Fidelity Trust Co. v. Welch

63 Pa. D. & C. 63, 1947 Pa. Dist. & Cnty. Dec. LEXIS 315
CourtPennsylvania Court of Common Pleas, Alleghany County
DecidedSeptember 12, 1947
Docketno. 2213
StatusPublished

This text of 63 Pa. D. & C. 63 (Fidelity Trust Co. v. Welch) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Alleghany County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fidelity Trust Co. v. Welch, 63 Pa. D. & C. 63, 1947 Pa. Dist. & Cnty. Dec. LEXIS 315 (Pa. Super. Ct. 1947).

Opinion

Ellenbogen, J.,

The pleadings in this case consist of a bill of complaint and an answer. Both preliminary and final hearings were held.

Findings of fact

1. Plaintiff, Fidelity Trust Company of Pittsburgh, on May 2, 1944, at Orphans’ Court of Allegheny County, at no. 2868 of 1944, was duly appointed guardian of the estate of Frank F. Donnelly, a minor, sometimes known as Frank T. Donnelly.

2. All defendants are residents of Allegheny County, Pa.

3. As of May 4, 1942, James M. Welch, one of defendants, and Harry H. Donnelly, now deceased, entered into partnership agreement to conduct a business of sales representative for manufacturers of machine tools to be operated under the fictitious name, Frank T. Donnelly Company, with offices at 904 Century Building, Pittsburgh, Pa.

4. Said partnership was a sales representative for the following companies, to wit: Logansport Machine Company, Logansport, Ind.; Illinois Tool Works, Inc., Chicago, 111.; Rickert-Shafer Company, Erie, Pa., and Titan Tool Works, Erie, Pa.

5. Paragraph 4 of the partnership agreement provides “that all questions and problems of a technical, mechanical or engineering nature shall be resolved by James M. Welch alone, whether the same shall arise in respect to transactions with customers of the partnership or with companies or concerns represented by the partnership” (Exhibit 7), and the agreement between the partnership and Illinois Tool Works, Inc., was based on the understanding that so far as its products were concerned the representation was to be as though James M. Welch was the sales representative for it rather than the partnership.

6. During the four years and five months the partnership operated, James M. Welch devoted his entire [65]*65time to the affairs of the partnership; Harry H. Donnelly was ill with tuberculosis and his only activity was to sign the checks once each week.

7. The partnership agreement contained the following provisions:

“Sixth: The partnership hereby created shall be dissolved upon the mutual agreement of the partners or upon the death of either one of them. If the partners shall agree to dissolve the partnership, then the liquidation of the company business shall be conducted by the partners jointly. If the partnership shall be dissolved by the death of a partner, then the survivor shall have a period of six months from the decedent’s death within which to liquidate the company business, which shall include all business done during the period of liquidation, without any interference whatsoever by the personal representative of the decedent’s estate. However, each partner shall have the right to nominate and appoint a successor to his share and/or his place as partner in the company business and this replacement or substitution shall be rendered effective by the surviving partner just as soon as practicable following the decedent’s death. Each partner covenants and agrees on behalf of himself, his heirs, executors, administrators and assigns to accept the nominee of the deceased partner hereunder as a substituted partner and to enter into new partnership articles of agreement with such nominee just as soon as it shall be practicable to do so.

“The names ‘Frank T. Donnelly’, ‘Frank T. Donnelly Company’ or any variation thereof shall pass and belong to any individual, corporation, partnership or association which properly succeeds thereto in accordance herewith or any amendments hereto and if a surviving partner hereunder shall refuse to accept and cooperate with a decedent’s nominee then said nominee shall have the sole right to the use of the aforesaid name or names or any variation thereof.”

[66]*668. Harry H. Donnelly died October 6, 1946, and his last will and testament, dated September 30, 1946, and probated in the Register of Wills Office, Allegheny County, on October 17, 1946, at no. 5407 of 1946, contained the following provisions:

“Second: All my right, title, interest and estate in and to the partnership business known as ‘Frank T. Donnelly Company’, I give and bequeath to my brother, Frank T. Donnelly, absolutely. Immediately upon my decease my said brother shall become entitled to my full interest in said business, whatever the same shall be at that time and, in accordance with the partnership articles entered into by James M. Welch and me under date of June 1942, but actually effective as of May 4, 1942, he, my said brother shall become a partner with the said James M. Welch. In the event that my death occur during the minority of my said brother, whose birthday is June 1st, and who will attain his majority on June 1,1947, then Fidelity Trust Company of Pittsburgh, legally appointed guardian of the estate of the said Frank T. Donnelly, shall well and truly manage and administer his interest in the aforesaid partnership business. The said guardian shall have full power and right to charge my residuary estate with such credit or amounts of money as it shall deem necessary in properly managing and protecting the partnership interest of my said brother and to that end my Executrix, hereinafter named shall be bound and obliged to meet, honor and accept any demand for credit or money that the said guardian shall make and direct her so to do upon my residuary estate. In any event, however, any credit or money advanced as aforesaid from my residuary estate shall be charged against my said brother’s partnership interest upon the ultimate accounting and distribution of my estate.”

9. On October 6, 1946, the date of death of Harry H. Donnelly, Frank T. Donnelly (also known as Frank F. Donnelly) was a minor.

[67]*6710. The contracts of sales representation between the partnership, Frank T. Donnelly Company, and the principals, except Titan Tool Works, could be terminated by either party thereto without cause upon 30 days’ notice.

11. That the various manufacturers exercised their rights and terminated the sales representation contracts between them and Frank T. Donnelly Company, on the following dates, to wit:

Terminated Effective

Logansport Machine Co. Oct. 21,1946 Oct. 21,1946

Illinois Tool Works, Inc. • Oct. 25,1946 Nov. 1,1946

Riekert-Shafer Co. Nov. 15,1946 Dec. 15,1946

12. On October 26, 1946, James M. Welch declared the partnership dissolved and advised plaintiff that he would not enter into a partnership with Frank F. Donnelly and/or Fidelity Trust Company, guardian of the estate of Frank F. Donnelly.

13. On or about October 21, 1946, James M. Welch and James J. Welch, another defendant, formed Welch Equipment Company, a partnership, and thereafter were granted sales representation contracts by the fol-' lowing manufacturers, to wit: Logansport Machine Co., Inc., Illinois Tool Works, Riekert-Shafer Company and Titan Tool Works, and further, said Welch Equipment Company conducted a business similar to that previously conducted by Frank T. Donnelly Company except for a reduction in the territory served and a change from a del credere agency to an ordinary agency where the accounts were collected by the various principals.

14. James M. Welch proceeded to liquidate the assets of the partnership of Frank T. Donnelly Company.

15. From November 1, 1946, to July 1, 1947, Welch Equipment Company operated its business from the office of Frank T. Donnelly Company at 904 Century Building, Pittsburgh, Pa.

16. On or about November 15,1946, James M.

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Cite This Page — Counsel Stack

Bluebook (online)
63 Pa. D. & C. 63, 1947 Pa. Dist. & Cnty. Dec. LEXIS 315, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fidelity-trust-co-v-welch-pactcomplallegh-1947.