Gould v. Kendall

15 Neb. 549
CourtNebraska Supreme Court
DecidedJanuary 15, 1884
StatusPublished
Cited by11 cases

This text of 15 Neb. 549 (Gould v. Kendall) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gould v. Kendall, 15 Neb. 549 (Neb. 1884).

Opinion

Cobb, Ch. J.

I think this case might be designated a suit in equity for an accounting and damages, or it might be called an action o account at common law In either view the action is brought directly on the written contract set out and described in the petition, and for its breach. I do not think that the contract can be held to have created a partnership between the parties, even as between themselves. The object in construing a contract is to ascertain the intent of the parties when they executed it. The law will, when necessary, give a name to 'the relationship established between contracting parties, according to the intent of the parties, as expressed in the words of the contract, and, in cases of doubtful meaning, the relations of the several parties towards each other and towards the subject matter of the contract, as well as their contemporaneous acts and dealings, will all be considered.

Now let us look at the language of this contract. The words partner or partnership are neither used in it through[553]*553out, but seem to have been studiously avoided. The plaintiffs having procured a valuable license to trade with the Indians, and purposing to make that available to the benefit of all parties, it would seem that if a partnership was contemplated the defendants would have been required to contribute something to a common fund. But nothing of the kind is required of them. True, they agree to purchase a stock of goods and to replenish it from time to time in their own name or names, and on their own account and credit — and what shall they do with such goods, put them into the partnership or common stock of all the parties ? By no means — but said goods “ shall when so purchased be immediately consigned, resold, and invoiced to the said Gould & Kennard, at said agency,” etc. “The said Charles D. Smith will take entire management and control of said business, and of buying and selling, devoting his entire time and attention thereto, and residing at Fort Peck,” etc. Now then, what do the plaintiffs agree to do on their part? Nothing. True, at the commencement of the agreement, they agree to pay to the defendants one-third part of the net profits of the business at said agency for the entire time the said Gould & Kennard shall hold the license from the general government, etc. But that is qualified, by what follows, to mean that the defendants were to keep one-third part of what they could make clear, using their own money, credit, and labor. This, by a subsequent amendment to the contract, was changed to the one-half.

We have seen above what the defendants agreed to do. Now then, what did they do, or fail to do ? The petition informs us that “about the 8th day of August, 1879, the said defendants did stock said tradership store, to the amount and value of which stock furnished these plaintiffs are unable to state.” From this point forward, the petition charges a series of violations of the contract, and alleges nothing thereafter done in pursuance of its terms; [554]*554all that is done is charged to be to the damage of the plaintiffs. Nothing is alleged to have been done for their benefit. It is alleged that Mr. Gould, one of the “plaintiffs, personally attended at the place of business of said tradership or store, and desired and requested to give his time and personal attention to the proper and lawful conduct of said business; but said Smith then usurped to himself and the other defendant the sole and entire management of said business, and. wholly excluded said Gould and both of these plaintiffs from any part in the conduct of said premises.” It was evidently the intention of the parties in drawing up the contract that while the defendants, or Charles D. Smith, should be personally present in the Indian country, yet that he should, while there, in a kind of vicarious sense sometimes be Gould & Kennard. That he should buy goods from wholesale dealers as Kendall & Smith, as Kendall & Smith sell them to Gould & Kennard, and as Gould & Kennard retail them out to the Indians. This is what he agreed to do, but it is that which according to the petition he refused to do, and did not do.

If the plaintiffs had placed money or goods in the hands of Kendall & Smith, or of Charles D. Smith, I agree that he could not hold on to it and at the SSme time claim in a court of equity that he used it for his own use and benefit and not for theirs. They had, in a manner, placed their license in his hands, but in law that gave him no right; and whatever advantage he may in fact have derived from such license cannot be considered, or an account taken of, in a court either of law or equity. The defendants then not having received either money or other valuable thing from the plaintiffs of which the law will take account, they are accountable to them, if at all, solely by virtue of the contract.

Many years ago the government of the United States adopted the policy of prohibiting trade and intercourse [555]*555between tbe people and the Indian tribes, allowing only such persons to reside among and trade with the Indians as should be licensed as traders by the proper officers of the government, together with such clerks and employes as should be approved and specially designated by the officer granting such license. See §§ 2129, 2130, and 2133, p, 372, Rev. Stat. U. S. These licenses, on account of the special privileges thereby granted, have usually been valued quite highly by traders and capitalists on the frontier. The plaintiffs had obtained such a license, and it must be apparent to the reader of the contract entered into between them and the defendants that the sole object of such contract was to put the said defendants in their places as Indian traders, and make the use of their franchise alone balance the combined labor and capital of the defendants in the usufruct of the Indian trade; and the object of the defendants, on their part, was to make their capital and labor, through the borrowed and talismanic power of the plaintiffs’ license, yield them a share of the same lucrative trade, without submitting themselves to the approval of the officers of the Indian Bureau. I see no moral turpitude in all of this on the part of either the plaintiffs or flefendants, but it involves, on the part of both parties, an attempt to violate the statute as well as the policy of the government by introducing into the Indian country and trade, under color of the plaintiffs’ license, the defendants, whose character, as persons fit to be in the Indian country, had not been approved by the proper officers of the government. It need scarcely be said that a contract for such purpose will not be enforced by a court either of law or equity.

The case of Brooks v. Martin, 2 Wall., 70, cited by counsel on either side, did not depend, nor was it founded mainly on contract. The equity which carried that case depended on the fact that Martin had placed a large sum of money into the hands of a partnership consisting of [556]*556himself, Brooks, and one Field, formed for the purpose of dealing in soldiers’ land warrants, “that may have been or may be issued under the laiv of Congress,” etc. Martin, who was a banker, gave no personal attention to this business, which was carried on chiefly by Brooks.

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Bluebook (online)
15 Neb. 549, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gould-v-kendall-neb-1884.