Kent v. Universal Film Manufacturing Co.

200 A.D. 539, 193 N.Y.S. 838, 1922 N.Y. App. Div. LEXIS 8220
CourtAppellate Division of the Supreme Court of the State of New York
DecidedApril 7, 1922
StatusPublished
Cited by12 cases

This text of 200 A.D. 539 (Kent v. Universal Film Manufacturing Co.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kent v. Universal Film Manufacturing Co., 200 A.D. 539, 193 N.Y.S. 838, 1922 N.Y. App. Div. LEXIS 8220 (N.Y. Ct. App. 1922).

Opinion

Laughlin, J.:

Manifestly the first ground of the demurrer is without merit. No theory is presented or could be presented by which the Supreme Court of this State has not jurisdiction over a domestic corporation. When it incorporated under the laws of this State, it necessarily conferred jurisdiction upon the courts here whether sued by a non-resident, as is the plaintiff, or by a resident of this jurisdiction. In so far as the demurrer is on the grounds of a defect of parties plaintiff or defendant, it is equally without merit. The claim is that Poli is a necessary party plaintiff or defendant, on the theory that he was one of the copartners or joint adventurers. He was not a party to the agreement of the plaintiff and defendant with respect to conducting this theatrical business. .He was merely employed as their manager and either instead of receiving wages or salary or in addition thereto, each of the copartners or joint adventurers agreed to give him ten per cent of their respective shares of fifty per cent of the net profits and that payment was to be made to him by the defendant from the net profits. Doubtless that gave him such an interest in the business as would have entitled him to an accounting if he desired it (Valdes v. Larrinaga, 233 U. S. 705; Weldon v. Brown, 84 App. Div. 482); but according to the allegations of the complaint, which are admitted by the demurrer, defendant has fully accounted to him so that he has no further interest in the profits of the business during the period for which the plaintiff demands an accounting. We are not concerned with the question as to whether Poli would be liable to third persons as one of the partners. The point presented is whether the complaint shows that the parties intended that as between themselves he was to be a partner, and the only evidence of such interest is found not in an agreement between them and him, admitting him as a copartner or coadventurer, but in a separate assignment by each of them of a share of his interest to Poli as compensation for services, and a ratification of those agreements by Exhibit E, which plainly refers to plaintiff, and defendant only as the copartners and provides that they each own an undivided half interest in the $7,200 deposited with the lessor and own in equal shares all other assets of the enterprise, and with respect to such other assets [547]*547recites that both of them have a private agreement with Fernando Poli, as manager of the Theatre by which they have assigned to him twenty per cent, or ten per cent each, of their interests.” Counsel for appellant asserts that Poli was to bear losses also in proportion to his interest in profits. But nothing is alleged warranting that inference. The only other material facts alleged are that for a period during the reconstruction of the theatre Poli advanced a proportionate part of the rent on the understanding that he was to be reimbursed therefor out of the first profits thereafter realized; and that he was so reimbursed.

The intention of the parties is controlling in determining whether as between themselves Poli was to be a copartner or coadventurer (Rockafellow v. Miller, 107 N. Y. 507; Salter v. Ham, 31 id. 321; Leggett v. Hyde, 58 id. 272; Heye v. Tilford, 2 App. Div. 346.) There were here merely separate agreements between the plaintiff and Poli and the defendant and Poli by which in consideration and as compensation for his services to the enterprise each agreed to give Poli a specified percentage of his share of the assets and of the profits. Those agreements constituted contracts of employment merely by each of the parties separately with Poli and did not make Poli a copartner or coadventurer. (Hathaway v. Clendening Co., 135 App. Div. 407; Cassidy v. Hall, 97 N. Y. 168; First Nat. Bank of Meriden v. Gallaudet, 122 id. 655; Hill v. Curtis, 154 App. Div. 662; Merchants Nat. Bank v. Barnes, 32 id. 92; Burnett v. Snyder, 81 N. Y. 550; Rockafellow v. Miller, supra; Sanger v. French, 157 N. Y. 213.) In Burnett v. Snyder (supra) it was held that one contracting with a partner to share in his profits and bear a proportionate part of his losses as a partner does not become a copartner even as to third parties. Since we are of opinion that Poli is not a partner or coadventurer, it is unnecessary to consider the further point as to whether if he were the action could be sustained, on account of his being a non-resident, without making him a party. The allegations of the complaint and the provisions of Exhibit E indicate that Poli also has an assignment from each of the parties of ten per cent of their respective interests in the assets of the company other than moneys deposited as a guaranty for the fulfillment of the provisions of the lease; but it will be observed that the plaintiff does -not demand a dissolution of the copartnership or joint adventure or the distribution of its assets. He merely demands an accounting for his share of the profits during the period for which the defendant has fully accounted to Poli and, therefore, on the facts as alleged Poli has no interest in this litigation.

Defendant presents no argument in support of its demurrer [548]*548that the complaint fails to state facts sufficient to constitute a cause of action and, therefore, must be deemed to have abandoned the same.

The remaining ground of the demurrer is that the court has not jurisdiction of the subject-matter of the action and that is predicated on the provisions of the 6th paragraph of Exhibit D annexed to the complaint. That is an agreement in Spanish made before a notary public in Havana between the plaintiff and the defendant, by which the plaintiff assigned to the defendant his remaining half interest in the lease, making the defendant the sole owner thereof. The assignment recited that the consideration therefor was $10,000, the receipt of which the plaintiff acknowledged, and with respect thereto the assignment contains the recital that the plaintiff was thereupon advised by the notary that having acknowledged the receipt of the consideration, defendant was free from all responsibility with respect thereto even though in the future it should be proven that payment of the said sum was not made in whole or in part.” The 6th paragraph is as follows: “ Sixth. The parties appearing designate this city and its courts for all judicial and extra judicial acts arising out of this document, with waiver of the jurisdiction of their own domiciles.” It will be observed that so far as now appears, this litigation does not involve the validity or construction of that assignment. The agreement relates only to an assignment of an interest in a lease of real property in the city of Havana, Cuba, and by the 6th paragraph the parties evidently intended to agree that any .controversy arising between them with respect to the validity or construction of the assignment or a right or liability predicated thereon should be decided by the courts of that jurisdiction. The original lease of the theatre to the plaintiff (Exhibit B) and the assignment of a one-half interest therein to defendant (Exhibit C) contained provisions similar to those of the 6th paragraph of Exhibit D.

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Cite This Page — Counsel Stack

Bluebook (online)
200 A.D. 539, 193 N.Y.S. 838, 1922 N.Y. App. Div. LEXIS 8220, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kent-v-universal-film-manufacturing-co-nyappdiv-1922.