Child v. Swain

69 Ind. 230
CourtIndiana Supreme Court
DecidedNovember 15, 1879
StatusPublished
Cited by21 cases

This text of 69 Ind. 230 (Child v. Swain) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Child v. Swain, 69 Ind. 230 (Ind. 1879).

Opinion

Howk, C. J.

In this case, it appears from the record on file in this court, that on the 28th day of December, 1876, the appellee David F. Swain, as sole plaintiff, commenced an action against the appellant John A. Child, as sole defendant, to recover damages for the alleged breach by said defendant of a written contract of copartnership, executed on the 22d day of November, 1876, by and between the said Swain, the said John A. Child, and the appellee James Kearney Graham. With his complaint the'said Swain filed the proper affidavit and undertaking for an order of attachment against the property of said J ohn A. Child, and also an affidavit in garnishment against the appellants Albert R. Baker and Louis Schmidlap.

The appellant John A. Child answered said Swain’s complaint and affidavit in attachment' by a general denial thereof; and the garnishees, Baker and Schmidlap, answered that they had sufficient funds of said John A. Child under their control to pay any judgment which said Swain might recover in this action.

On the 12th day of April, 1877, the appellee James Kearney Graham, as sole plaintiff, commenced an action against said John A. Child, as sole defendant, to recover damages for an alleged breach by said Child of the same contract of copartnership between him and the said Graham and the said Swain. With his complaint the said Graham also filed an affidavit and undertaking in attach[232]*232ment. To said Graham’s complaint and affidavit the appellant John. A. Child answered by a denial of the matters stated therein.

The two causes above mentioned were consolidated, and, as such consolidated cause, were submitted to the court for trial; and, during the progress of the trial, each of the said plaintiffs was allowed by the court to amend his complaint to which amendments the appellants excepted and filed their bills of exceptions. At the appellants’ request, the court made a special finding of the facts and of its conclusions of law thereon, in substance, as follows:

“ The above causes being submitted to the court for trial by agreement, without a jury, the defendant asks the court for a special finding of facts and conclusions of law thereon, which the court makes, as follows :

“ 1. On the 22d day of November, 1876, and for a long time before, and up to the 22d day of November, 1876, the defendant John A. Child was a resident of the city of Indianapolis; that on said 22d day of November, 1876, said Child was, and for a long time prior thereto had been, an insurance agent at Indianapolis, representing several first-class fire insurance companies, and was, as such agent, doing a business, the net profits of which were about $3,000 per annum.

“ 2. That the reputation of said Child at Indianapolis, at and before said November 22d, as a citizen, business man and insurance agent, was excellent, and his name and the good-will of his said business were valuable.

“3. That on said November 22d, 1876, said Swain, Graham and Child entered into the contract in writing, a copy of which is filed with the complaint in each of the above named cases.

“ 4. In pursuance of said contract, plaintiff Swain, on or about December 1st, 1876, executed and delivered to said Child his promissory notes, payable at a hank of discount and deposit in the State of Indiana, secured by [233]*233mortgage and drawing interest, to the full amount of $1,000, which notes were then and there delivered and received by said Child in payment of said $1,000 stipulated for in said contract; said notes were immediately and before maturity by said Child sold to an innocent purchaser for value, who still holds such of them as have not been paid by said Swain; said notes were abundantly secured by mortgage on real estate, and said Swain has paid a part of them, and is bound for and abundantly good and able to pay the balance.

“ 5. That the plaintiff Graham, in pursuance of said contract, paid to said Child on or about December 1st, 1876, the sum of $233.33 in cash, and executed his two notes, payable at a bank of discount and deposit in the State of Indiana, for the residue of the $875.00 stipulated in said agreement to be paid by him, being $641.67; which notes said Child, immediately and before maturity sold to an innocent purchaser for value, who has sued the same, obtained judgment and execution thereon, and which execution has been returned nulla bona. An interest in at least one article of office furniture was, by the terms of said contract, sold to said Graham, and he was put into and still retains possession thereof.

“6. On December 1st, 1876, said firm, consisting of said Child, Swain and Graham, as provided for in said contract, commenced business and carried on said business, under said contract, until December 22d, 1876, during which time said Child gave very little attention to said business, and the net profits thereof amounted to about '$160, of which the share-of said Child was carried to his credit, on the books, and is held for him, though neither of said plaintiffs have ever offered to account to defendant Child for any portion of the profits of said firm.

“ 7. That on said December 22d, 1876, the agency of all the insurance companies represented by said firm [234]*234stood in the name either of said Child alone, or of said Child, Swain & Co., that being the firm name.

“ 8. On said Dec. 22d, 1876, said Child, without any notice to either of his partners, abandoned and severed his connection with said firm, abandoned his wife and children, absconded from the city of Indianapolis and State of Indiana, in a disgraceful manner, and thereby brought great discredit, not only on his own name, but on said firm and its reputation and business.

“ 9. That Child has never returned to the State of Indiana, but went immediately to Oregon, where he has ever since resided and now resides; that, by said flight and abandonment by said Child, said Swain and Graham, were greatly embarrassed in their said business, and put to great trouble and expense in and about the procuring and retaining the agency of said insurance companies,with most of which their connection theretofore had been solely through said Child; their business was greatly damaged; they lost all benefit of his name, influence, and the goodwill of his said business, and thereby the said Swain was damaged in the full amount of the $1,000 so paid by him, and the said Gi’aham in the full amount of $233.33 so paid by him.

“ 10. That, since his said flight, said Child has never communicated with either said Swain or Graham in any way, nor offered to perform his part of said contract; but said plaintiffs fully performed all the obligations on their part, under said contract.

“ 11. That, prior to leaving the State of Indiana, said Child sold a considerable part of his property and took the proceeds with him, and tried to sell all his property before leaving, but did not succeed, and thus left property, in the State of Indiana, in value equal to or in excess of his debts, but he left no money or other funds presently available for the payment of his debts, and the property left [235]*235by him in the State of Indiana consisted principally in some land in Clay county, and an undivided interest in the firm of Schmidlap & Co., in Indianapolis, Indiana.

“ 12.

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Bluebook (online)
69 Ind. 230, Counsel Stack Legal Research, https://law.counselstack.com/opinion/child-v-swain-ind-1879.