Cowart v. Fender

73 S.E. 822, 137 Ga. 586, 1912 Ga. LEXIS 100
CourtSupreme Court of Georgia
DecidedFebruary 15, 1912
StatusPublished
Cited by24 cases

This text of 73 S.E. 822 (Cowart v. Fender) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cowart v. Fender, 73 S.E. 822, 137 Ga. 586, 1912 Ga. LEXIS 100 (Ga. 1912).

Opinion

Hill, J.

The plaintiff contracted with the firm of Powell & Kendall, alleged to be composed of Charles J. Kendall, M. M. Kendall, and D. B. L. Powell, to purchase a certain “turpentine farm,” and paid to that firm $12,000 as part of the purchase-money. It was alleged, that the plaintiff was induced to enter into the trade by false and fraudulent representations of M. M. Kendall' and W. II. C. Cunningham, knowingly made; and that the firm of Cowart & Cunningham (composed of said Cunningham and J. S. Cowart) were simply confederating with Powell & Kendall to obtain money from the plaintiff upon the false and fraudulent pretence that the last-named firm had a valid title and lawful right to sell him the property, which neither firm had, the title to the property being in the Moye Naval Stores Company. The firm of Cowart & Cunningham had an option or contract of purchase with the owners; they contracted to sell to Powell & Kendall, who in turn made an agreement to sell to the plaintiff. The evidence showed that M. M. Kendall, at the request of Powell & Kendall, or one of its members, was requested by that firm to aid them in making the sale to the plaintiff, and was promised for his services one third of the profits arising from such sale. Of the $12,000 paid by the plaintiff to Powell & Kendall, $8,000 was by them turned over to the firm of Cowart & Cunningham; and the remaining $4,000 Powell & Kendall divided, one third to' each of the members of that firm and one third to M. M. Kendall for his services in connection with the sale to the plaintiff. After the failure of the parties to finally consummate the sale, the plaintiff brought a joint suit against’ the two firms named, in assumpsit for money had and received, to recover the $12,000 paid out by him. M. M. Kendall, W, PL C. Cunningham, and J". S. Cowart each filed a special plea, averring that he did not belong to the respective firm of which he was alleged to be a member, and the issues as to partnership were submitted to the jury along with the entire case. The following verdiet was returned and made the judgment of the court: “We, the jury, find in favor of the plaintiff, J. F. Pender, against each and all of the defendants, Powell & Kendall, a firm composed of M. M. Kendall, C. J. Kendall, and D. B. L. Powell, and Cunningham & Cowart, a firm composed of W. H. C. Cunningham and J. S. Cow-art, the total sum of $12,000, with interest from Nov. 26th, 1905, at the rate of 7 per cent, per annum therefrom. ” The defendants [588]*588filed a motion for a new trial, and excepted to the order of the court overruling it; also assigning error in the bill of exceptions on certain pendente-lite rulings made by the court. The motion for a new trial contained numerous grounds, and only those material to be considered under the direction we deem proper to give the case are hereinafter referred to.

1. The main question is,' was the action properly brought against all the defendants jointly, and in the county of the residence of one of the defendants ? We think not. The plaintiffs are not suing in tort for damages against all the defendants as joint tort-feasors, where all would be jointly liable, but they waive the tort and sue the defendants in assumpsit for money had and received, on the implied contract to refund the money, which in good conscience and equity they are supposed to return. Where an action is brought in tort, every one who participated in the tort is liable as a joint tort-feasor, and the act of one is the act of all. But the plaintiff in this case waives the tort and does not sue for damages, but sues in assumpsit against all the defendants jointly for the recovery of the money alleged to have been paid by him to them. In the latter case, the rule is different from the former, and the act of one is not the act of all; and a joint action can be maintained only against defendants who have jointly received the money. Limited Inv. Assn. v. Glenville Inv. Assn., 99 Wis. 54 (74 N W. 633); Manahan v. Gibbons, 19 Johns. 427; Ward v. Hood, 124 Ala. 570 (27 So. 245, 82 Am. St. R. 205); Murphy v. Bidwell, 52 Mich. 487 (18 N. W. 230); National Trust Co. v. Gleason, 77 N. Y. 400, 408 (33 Am. R. 632); Shepardson v. Rowland, 28 Wis. 108; Simmons v. Spencer, 9 Fed. 581, 582. If Fender, the plaintiff, had paid over to the two firms and M. M. Kendall the entire sum sued for jointly, not knowing how they divided it, the status would be different. But where he paid it to one firm, Powell & Kendall, as disclosed by the record, the law will not imply a promise on the part of the second firm to refund the whole amount, when it did not receive the whole amount. By what rule does the firm of Cowart & Cunningham impliedly promise to pay back the $12,000, which they have not received? Bear in mind that we are not now discussing a case of damages growing out of tort, where the rule is different, but the proposition of an implied promise to repay on a quasi-contract to return what has been actually received, [589]*589and no more. The law of tort can not be carried over into the law of contract (and especially where the tort is waived), and permit the plaintiff to recover against all of the defendants jointly, whether they received the money jointly or not. The action in assumpsit can not be jointly maintained against all of the defendants, unless the payment was jointly made to the two firms and M. M. Kendall. Where the tort is waived and the suit is in assumpsit for money had and received, evidence of conspiracy and fraud is admissible only to show that the party who received the money is not entitled to keep it, but is bound in good conscience to return whatever he did receive. If several persons conspire to defraud one of his money and succeed in receiving the money jointly, suit can be brought against all who take part in the conspiracy, in one action, and in any county where either defendant resides. It is the community of wrong committed that gives the joint right of action. And the law will imply a promise to give back to the owner money wrongfully taken; and where the wrongful or fraudulent act is joint, they are joint tort-feasors and jointly liable for their tort. But in a case of conspiracy to defraud one of his money, where the money is not received jointly but in separate amounts, and the suit to recover is in assumpsit, then each must be sued for the amount received, and in the county of his residence.

Applying the principles above announced to the facts of this case, we do not think there was such a common receipt of the money paid by Fender to the two firms, Powell & Kendall and Cowart & Cunningham, and M. M. Kendall, as would imply a joint promise to return it. If Powell & Kendall received all the money paid by the plaintiff Fender, they would be primarily liable. But the evidence discloses that neither Cowart & Cunningham nor M. M. Kendall received the $12,000 sued for jointly with the other firm, and therefore, while they are not liable under the ruling here made, under the evidence in this case, for the entire amount of $12,000, they might be liable severally for whatever portion of it they each did receive, if any. From what has been said above, it follows that Cowart & Cunningham could not be joined in a suit with Powell & Kendall, and therefore a court of a county not of their residence would have no jurisdiction over them. And the same would apply to M. M. Kendall, if he is not a member of the firm of Powell & Kendall. It appears from the record that he had [590]

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Bluebook (online)
73 S.E. 822, 137 Ga. 586, 1912 Ga. LEXIS 100, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cowart-v-fender-ga-1912.