Gevinson v. Manhattan Construction Co. of Oklahoma

420 S.W.2d 486, 1967 Tex. App. LEXIS 2785
CourtCourt of Appeals of Texas
DecidedSeptember 15, 1967
DocketNo. 16846
StatusPublished
Cited by2 cases

This text of 420 S.W.2d 486 (Gevinson v. Manhattan Construction Co. of Oklahoma) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gevinson v. Manhattan Construction Co. of Oklahoma, 420 S.W.2d 486, 1967 Tex. App. LEXIS 2785 (Tex. Ct. App. 1967).

Opinion

OPINION

MASSEY, Chief Justice.

Action and cross-action in the trial court involved title to certain land and improvements thereon. The issue of title was raised by cross-action in trespass to try title.

Action by the plaintiffs Manhattan Construction Company of Oklahoma and Manhattan Construction Company of Texas, for themselves and on behalf of Manhattan-Dalmark (a joint venture, percentage interest in which — as by partners — was agreed upon between said plaintiffs with Dalmark Construction Company, disclosed to have been one of the alter ego entities of defendant Daniel Gevinson) concluded with prayer that Manhattan Construction Company of Oklahoma have declaratory judgment to the effect that it was the true and rightful owner of one defendant sued, to-[488]*488wit 21 Turtle Creek Square, Ltd. (a limited partnership under provisions of law in this state), together with all the assets of the same whether real, personal or mixed; and that the plaintiffs (apparently collectively and in proportion to the percentage interest of all who were parties beneficiary to the joint venture) were entitled to recover and hold valid statutory, constitutional and equitable liens in the amount of $989,881.72 against all the property of 21 Turtle Creek Square, Ltd.; and in addition to receive decree of foreclosure subject to an undisputed prior lien held by the New York State Teachers’ Retirement System, — with judgment for any deficiency which might be a result through judgment against Daniel Gevinson, as an individual defendant.

We here take occasion to note that a single individual or entity cannot be “owner” of a partnership, though he or it could become the owner of what might have theretofore been property which belonged to such.

We furthermore take occasion to note that in the event another or others become true and rightful owner(s) of what might have theretofore been property which belonged to a partnership it would be a useless gesture for the true and rightful owner(s) to seek to have established liens against such. Of course, it could occur in such a situation that those who succeeded to the title of property formerly belonging to a limited partnership under circumstances, where such property was the whole of the property belonging to such partnership, might additionally be entitled to personal judgment as against one of more who had been general partners. The same might perhaps also be a result as against one or more who had been limited partners under certain circumstances — appertaining to equity — such as because of conduct which would make it proper to hold him or them liable just as though the partnership interest was not “limited”.

Judgment rendered by the trial court decreed: (1) that plaintiffs, by and through David M. Thornton, as trustee, own all the partnership interest in 21 Turtle Creek Square, Ltd., a limited partnership, and title thereto was accordingly decreed with direction for amendment of the certificate of limited partnership appertaining in the office of the Secretary of State; (2) that plaintiffs have and recover of the defendant Daniel Gevinson the stock certificate representing the shares of stock of another of the defendants, 21 Properties, Incorporated, title thereto being decreed as in plaintiffs; (3) that plaintiffs recover jointly and severally from defendants 21 Turtle Creek Square, Ltd. (the limited partnership) and 21 Properties, Incorporated (one of the original general partners of the limited partnership) the sum of $1,104,881.-72, with interest from date of judgment and costs; (4) that plaintiffs have and recover from the defendant Daniel Gevinson, individually and jointly and severally with said other defendants, the sum of $230,-863.00 as the portion of such $1,104,881.72 for which Gevinson is personally responsible and liable; (5) and that plaintiffs have a lien affixed to and against the real and personal properties of 21 Turtle Creek Square, Ltd. (the limited partnership) for the sum of $1,104,881.72, — and that after 30 days and in the event the defendants, or any of them, fail to pay same within such period, a foreclosure and sale as under execution in satisfaction of judgment, subject to the first and prior lien of the New York State Teachers’ Retirement System,— and if the property cannot be found then to receive the money or any balance thereof remaining unpaid out of any other property of the defendants as in the case of ordinary execution.

From such judgment the defendants appealed. The appellants before this court — by name in any event — are: (1) Daniel Gevin-son as an individual (in respect to his liability apart from and by reason of his original partnership interest in 21 Turtle [489]*489Creek Square, Ltd., and/or in respect to his liability by reason of his existent or formerly existent general partner status and corespondent ownership of title as follows: as the owner of one-half of one per cent general partnership interest in 21 Turtle Creek Square, Ltd. as applied to the property belonging to it, and as the owner of a ninety-nine per cent interest in the same property as a limited partner); (2) 21 Properties, Incorporated, as the owner of one-half of one per cent interest in the partnership as a general partner; and (3) Dalmark Corporation, a corporation shown to be wholly owned by Daniel Gevinson (and also shown to have been his alter ego). Note: Dalmark Corporation was never named as a defendant — indeed plaintiffs’ pleadings named such corporation as a member of the joint venture for the benefit of which their suit was brought, — but said corporation was named as cross-plaintiff as against those originally bringing the suit and against others sued for purposes of the cross-action.

The appellees before this court are: (1) Manhattan Construction Company of Oklahoma; (2) Manhattan Construction Company of Texas; (3) David M. Thornton, individually and/or as trustee for the aforesaid corporations; and (4) C. A. Bullen— who was and is an officer for said corporations. In the cross-action Thornton and Bullen were named cross-defendants along with the Manhattan Companies as applied to the matter of title to the property which is the primary subject matter of the whole litigation. As already stated the cross-action was in form of trespass to try title, in answer to which there was a plea of “not guilty”.

With the question of title settled the remainder of the questions involved would solely relate to the matter of accounting, i. e., who owes what to whom, for what, and how much.

It is obvious that the judgment could have and in our opinion should have been so written as to vest title (as between parties to the litigation) in the cross-defendants in trespass to try title. What the judgment of the trial court did decree was ownership of all the partnership interest in 21 Turtle Creek Square, Ltd. in the two Manhattan Companies, by and through David M. Thornton, as trustee. The record reflects that such partnership interest was ownership of that property. The record also reflects that C. A. Bullen was and is the principal officer and manager of the affairs of the two Manhattan Companies. There would be no good reason — as of this time or as of the time judgment was decreed — why it should be necessary to provide for anything other than to settle the title question between the parties. There is no occasion for foreclosure proceedings and expense and delay attendant thereto where the effect of the judgment could only lead to the same end. That a decree in trespass to try title would also name the cross-defendant C. A. Bullen as one of the owners would in no way prejudice the appellants.

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Bluebook (online)
420 S.W.2d 486, 1967 Tex. App. LEXIS 2785, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gevinson-v-manhattan-construction-co-of-oklahoma-texapp-1967.