Cumberland County Power & Light Co. v. Gordon

7 A.2d 619, 136 Me. 213, 1939 Me. LEXIS 23
CourtSupreme Judicial Court of Maine
DecidedJuly 21, 1939
StatusPublished
Cited by6 cases

This text of 7 A.2d 619 (Cumberland County Power & Light Co. v. Gordon) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cumberland County Power & Light Co. v. Gordon, 7 A.2d 619, 136 Me. 213, 1939 Me. LEXIS 23 (Me. 1939).

Opinion

Hudson, J.

On defendant’s exceptions to acceptance of Referee’s report.

The plaintiff sues to recover compensation for “electric light and cooking service” and balance of purchase price for sale of certain restaurant equipment. As to both, the Referee reported for the plaintiff.

Late in 1934 or early in 1935, the defendant, together with Max Gordon and Samuel Gordon, then all of Lewiston, formed a co-[215]*215partnership “for the purpose of Delicatessen & Restaurant in the city ... of Lewiston under the partnership name of Gordon’s Delicatessen.” On May 27, 1935 they made and caused to be filed in the city clerk’s office in Lewiston certificate of association in accordance with Section 4 of Chapter 44, R. S. 1930.

They carried on the partnership business in Lewiston until April, 1936 when the defendant agreed in writing to retire and sold all his rights and interests in the partnership to his co-partñers. Upon his retirement, however, he did not file in the clerk’s office a withdrawal certificate.

Following his withdrawal, Max and Samuel Gordon transacted business under the same name in Lewiston.

In April, 1937, Max and Samuel opened a “delicatessen and restaurant” in Portland and so conducted it. No new certificate was filed in the clerk’s office in Portland.

Following the defendant’s withdrawal, he had nothing whatever to do with the business either in Lewiston or in Portland.

The items sued were contracted at the Portland store. The restaurant equipment was purchased under a conditional sales contract which was signed:

“Gordon’s Delicatessen
By Max Gordon
By Sam Gordon
608 Congress St.
Portland, Maine”

It is not contended that the defendant personally had anything to do with this purchase or with the furnishing of the electric service.

On December 7, 1937 Max and Samuel made a common-law assignment of the assets to one Lessard for the benefit of creditors. The plaintiff, notified of the assignment, refused to assent to it, but afterwards did accept and collect a dividend check from the assignee, designated as “First & Final Dividend —9.6%,” signed “Gordon’s Delicatessen by: Alton A. Lessard, Assignee,” and bearing on its back the following notation:

“In full satisfaction of all claims against Max Gordon, Sam Gordon & Alton A. Lessard, Common Law Assignee.”

[216]*216The plaintiff (as under the conditional sales contract it had the right to do) repossessed the property, sold it, and credited it on its indebtedness.

The plaintiff bases its right to recover on said Section 4 which reads:

“Whenever two or more persons become associated as partners or otherwise for the purpose of engaging in any mercantile enterprise, they shall, before commencing business, deposit in the office of the clerk of the city or town in which the same is to be carried on, a certificate signed and sworn to by them, setting forth their names and places of residence, the nature of the busines in which they intend to engage, and giving the name under which they are to transact business. Whenever any member of such partnership or association withdraws therefrom, he may certify under oath to the fact of such withdrawal, which certificate shall be deposited in the clerk’s office where the partnership certificate is recorded; and he shall conclusively be presumed to be a member of the firm or association to the time of his depositing such certificate.”

Under this statute, because of the failure to file the withdrawal certificate, there could be no question as to the liability of this defendant had the remaining partners, after his withdrawal, contracted-new indebtedness m its Lewiston store within the actual or apparent scope of the partnership business.

At common law the voluntary assignment of the interest of any member of a partnership at will worked a dissolution.

As stated in Smith v. Virgin, 33 Me., at page 156:

“In a partnership at common law with no agreement to continue for any specified time, or to qualify in any manner the principles ordinarily applicable, a dissolution takes place on the assignment of the interest of any member.”

Also see 20 R. C. L., Section 178, page 954, to the effect that every change in the personnel of a firm works a dissolution and a new partnership is formed whenever a partner retires or a new one is admitted. Also see Story on Partnership, Sections 269, 272, 302, and 307.

[217]*217As to the common-law effect of the dissolution of a partnership, Mr. Story says in Section 334:

“. . . the dissolution of a partnership, whether it be by the voluntary act or will of the parties, or by the retirement of a partner, or by mere efflux of time, will not in any manner change the rights of third persons, as to any past contracts and transactions with, or on account of the firm; but their obligation and efficacy and validity will remain the same, and be binding upon the partnership in the same manner, as if no dissolution had taken place. In the next place, such a dissolution will not absolve the partners from liabilities to third persons for the future transactions of any partners, acting for, or on account of the firm, unless some one or more of the following circumstances occur. (1.) That the third persons dealing with, or on account of the firm, have due notice of the dissolution; or, (2.) That they have had no transactions whatsoever with the firm until after the dissolution; or, (3.) That the partnership was not general, but limited to a particular purchase, adventure, or voyage, and terminated therewith before the transaction took place; or, (4.) That the new transaction is not within the scope and business of the original partnership; or, (5.) That it is illegal, or fraudulent, or otherwise void from its defective nature or character; or, (6.) That the partner, sought to be charged, is a dormant partner, to whom no credit was actually given, and who retired before the transaction took place.”

To what extent does this statute enacted in 1915 modify the common law as to the effect of a dissolution by the withdrawal of a partner ? It provides a particular manner in which the notice of the withdrawal shall be given and then states that unless the notice is so given the withdrawing partner shall be presumed conclusively to be a member of the firm or association to the time he does file his withdrawal certificate.

Still, that does not mean that the retiring partner is conclusively presumed to be liable for every debt that the remaining members of the partnership may thereafter contract. The effect of the conclusive presumption in the absence of estoppel is limited to such [218]*218obligations as could have been lawfully contracted by the partnership had there been no withdrawal of the partner.

A partnership is usually defined to be a voluntary contract between two or more competent persons to place their money, effects, labor, and skill, or some or all of them, in lawful commerce or business with the understanding that there shall be a community of profits thereof between them. Bearce v. Washburn et al., 43 Me., 564, 565; Banchor v.

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Bluebook (online)
7 A.2d 619, 136 Me. 213, 1939 Me. LEXIS 23, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cumberland-county-power-light-co-v-gordon-me-1939.