Diamond National Corp. v. Thunderbird Hotel, Inc.

454 P.2d 13, 85 Nev. 271, 1969 Nev. LEXIS 532
CourtNevada Supreme Court
DecidedApril 30, 1969
Docket5690
StatusPublished
Cited by11 cases

This text of 454 P.2d 13 (Diamond National Corp. v. Thunderbird Hotel, Inc.) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Diamond National Corp. v. Thunderbird Hotel, Inc., 454 P.2d 13, 85 Nev. 271, 1969 Nev. LEXIS 532 (Neb. 1969).

Opinion

*272 OPINION

By the Court,

Batjer, J.:

The respondents’ motion to dismiss was granted by the trial court because the appellant had failed to file a claim or action against the persons or estates of the deceased partners before its complaint was filed against the surviving partners of the Thunderbird Hotel Company.

A judgment was thereafter entered against the appellant (the plaintiff below) and for the respondents (the defendants below). It is from that order and judgment that this appeal is taken.

On August 25, 1962, the appellant entered into a contract with the Thunderbird Hotel, also known as the Thunderbird Hotel Company, a partnership, for the delivery of three million books of matches. At that time the partners were Jack Lane, Joe Wells, James Schuyler and William Deer.

On December 7, 1965, a complaint was filed against the Thunderbird Hotel Company, a Nevada corporation, alleging it owed the appellant $937.50 for goods sold and delivered, *273 and $8,236.50 for goods produced under the contract but not shipped. On April 5, 1966, the complaint was amended to name the respondents herein as defendants. Process was served only on Joe Wells, and on July 15, 1966, he answered and denied the allegations in the complaint and set up certain affirmative defenses. On October 24, 1967, the Bank of Las Vegas, executor of the estate of Joe Wells, deceased, was substituted in the case.

On January 24, 1968, the respondents filed a motion to dismiss. In that motion it was alleged that on or about January 8, 1964, James Schuyler died testate, that notice to creditors was given and the appellant did not file a creditor’s claim, and that on or about April 7, 1965, William Deer died testate. Notice to creditors was given and the appellant did not file a creditor’s claim.

The motion to dismiss was made on the grounds that: “A partnership obligation is, unless a partner enters a separate obligation to perform a partnership contract, a joint obligation in a joint and severally [sic] obligation, the action must run against all partners and judgment must be against all partners jointly, or none of them, save and except when a partner has a defense personal to himself, such as bankruptcy or infancy.

“The obligation is joint and the judgment must run against all partners and it cannot in this instance since the plaintiff neglected to file a claim against the estate of SCHUYLER and the estate of DEER and that claim is barred. (Citation omitted.) The plaintiff has therefore, dismissed two of the partners and cannot proceed against the others.”

In entering its order granting the motion to dismiss, the trial court said: “[I]t appearing that the action was filed against the partners surviving at the time of the filing of this action and not against the persons or the estates of the deceased partners and the omission of these partners having resulted in a dismissal as to those partners; and it appearing that a partnership is not terminated until the winding up of the affairs of the partnership is completed (NRS 87.300);

“IT IS THEREFORE ORDERED that the motion to dismiss be and the same is hereby granted, and IT IS ORDERED that judgment be entered against the plaintiff and for the defendants, together with the costs incurred herein.”

From that judgment the Diamond National Corporation appeals and contends that the trial court erred when it granted the motion to dismiss and entered judgment for the respondents and against the appellant. We agree.

*274 NRS 87.150 1 and NRS 14.060 2 read together are clearly dispositive of this case. NRS 87.150 delineates the nature of a partner’s liability. NRS 14.060 sets forth the precise avenue whereby a plaintiff may proceed to judgment and how the judgment may be enforced in a situation similar to the one before us, where an action is brought against two or more defendants jointly indebted on a contract, and the summons is served on one or more, but not all of the defendants.

In an action against a partnership, service of process upon one of the partners is sufficient to confer jurisdiction upon the court to render a judgment against the partnership. NRS 14.060; Whitmore v. Shiverick, 3 Nev. 288 (1867); Spencer Kellogg & Sons, Inc. v. Bush, 219 N.Y.S.2d 453 (1961); Southard v. Oil Equipment Corporation, 296 P.2d 780 (Okla. 1956).

In this case, jurisdiction attached pursuant to NRS 14.060 when process was served on Joe Wells, and the appellant was from that point forward entitled to proceed against the partnership entity through Joe Wells, against Joe Wells personally, and subsequently against his executor.

In Whitmore v. Shiverick, supra, this court in construing section 32 of the practice act (the verbatim predecessor of NRS 14.060) affirmed the judgment of the trial court where the suit was commenced against four partners of the firm; only one was served, and judgment was entered against him personally and against the partnership entity. There it was said: “The judgment, so far as it is a complete judgment, is only against *275 Sperry. So far as it affects the joint property it only reaches it through Sperry as one of the members of the firm of Sperry & Co. The execution could only be levied on the individual property of Sperry, and the joint property of the company which he represented.”

Here the appellant is entitled to proceed to judgment, and if successful, may first execute against the partnership property, but in the event that property proves insufficient to satisfy the debt it may execute against the separate property of the estate of Joe Wells, deceased, unless some personal defense is available to the estate.

In Spencer Kellogg & Sons, Inc. v. Bush, supra, that court deciding the case under N.Y. Partnership Law § 26 (McKinney 48), (which is identical to NRS 87.150

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Seafirst Center Ltd. Partnership v. Erickson
898 P.2d 299 (Washington Supreme Court, 1995)
Seventy-Three Land v. MAXLAR
637 A.2d 202 (New Jersey Superior Court App Division, 1994)
Wayne Smith Construction Co. v. Wolman, Duberstein & Thompson
65 Ohio St. 3d 383 (Ohio Supreme Court, 1992)
Gearhart v. Pierce Enterprises, Inc.
779 P.2d 93 (Nevada Supreme Court, 1989)
McKee v. United Salt Corp.
630 P.2d 1237 (New Mexico Court of Appeals, 1980)
Sullivan v. Miller
337 A.2d 185 (Court of Special Appeals of Maryland, 1975)
Hibou, Inc. v. Ramsing
324 A.2d 777 (Superior Court of Delaware, 1974)

Cite This Page — Counsel Stack

Bluebook (online)
454 P.2d 13, 85 Nev. 271, 1969 Nev. LEXIS 532, Counsel Stack Legal Research, https://law.counselstack.com/opinion/diamond-national-corp-v-thunderbird-hotel-inc-nev-1969.