Harris v. Tipton

1939 OK 256, 90 P.2d 932, 185 Okla. 146, 1939 Okla. LEXIS 275
CourtSupreme Court of Oklahoma
DecidedMay 23, 1939
DocketNo. 28606.
StatusPublished
Cited by5 cases

This text of 1939 OK 256 (Harris v. Tipton) 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
Harris v. Tipton, 1939 OK 256, 90 P.2d 932, 185 Okla. 146, 1939 Okla. LEXIS 275 (Okla. 1939).

Opinion

DANNER, J.

The plaintiff: recovered from the defendant, who had formerly been his partner, one-half of an amount which the defendant had recovered from the state of Oklahoma, after the dissolution of their partnership, for damages to the former partnership property. The defendant appeals. The plaintiff died and the action was revived in the name of Gladys Tipton, his administratrix. We shall use the term “plaintiff” interchangeably, referring either to the original plaintiff or his administra-trix.

Stated generally, the facts are these: Plaintiff and defendant were equal partners in the lumber business in the town of Wister, Okla. On April 17, 1927, certain personal property of the partnership was damaged by a flood, due to negligence in the construction of a state, highway. Approximately one year thereafter the plaintiff proposed in writing to buy the entire interest of the partner in said partnership for the sum of $3,250, and the payment of all unpaid taxes by the plaintiff. Or, in the same proposition, he offered to sell his entire interest to the defendant on the same terms. The offer to sell was accepted by the defendant and a bill of sale was drawn up, consummating the agreement. It was signed by the iilaintiff and delivered to the defendant, the defendant paid the aforesaid purchase price, and paid the taxes, and thereafter operated the business as his own.

Subsequently, about three years after the dissolution of the partnership, and in 1931, the state Legislature passed an act authorizing property owners at Wister (including the defendant) to sue the state for damages on account of the flood. Pursuant to that authority the defendant sued, recovered and collected approximately $7,000 from the state, for the aforesaid damage which had been done the partnership property prior to the dissolution. During the prosecution of that suit against the state by the present defendant, he expended approximately $300 in maintaining the action, and made several trips to Oklahoma City in that connection. During that time no negotiations or conversations were had between the parties concerning the plaintiff’s right, if any, to share in the possible recovery. The plaiutiff did not furnish any of the expense money nor did he engage in any activities in connection with that suit.

Thereafter the plaintiff instituted the present action, to recover from the defendant half of the amount which the defendant had recovered from the state of Oklahoma. The trial judge, without a jury, rendered judgment for the plaintiff as aforesaid.

Thus, and as a simpler summary of the facts, chronologically the events occurred in the following order:

(1) The partnership property was flooded and damaged.
(2) The plaintiff conveyed all of his interest in the partnership and partnership property to the defendant.
(3) The Legislature passed an act authorizing suit.
(4) The defendant sued, recovered and collected judgment against the state.
(5) Plaintiff filed the present action against the defendant.

The contract by which the partners flip was dissolved and plaintiff conveyed his interest to defendant contains the following provisions (Ward being plaintiff and Harris being defendant) :

“Know All Men By These Presents. That I, B. F. Ward, of Wister, LeFlore County, Oklahoma, in consideration of the sum of Three Thousand Two Hundred Fifty and 00/100 Dollars ($3,250.00), to me in hand paid, the receipt of which is hereby acknowledged, do hereby sell, convey, set over and deliver unto M. L. Harris, of Wister, Oklahoma, my entire interest in and to all of the property 0f the Ward-Harris Lumber Company, consisting of planing mill, and all wagons, tools and equipment, together with the mill sheds and other buildings located upon the right of way of the St. Louis & San Francisco Railway Company, at Wister, Oklahoma, and the lease thereof, also all tools, ma- *148 ehinery and equipment, and all hooks, accounts, evidences 1 of indebtedness, bank accounts, notes, liens and dioses in action, as well as all real property owned by or on account of the partnership of AVard-Harris Lumber Company, the same being this day conveyed by quitclaim deed, together with the entire good will of the business heretofore carried on by Ward-Harris Lumber Company.
“It is the purpose of this contract to dissolve the partnership of AVard-Harris Lumber Company, heretofore existing, and to convey all of the interest of the grantor in and to said business, its good will as well as all. property owned by it of every kind, character and description, unto the said M. L. Harris, so that he, the said M. L. Harris, shall be the entire and complete owner of all the property of said. partnership including the good will of said business and may henceforth carry on said business as fully and completely as said partnership might do.”

The principal argument briefed by the parties is concerned with the question whether, at the time when the bill of sale was executed, there existed any right which was capable of assignment; that, is, whether, after the .flood and before the assignment, the partnership possessed any right, at all in connection with recoupment for the flood damage, which was capable of being the subject of transfer to the defendant. The theory of the plaintiff, which was adopted by the trial court, is that, since the state could not have been sued in the absence of a statute permitting same, no chose in action or cause of action belonged to the partnership when the plaintiff sold his interest to the defendant, and that therefore, assuming that it did not exist, it was not and could' not have been assigned; further, that when the act was subsequently passed and the defendant recovered judgment, it was the recovery of an unexpected thing, a thing not formerly in existence, not formerly in being, and therefore not in the. contemplation of the parties at the time of the sale, and that accordingly the defendant should turn over to his former partner one-half of the amount recovered.

'The defendant contends that, though no cause of action existed prior to passage of the act, still a “chose in action” did exist, which “chose in action” ripened into a “cause of action” upon passage of the act; that by the express terms of the bill of sale the ■ plaintiff conveyed to him all-dioses in action owned, at. that time by the partnership. The' defendant further asserts, however, that even if the right or possibility of recoupment was not a chose in action, still, and by whatever name it might be called, it constituted a part of the “business and property” of the partnership, and that said “business and property” were expressly conveyed to him by the plaintiff.

The question presented is somewhat unique. AYhile many decisions are readily found which on iirst impression appear to be helpful, most of them, on further examination, reveal distinguishing characteristics. Oases, for instance, involving fraud or mutual mistake of fact, such as those in the annotation at 41 A. L. R. 1452, are clearly dissimilar to the situation here.

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Cite This Page — Counsel Stack

Bluebook (online)
1939 OK 256, 90 P.2d 932, 185 Okla. 146, 1939 Okla. LEXIS 275, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harris-v-tipton-okla-1939.