Jones v. Murphy

24 S.E. 825, 93 Va. 214, 1896 Va. LEXIS 67
CourtSupreme Court of Virginia
DecidedJune 11, 1896
StatusPublished
Cited by8 cases

This text of 24 S.E. 825 (Jones v. Murphy) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jones v. Murphy, 24 S.E. 825, 93 Va. 214, 1896 Va. LEXIS 67 (Va. 1896).

Opinion

Cardwell, J.,

delivered the opinion of the court.

This is an appeal from a decree of the Chancery Court of Richmond city, and the case grows out of the following agreement:

This agreement, made and entered into this 2nd day of Nov., 1889, between Merriwether Jones, of the first part, and S. S. Murphy, of the second part.
“ Witnesseth: That the Clover Hill mines and mining property, and [the] land of the late Franklin Stearns, both situated in Chesterfield county, Virginia, have been put upon the market; and the parties to this agreement have agreed that each shall use his best endeavors to sell the said lands, as a whole or in part, and that each of the parties hereto shall receive one-third of the money or other consideration paid, or to be paid for said property above the actual cost paid to the owners, either as a profit or as commissions. The remaining third is hereby agreed to be paid to, James R, Werth, Esq. The necessary traveling expenses are tobe deducted out of the net consideration or profits.
(Signed) Merriwether Jones.
S. S. Murphy.”

The averments of the bill filed by Murphy against Merriwether Jones and James R. Werth, after referring to the above agreement, are substantially as follows:

That, while the said Werth’s name is not affixed to this agreement, he not only knew of and consented thereto but allowed and encouraged complainant and Jones to act under the same, and' acted under the same himself, and, as complainant believes and charges, agreed in writing, signed by him, as well as orally, to be bound by the terms thereof, &c.; that sometime before this agreement was entered into, complainant had made and faithfully carried out an agreement with Jones to divide the profits arising from sale of lands, [216]*216though nearly all the labor and expense had fallen on complainant’s shoulders, &c.; that as soon as the contract of November 2, 1889, above quoted, was executed he (the complainant) set to work diligently to try to sell the lands named therein, or a portion thereof, and succeeded in interesting in the land a northern man, F. C. Dininy, Jr., whom he turned over to his partner in the contract, Jones, who remained in Virginia while complainant remained in the north; that after some negotiations and delays between Jones and Dininy and Werth, of all which complainant was kept advised, and about which he constantly advised and was consulted by letter, Dininy purchased a portion of the land at and for the price, as complainant was informed by Jones, of $55,000.00, and that the owner only received $25, 000.00 therefor, thus making a profit of $30,000.00, less some small deductions, to be divided between complainant, Jones, and Werth in equal portions; that Jones claims that after this agreement with Dininy, the amount of profits was further reduced by other expenses and purchases, but admitted, as complainant believed, a profit of some $25,000 from this transaction alone; that complainant not only assisted in the sale to Dininy but had, in the negotiations and interviews with him, in New York and elsewhere, in relation thereto, contributed his time, skill, and labor to effect the sale.

It is further averred, that Jones, or Jones and Werth, had put $5,000.00 of the profits thus realized in an option on some other of the land mentioned in the agreement of 1889, which will not expire for a year or more—said $5,000.00 to be treated as part payment on the land if the option is closed; that complainant expended money in traveling expenses under the terms of the contract of November, 1889, and not only procured the said Dininy, the purchaser, but continuously in season and out of season, in New York, New Jersey, and afterwards in Colorado, where he went before the sale to Dininy was concluded, endeavored to sell the balance, [217]*217or some portion, of the balance, of the land mentioned in the contract, other than that sold to Dininy, &c.; that thus complainant continued to do until early in June, 1890, when he was given to understand by the receipt of two letters, one from, Jones and the other from Werth, both, as complainant believes, written after Dininy had paid the larger part of the purchase money for the land bought by him, and certainly written long after he had paid a portion of the same, that they had decided to eliminate complainant not only from all further and future interests in the partnership' agreement of November, 1889, but had determined to forfeit and confiscate complainant’s one-third share in the profits ■on the sale made to Dininy, and giving him to understand that nothing was coming to him at all for past labor and expenses, or for future efforts, although complainant had ever been ready and willing to carry out for the future his agreement, they still refused to account to him for his share of the profits that they had already received on the sale to Dininy, &c.

Jones and Werth filed their separate demurrer and answer to this bill, and in their answer set up as a defence against the claim asserted by Murphy, that Murphy, after the above agreement was made, had left Virginia and abandoned the agreement, or had failed, when required to do so, to put up his share of certain moneys needed to effectuate the sale made to Dininy. The demurrer was overruled, and the cause was referred to a commissioner who made a report of the transactions between these parties showing the amount due to Murphy from Jones and Werth to be $7,231.17. Exceptions were filed to the report by the plaintiff and the defendant Jones, but iwere overruled, and the report of the commissioner confirmed, and the decree, which is appealed from, after reciting that the plaintiff admitted that he had received satisfaction from James R. Werth, for the one-half of the profits of the plaintiff received by Werth in full of [218]*218all claims against Werth, decreed that Jones pay to Murphy the sum of $3,615.58, with interest thereon from the 10th of July, 1890, till paid, and one-half of his costs by him expended in the cause.

The demurrer raised the question of equity jurisdiction only, and appellant insists that the demurrer should have been sustained on the ground that the complainant’s bill did not make a case for equity jurisdiction. We are of opinion that the demurrer was properly overruled, as the bill upon its face shows that the agreement under which the parties had acted made them partners; that there were partnership accounts between the parties which were properly to be stated and settled by a court of equity, and that the remedy of the complainant was not complete at law.

In order that persons may be partners in the legal acceptation of the word, it is requisite that they shall share something by virtue of an agreement to that effect, and that that which they have agreed to share shall be the profit arising from some predetermined business engaged in for their common benefit. An agreement that something shall be attempted with a view to gain, and that the gain shall be shared by the parties to the agreement is the grand characteristic of every partnership, and is the leading feature of nearly every definition of the term. 1 Lindley on Partnership, p. 1; Story on Part., sec. 2; Duvos & Co., v. Hoover &c. 25 Fla. 727; Lengle v. Smith, 48 Mo. 276; Cothran v. Marmaduke & Brown, 60 Tex. 370.

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Bluebook (online)
24 S.E. 825, 93 Va. 214, 1896 Va. LEXIS 67, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jones-v-murphy-va-1896.