J. E. Tusant & Son Co. v. Chas. Weitz Sons

195 Iowa 1386
CourtSupreme Court of Iowa
DecidedFebruary 13, 1923
StatusPublished
Cited by20 cases

This text of 195 Iowa 1386 (J. E. Tusant & Son Co. v. Chas. Weitz Sons) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
J. E. Tusant & Son Co. v. Chas. Weitz Sons, 195 Iowa 1386 (iowa 1923).

Opinion

Faville, J.

The pleadings in the case are quite voluminous. The appellants are the plaintiff and cross-petitioners. No relief is sought against any of the appellees except the firm of Chas. Weitz’ Sons. Condensing the initial question in the case to its simplest form, it is the contention of the appellants that they, together with the appellees, thirteen persons in number, constituted a voluntary unincorporated association known as the “Master Builders’ Association of the city of Des Moines,” and that, acting jointly and for their mutual benefit, all of said parties were instrumental in securing a contract from the United States government for the erection of the cantonment at Camp Dodge; that said contract was taken in the name of the appellee Chas. Weitz’ Sons, for the benefit of all of said parties; and that the appellants are entitled to an accounting for their share in the profits secured under said contract. Certain of the members of said association who did not join by cross-petition in the relief sought by plaintiff are made parties defendant, and are appellees herein, but the action is primarily against Chas. Weitz’ Sons. The appellees filed a joint answer, containing a general denial, with certain special defenses.

It is uneontradicted that a written contract was entered into between the proper officials of the United States government and the appellee Chas. Weitz’ Sons, providing for the erection of the cantonment at Camp Dodge, which contract provided for the payment to the said contractor of a fee upon a graduated scale, depending upon the total cost of the cantonment, which fee, it is contended, amounted to $250,000.

The trial of the case occupied a number of weeks in the lower court, and the record is very voluminous. The case'is triable before us de nova, and the first question for our consideration is whether or not the parties to this action entered into a joint adventure in relation to the subject-matter of the construction of the cantonment at Camp Dodge," and whether or not the contract procured from the United States government, the work done thereunder, and the fee obtained therefor, were all had and done under and pursuant to said joint adventure.

I. The law in regard to joint adventure is of comparatively recent origin. It is analogous to the law of partnership in many respects, but is not identical with it. Goss v. Lanin, 170 Iowa [1388]*138857; Reece v. Rhoades, 25 Wyo. 91 (165 Pac. 449); Brown v. Leach, 189 App. Div. 158 (178 N. Y. Supp. 319) ; Clark v. Muir, 298 Ill. 548 (132 N. E. 193); Menefee v. Oxnam, 42 Cal. App. 81 (183 Pac. 379); Slater v. Clark & Co., 68 Ill. App. 433; Butler v. Union Trust Co., 178 Cal. 195 (172 Pac. 601); National Sur. Co. v. Winslow, 143 Minn. 66 (173 N. W. 181) ; 15 Ruling Case Law 500.

In Wilson v. Maryland, (Minn.) 189 N. W. 437, the Supreme Court of Minnesota recently said:

“To constitute a joint adventure, two parties must combine their property, money, efforts, skill, or knowledge in some common undertaking. ’ ’

In Fletcher v. Fletcher, 206 Mich. 153 (172 N. W. 436), the Supreme Court of that state defined a joint adventure as “an association of two or more persons to carry out a single business enterprise for profit.”

A joint adventure must, in all cases, be evidenced by a contract, and like other contracts, it need not be express, but may be implied. Knapp v. Hanley, 108 Mo. App. 353 (83 S. W. 1005); National Sur. Co. v. Winslow, supra.

In Goss v. Lanin, supra, we said:

“It is true that it is not necessary that there should be a specific formal agreement to. enter into a joint enterprise, or that the interests of the parties should be definitely settled in such agreement, or that there should be a formal agreement as to sharing in the profits. If there be a joint enterprise proven, either by direct evidence of a mutual agreement to that end or by proof of facts and circumstances from which it is Made to appear that such enterprise was in fact entered into, the law fixes their rights. ’ ’

In Nelson v. Lindsey, 179 Iowa 862, we said:

“Parties may enter into a joint enterprise, whereby they assume mutual' obligations to each other and agree to a basis of sharing profits. Such an arrangement may fall far short of being a partnership, though it has in it some of the elements of partnership. It is often denominated in the books as a joint adventure. ’ ’

See, also, Senneff v. Healy, 155 Iowa 82.

At the outset, we are confronted with the fact question as [1389]*1389to whether or not the thirteen parties to this action, appellants and appellees, entered into' an agreement among themselves that constituted a joint adventure. In determining this question, the general rules pertaining to the establishment of contracts, express or implied, are applicable. We must take into consideration the situation of the several parties, and what was said and done prior to the time of the alleged formation of the contract, as well as at the time thereof, and the subsequent acts and conduct of the parties. In other words, all proper and legitimate evidence bearing upon the question as to whether or not such an agreement was entered into, should be considered. The parties have availed themselves generously of the rules of evidence in such a case, and have evidently brought into the record all of the available evidence bearing upon this question. It is utterly impossible, within the reasonable length of an opinion, to set out even the substance of all of this testimony, or to do any more than attempt to epitomize some of its most salient features. The fact that we may fail to note some of the items of evidence that may be regarded as important by the respective parties is not any indication that we have overlooked the same or failed to give all the evidence due consideration in the determination of the case. It is not surprising that the evidence in the case is very largely in direct conflict, and that counsel for the respective parties draw diametrically opposite conclusions therefrom.

In May, 1917, the United States government undertook the construction of sixteen army camps, one of which was located at Camp Dodge, near the city of Des Moines. On June 13th of said year, Congressman Dowell, of Des Moines, telegraphed the secretary of the Greater Des Moines Committee as follows: •

“Get together at once contractors in Des Moines, lumbermen, plumbers, electricians and all persons interested in construction work and arrange to send a man to Washington to take up with department contracts for construction of army camp at Des Moines.”

Following the receipt of. this telegram, a meeting was called by the Greater Des Moines Committee, and attended by men representing various trades and classes of construction, at which meeting there was a general discussion of the proposi[1390]*1390tion. that it was desirable tliat the contract for the construction of the cantonment be obtained by Des Moines parties; and committees were appointed to inventory the available equipment, both material and labor, in Des Moines that could be utilized for the .contemplated work.

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195 Iowa 1386, Counsel Stack Legal Research, https://law.counselstack.com/opinion/j-e-tusant-son-co-v-chas-weitz-sons-iowa-1923.