Duley v. Duley

225 P. 401, 129 Wash. 663, 1924 Wash. LEXIS 768
CourtWashington Supreme Court
DecidedMay 13, 1924
DocketNo. 16955
StatusPublished
Cited by1 cases

This text of 225 P. 401 (Duley v. Duley) 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
Duley v. Duley, 225 P. 401, 129 Wash. 663, 1924 Wash. LEXIS 768 (Wash. 1924).

Opinion

Parker, J.

This is a partnership accounting in equity, commenced in the superior court for Okanogan county, wherein each of the two partners, the parties to the proceeding, claim certain items of credit in his own favor and certain items of charge against the other. A trial upon the merits in that court resulted in a decree which, in so far as we are here concerned with its correctness, awarded to plaintiff a credit measured by monthly wage for services rendered by him and his wife to the partnership. The plaintiff first appealed from the decree looking to its reversal in so far as its awards were adverse to his claims, but has abandoned his appeal. The defendant cross-appealed from the decree looking to its reversal in so far as it awarded [664]*664to the plaintiff the above noticed item of wage compensation for services rendered by him and his wife to the partnership. The only question here for our consideration is as to the correctness of the awarding of compensation to the plaintiff for services rendered to the partnership, apart from the question of the amount of such award; that is, as to whether or not the plaintiff is entitled to any award for such services to the partnership.

The plaintiff and defendant are brothers. They entered into a written contract of partnership in April 1901; the plaintiff then living in Iowa and the defendant in Spokane, in this state. The contract of partnership, as therein recited, contemplated the business to be the purchasing and selling of live stock in the state of Washington, the principal place of the business to be at Spokane. By the beginning of the year 1909, the business had evolved itself into a matter solely of owning and holding certain land in Douglas county, in this state, and the raising of grain and stock thereon. In January of that year they had an accounting, which was evidenced in writing, in which the defendant was given a credit in a substantial sum for services rendered by him to the partnership. This compensation seems to have been then credited to the defendant because plaintiff was then and had been a resident of Iowa and had not given personal attention to the partnership affairs.

In the fall of 1909, they entered upon a new venture. It consisted of the acquisition, for the purpose of speculation, of a tract of land in Okanogan county thought to be capable of development into fruit land; the purpose being to plat the land and sell it in small orchard tracts. This being done, the tracts did not sell readily and it became apparent that the venture [665]*665would, not be successful if pursued along that line. Because of this, it was agreed that the plaintiff and his wife should go upon that land and physically improve, work and manage it as a farm; which they accordingly did and worked it by gardening, dairying and stock raising thereon, they having entire control and management of it for the partnership at all times since then. In 1915, the Douglas county land was sold, and thereafter the working and management of the Okanogan county land by the plaintiff and his wife have been substantially all of the business and affairs of the partnership. It was for this period from 1915 that the court awarded compensation to the plaintiff for that service rendered to the partnership.

Since the sale of the Douglas county land, the defendant has given practically no attention to the affairs of the partnership, which, as we have already noticed, was practically all incident to the working and the management of the Okanogan land; he being in the meantime engaged practically wholly in affairs of his own concern. The testimony of the parties is somewhat out of harmony, and, it must be confessed, is not very definite and certain touching the question of an agreement between them as to what extent either should be compensated for his services to the partnership, other than as mere participators in the profits of the partnership. The plaintiff testified in substance that, at about the time of the purchase of the Okanogan land, when the defendant handed to him, the plaintiff, a check to aid in making payment upon the Okanogan land, he said: “All I ever want is this money back with interest after you have been paid for what you do.” We have already noticed that the plaintiff was in Iowa and not in the state of Washington during the early years of the partnership. He evidently came to [666]*666Washington and took active interest therein not long prior to the purchase of the Okanogan land. The defendant testified generally that “there was no agreement, directly or indirectly,” that the plaintiff was to receive wages for work he did for the partnership. Yet the defendant does not deny making this statement to the plaintiff at or near the time of the purchase of the Okanogan land. At the beginning of the partnership in 1901, and clear down to the actual going upon the Okanogan land by the plaintiff and his wife for the purpose of working and managing it as a farm, it was not contemplated that either of the partners should render to the partnership any such services' as the actual working of any of their land in the sense of actually farming it, but that the partnership was of a purely business and speculative character.

Counsel for the defendant invoked the general rule that one partner cannot have compensation from the partnership of which he is a member for services rendered to the partnership by him, in the absence of a certain agreement to that effect; and argues that no such agreement has been shown, either directly or inferentially, by the evidence in this case, citing our decisions in Williams v. Pederson, 47 Wash. 472, 92 Pac. 287, 17 L. R. A. (N. S.) 384, and Boothe v. Summit Coal Min. Co., 72 Wash. 679, 131 Pac. 252. It is true that this general rule is recognized in those decisions, but so are what may be termed the exceptions thereto. In the Williams case, there was no circumstance pointing towards an agreement to compensate one partner for services rendered by him to the partnership, other than some degree of inequality of service'rendered to the partnership by the respective partners. The Boothe case lends no better support to the defendant in this case. In that case, there was not only an ab[667]*667sence of express or inferential agreement for compensation, but there seems to have been a clear understanding that each one should draw from the partnership a like amount each month.

Our decision in In re Levy’s Estate, 125 Wash. 240, 215 Pac. 811, contains observations and citations of authority which lend support to the plaintiff’s claim that the evidence in this case warrants the conclusion that these partners agreed that the plaintiff and his wife should have compensation for the working and management of the Okanogan land as a farm.

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Related

Will v. Domer
236 P. 104 (Washington Supreme Court, 1925)

Cite This Page — Counsel Stack

Bluebook (online)
225 P. 401, 129 Wash. 663, 1924 Wash. LEXIS 768, Counsel Stack Legal Research, https://law.counselstack.com/opinion/duley-v-duley-wash-1924.