to this court.

The following facts, as shown by the record, are material in considering the reasons for the appeal. The bill of complaint was filed February 24, 1920, and prayed for an injunction; the dissolution ’ of a copartnership existing between the parties; the appointment of a receiver of the copartnership assets and the sale thereof; and an accounting. A temporary receiver was duly appointed and after the answer was filed the same receiver was made the permanent one. April 17, 1920, after a hearing and by agreement of counsel, a decree was entered adjudging that the copartnership be dissolved and that the cause be referred to a standing master in chancery to take a mutual account of all dealings and transactions between the parties. The parties were unable to agree upon the issues of fact and May 1, 1920, a decree was entered referring the cause to a master for the framing of issues of fact. He filed his report June 23, 1920, and September 16, 1920, a decree was entered confirming his report. October 19, 1920, a decree was entered instructing the master appointed April 17, 1920, that he was to give due weight and consideration to both the terms of reference and the issues of fact as framed and confirmed, “which are hereby made a part of and included in said reference.”

April 10, 1920, an assent decree was entered appointing the temporary receiver the permanent one, and this decree was supplemented by another assent decree, entered May 8, 1920, fully stating the powers and duty of the permanent receiver. The temporary receiver made his first report *88 March 20, 1920, and April 10, 1920, an assent decree was entered confirming the same. This report states, “This statement does not include any claims for or against the partnership made on behalf of or against the two partners . . . as I am advised the matter of these claims will be dealt with on an accounting between the partners before a Master.” September 13,' 1922, the permanent receiver filed his final account and report and an assent decree was entered at the same time allowing his account and report, ordering him to pay the balance of $80.69 in his hands into the registry of the court, and decreeing that, upon such payment being made, he and the surety on his bond were to be discharged from all liability.

Three reasons for the appeal attack the decree appealed from and they will now be considered.

The seventh reason for appeal is that the decree is impossible as the partnership was dissolved by the decree entered April 17, 1920. This claim cannot be sustained as the dissolution of the copartnership existing between the parties was only one of several issues to be settled by the court under the pleadings in the case; and the entry of the interlocutory decree April 10, 1920, stating that the copartnership was dissolved, did not oust the court of its jurisdiction to hear and determine the remaining issues. In the same decree the court retained jurisdiction of the cause by ordering it sent to a master to take mutual account of all dealings between the parties. “It is a well-settled rule that a court of equity, which has obtained jurisdiction of a controversy on any ground, or for any purpose, will retain jurisdiction for the purpose of' administering complete relief and doing entire justice with respect to the subject matter. 21 C. J., 134, Sec. 117.” By virtue of this rule, a court of equity, when its jurisdiction has been invoked for any equitable purpose, will proceed to determine any other equities existing between the parties, connected with the main subject of the suit, and grant all relief *89 necessary to an entire adjustment of such subject, provided it is authorized by the pleadings. Ibid., Sec. 118.

The eleventh reason for appeal is that the court lost jurisdiction of the subject matter and that the property and the whole subject matter is discharged from the control of the court because the court accepted the final account of the receiver, .September 13, 1922, and discharged his bond from all liability.

The twelfth reason for appeal is that the discharge of the receiver determined that this patent right was not an asset of the copartnership. The respondent argues in his brief that these reasons of appeal ought to be sustained because, on the final accounting and discharge of the receiver by decree entered September 13, 1922, “all questions concerning the assets of the partnership were settled, including the question that these patents were not assets of the partnership, the court lost jurisdiction of the subject matter, and the property was discharged from the control of the court.”

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Bosworth v. Johnson, 119 A. 753, 45 R.I. 86, 1923 R.I. LEXIS 15 (R.I. 1923).

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