Cole v. Price

60 P. 153, 22 Wash. 18, 1900 Wash. LEXIS 207
CourtWashington Supreme Court
DecidedJanuary 2, 1900
DocketNo. 3331
StatusPublished
Cited by11 cases

This text of 60 P. 153 (Cole v. Price) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cole v. Price, 60 P. 153, 22 Wash. 18, 1900 Wash. LEXIS 207 (Wash. 1900).

Opinion

The opinion of the court was delivered by

Gordon, C. J.

The complaint in this action alleges that in May, 1893, the plaintiff and defendant E. W. Price formed a partnership for the purpose of carrying on a general brokerage and investment business, buying and selling bonds, warrants, stocks, and other securities, and dealing-in real and personal property; that they were to share equally the profits and losses; that respondent was to contribute the sum of $96,000, and the defendant E. W. Price $15,000, and no definite time was fixed upon for the continuance of the- partnership; that the plaintiff has contributed towards the capital of said partnership sums in excess of $96,000, and that Price has not in fact contributed the full sum of $15,000, which by the terms of the partnership agreement he was to contribute; that since the formation of the partnership Price has had almost exclusive control, management, and direction of the property and affairs thereof, and has in his possession the books of account, correspondence, and the property and assets of said partnership, except two stock certificates; that, of the investments made with the funds of the partnership in loans, stocks, notes, security, and real and personal property, large amounts have been made in the sole name of Price; that the Lumbermen’s Logging Company, a corporation, one of the defendants, was organized by the partners for the purpose of holding title to certain timber lands [20]*20belonging to the partnership; that the partnership is, and always has been, the owner of all the, stock of said corporation, which was formed for convenience, merely, and-all the assets and property thereof belong to said partnership; that the corporation holds the title to certain timber lands in the state, particularly described in the complaint; that, contrary to the partnership agreement, Price has purchased and taken title to real and personal property in his own name without consultation with or consent of plaintiff, and has pledged large sums of money on the credit of the partnership, and secured said sums with securities belonging thereto, all of which was done without authority, and contrary to the partnership agreement; that the defendant Maggie B. lárice is the wife of the defendant E. W. Price,, and that without plaintiff’s knowledge or consent, and contrary to the partnership agreement, Price has pledged the securities and collaterals belonging to the said partnership to secure the individual notes of his wife, amounting to-$6,200, which sum remains unpaid, and has also pledged said partnership collaterals to secure his individual indebtedness, amounting to $2,000; that Price’s purpose in taking the title of the partnership assets in his own name, contrary to the partnership agreement, was to mislead and deceive plaintiff, and that he has treated such property as his individual property; that in September, 1898, he stated to plaintiff that everything belonging to the partnership-had been lost, but refused to give plaintiff any information regarding the situation or condition of the assets or liabilities of said partnership; and notwithstanding that-the losses of said partnership business have exceeded any profits thereof, and that Price was not entitled to draw any sums upon his individual account, nevertheless he has continued to draw out and spend large sums of money from the property and assets of the partnership, far exceeding-the amount contributed by him thereto. Various other [21]*21matters of similar character are set forth in the complaint; also, upon information and belief, it is alleged, that the liabilities of the partnership are sufficient, if properly husbanded and managed, to pay all the indebtedness of the partnership, and that plaintiff desires a dissolution of the partnership and an accounting, and the appointment of a receiver with the usual powers. The complaint then proceeds to set forth reasons for the appointment of a receiver provisionally. The complaint, together with the affidavit of the plaintiff in support thereof, was filed on the 15th of February, 1899. On that day an order was made appointing a receiver, fixing his bond at $10,000, and citing the defendants to appear on the 24th day of [February, 1899, and show cause why a receiver should not he appointed pending the action. The order contained this express provision:

This appointment of said receiver is temporary merely, and shall remain in force until the said hearing he had on plaintiff’s application for a receiver pending this action and until the further order of the court.”

The order also recites that, if the rebeiver is not appointed immediately, plaintiff is liable to suffer great loss and damage, and finds that an emergency exists, requiring the appointment without notice in order to secure justice to the parties. On the return day (but upon whose application, the record does not show) the hearing was continued until the 3d day of March, 1899. On that day the court denied defendants’ motion to vacate its previous order, and, after hearing and considering numerous affidavits for and against the appointment of a receiver, a receiver was appointed to take possession of the property of the partnership, including the property of the Lumbermen’s Logging Company, during the pendency of the action. This last order was based upon certain specific findings of fact set forth at length in the order of appointment, — among [22]*22others, that plaintiff and defendant E. W. Price are in'solvent and that the firm is insolvent, and that the property standing in the name of the Lumbermen’s Logging Company is the property of the partnership, and that said corporation is a mere name and agent thereof; “that the charges made by the respective members of said firm of Cole and Price against each other are of such a nature that the due administration of justice and the proper management of the affairs of said firm require the appointment of a receiver; . . and . . that all the property standing in the name of said defendant E. W. Price is the property of said firm.” To the making and entering of this order the defendants save a general exception. By their appeal defendants seek to review — First, the order of the superior court appointing the receiver provisionally and without notice; second, the order denying defendants’ motion to vacate the order of appointment; third, the order of March 3, 1899, appointing a receiver after hearing had. The notice of appeal was given in open court on March 3, 1899, and was a joint notice; no written notice of appeal has ever been given. [Respondent has moved to dismiss the appeal from the order of February 15th appointing an emergency receiver upon the ground that the notice of appeal was not given or made until sixteen days after the order sought to be reviewed was entered, and upon the further ground that the notice,' not having been given in open court at the time the order sought to be reviewed was made, should have been in writing and served and filed as required under § 4 of the Session Laws of 1893, p. 121. The record before us shows that the emergency order was entered and served upon the defendants E. W. Price and Maggie B. Price on the 15th day of February, 1899. It does not, however, show when, if ever, the service was made upon the Lumbermen’s Logging Company. As to the Prices the motion is well taken upon both grounds stated. Ses[23]*23sion Laws 1899, ch. 49, p. 79, cited by the appellants in opposition to the motion, was not in effect at the time of the attempted talcing of this appeal.

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Cite This Page — Counsel Stack

Bluebook (online)
60 P. 153, 22 Wash. 18, 1900 Wash. LEXIS 207, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cole-v-price-wash-1900.