Jones v. DeCamp

2 Ohio N.P. (n.s.) 133, 15 Ohio Dec. 169, 1903 Ohio Misc. LEXIS 126
CourtDarke County Court of Common Pleas
DecidedJanuary 21, 1903
StatusPublished

This text of 2 Ohio N.P. (n.s.) 133 (Jones v. DeCamp) is published on Counsel Stack Legal Research, covering Darke County Court of Common Pleas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jones v. DeCamp, 2 Ohio N.P. (n.s.) 133, 15 Ohio Dec. 169, 1903 Ohio Misc. LEXIS 126 (Ohio Super. Ct. 1903).

Opinion

The three defendants, John DeCamp, Harriet Deleplaine and C. W. North, as administrator, all file answers which are substantially the same; they deny all charges of fraud, bad faith and conspiracy, aver that John DeCamp was and now is sane; that the real estate was appraised at its true value; that the same was held and owned by Job and John DeCamp as partners; that the proceedings in the probate court were regular and lawful in all respects and that this court has no jurisdiction to set aside the decree of the probate court in this action.

The plaintiffs filed a reply, which is a general denial of all allegations of the answers not admitted in their amended petition.

[135]*135The first question we will discuss and dispose of is as to the jurisdiction of this court to inquire into and make a finding and decree relative to the proceedings in the probate court. It is claimed by the defendants that this court has no jurisdiction in the premises; if this be true, it is useless for us to pass upon the other questions involved in this controversy, because if jurisdiction is wanting all other matters fall with it.

The claim is based upon the proposition that a finding and decree of the probate court imports absolute verity and is binding on the whole world until it is reversed by a court of error, or modified or set aside on appeal; and it is further claimed that the judgment is not subject to collateral attack. This is unquestionably true where the probate court has acquired jurisdiction over all parties in interest and over the subject matter. In such a case the only remedy of the complaining party is to file a motion for a new trial, and if overruled save his exceptions and prosecute error, or appeal the case to the common pleas court and have the judgment modified or vacated.

It must be borne in mind in the beginning that the right of a surviving partner to have real estate declared partnership assets, and to take the same at the appraised value is purely statutory. The rights and duties of a surviving parner or partners are defined by Sections 3167, 3168, 3169 and 3170 of the Revised Statutes of Ohio. Fortunately for us these sections have received a construction by our own Supreme Court in the case of Rammelsberg et al v. Mitchell and Lape, 29 O. S., pp. 22-59. In this case not only the rights of the surviving partner have been passed upon, but the rights of those who claim under the deceased partner’s heirs as well. In that case, “The original action was brought in the Superior Court of Cincinnati by plaintiffs in error, who were the heirs and devisees of Frederick Rammelsberg, deceased, against the defendants in error, who were the executors and trustees under the will of Frederick Rammelsberg. deceased. The original petition charged the defendants with divers acts of mal-administration, and prayed that certain judgments and conveyances, therein-after described, might be set aside; that the trusts might be executed, an account taken, and for other relief.”

Judge Mcllvaine, in speaking for the court relative to the [136]*136question when real estate becomes partnership assets under the statute, has this to say:

“Can partnership real estate be transferred to a surviving partner as assets of the firm, under this statute? In so far as the proceedings authorized by the act are adversary in character, it is the personal representative, and not the heir of the deceased partner who stands in the relation of adverse party to the surviving partner. From this fact it may be fairly assumed that the assets thus transferable are such only as are by law subject to the administration and control of the personal representative. and do not include those of which the beneficial interest descends to the heirs. The foundation question, therefore, would seem to be: Under what conditions and circumstances, if any, does real estate become personal assets, to all intents, in the hands of a co-partnership?
“It must be conceded that a co-partnership is incapable of taking or holding the legal title to real estate, yet it is equally certain that it may acquire an equitable estate therein. It is well settled that whenever real estate is purchased with partnership funds, an equitable estate accrues to the partnership, whether the legal title be conveyed to the partners as individuals, or to either of them, or to a stranger; and in such case, upon the death of the person holding the legal title, it descends to his heir at law in trust for the benefit of the partnership — at least to the extent that it may be needed to satisfy demands against the partnership, whether such demands exist in favor of a stranger or a member of the co-partnership. This doctrine is quite familiar, as is also the doctrine that in such case the realty is regarded and treated as personal property in the hands of the partnership to the extent it may be needed for partnership liabilities.
“And we go a step further. There is no doubt that if, by the terms of the partnership articles, real estate be purchased with partnership funds, or be put otherwise into the partnership stock, to be used and held solely for partnership purposes, it is to be regarded as converted out and out into personalty, so that the heir at law takes no beneficial interest therein in any event, but the proceeds not needed for partnership purposes pass to the personal representatives of the co-partners.
“A question, however, is made, and' concerning which some doubt arises from the conflict in decided cases. Will anything short of an express covenant in the partnership articles have the effect in equity of converting realty into personalty to all intents ?
“We see no good reason for holding that an agreement in writing is necessary for such conversion. Undoubtedly the in[137]*137tention to convert out and out should be made to appear clearly; but such intention may be inferred from circumstances with sufficient clearness. While, therefore, we think that the mere fact that real estate has been bought with partnership means is not sufficient to impress upon it the character of personalty for all purposes, even though the rents and profits thereof may have gone into the partnership business, still we are of opinion that such conversion .is sufficiently shown where real estate is purchased for partnership purposes, paid for with partnership means, and used solely for the conducting of the partnership business. The line of demarcation between an absolute conversion and a conversón sub modo, is this: In the former it must be needed and actually used in the partnership business; in the latter it is enough that it was purchased with partnership means.
“We conclude, therefore, that the equitable title to partnership real estate which has been appropriated and exclusively devoted to the partnership business, may be transferred to the surviving partner by proceedings in the probate court, had in pursuance of this statute. On the other hand, such proceedings are ineffectual to transfer any interest in real estate not so devoted. Real estate of the latter description not being assets of the firm within the meaning of the act, such proceedings in relation thereto are void for want of jurisdiction over the subject-matter, and the equities of the heir, who is not a party to the proceedings, are in no wise affected. In the case before us, this class of property remained in the hands of the trustees, subject to the same trust after the proceedings in the probate court as before them.

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Cite This Page — Counsel Stack

Bluebook (online)
2 Ohio N.P. (n.s.) 133, 15 Ohio Dec. 169, 1903 Ohio Misc. LEXIS 126, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jones-v-decamp-ohctcompldarke-1903.