Kerper v. Wood

15 L.R.A. 656, 29 N.E. 501, 48 Ohio St. 613, 48 Ohio St. (N.S.) 613, 1891 Ohio LEXIS 59
CourtOhio Supreme Court
DecidedDecember 8, 1891
StatusPublished
Cited by43 cases

This text of 15 L.R.A. 656 (Kerper v. Wood) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kerper v. Wood, 15 L.R.A. 656, 29 N.E. 501, 48 Ohio St. 613, 48 Ohio St. (N.S.) 613, 1891 Ohio LEXIS 59 (Ohio 1891).

Opinion

*619 Minshall, J.

James H. Parker and George B. Kerper, as partners under the firm name of Parker & Kerper, carried on the business of a tannery in the state of Pennsylvania, from some time in 1870 to July 1, 1875, at which time the partnership was dissolved. At the time of the dissolution the firm was indebted to John S. Wood in the sum of several" thousand dollars upon an account. On May 8, 1876, notice of the dissolution was given Wood by Parker, and that he “ was settling up the concern.” On March 20, 1882, the plaintiff, Wood, commenced an action in the Court of Common Pleas of Hamilton county, upon the account, claiming a balance of $8,777.16 to be due him. Service was obtained upon Kerper, but not upon Parker, he being a non-resident of the state. The last item in the account before the dissolution was of the date of March 4, 1876. Other pajments had been made by Parker subsequent to that time and within six years of the commencement of the suit. The defendant answered, pleading, among other things, the statute of limitations ; to which the plaintiff replied, that the defendants had made payments on the account within six years next preceding the filing of the petition, and, also, within the same time, had delivered the plaintiff a written promise to pay the same. The case was tried to a jury, w'hieh at the close of the plaintiff’s evidence, rendered a verdict for the defendant by direction of the court. The testimony disclosed that the only payments that had been made upon the account after the dissolution, had been made by Parker, and that the only written promise to pay the account was a promissory note, dated Jauuary 1, 1878, made by Parker in the firm name and delivered to the plaintiff. It was also shown (but not pleaded) that by the law of Pennsylvania, where the partnership had been formed and its business carried on, “ a partner who, after dissolution, remains in possession of the store or place of business, and attends to the collection of the debts due the firm, may give a note in the name of the firm for a debt due by the partnership, which will bind all the partners, although he may have no express authority to settle the business.”

*620 If the pajunents made by Parker on the account after the dissolution of the firm, may be treated as payments made by Kerper; or, if the note executed and delivered by Parker can be regarded as a note executed and delivered by Kerper, or his authority, then the'court of common pleas erred in directing the jury to return a verdict for defendant, and its judgment was properly reversed. And it is plain, as we think, that if the note cannot be so treated, then the payments should not. Payments are, at most, but evidence from which a promise may be inferred. And if an express promise by one member of a dissolved firm, has not the effect of extending the running of the statute of limitations as against the others, plainly a promise that is simply inferred from a payment cannot be given any greater effect. Shoemaker v. Benedict, 11 N. Y. 176, 185.

The question so far as it is controlled by the laws of this state, can hardly be regarded as open to discussion. Our statute of limitations fixes a period in which every action, according to its class, must be commenced. It is a statute of repose and not of presumption; and, unless the suit is commenced in the time limited, cannot be maintained: It is said to be barred. When, however, the demand is founded on contract, and a payment has been made, or a written acknowledgment thereof, or a promise to pay the same “has been made and signed by the party to be charged,” an action may be brought in the time limited by the statute, “ after such payment, acknowledgment, or promise.” § 4992 Revised Statutes. In giving a construction to this provision, it is said by Dav, J., in Marienthal v. Mosler, 16 Ohio St. 566, 569, “ By comparing this section with the one for which it is substituted in the limitation act of 1831, and the judicial construction given to the act of 21 James, it is apparent that the legislature did not intend to enlarge the facilities for taking cases out of the statutory bar.” And, as to payment, it was there held, that it “ must be made by the party to be affected thereby, or by an agent authorized for that express purpose.” And, by a like construction, it was held, in Hance v. Hair, 25 Ohio St. 349, that, “ a partial pay *621 ment on a joint and several promissory note, by one of tbe several makers, will not prevent the running of the statute of limitations as to the other makers.” These decisions give emphasis.to the reason and language of the statute. A payment, an acknowledgment, or a promise in writing, will not avail to take a case out of the statutory bar, unless made by the party to be charged thereby, or by an agent authorized for that express purpose.

Conceding to the fullest the power of a partner during the continuance of the firm, by virtue of his ’ agency, to bind it by acts of his own done within the scope of the business and intended to bind it, it is well settled in this state, that such power is revoked by dissolution; and he can no longer execute a note that will bind the other members without an express authority to do so. Palmer v. Dodge, 4 Ohio St. 21. And it was also held, in the case just cited, that no such power could be inferred from an authority given by one partner to the other, to settle, liquidate, and close up the affairs of the partnership. That his duty in such case is “ to close up and settle the partnership liabilities, and not to prolong them by new credits; to deal with the existing creditors of the firm and not to make others; to discharge its existing indebtedness, and not to add to it.”

And in this inspect the law of Ohio is the same as that of most of the states of the Union. Van Keuren v. Parmelee, 2 Com. 523; Shoemaker v. Benedict, 11 N. Y. 176; Bell v. Morrison, 1 Peters 351. Bates on Partnership, §704, and notes.

“ Each partner,” says BiíONS«N, J., in Van Keuren v. Par melee, “ when acting within the scope of the partnership, is deemed to be the authorized agent of his fellows. The authority is presumed from the nature and necessity of the case; for without it, third persons would not be safe in dealing with one of the associates, and the business of the partnership could not be carried on with success. Now how long does this presumed agency continue? Clearly, not longer than the necessity for it exists; and for most purposes, the. necessity ceases with the termination of the partnership. *622 When that is dissolved, there is no longer any ground for presuming an agency, except as to such things as are indispensable in winding up the concerns of the company. If there be no agreement to the contrary, it may be .presumed that each partner still has authority to dispose of the property, to collect, adjust, and pay debts. But there is no ground whatever for presuming a power to make new promises or engagements in the name of the firm, even though they only change without increasing the prior obligations of the partners.”

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Cite This Page — Counsel Stack

Bluebook (online)
15 L.R.A. 656, 29 N.E. 501, 48 Ohio St. 613, 48 Ohio St. (N.S.) 613, 1891 Ohio LEXIS 59, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kerper-v-wood-ohio-1891.