Cain's Administrator v. Hubble

211 S.W. 413, 184 Ky. 38, 6 A.L.R. 146, 1919 Ky. LEXIS 25
CourtCourt of Appeals of Kentucky
DecidedApril 25, 1919
StatusPublished
Cited by7 cases

This text of 211 S.W. 413 (Cain's Administrator v. Hubble) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cain's Administrator v. Hubble, 211 S.W. 413, 184 Ky. 38, 6 A.L.R. 146, 1919 Ky. LEXIS 25 (Ky. Ct. App. 1919).

Opinion

Opinion op the Court by

Judge Hurt

Reversing in part and affirming in part.

G. W. Cain died on December 24, 1907. For ten or twelve years previous to Ms death, he and the appellee, R. S. Hubble, had been partners, and, as such, had engaged in conducting saloons, “pop joints,” and a livery stable. A saloon, owned by them in North Somerset, •was conducted under the name of Cain & Hubble, while, at the same time, a saloon, owned by them in South Somerset, was conducted under the name of Hnbble & Cain. While they were still doing business as partners, under the firm names of Cain & Hubble and Hubble & Cain, the appellee,Beecher Smith,and Cain and Hubble, entered into an arrangement, under which the three, jointly purchased a lot, in the city of Somerset, upon which there stood, at that time, a small house. They agreed to purchase the lot, to remove or pull down the house, then upon the lot, and to build, thereon, a three story, brick structure to be thereafter let for rental for business purposes. The agreement was further, that each should pay one-third of the cost of the lot, and the erection of the building thereon, and each was to be an owner of one-third of the property, and as necessary incidents to the ownership, to receive one-third of the profits of the enterprise and to bear one-third of the expenses, incident to the ownership. They described their status, as owners and conductors of the business of the purchase, ownership and management of the property, as R. S. Hubble & Co., or Hubble, Cain & Smith, or Cain, Hubble & Smith. The deed, under which they held the property, contained the following description of them, and the interests to be held by each: “R. S. Hubble & Co. composed of R. S. Hubble, Beecher Smith and. G. W. Cain, one-tMrd to [40]*40R. S.' Hubble, one-third to Beecher Smith, one-third to Gr. W„ Cain, . .. They chiefly conducted their business affairs in the name of Cain, Hubble & Smith, or Hubble, Cain & Smith, or Beecher Smith, treasurer for Cain, Hubble & Smith, or Hubble, Cain & Smith. The names, Cain, Hubble & Smith, and Hubble, Cain & Smith were used interchangeably, as it seems, by inadvertence, and occasionally accounts were rendered against them, in the name of R. S. Hubble & Co. The purchase of the lot by R. S. Hubble & Go. was effected on December 19,1904, and the property was conveyed to it, on the 6th day of July, 1905, and thereafter, the new building was erected upon the lot.

On January 16, 1909, this suit was instituted by the administrators of GK W. Cain, against R. S. Hubble and Beecher Smith. The purpose of' the suit, as expressed in the petition, was to secure a settlement of the partnership of Cain & Hubble, or Hubble & Cain. These names seem to describe the same partnership, and we will, hereafter, denominate it, the partnership of Cain & Hubble. Beecher Smith, as a party to this suit, was served with a summons to answer and defend it, on January 18, 1909. The petition alleged, that Hubble, as a partner of Cain, was indebted to the partnership, in the sum of $5,000.00 arising out of having received of the partnership assets, that sum, in excess of the amounts, which had been received by Cain, and that the two-thirds interest, owned by Cain and Hubble, in the house and grounds, owned by R. S.‘ Hubble & Co., was an asset of the partnership of Cain & Hubble, and was acquired by an investment of the partnership money of Cain & Hubble, and that it, in fact, was the only property owned by the partnership of Cain & Hubble, except a few worthless accounts. Beecher Smith was alleged to be the owner of the remaining one-third interest in the property of R. S. Hubble & Go., and held a mortgage lien thereon, and for such reason, was made a party. A judgment was prayed for a settlement of the partnership, and adjudgment in favor of the administrators of Cain, for such sum, as a settlement of the accounts of Cain & Hubble, would show Hubble indebted, and for a sale of the house and lot, and other orders and relief necessary to effect a settlement of the partnership and a recovery, by the administrators of Cain, of such part of the assets of the partnership of Cain & Hubble, as they were entitled to [41]*41receive. Hubble answered, but failed to deny, that tbe interests, owned’ by him, and Cain, in tbe building, grounds and assets of R. S. Hubble & Co., were assets of the partnership of Cain & Hubble. Upon a reference to a commissioner to report a settlement of the accounts of Cain & Hubble, it was reported, that Hubble was indebted to the partnership, in the sum of $5,188.36, and was, therefore, indebted to the administrators of Cain, in the sum of $2,594.18.

Previous to the death of Cain, on December 1, 1905, Cain, Hubble and Smith executed, to Walter Smith, a joint note for $3,000.00, which they secured by a mortgage, in which their wives joined, upon the building and lot of R. S. Hubble & Co., and the proceeds went to assist in the erection of the building.

On July 26, 1907, Hubble and Cain executed a joint note to the First National Bank of Somerset, for the sum of $3,000.00 with L. P. Hunter, as their surety, and1 to secure Hunter against loss, they, together with their wives, executed, to him, a mortgage upon their interests in the property of R. S. Hubble & Co., and to give Hunter a superior lien upon such interests, Walter Smith and Beecher Smith joined in the mortgage, wherein it was expressly provided, that Hunter’s lien, upon Cain and Hubble’s interests, should be superior to the lien of Walter Smith, and it, also, had the effect of making the lien superior to any, that could be claimed by Beecher Smith. On June 29,1909, W. D. Gover became the surety of Hubble, in a note to the First National Bank of Somerset, in the sum of $300.00, and to secure him from loss, Hubble and his wife, executed a mortgage, to Gover, upon the undivided interest of Hubble in the building and grounds owned by R. S. Hubble & Co. This note, Gover was compelled to pay, which, with its interest, amounted to $385.50.

On January 6, 1910, Beecher Smith, became the surety of Hubble, in a note to First National Bank of Somerset, in the sum of $1,200.00, and to secure Smith_from loss, as such surety, Hubble and wife, executed, to him, a mortgage upon Hubble’s one-third interest in the building and lot of R. S. Hubble & Co. Smith was compelled to pay this debt.

On November 1, 1911, Hubble executed to Beecher Smith a note for the sum of $1,500.00 and to secure its [42]*42payment, together with his wife, executed a mortgage to-Smith upon his one-third interest in the building and lot-of R. S. Hubble & Co.

Beecher Smith, also, claimed, that R. S. Hubble & Co. was indebted- to him, in the sum -of $2,699.43, for materials, furnished, by him, to it, and which went into-the construction of its building, and -equipments, and for moneys paid for it, in premiums, for insurance upon its property, and other items of indebtedness, which were-advances by him to R. S. Hubble So Co.

Beecher Smith, by his answer, counterclaim, and. cross-petition, averred, that R. S. Hubble & Co. was a. partnership, and prayed, that a settlement of the partnership be had, the property sold, and a distribution of' the proceeds, as the rights of the parties demanded.

Hubble obtained a discharge in bankruptcy as of the-27th day of March, 1913.

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Cite This Page — Counsel Stack

Bluebook (online)
211 S.W. 413, 184 Ky. 38, 6 A.L.R. 146, 1919 Ky. LEXIS 25, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cains-administrator-v-hubble-kyctapp-1919.