Hamilton v. Zimmerman

37 Tenn. 39
CourtTennessee Supreme Court
DecidedDecember 15, 1857
StatusPublished

This text of 37 Tenn. 39 (Hamilton v. Zimmerman) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hamilton v. Zimmerman, 37 Tenn. 39 (Tenn. 1857).

Opinion

McKinney, J.,

delivered the opinion of the Court.'

This was a bill for a partnership account. The complainant alleges that, for several years, he was a secret partner with the defendant, in a drug store, in the city of Nashville, carried on in the name of J. M. Zimmerman, under a verbal agreement between them, to share equally the profits of the business. The fact of partnership is expressly denied by the defendant. [41]*41To establish his interest as a partner in the concern, the complainant relies on the oral admission of the defendant, made to various persons, at different periods during the continuance of the alleged partnership. And to show that such was not the fact, and that the complainant’s only connection with the business was in the capacity of clerk, in the employ of defendant, resort is had to the same sort of evidence, namely, the verbal declarations of the complainant, often repeated, to the effect that he was not a partner with defendant in the business, hut simply a salaried clerk; and, in addition, the defendant relies upon the complainant’s implied admission in a more solemn form, contained in his answer to a hill in Chancery, to disprove the allegation of the present bill. _ It seems, from the allegations and proof in the cause, that on the 18th of November, 1850, McNairy & Hamiltan, druggists, of Nashville, (the firm consisting of the complainant, M. Hamilton and W. H. McNairy,) being about to fail, sold and transferred their stock to the defendant, . Zimmerman, who executed his several notes for the consideration agreed to be paid, payable in future instalments, which notes were transferred by McNairy and Hamilton to N. A. McNairy, as collateral security, to indemnify him on account of his liabilities, for the firm of McNairy and Hamilton.

The bill, in substance, charges, that about the time of the sale by McNairy and Hamilton to Zimmerman, the complainant, reduced to poverty by the failure of said firm, and deprived of the means of support for his family, proposed to Zimmerman, who was comparatively a stranger in Nashville, that he, the complainant, who was familiar with the business, -and had an exten[42]*42sive acquaintance in the community, would, as a secret partner, join with the former in the purchase of the said stock of drugs and- medicines from McNairy and Hamilton, and in carrying on said business in Nashville, upon the terms, that they should equally share the profits of the business. To this proposition, as the bill alleges, Zimmerman readily assented. The bill further states, in substance, that, being insolvent, and looking to his interest in the profits of this new business as the only means of furnishing a support for his increasing family; “ it was absolutely necessary that his (complainant’s) connection with Zimmerman in the purchase, should be kept secret, otherwise the whole object had in view, might at any moment- be defeated. Accordingly, the fact was not made known to the public,” and complainant “went into the new business, ostensibly, as cleric, and so held himself out to the world? &c.” But that in reality, he was a full and equal partner in the business, and so continued up to some time in 1856, when Zimmerman sold out the entire establishment, and denied that complainant had any interest as partner in the same, or any right to a share of the profits. The bill alleges that the complainant withdrew from the concern upwards of $4,000 00, and the defendant nearly $8,000 00; and that after this deduction, and an adjustment of all the liabilities of the concern, there remains a balance of clear profits of from ten to fourteen thousand dollars to be divided; and to one half of which, complainant, by the agreement, is entitled.

The answer denies, in strong terms, the existence of any agreement or understanding, that Hamilton was to [43]*43have any interest, or that he ever had any interest, as partner, in the purchase of the stock of drugs and medicines, or in the business carried on by the defendant, and positively asserts that he was merely employed and taken into the store as cleric, in the early part of the year 1852; and that he remained, and served in that capacity alone, until, in 1856, when defendant sold out the establishment; and that the money stated to have been drawn from the concern by the complainant, was received as compensation for his services as. clerk, and not otherwise.

This is an extraordinary case. The solemn assevera-tions of the 'parties in the bill and answer — both of which are sworn to — are positively contradicted and disproved by the previous repeated declarations of the parties. It is satisfactorily proved that the defendant, on different occasions, during the continuance of the business, distinctly admitted the interest of complainant as a partner, and that as such, he was entitled to a share of the profits. And, on the other hand, it is as fully established, that the complainant denied, more frequently, perhaps, that he had any interest whatever as partner; and asserted that he was merely a clerk, receiving a salary for his services.

Perhaps no case of conflicting evidence, of more difficult solution than the present can be imagined, if we look merely to the oral admissions and declarations of the parties. It is impossible to reconcile the statements of the parties with each other; and it is no less impossible to reconcile the statements of either, made prior to this suit, with his own allegations in the pleadings. The attempt to do so, would be alike pain[44]*44ful and fruitless. If there were nothing more in the case, we should feel driven to the necessity of resorting to the principle alike applicable in equity as at law, that the party asserting a claim or right against another, must establish such claim or right by competent and satisfactory proof; and the test of what is satisfactory proof, is the sufficiency of the evidence to satisfy the mind of the probable truth of the fact alleged, upon which the party grounds his right. If unable to do this, the judicial tribunal appealed to cannot do otherwise than dismiss his suit. But, it has been argued for the complainant with great ingenuity, that the supposed inconsistency of his previous declarations, with the sworn statement of the bill, is apparent rather than real, that such declarations are entitled to no force, and should not be permitted to prejudice his rights, because they are shown to be compatible with the intention of the parties, and the end to be accomplished — which was to secure the means of support for himself and family; and that to effect this end as against his creditors, it was a matter of absolute necessity, to conceal his true relation to the business, as partner, and to hold him out to the public in the relation of clerk merely.

This argument involves a conclusion as hard to be maintained, perhaps, in law, as in sound casuistry.

We fully assent to the correctness of the position assumed by the counsel for the complainant, that since the abolishment of the arrest or imprisonment of the body of a debtor, the creditor has no more power over the person, than over the will, of his debtor. He cannot be heard to' insist that his debtor shall apply himself to labor, either of mind or body, so as thereby [45]*45from his daily earnings, to accumulate a fund for the benefit of creditors.

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Bluebook (online)
37 Tenn. 39, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hamilton-v-zimmerman-tenn-1857.