Buck v. Smith

29 Mich. 166, 1874 Mich. LEXIS 59
CourtMichigan Supreme Court
DecidedApril 8, 1874
StatusPublished
Cited by21 cases

This text of 29 Mich. 166 (Buck v. Smith) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Buck v. Smith, 29 Mich. 166, 1874 Mich. LEXIS 59 (Mich. 1874).

Opinion

Graves, Ch. 'J.

This is an appeal by complainant from a final decree by the circuit court for the county of Cheboygan in chancery, dismissing the bill.

[167]*167Tfie record is quite imposing, but it is unnecessary to repeat much of it, or to enter into a minute or extended discussion. There are several grounds of objection more or less serious to any explicit relief in equity. Our attention will be chiefly confined to one which is- insuperable.

The bill is by the complainant, against Smith alone, to compel, a specific performance and for incidental relief. The leading and material features, of the case which the complainant sets forth, and on which his equity is grounded, may be briefly indicated.

He states in. substance that in 1867, George W. Swan, John E. McArthur, William. McArthur and John F. McDonald. were in partnership, under the name- of McArthur &, Go.; that the members of the firm owned as. tenants in common a large amount of pine lands in the- counties of Cheboygan, Presque Isle, Otsego and Emmet, in. this state, and mills, water power and other real property, the. said Swan and John E; McArthur holding an undivided, half; that the firm also owned, and held there a very, large, and valuable personal property, consisting, among other thipgs,. of, lumber, timber, shingles, store goods, teams, tools,, machinery- and the like, suitable for. large lumbering operations; that the firm were parrying on the business, of-manufacturing and selling lumber on an extensive scale, using the pine on the lands, before mentioned as needed; that Smith, resolved to purchase the interest, of Swan and John E. McArthur and then to enter into partnership, with the other proprietors, namely: McDonald and William McArthur, with the view of erecting new, mills, improving the property in various ways, and carrying on the lumber business; that in contemplation of such, purchase and the institution of such- firm, it was. understood between complainant and Smith that the purchase, when effected, should be for their joint benefit; that Smith should advance the required funds for the purchase, and so much, as should be necessary in carrying on the operations of the expected partnership, and should take the title; that complainant, [168]*168being skilled and having experience in such, business, should be a partner in the contemplated firm, and should put in his special skill and bis services, and in that way, and from the profits and gains in the business, make up his share of the outlay; that complainant wafe to remove to Cheboygan and be an active co-partner in the new firm, and be the general manager of the business, and exercise the general control and supervision.

It is then stated that Smith proceeded to buy the half interest of Swan and John -E. McArthur, and on the 26th of November, 1867, took a conveyance in his own name, and that shortly afterwards, and on the 10th of January, 1868, he and complainant, in furtherance of the foregoing understanding between them, entered into the following written agreement:

- “Memoranda of agreement, made this 10th day of January, A. D. 1868, by and between William Smith, of West-field, New York, of the first part, and Moses Buck, of East Saginaw, Michigan, of the second part, witnesseth; that-said Smith claims to own and be possessed in fee simple of certain lands, water-power and personal property, same purchased of John E. McArthur and Geo. W. Swan, by their deed of November 26th, 1867. Now the said Smith hereby agrees to sell, and convey, by deed of quit-claim, to said Buck, one-half of said purchase, being one-fourth part of all said property described in said McArthur and Swan’s deed, situate in the counties of Cheboygan, Presque Isle, Otsego and Emmet, in the state of Michigan, — five dollars is hereby acknowledged, — and said Buck agrees to pay fourteen thousand dollars in five years from November 26th, 1867, with interest, annually, at twelve per cent, per annum, and also one-half of all improvements and expenditures to erect mills, cut logs, and do all and every part of the necessary outlay for a general lumber manufacturing business ; also, to go and reside at Cheboygan, and attend personally and industriously to said lumbering business; it is further agreed that none of the personal effects connected with [169]*169this purchase shall he claimed or used by said Buck for other purposes than the company business in connection with said lumbering establishment, so long as any part of said payment remains unpaid; but said Buck shall have right to pay any and all such sums at any time, when and as fast as he so elects; and the said Smith agrees to ■deed whenever so fully paid, from profits of business or otherwise.”

It is not unworthy of notice that the bill does not allege that complainant had any understanding or agreement with either William McArthur or McDonald, two of the proprietors who were to be parties to the contemplated partnership, that he was to become a partner with them or be admitted to the control and supervision of any interest they had or might have.

After the written contract with Smith, complainant alleges that he proceeded to act up to the spirit of his arrangement with him; that ho was ready and desirous to enter into the projected partnership, and ready and anxious to assume and take upon himself the management and control of the property and affairs* and that he paid to Smith, by the note of one William Peter, one thousand and seventy dollars of the consideration ; that notwithstanding this, the defendant and the other co-proprietors, — McDonald and William McArthur, — disregarded the arrangement so made with him by Smith, and entered into a partnership among themselves and excluded him altogether, and deprived him of his chance to employ his skill and services as it had been agreed between himself and Smith that he might and should do. The bill then further states that some time .afterwards McDonald transferred one-half of his interest to William McArthur, who conveyed an equivalent interest to one Ward B. McArthur, and that thereupon Smith, McDonald and the two McArthurs became co-partners in the lumber business on the property in question under the name of McArthur, Smith & Co.; that the business has ■been and is being carried on by that firm very extensively [170]*170and with very large gains; that much valuable timber has beep and is being cut off, and that the whole property is of great value. The bill asks a specific performance of the agreement, an accounting, and such relief by injunction ag wfill protect the complainant’s interests.

We consider it very clear that the case which the complainant makes by his bill is not suitable for the jurisdiction invoked. The power vested in courts of equity to eoippel the specific performance of- contracts, instead of leaying parties in all cases to obtain common-law redress thro,ugh actions for damages, is a very useful one when legitimately exercised. It must, however, be borne ip mind that the jurisdiction hag many necessary limits, and qualifications, and that it does not necessarily attach or operate with imperative force wherever a contract relation exists which the complainant has respected and the defendant has not. In each case the court must consider whether, in view of all the facts and those doctrines which are interwoven vyith the yery texture of equity jurisprudence, and in view of the specific peculiarities presented,, and the settled, principles, and maxims of the court, it is right, and proper- to entertain the ease and administer relief. — McMurtrie v. Bennette,

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Bluebook (online)
29 Mich. 166, 1874 Mich. LEXIS 59, Counsel Stack Legal Research, https://law.counselstack.com/opinion/buck-v-smith-mich-1874.