Edgerly v. Equitable Life Assurance Society of the United States

191 N.E. 415, 287 Mass. 238, 1934 Mass. LEXIS 1134
CourtMassachusetts Supreme Judicial Court
DecidedJune 28, 1934
StatusPublished
Cited by24 cases

This text of 191 N.E. 415 (Edgerly v. Equitable Life Assurance Society of the United States) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Edgerly v. Equitable Life Assurance Society of the United States, 191 N.E. 415, 287 Mass. 238, 1934 Mass. LEXIS 1134 (Mass. 1934).

Opinion

Field, J.

This bill in equity, so far as the-questions for our determination are concerned, is a bill to reach and apply to the payment of an alleged debt of the defendant Haidee S. Crowell, hereinafter referred to as the defendant, certain alleged property of said defendant. G. L. (Ter. Ed.) c. 214, § 3 (7). The allegations in regard to the debt are as follows: “1. The defendant Haidee S. Crowell for some years prior to the bringing of this bill was engaged in the general stock brokerage business together with her late husband H. Hollon Crowell under the name and style of ‘H. Hollon Crowell’ (hereinafter distinguished from H. Hollon Crowell, individually, by being described in quotes as follows: ‘H. Hollon Crowell’). 2. Said business was conducted as a joint venture by the defendant Haidee S. Crowell and H. Hollon Crowell for their mutual profit, and each of said persons in the conduct and transaction of the said business acted as agent for the other and each was duly authorized to contract for and bind the other by any and all contracts, agreements or undertakings within the scope of a general stock brokerage business. 3. The plaintiffs were clients or customers of the aforesaid business of ‘H. Hollon Crowell’ and as such have paid varying and [240]*240substantial sums to either or both the said defendant Haidee S. Crowell and/or H. Hollon Crowell for the express purpose and with express directions to buy or sell, as the case may have been, stocks, bonds or other securities. 4. That at divers times and for the purpose of providing security or margin to cover the accounts carried by the plaintiffs with the said ‘H. Hollon Crowell’ and at the request of Haidee S. Crowell and/or H. Hollon Crowell, their agents or servants, your plaintiffs have delivered securities of various descriptions to cover their respective accounts with ‘H. Hollon Crowell.’” The defendant demurred “to so much of the bill of complaint as sets forth or alleges that she was engaged in a general stock brokerage business, together with her late husband, H. Hollon Crowell, which business was conducted as a joint venture for their mutual profit, and assigns as causes therefor the following: 1. That said allegations do not set forth a legal cause of action against this . . . [defendant]. 2. That there is no equity in so much of the bill of complaint as is based on these allegar tians.” The trial judge made an order for a decree sustaining the demurrer on the first ground thereof, ánd thereafter a decree that “the demurrer be and hereby is sustained on the first ground set forth therein, and that so much of the bill of complaint as seeks to establish direct liability against the defendant, Haidee S. Crowell, be and hereby is' dismissed.” The plaintiffs appealed from the order and from the decree and the judge certified that his “ruling, order and decree on the demurrer ... so affects the merits of the controversy that the matter should, before further proceedings, be determined by the full bench of the Supreme Judicial Court,” and reported the questions raised thereby for that purpose.

The demurrer was sustained rightly. The bill was brought not to subject partnership property to the debts of partnership-creditors, but, rather, to establish a debt of the defendant personally; and to reach and apply her property to the payment thereof. But the facts alleged do not show that she is personally indebted to the plaintiff.

- There are no allegations in the bill of acts or conduct of the [241]*241defendant, or of her husband as her agent, as in Reiman v. Hamilton, 111 Mass. 245, or of the defendant and her husband jointly, as in Parker v. Kane, 4 Allen, 346, which would subject her severally or jointly with her husband to liability apart from the alleged “joint venture.” The allegations of payment of money “to either or both the said defendant Haidee S. Crowell and/or H. Hollon Crowell” or of delivery of securities “at the request of Haidee S. Crowell and/or H. Hollon Crowell, their agents or servants,” are not allegations of such acts or conduct. The allegation with regard to the defendant and her husband that “each of said persons . . . acted as agent for the other and each was duly authorized to contract for and bind the other by any and all contracts, agreements or undertakings within the scope of a general stock brokerage business” is limited to agency “in the conduct and transaction” of the business “conducted as a joint venture,” and do not state that the defendant’s husband was her agent in the conduct and transaction of business independent of the alleged “joint venture.”

. The defendant did not become liable to the plaintiff by reason of any acts or conduct in pursuance of the “joint venture ” considered as a partnership. Since at the common law and, after St. 1874, c. 184,- § 1, by statute (see now G. L. c. 209, § 2), a married woman cannot contract with her husband, the defendant, before the uniform partnership act was adopted in this Commonwealth (St. 1922, c. 486, see now G. L. [Ter. Ed.] c. 108A), could not be a partner with her husband or become personally liable to third persons by reason solely of transactions carried bn by an attempted partnership between her and her husband. This was decided in Lord v. Parker, 3 Allen, 127, before the enactment of St. 1874, c. 184 (see also Plumer v. Lord, 7 Allen, 481; Bowker v. Bradford, 140 Mass. 521; Voss v. Sylvester, 203 Mass. 233, 237); and later statutory changes enlarging the capacity of a married woman to deal with property (see, for example, St. 1912, c. 304, and St. 1920, c. 478 [now G. L. (Ter. Ed.) c. 209, § 3]), but continuing her incapacity to contract with her husband, though affecting some of the grounds stated for the decision, do not call for a departure from the con[242]*242elusion reached in that case. Nor have there been any such changes in the rights of a married woman to sue her husband in equity, or in the status generally of married women before the law, as would justify such a departure. See Frankel v. Frankel, 173 Mass. 214, 215, and cases cited. The decision in Suau v. Caffe, 122 N. Y. 308, relied on by the plaintiff, contrary to our decisions, and the reasons upon which that decision was based do not persuade us that our cases should be overruled. And it does not follow from the fact that a married woman by proper means can constitute her husband her agent that she can do so by means of an attempted but invalid contract of partnership, much less that she can constitute a nonexistent partnership her agent. In the absence of independent grounds of agency the agency falls with the contract.

There is nothing in the uniform partnership statute as adopted in this Commonwealth (St. 1922, c. 486, see now G. L. [Ter. Ed.] c. 108A), which changed the previously existing law with respect to the incapacity of a married woman to make a contract of partnership with her husband. That statute provides in part that a “partnership is an association of two or more persons.” G. L. (Ter. Ed.) c. 108A, § 6 (1). But it neither expressly nor impliedly confers capacity to make such a contract upon an individual who, by the law governing capacity, is incapable, because of infancy, coverture, or any other reason, from making a contract. The statute does not purport to deal with capacity to contract and the provision therein that it “shall be so interpreted and construed as to effect its general purpose to make uniform the law of those states which enact it” (G. L. [Ter. Ed.] c. 108A, § 4 [4]) does not require uniformity in law outside its scope and affecting it only incidentally.

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191 N.E. 415, 287 Mass. 238, 1934 Mass. LEXIS 1134, Counsel Stack Legal Research, https://law.counselstack.com/opinion/edgerly-v-equitable-life-assurance-society-of-the-united-states-mass-1934.