Gover v. Hall

3 H. & J. 43
CourtCourt of Appeals of Maryland
DecidedJune 15, 1810
StatusPublished
Cited by5 cases

This text of 3 H. & J. 43 (Gover v. Hall) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gover v. Hall, 3 H. & J. 43 (Md. 1810).

Opinions

Buchanan, J.

delivered the opinion of the court. The case appears to be this — George Churchman, Peter Dicks and dlbraham Hare, having possessed themselves of a [51]*51lease of certain iron works in the state of Pennsylvania, called Cornwall Furnace and Hopewell Forge, to continue until the year 1765, on the 13th of November 1750, took Jacob Giles, John Hall and Amos Garrett, into an equal partnership and interest with them in the works, in consideration of the sum of £1000 furnished by Giles, Hull and Garrett, to be repaid by Churchman, Hare and Dicks, with interest, at the end of five years, out of their proportions of the profits of the works, for which they passed their bonds.

In 1751 Giles and Garrett bought out Hare. In 1752 they purchased a moiety of another forge in Pennsylvania called 7’alphahaken Forge, and in the spring of 1753 they bought out Hall and Churchman, and thus became jointly possessed of one undivided moiety of Talphahaken Forge, and of five sixths of Cornwall Furnace, and Hope« well Forge.

On the 12th of Jane 1753, Giles and Garrett entered into new articles of copartnership tor carrying on the business at the furnace and two forges, leaving oat Dicks,

On the 13th of November 1753, another partnership was formed for carrying on the furnace and two forges, with several other branches of business, and John Giles and Nathaniel Giles, sons of Jacob, were taken into the concern on equal terms.

On the 12th of March 1756, the last partnership was dissolved, and a final settlement made between Jacob Giles and Garrett, in the presence and with the assistance of David Caldwell, when there appeared to be a balance against Garrett of £1106 14 1 current money, for which sum he passed his bond to Giles on the day of settlement, and also gave his bond to Giles, conditioned to quit claim to the iron works, and all stock and profits accrued or accruing therefrom; and Giles, mx the same day, passed his bond to Garrett, conditioned ta correct ail errors in the settlement, if any should be discovered, to indemnify him against all partnership demands, and to pay him one half of all the debts that might be collected, which in the settlement had been considered dubious or desperate. The three bonds are all in the handwriting of Garrett, and attested by David Caldwell and John Rigby. From which time, until a short period before the filing the bill by Garrett, in 1772, he continued to officiate as clerk [52]*52and book-keeper to Giles i made at different tiroes considerable payments on his bond for £1106 14 l-¿; and in February 1763, acknowledged in writing the account and settlement of 1756, reserving only the right to correct errors, if any.

By an act of the legislature this cause is placed in the same situation for decision in which it stood on the appeal from the decree of. the chancellor of the 22d of December 1797, and presents two questions for the consideration of the court.

First. Whether the settlement of the 12th of June 1756, and the bonds passed by Garrett to Giles, shall be opened and set aside, and Benedict Edward Ilall, as executor of Garrett, be entitled to an account of all the profits of ilia works from the year 1751 to 1705, and be let in for any and what proportion of the profits? And

Second. Whether as administrator de bonis non of Peter Dicks, he shall be let in for one sixth .of the profits of the works for the same period?

With respect to the claim in right of Garrett, it is contended that the settlement and bonds of the 12th of March 1756, ought to be set aside on two grounds:

First. That they were procured by fraud, artifice, misrepresentation and threats; and.

Second. That there' are errors and mistakes in the settlement.

On the first ground of relief, it is alleged in the bill that Giles, becoming impatient of the rising fortune of Garrett, formed the fraudulent design of working him out of the cop.cern, and of getting into his own hands the sole management and property of the works, and with that view artfully brought about the partnership of the 13th of November 1-753, into which his two sons are stated to have " been admitted as equal partners, without any considera-, tion; and that in furtherance of the same project, Garrett was turned out of the management of the works, on the 1st of January 1754, and sent to England on a frivolous pretext, and Havid Caldwell, who is represented as the tool of Giles, and wholly devoted to- his interest, appointed manager in his -place.

But the fraud inferred from these transactions does not appear, and the intent ascribed to Giles, to embarrass and injure Garrett, seems to be an unfounded conjecture. The [53]*53articles of ilie 13th «if November 1753, afford no evidence of it, and it does not appear that Garrett was thereby injured. The allegation that. Nathaniel and John Giles were taken into the partnership without any consideration, and with a view to overbear Garrt.it, is not supported. On the contrary, the articles refer to an annexed list of stock stated to have been put in by each of the parties, and contain an express stipulation that Nathaniel Giles, who was an infant, should have no vote in the affairs of the com* panv until he arrived at age.

The clmige that David Caldwell was the tool of Giles* and that Giles, in the year 1754, fell upon the expedient; of appointing him manager at the works, for che purpose of ruining Garrett, is equally unsupported.

By the articles of the 12th of June 1753, it was stipulated that Giles should be at liberty to employ another book-; keeper at the end of the year, and by the articles of the 13th of November 1753, it was provided that a new clerk should be appointed on the 1st of January 1754.

These two agreements were entered into by Garrett with Ins eyes open, and the first of them at a time when ml fraud is pretended to have been practised upon him. The appointment, therefore, of Caldwell as manager, who, it is-in proof, was a man of unblemished character, will not bear the construction which is attempted to be given it. He was moreover, from the time of his appointment, on the most friendly and confidential terms with Garrett, as appears from their numerous letters of correspondence; and with respect to Garrett’s mission to England, it appears to have been connected with their general scheme- of trade; and the bill does not even state that there were any foul dealings in his absence.

The allegations in the bill that Garrett, on his return from England, wished to know the state of (he works, but was put off with some trifling excuse, and that every transaction during his absence was concealed — that when he proposed to go to the works to examine the books, Giles alarmed him with fears that he would be arrested and it»» prisoned — that Giles peremptorily insisted on taking hi* son Jacob Giles,

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Bluebook (online)
3 H. & J. 43, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gover-v-hall-md-1810.