Lindsay v. Race

61 N.W. 271, 103 Mich. 28, 1894 Mich. LEXIS 1104
CourtMichigan Supreme Court
DecidedDecember 18, 1894
StatusPublished
Cited by7 cases

This text of 61 N.W. 271 (Lindsay v. Race) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lindsay v. Race, 61 N.W. 271, 103 Mich. 28, 1894 Mich. LEXIS 1104 (Mich. 1894).

Opinion

Montgomery, J.

This suit is between Archibald G-. Lindsay and the administrator and heirs at law of Patrick M. Gamble, deceased. Complainant and Patrick M. Gamble were, during the lifetime of the latter, copartners. The firm was organized about the year 1872, the two partners being then owners of some pine lands in Bay county, and the partnership would appear to have been formed for the purpose of lumbering oil and disposing of the pine on these lands. The business afterwards included a retail lumber business in Detroit, a planing mill being-erected on land purchased by them in Detroit, and used in connection with that business. During the existence of this copartnership, the parties purchased and became interested in various • tracts of land. The purpose of this [32]*32bill is to have a determination that the proceeds of certain of these lands are copartnership property, although such proceeds have come into the hands of the administrator of Patrick M. Gamble. While other descriptions are involved, there seems to be a substantial disagreement on but two tracts, referred to in the record and briefs as the Ontonagon and the Bayfield lands, being two separate purchases, the former in Ontonagon county, Mich., the latter in Bayfield county, Wis. The circuit judge found both of these” tracts to be copartnership property, and defendant Race appeals.

A brief history of the connection of Lindsay & Gamble with the Bayfield lands is as follows: On the 28th of June, 1886, a contract of sale and purchase was made between David Whitney and others, owners of the. Bay-field lands, on the one part, and Archibald G. Lindsay and Patrick M. Gamble, of the other part, by which the parties of the first part agreed “to sell to the parties of the second .part all the pine timber standing or growing” on certain pieces of land in Bayfield county, etc. The-consideration price was $125,000, payable in installments, the down payment being $31,250. The payment was made-by check on the Detroit. National Bank, and the fund was created by complainant, Patrick M. Gamble, and Henry Gamble executing a note in their individual names, and discounting it at the bank. An account was opened on the firm books of Lindsay & Gable of “ Pine Lands, Bayfield County, Wisconsin,” against which was charged $953.13, June 28; $3, June 30; and $78.20, on August 5. On January 15, 1887, the transaction was entered more at. large on the books. Pine lands, Bayfield county, Wis., were debited $125,000. A credit was extended to D. Whitney et al. (the vendors), $125,000. The Detroit-National Bank was charged with $31,250, which was credited to “Bills Payable,” with the following memorandums

[33]*33Gave the bank June 28, *86, the joint note of A. G. Lindsay, P. M, Gamble, and Henry Gamble, at 6 months (the interest at 6%, $953.13, being paid by L. & G.), and assigned the pine land contract to the bank as collateral security.**

On June 28, 1887, the books charge the Michigan Savings Bank with proceeds of bills receivable, $10,347.96, and the People’s Savings Bank with a deposit of note of Lindsay & Gamble of $5,000, and also checks remitted by Henry Gamble of $12,682. D. Whitney et al. are charged with $37,812.50, which consisted of a check on the People’s Savings Bank of $26,907.19, and a check on the Michigan Savings Bank for $10,905.31. $6,562.50 of this payment was interest, and is charged on the books of the firm to pine lands, Bayfield county, Wis. On July 31, 1888, Patrick M. Gamble is credited with sundry expenses, including a charge of $45.45 against pine lands, Bayfield county, Wis., June 30 to July 6, to St. Paul, Duluth, etc. In July, 1888, Lindsay & Gamble sold the contract to Frederick Marvin and De Forest Paine, reserving a third interest, which was represented by an agreement running to Lindsay alone, but in which it is conceded that Mr. Gamble was interested, either as a partner or a joint owner. This transaction was entered upon the books. This was previous to the entry of July 31, crediting Patrick M. Gamble, expenses to St. Paul, etc.

Whether lands held in the name of one partner or of both are to be deemed copartnership property is generally a question of intent, to be gathered from the manner in which the members of the • firm have dealt with them. While the fact that funds of the copartnership have been used in paying for the lands, when originally purchased or subsequently, is not conclusive of this intent, yet it is persuasive evidence, and when, as in this case, it is accompanied by the entry of the transaction on the firm, [34]*34books, as a copartnership transaction, under circumstances which import a daily declaration that it was so regarded, is convincing. See Merritt v. Dickey, 38 Mich. 41; Way v. Stebbins, 47 Id. 299; Williams v. Shelden, 61 Id. 311.

It is strenuously urged that the statements of complainant made after the death of Mr. Gamble are inconsistent with the claim now made. It appears that the administrator of the estate of Mr. Gamble made application to the probate court for leave to sell the interest of Gamble in certain real estate, and was required by the court to set out all the land in which Gamble was interested. The administrator thereupon applied to Mr. Lindsay for information, and was told that Henry Gamble had a third interest jn that portion of the Bayfield lands reserved, Patrick.M. Gamble one-third, and he (Lindsay) one-third. If the complainant fully understood the legal interest which is vested in a copartner, this statement would be strong evidence against the contention which he now makes. But it is not uncommon for partners, in speaking of their interest in copartnership property, to refer to their ownership as an aliquot part which corresponds to their interest in the copartnership; and it appears that in this very case Mr. Lindsay, referring to the Detroit lumber yard lands, stated:

“ The foregoing is Lindsay & Gamble's lumber yard, in city of Detroit. Interest of Patrick M. Gamble is one-half."

Yet it is conceded that, under the facts shown, the lumber yard is copartnership property, and Patrick M. Gamble's interest was not one-half until the copartnership transactions were closed and the firm debts paid. The effect of this testimony is, therefore, to show nothing more than that complainant was inaccurate in his statement. It is quite clear that he did not intend to assert [35]*35that the firm creditors were not concerned in the lands.

Taking the evidence as a whole in this case, we cannot escape the conclusion that the intention to treat this Bayfield purchase as a partnership transaction is fairly shown.

The Ontonagon lands stand upon a somewhat different footing. Complainant’s counsel in their brief state:

“We recognize that the court might very well come to the conclusion that it [the Ontonagon tract] rested on quite different footing from the main subject of controversy, — the Bayfield pine, — and might very well hold the Bayfield pine to be partnership assets, and the Ontonagon pine to have been so treated by the written contracts between the parties as to take it out of the partnership.”

While contending that, even as to these lands, the -decree of the court below was right in decreeing them to be copartnership property, yet complainant’s counsel con-cede that the form of the papers made in this purchase and the mode of final disposition make a substantially different case as respects these lands than that relating to the Bayfield tract.

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Cite This Page — Counsel Stack

Bluebook (online)
61 N.W. 271, 103 Mich. 28, 1894 Mich. LEXIS 1104, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lindsay-v-race-mich-1894.