Garber v. Whittaker

174 A. 34, 36 Del. 272, 6 W.W. Harr. 272, 1934 Del. LEXIS 28
CourtSuperior Court of Delaware
DecidedJuly 27, 1934
DocketAction on the case, No. 299
StatusPublished
Cited by22 cases

This text of 174 A. 34 (Garber v. Whittaker) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Garber v. Whittaker, 174 A. 34, 36 Del. 272, 6 W.W. Harr. 272, 1934 Del. LEXIS 28 (Del. Ct. App. 1934).

Opinion

Harrington, J.,

delivering the opinion of the Court:

This is an action on the case, and under the defendants’ demurrer the most important question for us to determine is whether the facts alleged will sustain such an action.

[275]*275The declaration alleges that the parties to this suit entered into a contract in April of 1930, whereby a house was to be built by the plaintiff, Garber, and by Stanley Whittaker, one of the defendants, on land belonging to Florence Whittaker, the other defendant. When completed, the house, and the lot upon which it was erected, were to be sold by deed of the defendants to such purchaser as could be found, and the cost of erecting the building, including a reasonable compensation for the work on it by Garber and Stanley Whittaker, was to be paid out of the proceeds of the sale. Six hundred dollars thereof was, also, to be paid to Mrs. Whittaker for her lot. The residue of the proceeds of the sale, if any, was to be equally divided between Garber, the plaintiff, and Stánley Whittaker, one of the defendants.

The declaration further alleges that the house in question was built by Garber and Stanley Whittaker, in accordance with the terms of the contract therein referred to, and was completed on or about October 24, 1932.

It then, in substance, alleges:

1. That after it had been completed, the defendants “unlawfully and with intent to defraud the said plaintiff” of his rights in said house took full charge and possession of it and by keeping it locked deprived the plaintiff of any access thereto; and “with intent to defraud the said plaintiff,” as aforesaid, the said defendants refused to co-operate with the said plaintiff in finding a buyer for the said house and land.

2. That the said defendants “without the consent, or approval, of the said plaintiff” placed a mortgage lien on the said house and lot.

3. That the said defendants “without the consent, or approval of the said plaintiff, and with intent to defraud” him leased the said house and lot to a person unknown to [276]*276the said plaintiff, and are now collecting the rents and profits therefrom.

The defendants contend that as Garber and Stanley Whittaker were to share in the proceeds to be. derived from the sale of the house and lot, after the payment of the cost of erecting the house,' and the payment of six hundred dollars to Mrs. Whittaker for her lot, that the contract created a partnership.

Under the rule applied in this state, it seems that in most cases, in order to constitute a partnership, as between the parties themselves, there must not only be an agreement, to carry on some business or occupation jointly, but a like agreement, either express or implied, to share in business losses, as well as in business profits. Plunkett v. Dillon, 4 Houst. 338, 396; Beecham v. Dodd, 3 Harr. 485; Gilpin v. Temple, 4 Harr. 190; Ellison & Sons v. Stuart & Co., 2 Penn. 179, 43 A. 836; Jones & Robinson v. Purnell, 5 Penn. 444, 62 A. 149.

A partnership may exist in some cases, though the agreement only relates to one transaction (Plunkett v. Dillon, 4 Houst. 338, 397; Jones & Robinson v. Purnell, 5 Penn. 444, 62 A. 149) but something more than a mere common enterprise, or joint undertaking; is necessary to create that relation (Beckwith v. Talbot, 2 Colo. 639; Burdick on Partnership 23; Hurley v. Walton, 63 Ill. 260).

Further than that, when the suit is between the parties themselves stricter proof of the intent to create a partnership relation, and, therefore, of its existence, is required than when the action is by a third person. Ellison 6 Sons v. Stuart & Co., 2 Penn. 179, 43 A. 836; Robinson v. Green’s Adm’r, 5 Harr. 115; Gilpin v. Temple, 4 Harr. 190; Rowley on Partnership, § 102; Morrison v. Meister, 212 Mich. 516, 180 N. W. 395.

It may not be necessary for us to determine that [277]*277question, but, as we view it, the agreement referred to in the declaration is not a partnership agreement but merely a joint undertaking between the parties, and a very similar agreement was so construed in Morrison v. Meister, 212 Mich. 516, 180 N. W. 395, supra; see, also, 63 A. L. R. 915.

Mrs. Whittaker was the legal owner of the house referred to as it was built on her land, but under the contract between the parties Garber, also, had certain interests though equitable in their nature, either in that property, or in the proceeds to be derived from its sale. 1 Pom. Eq. Jur., §§ 146,147,161.

It is difficult to give a general definition of a tort that would be satisfactory in all cases, but it is clear that,' generally speaking, any act done, or omitted to be done, contrary to the obligation of the law, is a tort and the damages suffered thereby may be recovered in an action on the case. Wise v. Western Union Teleg. Co., 6 W. W. Harr. (36 Del.) 155, 172 A. 757; 3 Street’s Found. Leg. Liab. 272. See, also, Atlantic & P. R. Co. v. Laird, 164 U. S. 393, 17 S. Ct. 120, 41 L. Ed. 485; Cooley on Torts, 650; 2 Bouv. Law Diet. (Rawles 3d Rev.) 3286.

As a general rule, it is equally clear, however, that where the action is based entirely on a breach of the terms of a contract between the parties, and not on a violation of some duty imposed by law, an action on the case will not lie, and the plaintiff must sue, if at all, in contract.

In other words, as was said in Diver v. Miller, 4 W. W. Harr. (34 Del.) 207,148 A. 291, 293: “In order to constitute a tort there must always be a violation of some duty owed to the plaintiff; but generally speaking such a duty must arise by operation of law and not by the mere agreement of the parties.”

In this connection, the Court in Legge v. Tucker, 1 H. & N. 500, also said: “Where the whole foundation of the [278]*278plaintiff’s action is a contract, an action on the case will not lie; but where there is a duty ultra the contract the plaintiff may declare on the case.” See, also, Dustin v. Curtis, 74 N. H. 266, 67 A. 220, 11 L. R. A. (N. S.) 504, 13 Ann. Cas. 169; Courtney v. Earle, 7 C. B. 73, 70 E. C. L. 73; Green v. Greenback, 2 Chas. Marshall 484; Corbett v. Packington, 6 B. & C. 268, 13 E. C. L. 170; Stock v. City of Boston, 149 Mass. 410, 21 N. E. 871, 14 Am. St. Rep. 430; 62 C. J. 1091.

But even if the facts relied on are set out in the declar- ■ ation with sufficient particularity to comply with the requisites of good pleading, and the interest of the plaintiff is in the house and lot, and not merely in the proceeds to be derived from its sale, measured by the rules above stated no violation of any legal duty owed by the defendants to the plaintiff, and, therefore, no tortious act, has been alleged. See 2 Bouv. Law Diet. (Rawles 3d Rev.) 1911; 1 Cooley on Torts (3d Ed.), § 4; 62 C. J. 1090, note; Sims v. Sims, 77 N. J. Law 251, 72 A. 424. •

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Bluebook (online)
174 A. 34, 36 Del. 272, 6 W.W. Harr. 272, 1934 Del. LEXIS 28, Counsel Stack Legal Research, https://law.counselstack.com/opinion/garber-v-whittaker-delsuperct-1934.