Lasher v. Colton

80 N.E. 122, 225 Ill. 234
CourtIllinois Supreme Court
DecidedDecember 22, 1906
StatusPublished
Cited by4 cases

This text of 80 N.E. 122 (Lasher v. Colton) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lasher v. Colton, 80 N.E. 122, 225 Ill. 234 (Ill. 1906).

Opinions

Mr. Justice Carter

delivered the opinion of the court:

This is an action in assumpsit, originally brought in 1893 in the circuit court of Cook county by Alexander M. F. Colton for money claimed to be due as compensation for services rendered appellant by said Colton, as architect, in the erection in the city of Chicago of a house valued at some $35,000. One judgment entered upon a verdict against the appellant was reversed and the cause remanded by the Appellate Court. Upon a second trial the jury again found against the defendant, appellant herein, and judgment was rendered October 7, 1904, for $1613, which judgment was affirmed by, the Appellate Court. The case was thereupon appealed to this court. While this litigation was pending, March 13, 1896, the plaintiff died, and his son, Samuel K. Colton, as administrator, was substituted.

Appellant’s main contention is that there is a variance between the declaration and the proof; that the suit is brought in the name of the father, Alexander M. F. Colton, as the sole plaintiff, when, as a matter of fact, a partnership existed at the time the contract was entered into and the work done, between the plaintiff and his son, Samuel K. Colton, and that the work was done by the firm of A. M. F. Colton & Son.

The plea of general issue was filed by defendant to the declaration on August 21, 1893, and the case appears to have been tried on these pleadings before the first jury. June 9, 1903, on leave of court the defendant filed a plea of nonjoinder as to plaintiff, and this plea was afterwards stricken from the files September 30, 1904. In this there was no error. (Fisher v. Cook, 125 Ill. 280.) But even if the court had been wrong in striking the plea from the files the defendant was not injured thereby, as under his plea of general issue his objection of non-joinder of proper plaintiffs may be interposed. Snell v. DeLand, 43 Ill. 323; Siegel, Cooper & Co. v. Schueck, 167 id. 522.

Considerable evidence was introduced before the jury on the question of the alleged partnership. It appears from the. testimony that about the time the contract was made and the work done the plaintiff and his son occupied the same offices as architects, and that the name appeared on the door as A. M. F. Colton & Son; that some correspondence with third parties with reference to business was carried on under the name of A. M. F. Colton & Son; that appellant talked with both father and son as to the contract before he made the arrangement; that he wrote some letters during the progress of the work addressed to A. M. F. Colton & Son and received some letters from them signed in the same way. Samuel K. Colton testified positively that he was never in partnership with his father; that the latter paid all the office expenses; that he was merely employed by his father; that the contract was made by his father with appellant and that appellant so understood it. Appellant denies this, and states he thought that a partnership existed and that the contract was with'the firm. It appears in the record, without contradiction, that the building contracts made for putting up the building and signed by Lasher with' the various contractors for the concrete work, cut stone, plumbing, etc., each contained a recitation that the work was to.be done under the direction ánd supervision of A. M. F. Colton as architect. The evidence on behalf of plaintiff is, that the architect’s certificates for work done showed that A. M. F. Colton was the architect. Appellant claims these certificates and the checks were lost in moving his offices.

Before the case was submitted to the jury an instruction was given that the question as to whether there was a partnership between the father and son had been withdrawn from their consideration, and that they were to disregard any evidence directed to that issue. In order to decide whether the giving of this instruction constituted error it is necessary first to consider whether, on the facts presented by the record, the action could legally be brought in the name of the father without joining his son.

In his work on Partnership, (5th ed. par. 241,) Story states as a general rule “that in all suits at law all the partners should join. The rule, however, undergoes, or may undergo, an exception in cases of dormant partners, for it is at the option of the plaintiffs in such cases either to join the dormant partner in the suit or to omit him. * * * The same exception applies, a fortiori, where a man is merely a nominal partner, for as he has no real interest there seems no necessity of his joining as a party in any partnership suit, although there is no doubt he may so join.”

Chitty, in his work on Pleadings, states: ^‘Whether or not one member may sue alone where he is solely interested in the concern and the other ostensible partner is a mere nominal party without any interest in the business, was a question of some difficulty. It appears that in such case the partner having the exclusive interest might sue alone, and in a recent case where an attorney carried on business under the firm name of A & Son, and the son was not, in fact, a partner but acted as clerk to his father and received a salary, it was held that A might maintain an action in his own name to recover from a client the amount of a bill for business done.” (1 Chitty’s PI.—14th Am. ed:—*12.)

The decision referred to is Kell v. Nainby, 10 Barn. & Cress. 20, and supports fully the rulé laid down by Chitty. This case is cited in Cow on "Partnership, (2d ed. p. 140,) where the author states: “Neither is it requisite to the maintenance of an action commenced by the real members of a firm that a nominal member should be joined, if it be made to appear that he has no interest as a partner, for although, as against creditors, a nominal partner is to be considered bona fide a partner, yet that is not the case with respect to debtors.” In Collyer on Partnership (5th Am. ed. p. 642, sec. 662,) the author lays down substantially the same rule. To the same effect are Lloyd v. Archbolle, 2 Taunt. 324, and Teed v. Elworthy, 14 East, 310.

In a comparatively recent work on partnership, the author, in discussing this question, states: “Nominal partners, as they have no interest in the firm, need not be joined as co-plaintiffs on simple contract debts when they are not specially named as contracting parties, whether they are parties held out as partners without ever having had an interest in the firm, or are partners who have retired, leaving their names in the partnership.” (2 Bates on Law of Partnership, p. 1023.) The same author defines the term “nominal.partner,” as commonly understood, to mean “a person who is not a partner at all but allows the use of his name in the firm, generally to give it additional credit or to attract custom, thus incurring all the liabilities while deriving none of the benefits of the association.” (2 Bates on Law of Partnership, sec. 11.) He also (vol. 1, sec. 109,) holds that as the nominal partner has no real interest in the claim belonging to the firm, therefore the actual owners can recover in their own names and “should not join the nominal partner. In other words, the theory of a partnership by holding out is one of liabilities and not of rights.”

The precise question under consideration has never been decided by this court, the point having always heretofore been as to joining the nominal or dormant partner as defendant rather than plaintiff.

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Bluebook (online)
80 N.E. 122, 225 Ill. 234, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lasher-v-colton-ill-1906.