Hamman v. Emerson

65 So. 765, 135 La. 629, 1914 La. LEXIS 1818
CourtSupreme Court of Louisiana
DecidedMay 25, 1914
DocketNo. 20,270
StatusPublished
Cited by2 cases

This text of 65 So. 765 (Hamman v. Emerson) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hamman v. Emerson, 65 So. 765, 135 La. 629, 1914 La. LEXIS 1818 (La. 1914).

Opinion

PRO YO STY, J.

Plaintiff sues for a dissolution of partnership, and to have a 10 per cent, interest, which defendant acquired in his own name in the Star Company, decreed to belong to the partnership, and for an accounting from defendant of the dividends theretofore received by him from said company.

At the time of entering into the agreement [632]*632which plaintiff calls a “partnership,” the plaintiff was vice president oí a bank in Houston, Tex., and defendant was a man of large experience in and about oil fields, and skilled in oil well drilling. For some two or three years they had been operating in the oil field of Humble, Tex., under an arrangement by which plaintiff furnished the money and defendant his services. The exact nature of the business is not stated, but, as we gather, consisted in trafficking in oil leases and prospecting for oil. The business had been unsuccessful. Plaintiff had sunk in it some $30,000. We gather that it had been discontinued; for defendant testifies that, having heard of the oil prospects at Vinton, La., he decided to go there, and sought to borrow $150 for that purpose. And the witness Birmingham, who lent him the $150, on a note indorsed by the plaintiff, says that defendant was “up against it,” meaning, as we understand, without means and out of employment. With reference to the terms and conditions of the agreement which forms the basis of this suit, plaintiff testified as follows:

“Q. What was that agreement?
“Á. I was to advance Emerson $25 a week to come to Vinton and see if we couldn’t secure some leases or rights, or something of the sort. ........
“Q. As we understand from your answer, there was no fixed time for the duration of that partnership?
“A. No.
“Q. Mr. Hamman, at the time that you made this agreement with Mr. Emerson to advance him $25 a week, was he to give you all of his time, or only a portion of his time?
“A. Why, until we made some other agreement about it, he was.
“Q. He was to give you all of his time until you made some other agreement?
“A. Yes, sir.
“Q. Now, Mr. Hamman, in the event the operations liad been successful, what compensation was Mr. Emerson to receive for his time, or was anything said about time?
“A. No, there was nothing said about that. He was to have half of what we made.
“Q. Half net?
“A. Yes, sir.
“Q. Am I to understand from that that you were to have returned to you $25 a week that you advanced, or whatever sum you might advance, Mr. Emerson was to get no compensation for his time, and then, after the funds were returned to you, that you were to divide, or if' your advances were to be offset by Mi-. Emerson’s time and the gross receipts were to be divided?
“A. The amounts were advanced to him—
“Q. In other words, you were putting up-your money against his time?
“A. Yes, that was the proposition.
“Q. And if you made anything out of it, you divided it, and, if you made nothing out of it,, ycu lost your money and he lost his time?
“A- Yes; you understand that was this Vinton deal.
“Q. Mr. Hamman, were there any details arranged as to the period of time which you were to furnish Mr. Emerson with $25 a week?
“A. No, sir.
“Q. Was there any amount which you fixed as the maximum amount which he was to-spend ?
“A. As long as it did not run over any reasonable amount.
“Q. You felt that you had the right to stop it any time you wished if he was drawing too heavily on you?
“A. I would not have felt the right, unless I had taken the matter up with him about it. I had some understanding about it, and we did have an understanding about it.
“Q. When was that understanding?
“A. Some time after November, 1912, when he got this work with the Producers’ Oil -Company.
“Q. You had no intention of doing any actual drilling yourself, but simply of procuring some leases or options on land and turning them over to some company to develop?
“A. Never had any intention of spending but a small amount of money just for his expenses to try to find some leases and make some trade with some other large companies, get an interest in the leases, that was the agreement.
“Q. From the time that he first went to Vinton, September, 1909, until the time he went into the employ of the Ninety-Nine Company, he was doing nothing but scouting for you, was he? ,
“A. He was scouting for us both.
“Q. At the time Mr. Emerson left Houston to go to Vinton, it was your understanding that whatever leases he might take that he might take them in his own name?
“A. Yes, sir.
“Q. In his name and not your name; they were not to be taken in the name of Hamman and Emerson, were they?
“A. It was understood he was taking them in his own name.
“Q. And you have used the word ‘partner' in discussing the matter with him, did you?
“A. The word -‘partner’; yes, sir. 'JVe have-[634]*634used it a hundred times about how we were going to get out.
“Q. Your name wasn’t to appear on the surface?
“A. No, it wasn’t to appear.
“Q. You were to furnish the money, and whatever interest that might be acquired was to be acquired in Mr. Emerson’s name, and be sold and transferred in his name, and you Were to get half of the proceeds; is that correct ?
“A. Yes, that was my understanding.
“Q. What was the agreement when Emerson went to Vinton with reference to obligations that Emerson might incur in his own name, and about which he would not consult you as to your liability?
“A. Why, there was not to be any obligations on my part, except this $25 a week, or a little more than that, that I gave him.
“Q. Was there anything said, at the time this partnership was formed between you gentlemen, as to whether your name was to be used or not? Was there anything said whether his name was to be used?
“A. No, there wasn’t anything said about that.”

The defendant testified as follows:

“Q. Mr. Emerson, when did you go to the Vinton field?
“A. In September, 1909. I don’t remember, exactly, what date, but the middle or the first of September; in September-, anyway.
“Q. State to the court how you happened to go there?
“A.

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Cite This Page — Counsel Stack

Bluebook (online)
65 So. 765, 135 La. 629, 1914 La. LEXIS 1818, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hamman-v-emerson-la-1914.