Hannon v. O'Dell

43 A. 147, 71 Conn. 698, 1899 Conn. LEXIS 43
CourtSupreme Court of Connecticut
DecidedApril 25, 1899
StatusPublished
Cited by7 cases

This text of 43 A. 147 (Hannon v. O'Dell) is published on Counsel Stack Legal Research, covering Supreme Court of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hannon v. O'Dell, 43 A. 147, 71 Conn. 698, 1899 Conn. LEXIS 43 (Colo. 1899).

Opinion

Torrahce, J.

McCrillis and Co. attached the interest of William H. Cryne in all the tangible property of the New Britain Grain Company, a partnership of which Cryne was a member. Subsequently William J. O’Dell, Margaret Cryne and Colista L. Noble, claiming to comprise said copartnership, brought an action of replevin against McCrillis and Co. and the officer who attached the goods, and by virtue of the writ issued in said action obtained possession of the attached goods. In the action of replevin judgment was rendered in favor of the defendants therein, for a return of the goods and for costs. The present action was brought upon the bond given in the replevin suit, for a breach thereof in not returning the goods upon demand and in not paying the costs. In the court below in the present action the defendants suffered a default and the case was heard in damages.

Upon the hearing the plaintiffs introduced the files and records in the original attachment suit, and in the replevin suit, and then rested. The defendants, in mitigation of damages, then offered evidence to show that the interest attached [703]*703in the original suit was only that of a copartner in copartnership property, and that such interest had become worthless by reason of the insolvency of the copartnership'since the attachment. The plaintiffs claimed that the judgment in the replevin suit had established, in their favor, the title to the attached property, the amount of Cryne’s interest therein, and the amount of the judgment to which the plaintiffs were entitled, and that this judgment was conclusive upon the defendants in the present action. The court, against the objection of the plaintiffs, admitted the evidence offered by the defendants, and overruled the claim of the plaintiffs, and one of the important questions in the case is whether the court erred in so doing.

The complaint in the replevin suit alleged, in substance, that William J. O’Dell, Margaret Cryne and Colista L. Noble constituted the copartnership known as the New Britain Grain Company; that they as such copartners owned the attached goods; that they were entitled to the immediate possession of them, and that the defendants named in said complaint wrongfully detained said goods from them.

The first defense in the replevin suit was a general denial, which put in issue all of these allegations. The second defense, however, was special, and alleged among other tilings, in substance and effect, that Margaret Cryne was not a partner in the Grain Company, but that William H. Cryne her husband was such a partner with O’Dell and Colista L. Noble. We think this is the fair import of the second defense; for it does not deny that O’Dell and Colista L. Noble were such partners, and it does in effect allege that William H. Cryne was a partner with them. In the reply the plaintiffs denied this allegation. In the replevin suit, then, under the second defense, the parties were at issue upon the question whether or not William H. Cryne was one of the partners in the co-partnership called the New Britain Grain Company, the defendants therein asserting that he was, and the plaintiffs therein asserting that he was not, such partner. All the issues joined in the replevin suit were found in favor of the defendants therein. The court thus found, in effect, that [704]*704the property attached did not belong to a copartnership composed of William J. O’Dell, Margaret Cryne and Colista L. Noble, but did belong to a copartnership composed of O’Dell, Colista L. Noble and William H. Cryne ; finding also, in substance,-that the interest of William H. Cryne in the copartnership goods had been lawfully attached, and that the plaintiffs in the replevin suit were not entitled to retain the goods replevied.

Under these circumstances, while it may be conceded that the judgment in the replevin suit, as between parties bound by it, determined conclusively that William H. Cryne was a partner in the New Britain Grain Company, and that all his interest in the tangible property of said copartnership had been lawfully attached in the McCrillis suit, yet it did not determine at all the amount or extent of that interest. That question was in nowise in issue in that case, and its decision is not in any way involved in the judgment therein rendered. That question, in the present suit, was still an open one, and under our practice the defendant was at liberty to offer evidence of the amount and extent of that interest in mitigation of damages. Allen v. Woodford, 36 Conn. 143; Vinton v. Mansfield, 48 id. 474; Jackson v. Emmons, 59 id. 493; Fielding v. Silverstein, 70 id. 605. In admitting the evidence objected to, and in overruling the claim of the plaintiffs upon the point in question, we are of opinion that the trial court committed no error.

At the time of the attachment in July, 1896, the copartnership was solvent, and the interest of William H. Cryne therein was of a value greater than the amount of the judgment ren- ' dered by the court below. It continued to do business from that time until November, 1897, when "it became insolvent, and Cryne’s interest became of no value. The debts which it owed in July, 1896, were paid in the due course of business and other debts were from time to time contracted. During this period its debts and its assets were constantly changing.

Upon the facts found, the plaintiffs claimed that they were entitled to judgment for at least the amount of Cryne’s interest in the goods attached at the time of the attachment. This [705]*705claim the court in effect overruled, and this ruling is one of the errors assigned upon this appeal.

The interest of a copartner in the assets of the firm is the share to which he is entitled in the surplus of those assets after all the partnership claims and liabilities, including those of his copartners, have been satisfied; and for the purpose of having the copartnership property applied in satisfaction of those claims and liabilities, the copartners have an equitable lien upon that property, which takes precedence of any attachment or levy made by an individual creditor upon the share or interest of a copartner. Church v. Knox, 2 Conn. 514; Brewster v. Hammet, 4 id. 540; Barber v. Hartford Bank, 9 id. 407; Witter v. Richards, 10 id. 38; Filley v. Phelps, 18 id. 294; Frink v. Branch, 16 id. 260, 269; Allen v. Center Valley Co., 21 id. 130, 135; Staats v. Bristow, 73 N. Y. 264; George on Partnership, pp. 179, 283. The interest of a copartner in the tangible partnership property may, under our law, be attached by his individual creditor, and the attaching officer may take the property into his possession and hold it to respond to the judgment in the attachment suit. Stevens v. Stevens, 39 Conn. 474. In such case, however, only the interest of the copartner in the property is taken; the attachment is subordinate to the copartnership claims and liabilities, and is subject to the equitable lien of the • copartners. Witter v. Richards, supra; Trafford v. Hubbard, 15 R. I. 326. In such case, if the creditor subsequently levies his execution upon the property, he sells, not the goods attached, but only the interest of the debtor therein; the execution purchaser will stand in the place of the debtor to a limited extent, and the value of his purchase can only be ascertained upon a settlement of the copartnership affairs. Church v. Knox, Filley v. Phelps, supra.

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Bluebook (online)
43 A. 147, 71 Conn. 698, 1899 Conn. LEXIS 43, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hannon-v-odell-conn-1899.