Graham v. Schooler

1921 OK 5, 194 P. 550, 80 Okla. 124, 1921 Okla. LEXIS 10
CourtSupreme Court of Oklahoma
DecidedJanuary 8, 1921
Docket9844
StatusPublished
Cited by4 cases

This text of 1921 OK 5 (Graham v. Schooler) 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
Graham v. Schooler, 1921 OK 5, 194 P. 550, 80 Okla. 124, 1921 Okla. LEXIS 10 (Okla. 1921).

Opinion

JOHNSON, J.

George G. Graham and W. ' E. Schooler formed a partnership under written agreement'May 15, 1913, at Hugo, Oklahoma, for the general practice of law. By mutual consent this partnership was dissolved February 1, 1914, Schooler remaining in the office and Graham moving into an *125 other building, where he continued to practice until he moved to California. On May 2, 1916, Schooler commenced this action in the district court of Choctaw county to recover .a money judgment against Graham for his share in partnership receipts. Copy of the partnership agreement and itemized statement of receipts and expenses were attached to petition

The allegations of the plaintiffs petition were:

1. “That plaintiff and defendant have heretofore been engaged in the partnership business in the practice of law under the name of 'Schooler and Graham, Hugo, Oklahoma ; that the interests of plaintiff and defendant in said firm were as follows: One-half interest each as per contract attached to this petition marked ‘Exhibit A’ and made a part thereof; that said business was carried on since its beginning May 16, 1913, up to Feb. 1, 1914, at which time, by mutual consent, the business relations ceased and the firm ceased to carry on said business as a partnership and said partnership was dissolved.

2. “That prior to the dissolution of said partnership said defendant collected the sum of $12.50 and since the said dissolution the said defendant has collected outstanding claims due said firm in the amount of $500.00, making a total of $512.50, which said defendant collected of partnership funds and which said defendant failed and refused to account to said plaintiff for. That during and since the dissolution of the said partnership the plaintiff has collected the sum of $41.00 partnership funds.

3. “That during said partnership the plaintiff herein expended the sum of $109.82 for current expenses pertaining to said business and said defendant expended the sum of $21.94 as current expenses of said partnership.

4. “Plaintiff further states that on settlement there will be due the plaintiff the sum of $280.69 with interest at 6 per cent, from November 5, 1914. A copy of the receipts and disbursements of both plaintiff and defendant are hereto attached, and marked ‘Exhibit A’ and made a part hereof.

“Wherefore, plaintiff prays that the defendant be required to account and settle and for judgment for the balance due plaintiff, that is, to wit: $280.69, with interest at 6 per cent, from October 3, 1914, and for his costs and for other and proper relief.”

The court sustained a demurrer to the petition, and plaintiff was granted leave to amend by interlineations, by adding to the prayer the words: “That the defendant be required to account and settle.” The demurrer to the petition as amended was then presented by the defendant, and overruled by the court.

The defendant’s answer was a general and special denial.

We think that the demurrer to the amended petition, as well as the defendant’s objection to the introduction of evidence, was properly overruled by the court, and that from an examination of the amended petition it is obvious same stated a cause of action for a judicial accounting between the parties. The amended petition seems to meet all the requirements of section 4737, Rev. Laws 1910, in that it contained the name of the court and the county in which the action was brought and the names of the parties plaintiff and defendant, and contained a statement of the facts constituting the cause of action in ordinary and concise language and without repetition, and the demand of the relief to which the party supposed hijn-selt entitled; and of section 4738, which provides that the plaintiff may unite several causes of action in the same petition, whether they toe such as have heretofore been denominated legal or equitable, or both, where they all arise out of contract express or implied.

The rule that governs in this class of cases is stated in 30 Oyc. 712, 713, as follows : ,

“The mere fact that a partnership has been dissolved makes out a prima facie case for a partnership accounting; although a plaintiff rarely resorts to a court for a judicial accounting, unless some of the partners are improperly withholding firm assets, or neglecting to account, or have defrauded plaintiff into an unfair settlement, or have excluded him from the partnership business, or have carried on a business in competition with the firm. * * * When a firm has been dissolved, and no private accounting or settlement has taken place, either partner has the unconditional right to institute a suit for a judicial accounting.” Citing in support thereof: Hanna v. McLaughlin, 158 Ind. 292, 63 N. E. 475; McClung v. Capehart, 24 Minn. 17; Deveney v. Mahoney, 23 N. J. Eq. 247; Stibich v. Goenner, 8 Pa. Dist. 227.

In the case of Cobb v. Martin et al., 32 Okla. 588, 123 Pac. 422, this court said:

“When the question whether a partnership exists is a matter of doubt, to be decided toy inferences to be drawn from all the evidence, it is one of fact for the jury; and the court should not nonsuit or direct the jury to find a verdict for the plaintiff or defendant.” See, also, Nation v. Savely, 66 Oklahoma, 168 Pac. 805; Dill v. Flesher, 73 Oklahoma, 175 Pac. 359; Carlin v. Donegan, 15 Kan. 495.

In the latter case the court said:

“A petition in an action by one partner against another, which alleges the partner *126 ship, gives a eo-py of the written contract therefor, alleges that the plaintiff at the out- ■ set paid in a certain specified amount, that the partnership was terminated, and that during its existence plaintiff had paid on account of debts and expenses a large sum, and that upon a settlement of the partnership accounts, which the plaintiff had vainly sought, a large sum would be found due the plaintiff, and which shows that the partnership owned a large number of chattels, and involved a series of transactions, states a cause of action, and must be held good as against any objection that can be raised by demurrer, notwithstanding it does not in terms allege that the defendant had possession of any of the partnership property, or that he had any accounts to render.”

At the time suit was brought a writ of attachment was issued and several hundred volumes of law books formerly owned and used by Graham were attached as the property of the defendant. Nancy P. Graham, mother of George G. Graham, intervened in said action and claimed ownership of the attached property by virtue of a bill of sale executed December 1, 1915, and filed for record by her May 1, 1916.

Upon these issues the case was tried October S, 1917, a jury being waived, and judgment was rendered in favor of plaintiff for the amount sued for, sustaining the order of attachment and ordering the attached property sold, and denying intervener any relief under said bill of sale. Prom this judgment and order overruling motion for new trial, defendant and intervener have appealed.

The ten assignments of error submitted are argued in the briefs under two specifications.

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Cite This Page — Counsel Stack

Bluebook (online)
1921 OK 5, 194 P. 550, 80 Okla. 124, 1921 Okla. LEXIS 10, Counsel Stack Legal Research, https://law.counselstack.com/opinion/graham-v-schooler-okla-1921.