Kelly v. Largney

1 Va. Dec. 72
CourtSupreme Court of Virginia
DecidedNovember 19, 1874
StatusPublished
Cited by3 cases

This text of 1 Va. Dec. 72 (Kelly v. Largney) 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
Kelly v. Largney, 1 Va. Dec. 72 (Va. 1874).

Opinion

Christian, J.,

delivered the opinion of the court.

We think there can be no doubt but that a court of chancery had jurisdictionin this case. There was, unquestionably, a partnership existing between the parties ; and the suit was brought to settle the accounts of that partnership and recover the balance claimed to be due upon it, one against the other. They were engaged in a very heavy joint adventure, which was carried on for a period of six or seven years, and involved the expenditure of nearly half a million dollars. Though the state defrayed that expenditure, and the partners w ere to be compensated by a commission on the amount, yet the commission constituted profits in which they were jointly interested. A community of interest in the profits of a partnership, will, generally at least, suffice to constitute a partnership. Parsons on Partnership, page 67. But there were [74]*74other grounds on which they were partners. They jointly undertook the execution of this work and would have been jointly, as well as severally, liable for any default or neglect which might have arisen in the course of its execution. They were jointly bound to bear the burdens of their undertaking; though by contract inter se, they agreed to sever their duties and become, one of them the financial, and the other the acting member of the concern, the duty of the latter being to manage and superintend the execution of the work, if not actively engaged in the same. They certainly considered and called themselves partners, and were so considered and called by those who dealt with them. Since the death of one of them, the other has brought suits for large amounts as surviving partner; has recovered a large sum of money in one of them, and divided it with the representative of his deceased partner; and is yet prosecuting another of these suits. “Although partnerships,” says Parsons, “are usually formed for commercial purposes, they are not always so ; and there is scarcely any occupation which an individual can legally pursue, that may not be the subject of partnership.” “Thus we have partnerships, not only for every known branch of commercial business, but for all kinds of farming, or manufacturing, mining, stage driving, fishing, hunting, lumbering and the like, as well as the business of lawyers, physicians, mechanics, artists, laborers, and indeed of almost all other employments.” Id. p. 36. If lawyers or others associate for the purpose of collecting claims on commission, the fact that their profits consist of their commission, would certainly not prevent them from being partners, though they would also, in effect, be hirelings or agents of those who might employ them for the collection of claims. The court then, certainly did not err in taking and exercising jui’isdiction in this case.

And now as to the merits of the case. The main, if not the only question of controversy in this case is, whether the [75]*75claim of the plaintiff, as shown by Exhibit D, filed with the bill, ought to be credited by the amount of the receipt of the 26th of May, 1856, for $11,118.51, referred to in the answer, being the exhibit marked A, and inserted in the record. We will, therefore, at once, address ourselves to the solution of that question.

The defendant, Kelly, contends that the amount of the receipt is applicable to the payment of estimates included in Exhibit D, being those which were made between March, 1856, and April, 1857, inclusive; whereas the plaintiff, Largney’s administrator, contends that the said amount is applicable to the payment of estimates not included in that exhibit but which were made before the 1st of March, 1856 ; and especially those which were made for the months of November and December, 1855, and January and February, 1856. Which of these parties is right in this contention?

The Receipt A bears date within the period embraced by Exhibit D, to wit, on the 26th of May, 1856 ; from which it might be said, prima facie, to appear to be applicable to the estimates, or some of them, embraced in Exhibit D. And the parties, moreover, agreed that all the transactions between them anterior to the 1st of March, 1856, should be considered as settled and should not be taken into the account before the commissioner. And this agreement would seem to lend color to the presumption that a receipt, dated after the 1st of March, and after estimates were made subsequent to that day and prior to the date of that receipt, was properly applicable to those estimates.

But we find, on further investigation, that while all the estimates that had been made prior to the 1st of March, 1856, had, in fact, been settled and paid before the institution of the suit; yet, such payment had not, in fact, been fully made before the said 1st of March; but, on the contrary, a very large amount was, in fact, paid subsequently to that day, on account of estimates made before that day.

[76]*76For example : We find, by a receipt filed in the cause by the defendant on the day before the final decree was rendered, that on the 28th and 29th of April, 1856, Kelly paid to Largney $16,115.87, “being amount overpaid for the work to 1st November, 1855,” — that is, overpaid by Largney— thus showing that Largney did not 'receive this large amount until nearly six months after the work for which the payment was made was done, and probably six months after the money had been advanced by Largney. Thus there is nothing in ¿he mere date of the receipt in controversy which can throw light upon the question whether it is properly applicable to estimates made before or to estimates made after the 1st day of March, 1856.

And now let us look at another important fact in the case. The first credit on Exhibit D is “1856, April 25th, by cash received through John Kelly, $10,020.26,” which, we think, was clearly intended to be applied to the estimate of $10,100.62, made in March, 1856. On reference to the receipt which was given for that payment, being receipt B inserted in the record, we find that it bears date June 21th, 1856, instead of April 25th, 1856, the date mentioned in Exhibit JD. Taking June 21th, 1856, to be the true date of the payment, as we must, then, if that payment be applicable, as we say, to the estimate for March, 1856, and if the appellant be right in contending that the receipt marked A, dated May 26th, 1856, is applicable to estimates included in Exhibit 1), it must be applicable to estimates made after March, 1856, and before May 26th, 1856. But the only estimate made between these two periods was that of April, 1856, $9,516.65. The estimate for May, 1856, had not been made, or at all events was not payable, on the 26th of that month, the date of Keceipt A, as the estimates were not considered payable and were not paid until about a month after they wore made. In that view, therefore, the defendant made a large part of [77]*77this large payment on account of estimates which has not been made; if not on account of work which had not actually been done. And that too, when we see that not a month before, to wit: on the 28th and 29th of April, 1856, he had just paid §16,445.87, “being amount overpaid for work to 1st November, 1855.”

Now how and when were the estimates paid for November and December, 1855, and January and February, 1856 ? We see how and when the estimates were paid in full to the 1st of November, 1855.

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Bluebook (online)
1 Va. Dec. 72, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kelly-v-largney-va-1874.