J. Bernstein & Sons v. Hobelman

16 A. 374, 70 Md. 29, 1889 Md. LEXIS 4
Court of Appeals of Maryland·Decided January 9, 1889·Published·Cited by 6 cases

Opinion

Bryan, J.,

A mortgage was made to a partnership in the partnership name; and the principal question in this case depends on the effect and operation of this form of conveyance. The mortgage stated that it was made by Elizabeth M. Berger to secure the payment of her indebtedness to the co-partnership firm of Wehr, Hobelman and Gottlieb of Baltimore City.” It embraced certain real and leasehold estate in the City of Baltimore, and sundry personal chattels; and was made subject to the sections of Article four of the Public Local Laws relating to mortgages, and it also-contained a power of sale under Article 64 of the Public General Laws. The mortgagees were describéd as “the firm of Wehr, Hobelman and Gottlieb,” and in no other way. A petition was filed by the mortgagees in the Circuit Court of Baltimore City for a sale of the mortgaged property, and a decree was passed ordering it to be sold. The real and leasehold property was sold under the decree, and the sales were [37] reported for ratification. Thereupon certain creditors, who had obtained judgments subsequently to the mortgage, filed exceptions to the ratification. The first exception maintained that the decree was beyond the jurisdiction of the Court and void, because it included personal goods and chattels; whereas the Public Local Laws of Baltimore City relating to mortgages authorized a decree only for lands and chattels real. The second exception alleged that the mortgage was not valid in law, because it was not executed to any natural person, nor to anybody corporate; -hut to “the firm of Wehr, Hobelman and G-ottlieb” which is neither. The exceptions were overruled and the sales ratified.

There was undoubtedly error in the decree, in so far as it ordered the sale of all the mortgaged property. There is no authority in the statute to decree the sale of personal chattels. It was decided in Williams vs. Williams, 7 Gill, 302, that an appeal would lie from a decree of this character, notwithstanding the assent embodied in the mortgage. If an appeal had been taken, the decree would have been necessarily reversed in part. Ho appeal was taken, and the present question arises exclusively on the exceptions. The seven hundred and eighty-sixth section of the fourth Article of'the Public Local Laws is as follows: “Any allegations may he made, and proof under the orders of the said Court exhibited, and a trial of the allegations had as the Court shall prescribe, to show that the sale ought not to have been made.” Of course if the decree was erroneous, it could not he held that the sales ought to have been made. But there was no error in that portion of the decree which ordered the sale of the real and leasehold estate; and there has been no attempt to execute the portion which related to the personal chattels. There could he no reason or propriety in-[38] saying that a sale was improperly made which a Court had the authority to order; simply because at the same time, it ordered something else which was beyond its authority, and which was separate and distinct from the matter properly decreed. It is very frequently the case in Chancery appeals, that a decree is affirmed in part, and reversed in part.

Let us consider the second exception. In mercantile dealings promissory notes are constantly made payable to partnerships, and bonds are frequently made payable in the same manner. A partnership is an association of individuals; hut what is due to the partnership is due to all the partners collectively, and what is due by the partnership, is due by all the partners collectively; and suits by and against them must he prosecuted in the names of the individuals composing the firm. A contract by or with a partnership is a contract by or with all the partners. By the common law it was not necessary that a deed should contain the name of the grantee; hut a sufficient description of him was always indispensable. Lord Coke says: “But purchases are good in many cases by a known name, or by a certain description of the person without either surname or name of baptism, as to the wife ,of I. S., or his first horn son, or his second horn son, &c. &c. &c., or to the right heirs of I. S.” Co. Littleton, 3a.

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J. Bernstein & Sons v. Hobelman, 16 A. 374, 70 Md. 29, 1889 Md. LEXIS 4 (Md. 1889).

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