Lewis v. Crane

40 S.E. 347, 50 W. Va. 239, 1901 W. Va. LEXIS 106
CourtWest Virginia Supreme Court
DecidedNovember 23, 1901
StatusPublished

This text of 40 S.E. 347 (Lewis v. Crane) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lewis v. Crane, 40 S.E. 347, 50 W. Va. 239, 1901 W. Va. LEXIS 106 (W. Va. 1901).

Opinion

BEANNON, PRESIDENT:

On the 22d of August, 1895, R. A. Lewis & Co., a partnership, and C. Crane & Co., a corporation, made a written agreement by which Lewis & Co. sold Crane & Co. all the oak and poplar which should be cut by Lewis & Co. and put on the banks of Big Ugly Creek in Lincoln County-and delivered at the mouth of Guyan river up to the first day of April, 1896. The contract says that “when delivered on the banks of said creek the said logs are to be branded with ‘R. L.’ brand, which is to be known as C. Crane &, Company’s brand, and it is expressly understood 'and agreed that upon said delivery, measurement and branding of said timber on the banks of said creek as aforesaid, the title thereto shall pass to and be in the said C. Crane & Company. The said C. Crane & Company agrees to pay unto the said R. A. Lewis & Company the price of seven cents per cube for said timber as measured and inspected on the banks of said creek as aforesaid. The said R. A. Lewis & Company further agree, for the price of three and one-lialf cents per 'cube, for said timber as measured, and inspected on the banks of said creek, to drift, raft and deliver in fleets at the mouth of said Guyan river. The said timber [240]*240shall be measured at the mouth of Guyan river by 0. Crane & Company and proper deductions are to be made for any other logs taken with any apparent defects, and said R. A. Lewis & Company is to stand good for such deductions and for all loss .of logs by sinking, by floods or otherwise, at the same price paid for same as heretofore set forth.” Lewis & Co. had prior to this contract sold logs to Crane & Co. and furnished many under this contract. Lewis & Co. became largely involved in debt, and R. Ii. Pritchard, a member of the firm, became individually involved, as well perhaps as the firm of Pritchard & Brubaker, of which he was a member. R. A. Lewis, a member of the firm, brought a suit in the circuit court of Cabell County to wind up the partnership of R. A. Lewis & Co., settle the accounts between that firm and C. Crane & Co., and apply the firm assets to the payment of the firm debts. A receiver was appointed in the case to take charge of the property of Lewis & Co.} including logs, and haul, drift and sell the same, and the receiver sold and delivered some to Crane & Co. The case was committed to a commissioner to report, among other things, the accounts between Crane & Co. and Lewis & Co., and he reported that nothing was owing from Crane & Co. to Lewis & Co. The court decreed that nothing was owing from Crane & Co. for timber sold to' it under the said contract, as the same -had been fully paid for. From this decree Lewis appealed.

Little need be said in the case as it involves no legal principles not well settled, and can be no precedent.

The commissioner’s report, ag itself virtually admits, is un-satisfactorj1', and we hold it in several respects erroneous.

In January, 1897, there were delivered by R. A. Lewis & Co. on the banks of Big Ugly creek nine thousand logs, which were measured, accepted and branded with “R. L.,” which, by the contract, was to be regarded the brand of Crane & Co., and by the contract title in these logs thereupon vested in Crane & Co., and it became liable to account therefor to Lewis & Co. at seven cents per cubic foot. No account of these logs was taken in- the commissioner’s account between Lewis & Co. and Crane & Co.; no statement appears including these logs to the credit of Lewis & Co. and debit of Crane & Go. showing how much was debited to Crane & Co. on their account, and what payments were made thereon. The Commissioner was [241]*241asked to report whether' the seven cents per cube payable under the contract for timber delivered on the banks of Big TJgly creek had ever been paid, and he responded that it had not been paid “in strict conformity with the terms of the contract;” but that he was of opinion that “the advancements made from time to time by C. Crane & Co. was a substantial compliance with the terms of said contract.” This is very indefinite and unsatisfactory. What advancements met the obligation for these logs imposed upon Crane & Co. by the contract? The report does not say. How could Lewis or the creditors of the firm tell how these assets liable for debts had been paid for?To whom and under what circumstances were the advancements made? The report does not let anyone know. There are no specifications. That is a mere lumping, or guessing, process by which the advancements are made to pay for those logs. When we seek in the evidence for satisfaction as to the advancements discharging this large sum we are the more justified in demanding specification as to the items of advancements to Lewis & Co. made on account of these logs, because we see that moneys must have been, more certainly may have been, charged to Lewis & Co. not chargeable to them in payments for these logs. We see that the firm of R. A. Lewis & Company was composed of R. A. Lewis and R. H. Pritchard, and was logging on Big Hgly creek; that Pritchard was individually logging on Island creek, Twelve Pole and Big Sandy; and that Pritchard was also a member of the firm of Pritchard & Brubaker, logging on Island creek, Twelve Pole and Sandy river, those businesses having no connection with the firm of Lewis & Company; that Lewis & Co., Pritchard individually and Pritchard & Brubaker were sellings logs to Crane & Co.; that Lewis & Co. kept no account between them-sélves and Crane & Co. but depended solely upon Crane & Co. to keep the accounts; that Crane & Co. kept no separate’ account betrveen itself and LeAvis & Co., but credited the logs it did credit, those received from LeAA'is & Co. before January, 1897, on Pritchard’s individual account Avith Crane & Co.; that before the contract between Lewis & Co. and Crane & Co. Pritchard Avas indebted largely on individual account to Crane & Co.; that all payments to R. II. Pritchard or Pritch-ard & Brubaker, or R. A. LeAA'is & Co. Avere charged to Pritch-ard. So it appears that the only account to Avhich Ave can ap[242]*242peal is this account kept by Crane & Co.., which jumbled the payments or advancements made on account of timber furnished by Prichard, Lewis & Co. and Pritchard & Brubaker, and also jumbled the advancements. How can we say that advancements were made which actually went to the benefit, of Lewis & Co. to meet the indebtedness of Crane & Co: for these nine thousand logs? Indeed, as Pritchard owed Crane & Co. a large individual debt, we can say that it is this debt which was treated as an advancement by the commissioner and court as paying for the nine thousand logs, thus taking away from the creditors of the insolvent firm of Lewis & Company assets on which they had preferable claim, and applying» them to pay the antecedent debt of an individual member contrary to the well settled rule laid down in’ Conway v. Stealy, 44 W. Va. 163, and Hyre v. Lambert, 37 W. Va. 26, "that partnership assets must be first applied to partnership debts, and a partner has no leviable interest therein, so far as his individual debts are concerned, until the partnership debts are fully satisfied.” An account should be taken of those logs at the price of seven cents per cubic foot. Any advancements or payments made by Crane & Co. to the actual, separate use of the firm of Lewis & Co. should bo credited to Crane & Co.

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Related

Hyre v. Lambert
16 S.E. 446 (West Virginia Supreme Court, 1892)
Conaway's Adm'rs v. Stealey
28 S.E. 793 (West Virginia Supreme Court, 1897)

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Bluebook (online)
40 S.E. 347, 50 W. Va. 239, 1901 W. Va. LEXIS 106, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lewis-v-crane-wva-1901.