Heilbron v. Stubblefield

203 S.W.2d 986, 1947 Tex. App. LEXIS 1161
CourtCourt of Appeals of Texas
DecidedMarch 13, 1947
DocketNo. 4495
StatusPublished
Cited by6 cases

This text of 203 S.W.2d 986 (Heilbron v. Stubblefield) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Heilbron v. Stubblefield, 203 S.W.2d 986, 1947 Tex. App. LEXIS 1161 (Tex. Ct. App. 1947).

Opinion

PRICE, Chief Justice.

This is an appeal from the district court of Bexar County, 73rd Judicial District. Mrs. Lucille Stubblefield, as independent executrix and surviving widow of her deceased husband, Warren D. Stubblefield, Jr., sued A. E. Heilbron, Jr., to recover one-half of the profits made by the former partnership of Heilbron & Stubblefield. This firm was composed of plaintiff’s deceased husband and defendant Heilbron, and was engaged in the insurance agency business in the city of San Antonio.

[987]*987The defendant specially plead that on or about November 20, 1940, Warren Stubble-field entered the armed forces of the United States, at which time it was agreed by and between the said Stubblefield and defendant that so long as Stubblefield was in the armed forces defendant should operate the partnership business and retain as compensation therefor all profits; and from and after said date he did operate the partnership business without the aid of said Stubble-field; that at the time of this contract the undivided profits in the firm amounted to the sum of $1,000 one-half of which he offered to account for to plaintiff, less reasonable expenses in connection with the making of collection thereof.

In the alternative he plead that from the entry of Stubblefield into the military forces in November, 1940, to the date of his death on June 12, 1944, Stubblefield had been in the active military service of the United States, had in no way been active in the partnership, and that all earnings were solely due to defendant’s activity therein; that a reasonable compensation for his services was $200 per month. Recovery in this amount was alternatively sought.

The trial was before the court with a jury. The case was submitted upon two special issues; the first as to whether in November 1940 the oral contract alleged by defendant was entered into. On this issue the verdict was there was no such contract. In response to the second issue the jury found the reasonable valu.e of defendant’s services in prosecuting the partnership business from November 1940 to the date of Stubblefield’s death on June 12, 1944, was the sum of $10 per month. Defendant has perfected this appeal. Appellant will be designated here as defendant, and appellee as plaintiff.

The defendant asserts two errors as to the argument. The verdict on each of the issues is vigorously assailed as being without support from the evidence or in any event against the overwhelming preponderance thereof. If defendant be- correct as to his complaint on the first issue, this disposes of the appeal. Without dispute the following facts were established: The partnership was entered into about January 15, 1940. From that time up to November 1940 each party devoted, his time and attention to the business. During that period the books showed a net profit of a thousand dollars. Warren Stubblefield died in France on June 12, 1944. From November 1940 to June 12, 1944, the books showed a net profit of $4,599.42.. For each period nothing is allowed for the services of either party. Such net profits have all been appropriated by defendant, or at least are under his custody and control. It was neither alleged nor proven that the partnership was free from liabilities. However, no liabilities were shown to exist. These profits were perhaps the only assets of the partnership, at least no other were either claimed or shown by the evidence.

From November 1940, the date of the entrance of plaintiff’s husband into the military service of the United States, to June 12, 1944, the date of his death, he never acted in the business of the partnership and most of the time was away from San Antonio. There was evidence that one time he informed defendant as to a demand for automobile liability insurance at Camp Bowie, and defendant acted thereon.

It is undisputed that during most of the time between November 1940 and June 1944 defendant was employed as a rent inspector in the city of San Antonio by the O.P.A. at a salary of from $2,600 to $3,200 per an-num. This employment occupied most if not all of the business hours of the day. Defendant also performed some services for his sister, who was Executrix of his father’s estate. From the evidence it may he reasonably inferred that this estate was extensive and in part composed of some 40 or 45 pieces of property. Such time as defendant devoted to the business of the partnership was as a rule after business hours, on Sundays, holidays and before business hours. At times he was at thé place of business during the noon hour.

Defendant clearly and unequivocally testified that when Stubblefield went into the army it was agreed between them that during the time Stubblefield was in the army defendant was to receive and.appropriate to his own use the profits of the business; that when Stubblefield was discharged he should resume his activity and receive one-half of the net profits of the [988]*988business. The business was conducted in the name of the firm. Mrs. Glasscock, a sister of the defendant, testified in substance that Stubblefield had told her that while he was in the army defendant was to receive all of the profits from the business for conducting same. Mrs. Glasscock was an attorney at law, and for most of the relevant time made out income tax returns for the partnership. She testified for all years except 1940 defendant charged himself with the entire profits of the business.

Defendant and Stubblefield operated in connection with the partnership business a life insurance business. Stubblefield on November 18, 1940, executed a writing wherein he purported to convey to defendant earned and unearned income on life insurance policies written for the insurance company by the firm. J. W. King, agent for the insurance company, testified to the execution of this instrument by Stubblefield. He further testified that defendant and Stubblefield stated to him that they were going to do the same thing about the fire and casualty business, that is, for Mr. Heil-bron to receive the profits from the business while the partnership was going on, the partnership to so remunerate him for staying here and keeping the business running. Witness stated “That is the way -they put it to me.” He did not, however, state that it was stated to him that a contract had been closed.

Bruce Waitz testified in substance as follows : He had known Stubblefield and defendant for about ten or fifteen years, was a personal friend of each. Witness was an attorney at law and. had attended to the legal affairs of the partnership up to the time he went to the army. At the direction of defendant he prepared a draft of a written contract whereby defendant was to receive all the profits of the partnership during the absence of Stubblefield in the army, and if within one year Stubblefield returned he was to 'resume his active connection with the partnership and to share the profits; if he did not return within one year he was to have no further interest in the partnership. This proposed contract was discussed in the presence of the witness but the one year provision was unsatisfactory to Stubblefield. It was agreed between them to eliminate the one year provision. This was assented to by each. Quoting literally one of his answers:

“At that time the agreement was reaffirmed between the parties in my presence, to the effect that Mr. Stubblefield would forfeit, or would turn over to Mr. Heil-bron, all his interest in any profits in the business during Mr. Stubblefield’s period of military service, in consideration of Mr.

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Bluebook (online)
203 S.W.2d 986, 1947 Tex. App. LEXIS 1161, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heilbron-v-stubblefield-texapp-1947.