Fowler v. Brooks

1944 OK 57, 146 P.2d 304, 193 Okla. 580, 1944 Okla. LEXIS 617
CourtSupreme Court of Oklahoma
DecidedFebruary 8, 1944
DocketNo. 31190.
StatusPublished
Cited by17 cases

This text of 1944 OK 57 (Fowler v. Brooks) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fowler v. Brooks, 1944 OK 57, 146 P.2d 304, 193 Okla. 580, 1944 Okla. LEXIS 617 (Okla. 1944).

Opinion

ARNOLD, J.

Herman Fowler, plaintiff below, filed this action in the district court of Le Flore county against Bill Brooks, Loren Russell, Lewis Pridmore, Rufus Powell, Mrs. Henry Molthan, F. D. Buetelshies, John S. Stewart, individually, and F. D. Buetelshies and John S. Stewart, doing business under the firm name of Stewart & Buetelshies, and Opal Lee Molthan. The plaintiff alleged that on December 4, 1936, he filed a claim in the State Industrial Commission for compensation for injuries he received on November 16, 1936, while he was an employee of the Russell-Brooks Coal Company; that he received temporary disability benefits until June 24, 1937; that on October 19, 1939, the commission found that by reason of such injuries he was permanently and totally disabled and awarded compensation for 500 weeks; that the award was not paid, and on February 13, 1940, it was filed in the district court of Le Flore county; that execution was issued thereon and returned “no property found”; that the Russell-Brooks Coal Company is insolvent and he is unable to collect his award at law. He further alleged that the award is effective against all of the above-named defendants, as well as the Russell-Brooks Coal Company, for the reasons that the defendant company was owned by the other named defendants; that such defendants were copartners operating under the name of the Russell-Brooks Coal Company; that large sums of money were received by the Russell-Brooks Coal Company, but that all the money received by it was commingled and mixed with the money and funds of the several individual partners; that they did not pay the partnership debts; that said named defendants conspired together and formulated a plan for the sole purpose of unjustly and unlawfully escaping the just liabilities which might be incurred during the course of the operation of the business of the partnership; that pursuant to such plan they organized the Russell-Brooks Coal Company; that said defendants, in fact, constitute the Russell-Brooks Coal Company; that notice of the filing of the claim before the Industrial Commission was served upon the Russell-Brooks Coal Company, Rufus Powell, and Lewis Pridmore; that the notice was in fact notice to the copartnership comprised of all of the named defendants; that the judgment and award against said partnership, Russell-Brooks Coal Company, is in fact and in equity and ought to be adjudged by this court to be a judgment against all of said named dtefendants; that the property of each and every individual member of said copartnership should be applied to the satisfaction thereof; that at the time of the hearing before the Industrial Commission the plaintiff had no knowledge of the real method of operation of the defendants; that he was led to believe that Bill *582 Brooks and Loren Russell composed said partnership, and that defendants Powell and Pridmore had nothing to do with the operation of the company’s business, and that Powell and Pridmore fraudulently procured a dismissal as to them by the State Industrial Commission.

The plaintiff then prayed that he have a judgment against all the named defendants doing business as Russell-Brooks Coal Company; that it be determined that Russell-Brooks Coal Company, Rufus Powell, Lewis Pridmore, Bill Brooks, Loren Russell, Mrs. Henry Molthan, John S. Stewart, F. D. Buetelshies, and .Opal Lee Moltham are in fact and in equity one; he further prayed that said award be determined effective as a record judgment against all the named defendants and that the award should be collected out of their personal property.

All the defendants filed separate demurrers alleging that the district court had no jurisdiction of the subject matter; that the State Industrial Commission of the State of Oklahoma had exclusive jurisdiction thereof, and that the petition did not state facts sufficient to constitute a cause of action. All demurrers were sustained. The plaintiff elected to stand upon his petition, and thereupon the court dismissed the action. Defendants in error Rufus Powell and Lewis Pridmore have filed their joint brief herein, but none of the other defendants in error have filed a brief. The named defendants in error argue three propositions:

First. The district court has no jurisdiction of the subject of the action, but the State Industrial Commission has exclusive jurisdiction thereof.

Second. The issue between the plaintiff and the defendants Rufus Powell and Lewis Pridmore has been decided against the plaintiff by the State Industrial Commission; its award has become final, and the matter is therefore res judicata.

Third. The appeal should be dismissed because the transcript filed was fatally defective and was not corrected until after the time for appeal had expired.

Every general partner is liable jointly with his copartners to third persons for all the obligations of the partnership (54 O. S. 1941 § 40), but the partnership is a distinct entity from the individuals who compose it. However, partners as such are not directly or personally liable on a debt or liability of the partnership. Their liabilities arise out of their connection with the firm and are traceable only through the firm and must be established 'by a judgment against the firm. No personal judgment may be entered against a partner as such; his property may be subjected to payment of the partnership liability when the assets of the partnership are insufficient to pay its obligation. Holmes et al. v. Alexander, 52 Okla. 122, 152 P. 819; Ann. Cas. 1918D, 1134; Hassen et al. v. Rogers et al., 123 Okla. 265, 253 P. 72.

In a suit against a partnership, service upon one of the partners is sufficient to confer jurisdiction upon the court to render judgment against the partnership entity. 12 O. S. 1941 § 178.

A judgment against a partnership is a necessary precedent to any judgment that would have the effect of subjecting the property of the individual members to. payment of partnership obligations. In the case of Heaton v. Schaeffer, 34 Okla. 631, 126 P. 797, 43 L.R.A. (N.S.) 540, we said:

. . The members of a firm are not directly liable upon a debt of the partnership, but their liability arises out of their connection with the firm, and is only traceable through the firm and must be established by a judgment against the firm.”

A judgment on a partnership liability should be against the partnership; in a proper manner the individual property of the member or members served or who appeared and defended in the action against the partnership, thereby waiving service, may be reached for the purpose of satisfying it in the event that the partnership property is insuffi *583 cient. See Hassen et al. v. Rogers, supra; White v. Tulsa Iron & Metal Corporation, 185 Okla. 606, 95 P. 2d 590; St. Louis Trading Co. et al. v. Barr, 168 Okla. 184, 32 P. 2d 293, 296. In a suit against a partnership'it is error to render a personal or individual judgment against any of the partners even though served. Bearman et al. v. Bracken et al., 112 Okla. 237, 240 P. 713; Heaton v. Schaeffer, supra. See, also, Denver National Bank v. Grimes, 97 Colo. 158, 47 P. 2d 862, 100 A.L.R. 994, 997.

85 O. S. 1941 § 3 defines an employer as meaning: “a person, partnership, association, corporation, . . .” Section 24 thereof, in part, provides: “That, if the employer be a partnership then such notice may be given to any one of the partners, . .

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Bluebook (online)
1944 OK 57, 146 P.2d 304, 193 Okla. 580, 1944 Okla. LEXIS 617, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fowler-v-brooks-okla-1944.