Fleischmann v. Gottschalk

17 A. 384, 70 Md. 523, 1889 Md. LEXIS 63
Court of Appeals of Maryland·Decided March 27, 1889·Published·Cited by 6 cases

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] lant’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] tiff 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.

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

17 A. 384 (Fleischmann v. Gottschalk) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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