Lister, Smith & Walsh Co. v. Smith

102 A. 514, 40 R.I. 540, 1918 R.I. LEXIS 1
CourtSupreme Court of Rhode Island
DecidedJanuary 4, 1918
StatusPublished

This text of 102 A. 514 (Lister, Smith & Walsh Co. v. Smith) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lister, Smith & Walsh Co. v. Smith, 102 A. 514, 40 R.I. 540, 1918 R.I. LEXIS 1 (R.I. 1918).

Opinion

Vincent, J.

This is an action of replevin brought in the Superior Court by the Lister, Smith & Walsh Co., a corporation formerly located and doing business in the city of Providence, against Herman B. Smith and the Monahan Vehicle Company for the possession of a certain automobile known as a Napier car. The action was discontinued against the Monahan Vehicle Company and Thomas L. Briggs was summoned in and made a party defendant in the case. In addition to the general issue a special plea was filed, setting forth that the Napier car was the property of Thomas L. Briggs. The plain *541 tiff filed a replication denying that the Napier car was the property of the defendant Briggs, and alleging it to be the property of the plaintiff. A trial of the case in the Superior Court resulted in a verdict that the property in question was the property of Thomas L. Briggs. The plaintiff filed a motion for a new trial which was heard and granted. Upon a second trial a verdict was rendered for the plaintiff for possession of the Napier car with $1 damages and costs.

The defendants filed a motion for a new trial which was heard and denied. The defendants have now brought their bill of exceptions to this court in which appear twenty-five assignments of error, two of which relate to the admission of testimony, fifteen to refusals to charge, five to portions of the charge, one to the refusal to direct a verdict, and two to the denial of the motion for a new trial.

In 1909, J. S. Harrington & Co., who were conducting an automobile business in Boston, established a branch in Providence, including an office, salesroom and garage, which they maintained until the fall of 1912 when they decided to discontinue it. During the maintenance of the Providence branch, Herman R. Smith and Wilbur R, Walsh were in the employ of the Harrington Co., the one as local manager and the other as salesman. Sometime in July, 1912, apparently the first of that month, J. S. Harrington & Co. stopped furnishing money for the pay roll and Smith advanced the funds necessary for that purpose until September 12, with the evident intention of holding the organization together until such time as he and Walsh might be able to interest some person in the business who would unite with them and furnish the means to carry it on. Smith and Walsh do not appear to have transacted any business from July to September 12, 1912.

On October 16, 1912, James J. Lister, Herman R. Smith and Wilbur R. Walsh executed an agreement pro *542 viding for the formation of either a copartnership or a corporation to continue and carry on the automobile business which had been previously conducted in Providence by J. S. Plarrington & Co.

In January, 1913, a corporation was formed, called the Lister, Smith & Walsh Co., which carried on the business until October 30, 1914, when a general assignment was made. Prior to the formation of the corporation and prior to the execution of the agreement of October 16, 1912, above referred to, it is claimed by Lister .and Walsh, but denied bjr Smith, that an oral agreement of copartnership was entered into by these three parties in September, 1912. It appears that on September 12, 1912, the sum of $650 was advanced by Mr. Lister to J. S. Harrington & Co., as a deposit to secure the agency for the sale of an automobile known as the Everett and Flanders car. While this deposit of $650 was made by Lister, in the first instance, it was evidently made with the approval and for the benefit of all the parties as Walsh paid one-third of the amount to Lister, in cash, and Smith gave his note to Lister for one-third on the same day, September 12, 1912.

From September 12, 1912, both Lister and Smith advanced money for the pay roll, the amount so advanced by Smith being paid back to him later.

About October 16, 1912, after it was found that the agency of the Everett and Flanders car could not be secured the deposit of $650, or so much thereof as was required for that purpose, was used in the purchase of the assets of J. S. Harrington & Co. in Providence.

It appears from the testimony that one Whitman was the owner of a Napier car which he desired to turn in toward the purchase of a Thomas car. In carrying on, this transaction Smith gave his personal check to the Thomas Motor Car Company as a deposit for a car to l)o sold to Whitman. This was on September 19, 1912. On September 21 following, Smith by his personal *543 check for $1,800 paid the balance dne on the Thomas car and received from Whitman $2,000 in cash and the Napier car. Smith claims that he was to receive all over $1,850, and that the Napier car was his property and therefore he did not account to the Lister, Smith & Walsh Co. for the $150.

After the completion -of this transaction the Napier car was kept at the garage of the Harrington Company, used in its business by different people connected therewith, the gasolene was furnished by the company and the company bore the expense of repairs. The car was run under the company’s agency number and was insured by the company under a blanket policy.

There wras no bill of sale to the corporation of the assets of J. S. Harrington & Co. and the transactions between Whitman and Smith were not recorded in the books of the company.

Herman R. Smith was the general manager of the Lister, Smith & Walsh Co. and had charge of its business. It is claimed that he had full authority to buy and sell automobiles for the company and that such authority was sufficient to cover the sale of the Napier car. Smith claims to have sold the Napier car to Thomas L. Briggs for $750 in August, 1913. At the time of the purchase the Napier car was at the garage of the company on Chestnut street.

The plaintiff contends (1) that the Napier car was the property of the copartnership and a copartnership transaction and became the property of Lister, Smith & Walsh vdiieh passed to the corporation and was not the private transaction of Smith; and (2) that the defendant Thomas L. Briggs was not a bona fide purchaser of the Napier car for value without notice.

The formation of the corporation, the Lister, Smith & Walsh Company, occurred at a date later than this transaction under the agreement between these three parties which has before been referred to. It may be *544 observed, however, that the agreement to form a co-partnership or a corporation at some later date is not necessarily inconsistent with an earlier copartnership association for their common advantage and we think that there is sufficient evidence to show that these parties were acting together in a manner which would amount to a mutual undertaking for their common interest at the time of these transactions with reference to the Napier car.

(1) At the time Thomas L. Briggs claims that he purchased the Napier car from Smith the latter was acting as the selling agent for the Lister, Smith & Walsh Co. and was apparently duly authorized to conduct its business.

So far as the title of Thomas L. Briggs to the Napier car is concerned, if he was a bona fide

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Bluebook (online)
102 A. 514, 40 R.I. 540, 1918 R.I. LEXIS 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lister-smith-walsh-co-v-smith-ri-1918.