Clarke v. Woodward

45 S.E.2d 473, 76 Ga. App. 181, 1947 Ga. App. LEXIS 401
CourtCourt of Appeals of Georgia
DecidedNovember 6, 1947
Docket31739.
StatusPublished
Cited by3 cases

This text of 45 S.E.2d 473 (Clarke v. Woodward) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clarke v. Woodward, 45 S.E.2d 473, 76 Ga. App. 181, 1947 Ga. App. LEXIS 401 (Ga. Ct. App. 1947).

Opinions

Sutton, C. J.

(After stating the foregoing facts.) In the general grounds and in special ground 5 of the motion for a new trial, the defendant contends that the verdict is contrary to the evidence and without evidence to support it. The evidence, while conflicting, authorized the jury to find that the defendant was interested in obtaining a coffee shop or a hotel dining room for E. L. Moseley; that, he advanced money to Moseley to operate dining rooms in the Albemarle Hotel, in Toccoa, Georgia, and in the Hotel Hern, in Franklin, North Carolina; that these dining rooms were operated under the name of Albemarle Hotel Dining Room; that the defendant did not enter into any written agreement with Moseley, nor did he receive any notes or other evidence of indebtedness when he advanced money to Moseley; that he was to receive for the use of his money a part of the profits of the business, which part was to constitute a larger return on the money than lawful interest but that no definite sum had been .agreed upon as this was to depend on the amount of profit made by the business; that the defendant was to receive 10 or 15% interest or return on the money furnished Moseley; that about 10 days before the check in question was given, the defendant went to Franklin, North Carolina, where he was introduced by Moseley to the plaintiff as a partner in the busi *184 ness and that the defendant did not deny being a partner with Moseley and shook hands’ with the plaintiff; that Moseley, in the presence of the defendant, told the plaintiff that the defendant “was worth quite a bit of money and he was not worried about any backing”; that Moseley presented a check for $1500 to the Bank of Franklin, signed Albemarle Hotel Dining Room, by E. L. Moseley, and drawn on the Bank of Toccoa, and the bank required him to get some one with a credit standing to endorse it; that the plaintiff endorsed the check as an accom- • modation endorser after he had been shown a deposit book of the Albemarle Hotel Dining Room, showing deposits of $2000; that when plaintiff endorsed the check he “relied on'the statement that Mr. Clark was his [Moseley’s] partner or [plaintiff] would never have endorsed the check”; that Moseley told plaintiff at the time he endorsed the check that he was using the money for the Albemarle Hotel Dining Room, and, so far as plaintiff knew, the money was used for that purpose. It appeared that the check was returned by the Bank of Toccoa on account of insufficient funds, and that it was properly protested and notice of protest duly given to all endorsers on the check; that the plaintiff had reimbursed the Bank of Franklin for said check, but that he had not himself been reimbursed for the same.

The plaintiff testified that Moseley came to his place of business several times; that Moseley told him that the defendant was his partner, backing him up financially, in the Albemarle Hotel Dining Room, and that the defendant was worth quite a bit of money and well represented in Dun and Bradstreet and had a business in Atlanta and would back him up in anything he wanted to do; that Moseley told him that the defendant was his partner in the business, and later brought him to the plaintiff’s drug store and introduced him as his partner; that Moseley later brought him a deposit book, showing deposits of over $2000 in the Bank of Toccoa to the account of the Albemarle Hotel Dining Room and told him he had some checks outstanding at the time. While the plaintiff testified on cross examination that the reason he endorsed the check was the fact that Moseley showed him the passbook that he had a deposit of $2000 in the Bank of Toccoa and was in business there and was an outstanding citizen, on direct examination, he testified that *185 when he endorsed the check for $1500 for Mr. Moseley, he relied on the statement that the defendant was Moseley’s partner, or he would never have endorsed the check. The plaintiff then testified: “You ask if in my statement a minute ago that I relied on the bank book as the inducing cause of my endorsing the check, if that was the only reason I signed the check or whether it was because of the statement in 'regard to Mr. Clarke. Well, more or less on Clarke’s account because he was the one he said had the money. I would not have endorsed the check for $1500 if it had not been represented to me that Clarke, a man of financial standing, was a partner in the business.” Under this testimony, the jury was authorized to find that the plaintiff was induced to endorse the check both by the exhibition to him of the bank book showing deposits of $2000 in the Bank of Toccoa to the account of the Albemarle Hotel Dining Room, and by reason of the fact that he believed that the defendant was a partner in the business' and a man of financial standing.

“A partnership may be created either by written or parol contract, or it may arise from joint ownership, use, and enjoyment of the profits of undivided property, real or personal.” Code, § 75-101. “A joint interest in the partnership property, or joint interest in the profits and losses of the business, shall constitute a partnership as to third persons. A common interest in profits alone shall not.” § 75-102. “An ostensible partner is one whose name appears to the world as such, and he shall be bound, though he has no interest in the firm.” § 75-104. The defendant denied that he was a partner in the business with Moseley, and whether or not such a partnership, actual or ostensible, existed at the time of the issuance of the check in question is the controlling issue of the case. It was held in Swygert Brothers v. Bank of Haralson, 13 Ga. App. 640, 642, 644 (79 S. E. 759): “It is well settled by authority that a partnership may be proved by evidence that each of the alleged partners admitted its existence and his membership” and “that only slight evidence would be necessary to bind the parties as partners in their relations to creditors, although it might require stronger proof to establish the partnership inter sese.” Also, see Scranton, Kolb & Co. v. Rentfrow, 29 Ga. 341; Chaffee St. Amand & Croft v. Rentfroe, 32 Ga. 477. While the defendant in the pres *186 ent case did not state that he was a partner with Moseley, when Moseley introduced him to the plaintiff as1 his partner and stated that the defendant was worth quite a bit of money and that he was not worried about any backing, the defendant did not deny the partnership or that he was backing Moseley as a partner in the business, but acquiesced in the statements. “Acquiescence or silence, when the circumstances require an answer or denial or other conduct, may amount to an admission.” Code, § 38-409. The jury was authorized to find that Moseley told the plaintiff in the defendant’s presence that the defendant was a partner in the Business with him and that the defendant did not deny the statement but gave his implied approval to it by remaining silent and shaking hands with the plaintiff, and that the plaintiff, when he endorsed the check, did so because he relied on the representations made by Moseley and acquiesced in by the defendant, that the defendant was a partner in the business. It was held in Slade v. Paschal, 67 Ga.

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Bluebook (online)
45 S.E.2d 473, 76 Ga. App. 181, 1947 Ga. App. LEXIS 401, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clarke-v-woodward-gactapp-1947.