Brandin Slate Co. v. Bennett

190 So. 342, 193 La. 89, 1939 La. LEXIS 1168
CourtSupreme Court of Louisiana
DecidedMay 29, 1939
DocketNo. 34851.
StatusPublished
Cited by1 cases

This text of 190 So. 342 (Brandin Slate Co. v. Bennett) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brandin Slate Co. v. Bennett, 190 So. 342, 193 La. 89, 1939 La. LEXIS 1168 (La. 1939).

Opinion

HIGGINS, Justice.

The plaintiff instituted this action against the defendants, jointly, severally and in solido, to recover the sum of $3,096.33 for merchandise sold and delivered to them on an open account as members of James W. Bennett Roofing Company, a commercial co-partnership, or an ordinary partnership, and against Albert A. Wilson as guarantor of the account in the sum of $2,500; and in the alternative, against James W. Bennett, one of the alleged partners, individually, for $3,096.33, and against Albert A. Wilson, the other alleged partner, individually, as guarantor of the account, under a written continuing guaranty in the sum of $2,500.

James W. Bennett, although personally served with citation, did not answer and judgment, by default, was entered against him. He did not appeal.

Albert A. Wilson filed exceptions of no right and no cause of action and improper joinder of demands, which were overruled. He then filed an answer, with reservation of his exceptions, and denied liability, averring that there was no partnership existing between him and Bennett and specially pleaded that the alleged guaranty was a forgery; and that there had been improper imputations of payments and credits on the open account.

There was judgment in favor of the plaintiff and against the defendants, in accordance with the alternative prayer of the petition. The defendant Wilson appealed.

The plaintiff answered the appeal, praying that the judgment be amended to hold the defendants jointly, severally and in solido, liable for the full amount of the claim.

The exceptions of no right and no cause of action have been abandoned.

The exception of inconsistent causes of action is predicated on the theory that the right of action against Wilson as a partner is inconsistent and exclusive of the cause of action against him as a guarantor.

In the case of Gladney’s Inc. v. Louisiana Magazine, La.App., 156 So. 659, 158 So. 32, it was held that the joinder in one petition of two alternative demands against the defendant, as a partner and as an individual, were not inconsistent where the *93 parties and the facts were the same on both demands and the alternative theories were resorted to merely for the purpose of adapting the demand to the ultimate view of the court.

The exception was therefore properly overruled.

The record shows that James W. Bennett had been formerly employed by the plaintiff, which was engaged in the business of selling roofing materials, and that he resigned his position to engage in business as a roofing contractor. He had previously borrowed money from a loan company with which Albert A. Wilson was identified and, lacking the necessary capital to enter business, discussed the matter with Wilson, with the result that they signed the following contract on June 18, 1934:

“New Orleans, La.,
“June 18, 1934.
“An agreement or contract between J. W. Bennett, Party of the First Part, and A. A. Wilson, Party of the Second Part, which provides: That the Party of the First Part desires to engage in the business of building, constructing and repairing of roofs, commonly known as a roofing contractor and not having the necessary capital to thus engage in the above mentioned enterprise covenants with the Party of the Second Part to furnish the Party of the First Part with necessary capital to engage in the aforesaid business. Party of the Second Part agrees to furnish a sum of money not exceeding Eight Hundred Dollars ($800.00) as capital herein-before mentioned. In return for this advance Party of First Part agrees to reimburse Party of Second Part as follows: Party of First Part is to receive One Hundred dollars ($100.00) per month out of net profits of his business, as living expenses and all profits in excess of this sum is to be set aside monthly for the purpose of establishing a special fund equal to the amount advanced by Party of Second Part to Party of First Part and this special fund may be drawn upon by Party of Second Part from time to time until the amount so drawn equals the sum advanced to Party of First Part. And further in return for the above stated advance of capital by Party of Second Part to Party of First Part, Party of First Part agrees to give Party of Second Part as remuneration for capital advanced one half of net profits accruing from the before mentioned business after the amount advanced by Party of Second Part has been repaid by Party of First Part in the manner of payment as above set forth. Party of Second Part may from time to time furnish Party of First Part with roofing' material in addition to said sum of money. Said material to be paid for by Party of First Part on completion and payment of work or job for which said material has been used. Cost of material will be invoice price from factory or jobber without discount.
“This is not a partnership agreement and the terms of this agreement may be altered or terminated by mutual consent or by either party giving notice in writing to the other. In the case of the latter neither party will terminate the agreement *95 abruptly and without due regard to the rights of the other and will endeavor to work as little hardship on the other as circumstances permit.
“(Signed) J. W. Bennett
“(Signed) A. A. Wilson
“Witness: G. C. Moore.”

This document was never recorded or registered.

With the money advanced by Wilson, Bennett began operations as a roofing contractor under the name of James W. Bennett or the James W. Bennett Roofing Company. He opened the account with the plaintiff under the latter name and in January 1935, its officers refused to extend further credit unless the account was guaranteed. Wilson wrote in his own handwriting the proposed continuing guaranty and instructed Bennett to have it typewritten. The purported guaranty, dated January 18, 1935, is addressed to the plaintiff, guaranteeing the account up to the sum of $2,500.

Bennett was in the active charge of the business and Wilson occasionally visited the office and each month demanded and received a monthly balance sheet of the company’s affairs.

Wilson discovered that Bennett was neglecting and mismanaging the business and that it was in a precarious condition, and, without any legal process, went to the office and took possession of all of the records of the company.

After some negotiations, it was agreed that William M. Bennett, the father of James W. Bennett, would purchase the business and the following act of sale was executed on April 15, 1935, which was duly acknowledged before a notary on that date:

“James W. Bennett and Albert A. Wilson, doing business under the name of James W. Bennett and/or James W. Bennett Roofing Company, do hereby and by these presents sell, transfer, assign, set over, and deliver unto W. M. Bennett of New Orleans, Louisiana, the going and running business operated under said name at 3929 Tulane Avenue;
“This sale and transfer includes all assets and property of said business, including the lease of.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Del Bondio v. Fahy
1 So. 2d 839 (Louisiana Court of Appeal, 1941)

Cite This Page — Counsel Stack

Bluebook (online)
190 So. 342, 193 La. 89, 1939 La. LEXIS 1168, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brandin-slate-co-v-bennett-la-1939.