Butte Hardware Co. v. Wallace

22 A. 330, 59 Conn. 336, 1890 Conn. LEXIS 30
CourtSupreme Court of Connecticut
DecidedSeptember 12, 1890
StatusPublished
Cited by12 cases

This text of 22 A. 330 (Butte Hardware Co. v. Wallace) is published on Counsel Stack Legal Research, covering Supreme Court of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Butte Hardware Co. v. Wallace, 22 A. 330, 59 Conn. 336, 1890 Conn. LEXIS 30 (Colo. 1890).

Opinion

Fenn, J.

In this action, tried to a jury, and in which the defendant obtained a verdict, the plaintiff, a corporation located in Butte City, Montana, sought to recover from Thomas Wallace, of Ansonia in this state, the only defendant upon whom service was made, upon certain alleged rights of action against said Wallace and one James King of said Butte City. It was admitted that Wallace did not personally make any of the contracts recited in the complaint, and it was not claimed that he was separately liable upon any of the causes of action arising therefrom, the only substantial controversy in the entire case being whether or not King had authority to make Wallace liable upon such contracts jointly with himself.

The alleged errors of the court, as assigned in the thirty-seven reasons of appeal, are partly in relation to rulings upon evidence, but much more largely concern the charge of the court to the jury. Very fortunately however, as we deem, the manifold assignments which relate to the charge do not appear to require, or even warrant, the space which would be necessary for their detailed consideration.

On the trial the evidence tended to show that prior to August, 1882, there was a corporation in Butte City called “ The Belle Silver & Copper Mining Company,” owning The Belle Mine, so called. The corporation was then in great financial trouble, its real estate mortgaged, its personal property attached, its business at a stand still. About [338]*338this time King interested himself in its affairs, and induced Wallace to become interested. King became the owner of a majority of the stock, one half of which he transferred to Wallace. The attachments were released and business recommenced. King was made president and Wallace a director, and there were other changes. Under the new administration the business was carried on until 1885, when it collapsed. In the carrying on of the business supplies were furnished from time to time by various parties, the plaintiff among others. All negotiations and all contracts were made by King, who attended personally to all the affairs of the company in Montana, Mr. Wallace being there usually but once in each year (in 1884 twice), remaining but for brief periods on each visit.

It was the claim of the plaintiff that Wallace and King were partners in all this business, that all the negotiations and contracts made by King were on the joint account and for the joint benefit of himself and Wallace, and that the law would imply a partnership from the conduct of the business, in the absence of any agreement therefor; and further, that Wallace had permitted King to represent that he was a partner, that they made the contracts set forth in the complaint relying upon such representations, and that therefore Wallace was liable to them as a partner with King ; all of which Wallace contested, claiming that all the business carried on, at and about the mine, was conducted in the name and on the account of the corporation ; that whatever was done by him or King in these matters, was done by them as officers in and stockholders of the corporation, and on its account.

The plaintiff, as a part of its evidence, read the deposition of King, taken by it. Among other questions in the deposition, the plaintiff asked the deponent:—“ Was it not the general understanding in Butte that the mine and smelter were run on the credit of Wallace and King?” The defendant objected to the question, and the court ruled it out. This ruling was correct. Brown v. Crandall, 11 Conn., 92. Indeed the plaintiff did not undertake to maintain, in the [339]*339argument before this court, that such evidence would be admissible to prove the actual existence .of a partnership, and the finding states, as we have seen, that the only substantial controversy through the entire case was, whether or not King had authority in making these contracts to make Wallace liable upon them jointly with himself; but the plaintiff says in its brief that this evidence was admissible and should have been received for the purpose of showing that the plaintiff in fact gave credit to Wallace and King; also as tending to prove that Wallace knew that King was operating the property in the name of Wallace and King; and that the notoriety of that fact was of importance, since if everybody else knew it, he should be presumed to have known it also. Inasmuch as this question was embraced in a deposition taken before the trial, and objection to it was taken and noted at the time, we are constrained to believe that these suggestions of the plaintiff now made are in the nature of after-thoughts, as a further suggestion of the plaintiff that the evidence ought to have been admitted, as dependent on a certain portion of the charge of the court to the jury would certainly seem to be ; but whether so or not, we fail to apprehend the force of the suggestions made, for without taking time to mention other cogent objections to the admissibility of the evidence offered for such purposes, if the plaintiff, or those whose claims, as under some of the counts in the complaint it is alleged, belong to the plaintiff by assignment, gave credit to Wallace and King, that fact is susceptible of direct proof, and general reputation, or understanding that business was done on their credit, is not the best evidence, or relevant evidence of such fact. In the language of the court in Brown v. Crandall, supra—‘‘ There is nothing in the nature of the fact to be proved requiring the admission of such testimony.” So also of the further claim of the plaintiff, that this evidence was admissible as tending to prove that Wallace knew that King was operating the property in the name of Wallace & King—as the plaintiff puts it, “ the notoriety of the fact.” Not only is such evidence inadmissible to prove it to be a fact, but even [340]*340if such proof were otherwise supplied, audit certainly does not seem to have been, a general understanding in Montana would appear to be a somewhat dangerous basis upon which alone to impute to Mr. Wallace, who resided in Connecticut, either actual or constructive knowledge thereof. The question propounded by the plaintiff—“ If everybody else in the world knew this fact except Mr. Wallace, would not this be of significance ? ”—is hardly pertinent.

The plaintiff inquired of Mr. King if one Pitman had not brought a suit in Butte City against Wallace & King. The defendant objected to the question, but as the court admitted it, the plaintiff would not seem to have been aggrieved, and this, though assigned as the second ground of appeal, was not pressed.

Upon the cross-examination of King the defendant asked him—“Was there ever any partnership existing between you and Thomas Wallace ? ” He answered “ There never was any such partnership, nor were we ever partners under the name of Wallace & King. The names were used for convenience in keeping the bank account.” The plaintiff objected to the question, on the ground that it called for the opinion of the witness as to what in law constituted a partnership.

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Bluebook (online)
22 A. 330, 59 Conn. 336, 1890 Conn. LEXIS 30, Counsel Stack Legal Research, https://law.counselstack.com/opinion/butte-hardware-co-v-wallace-conn-1890.