Fleischmann v. Gottschalk

17 A. 384, 70 Md. 523, 1889 Md. LEXIS 63
CourtCourt of Appeals of Maryland
DecidedMarch 27, 1889
StatusPublished
Cited by6 cases

This text of 17 A. 384 (Fleischmann v. Gottschalk) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fleischmann v. Gottschalk, 17 A. 384, 70 Md. 523, 1889 Md. LEXIS 63 (Md. 1889).

Opinion

Irving, J.,

delivered the opinion of the Court.

The decree of the Circuit Court of Baltimore City, from which this appeal was taken, establishes a partnership between the appellant and the appellee from the 1st day of July, 1885, to the 15th of May, 1881, and directs the auditor to state an account of the partnership business, and to allow the appellant seven and one-half per centum of the net earnings of the firm as his share thereof, and no more. The appellant who was plaintiff below, appeals from so much of the decree as limits his share of the earnings of the business to seven and one-half per centum. The appellee has not appealed from the decree establishing the partnership, which was denied in the pleadings and evidence of the appellee ; therefore the only question open in this Court is whether the Circuit Court properly fixed the appel[529]*529lant’s share of the earnings of the business. It is a narrow question, to he settled by the facts and circumstances hearing upon it; for confessedly there was no written agreement or stipulation about the partnership. It was one, if existing at all, existing at will; and the terms of it can only he inferred from the statements and conduct of the parties in relation to the business.

The appellant contends that, under the circumstances, the law presumes his interest was a moiety of the profits, and this he claims was erroneously denied him. There is little room for doubt as to what the law is in case there is no specific agreement as to interest, and there are no facts and circumstances enabling the Court to see what was the expectation and intention of the parties, and. from which a. contract as to shares can he inferred. The authorities are practically harmonious on that subject. In section 24 page 33 of Story on Partnership, (Gray’s Edition) the law is thus stated; In the absence of all precise stipulations between the partners as to their respective shares in profits and losses, and in the absence of all other controlling evidence and circumstances, the rule of the common law is that they are to share equally.” But this presumption is not an irresistible one. If the circumstances in any particular case show that the partners did not so intend, and must be fairly supposed to have intended the contrary, the presumption of law must yield to the presumption of fact. Ib., 34 and 35, and notes, where all the authorities are collected. It is a question of intention, and is to he determined by a consideration of all the facts and circumstances available for the construction of the contract. Parsons on Contracts, page 58.

The Court below in its opinion says: The Court has no doubt, from the evidence, that when the plain[530]*530tiff became a member of the firm, it was the understanding that the defendant should fix his interest in the profits. The pretence set up, that he expected one-half of the profits, is not tenable ; nor do the words ‘fullpartner,’ upon which so much stress has been laid by the plaintiff’s witnesses, justify the conclusion that his interest was to be one-half. The defendant was sole proprietor of a large business of established standing, involving an outlay of probably fifty thousand dollars a year in its conduct; and his family consisted of two sons and another daughter, besides the one who had .married the plaintiff, so that such an expectation as the plaintiff sets forth is, on its face, unreasonable. There is no question that when the rate was fixed by the defendant, it was readily agreed to by the plaintiff, and never having been changed by mutual consent, it remains the standard by which the interest of the plaintiff is to be ascertained.”

We think the facts and circumstances, and preponderance of proof in the cause fully justified these conclusions of the Circuit Court, and the decree which was passed to carry them out.

The only direct testimony bearing upon the ques- • tion are the statements of the appellant, the appellee, Jacob G-ottschalk and Mr. Becker, the chief bookkeeper of the firm; and their testimony, to our mind, puts it beyond doubt that the appellant never expected one-half of the profits of the firm, and ought not to be allowed any more than the Circuit Court has awarded him. He was an Austrian, and had been in this country but a few months when he married the appellee’s daughter. He was employed as a travelling salesman for a bent wood furniture establishment in his own country, and he courted and married the appellee’s daughter with the plain design of improving his financial condition, and had he not hasted to be rich” by un[531]*531warranted demands of his benefactor, he would undoubtedly have fared better. By his own sworn statements as a witness it seems he never had but “two short conversations” with the appellee on the subject of the partnership which has been decreed to exist. The first was on the 15th day of February, 1885, the day after his engagement to the appellee’s daug’hter, when, he says, the appellee intimated to him that after his marriage he would take him into partnership with him; and the other two days after his marriage, in April, 1885, when he told him his interest in the firm should begin the first day of July following. That this was a simple gratuity on the part of the father-in-laiv is plain from the fact that there was. no agreement for duties, for service, for contribution to capital, or in respect to the share of profits of the concern he was to receive. The apjiellee was a man of sufficient capital, in a large and flourishing business, thoroughly established, and so far as appears needing no help ; but was only seeking to provide for his daughter’s husband, with whom, at that time, he seemed reasonably pleased. It is inconceivable that this young man could have expected Mr. G-ottschalk to give him, at once, without bringing a cent of capital to the firm, or any trade to the house, and withoiit any exjjerience in the business, in the start and without trial, one-half of the profits of the firm, and reserve only the other half for himself and his three other children. Still, in law, we would not be justified in relying solely on these circumstances in concluding that he was accepting the gift of an interest in the firm of only such share as the father-in-law saw fit to give him ; but the evidence convinces ns such was the fact. The appellee gave him the means for a three months’ bridal trip to Europe, and upon his return he went to the home of his father-in-law with [532]*532his wife, and was installed in the store where he did some correspondence for the house ; but it is proven that the employes did not regard him as a partner, but only as a clerk; so that it is clear he did not assert his rig’hts as a partner or demean himself as one. No change was made in the concern ; no notice of new partnership was given; and no new arrangement with the employes, yet he was introduced at the Banks as a son-in-law and partner of Mr. Gottschalk, and did sign the firm name to checks and other papers, without appending letters indicating it was by power of attorney, as was the habit of the employes having such authority. He says he expected one-half the profits until in August, 1886, when Mr. Gottschalk told him he had directed him to be credited with seven and one-half per centum thereof, beginning with July 1st, 1885 ; stating that for the first six months the profits had been $50,000. He says he told Mr. Gottschalk that was below his expectations, (which Mr. Gottschalk denies) but he admits that he did not tell Mr. Gottschalk that he

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Bluebook (online)
17 A. 384, 70 Md. 523, 1889 Md. LEXIS 63, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fleischmann-v-gottschalk-md-1889.