Ditmore v. Nicholson

188 S.W.2d 414, 1945 Tex. App. LEXIS 501
CourtCourt of Appeals of Texas
DecidedJune 8, 1945
DocketNo. 14696.
StatusPublished
Cited by3 cases

This text of 188 S.W.2d 414 (Ditmore v. Nicholson) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ditmore v. Nicholson, 188 S.W.2d 414, 1945 Tex. App. LEXIS 501 (Tex. Ct. App. 1945).

Opinion

BROWN, Justice.

This suit involves a venue question only. G. D. Nicholson, C. A. Ditmore and W. T. Jones formed a partnership in 1941, and it was agreed by the partners that Dit-more would handle all the business of such partnership, and this he did. ■ Nicholson and Jones live in Wichita County, and Dit-more lives in Callahan County.

Nicholson brought suit in the district court of Wichita County and made Dit-more and Jones parties defendant. Nicholson alleged the forming of the partnership and asserted that he had made demand upon Ditmore for a partnership accounting to determine the profits and losses and the portion thereof to which Nicholson was entitled.

He alleged that Ditmore kept all books, accounts and records belonging to the partnership, and that Ditmore had exhibited to plaintiff and plaintiff’s auditor what purports to be a copy of the partnership books but that such do not constitute a complete set of books insofar as the partnership is concerned; that all of the partnership transactions were carried on the private, individual books of Ditmore and were transferred to the purported books belonging to the partnership, and that as a result the plaintiff and his auditor have not been able to determine from such books the exact status of the partnership affairs; that Ditmore has refused to permit the plaintiff or his auditor to examine the said Ditmore’s personal books for the purpose of determining the source of and correctness of the items transferred by Dit-more from his individual books to the said partnership books; that plaintiff believes and therefore avers that Ditmore has made large profits in which plaintiff is entitled to participate; that Ditmore refuses to account to plaintiff or to permit him to examine the original records in his possession; that the information cannot be secured by plaintiff unless the trial court appoints an auditor to audit the books of the partnership in connection with the private books of Ditmore in order to determine the exact status of the partnership accounts.

The plaintiff prayed for citation to issue to each of the defendants; that the auditor prayed for be appointed for the purposes alleged, “and that on trial of said cause on the merits there be a partnership accounting between this plaintiff and the two defendants above listed and that the plaintiff recover of and from the said defendants such sum of money or other property as said audit and the facts show him to be justly entitled to,” etc.

Thus it is seen that the suit is for an accounting by one partner against all of the other members of the partnership firm. Ditmore filed his plea of privilege to be sued in Callahan County, where he resides. The plaintiff filed a controverting affidavit in which he alleged that his suit is for an accounting between partners; that all of the partners are necessary parties to such suit; that Jones, a defendant-partner, is a bona fide resident and citizen of Wichita County, where the suit is brought; and that the district court of Wichita County has venue under subdivisions 4 and 29a of Article 1995 of the Revised Civil Statutes of Texas, Vernon’s Ann.Civ.St. art. 1995, subds. 4, 29a.

Defendant Ditmore replied to the controverting affidavit alleging that the defendant Jones “is not a proper party defendant nor is he a necessary party defendant; that no bona fide cause of action exists between plaintiff G. D. Nicholson and defendant W. T. Jones. Defendant C. A. Ditmore avers that W. T. Jones was made a party defendant solely for the fraudulent purpose of fixing venue in Wichita County, Texas,” and for the pur *416 pose of depriving Ditmore of his statutory right tó be sued in the County of his residence. The pleading elaborates as to these contentions, and next avers that the cause óf action “is not in truth and in fact one for accounting in that said partnership has been dissolved for over two years and an accounting has been rendered to the plaintiff, an audit of the partnership’s books and records having been made by an accountant of plaintiff’s own selection and that the cause of action of plaintiff is not truly one for accounting but that facts pertaining to an accounting are fraudulently alleged for ■ the purpose- and effort to constitute W. T. Jones as a necessary and proper party thereto for the fraudulent purpose of maintaining venue in the County of Wichita, Texas.” ' ■

The issues on the plea w;ere tried to the court and, on request, findings of fact and conclusions of law were made.

W. T. Jones waived the issuance and service of process and entered his appearance in writing.

The trial court found the,prior existence of the partnership; that Ditmore conducted all of the partnership business transactions; that the partnership operated until the middle of the year 1942 when the properties belonging to it were disposed of and it ceased to do business; that Ditmore, who operated the partnership and kept all books thereof submitted to plaintiff and Jones a statement of the operations, profit and loss of such partnership and later he submitted a second statement; that these purported to cover all of the operations of the partnership and were not supplementary of each, and the two statements did not show the same results insofar as profit and loss were concerned; that the partnership had no bank account and all funds belonging to the partnership were placed in the private bank account of Mr. and Mrs. Ditmore, and the books of the partnership were first entered upon the private books' Of Mr.' and Mrs. Ditmore and then monthly or annually were transferred from ' the private books of' Mr. and Mrs. Ditmore to the. partnership books; that neither the plaintiff nor W. T. Jones agreed to the stateménts submitted by Ditmore and no settlement has been made of the partnership which is agreeable tó' all of the partners; that plaintiff employed an auditor to'check the partnership business for him but such áuditor was not able to verify the figures set pp in the partnership accounts for the reason' that Ditmore refused to permit the auditor to examine his private books and private bank account into which all of the accounts of the partnership were first posted and into which bank all the partnership money was deposited; that, because Ditmore refused to disclose to the auditor his private books and bank account insofar as the partnership business was concerned and failed and refused to submit to the auditor certain contracts and other supporting data in his possession with reference to the partnership business, the said auditor was unable to make an audit of the affairs of the partnership in accordance with good accounting practice; that Jones was not made a party plaintiff because he did not. voluntarily care to join as a party to the suit; that Jones was not made a party defendant for the purpose of fraudulently conferring venue upon the district court of Wichita County, but Jones was necessarily made a party defendant because he did not care to and would not join in the bringing of the suit; that Jones and the plaintiff are jointly interested in a business being operated in Wichita County, “and there is no disagreement as between Nicholson and the defendant Jones.”

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Cite This Page — Counsel Stack

Bluebook (online)
188 S.W.2d 414, 1945 Tex. App. LEXIS 501, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ditmore-v-nicholson-texapp-1945.