Louisiana Bank v. Kenner's Succession

1 La. 384
CourtSupreme Court of Louisiana
DecidedMay 15, 1830
StatusPublished
Cited by5 cases

This text of 1 La. 384 (Louisiana Bank v. Kenner's Succession) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Louisiana Bank v. Kenner's Succession, 1 La. 384 (La. 1830).

Opinion

Matiiews, J.

delivered the opinion of the court.

In this case, proceedings were commenced in the court below, to recover from the succession of the deceased, the sum of twenty-nine thousand seven hundred and sixly-six dollars and twenty-six cents, on account of several negotiable notes purporting to have been executed and signed by the commercial firm of William Kenner &, Co. The de-fence, on (he part of the succession, is a dissolution of the partnership, previous to the making and signing of the notes in its name, by the death of Kenner- The court of pro[387]*387bates gave judgment against the claim of the plaintiffs, from which they appealed.

The evidence of the case, and facts admitted, show, that a commercial partnership had existed between William Kenner, Richard Cingue and John Oldham,cairying on trade under the name and firm of William Kenner &, Co. up to the 5 th of May, 1824; which was at that date continued by agreement, entered into between the partners* for the space of three years thereafter. On the 14th of the same month Kenner died, leaving six children, all minors. The notes of which the plaintiffs claim payment from his succession in the present action, bear date in the year 1825,after his death; and were executed in relation to new contracts, made by the surviving partners, who used the partnership name in signing them, in consequence of power to that effect, given by the terms of the 7th art, of the contract, by which the partnership was continued. It is expressed in the following words. “Should any one or more of the said partners die, before the period stipulated for the ending of the said partnership, ..uch death or deaths, shall not operate a dissolution of the same, in any manner [388]*388vvhatever, but the same shall continue until the expiration of the said period, between the surviving partner or partners, and the heir or ^ie'rs °fsuch decased partner or partners; and the said surviving partner or partners shall,, and may continue to use the name of said firm as now established; to remain in possession of? and sell, negotiate and dispose of, and generally to administer all the property, moveable or immoveable, all the effects, moneys, rights, credits and debts, and other means thereof, in the same manner as if the said partners were all living, until the expiration of the said period; and to wind up and liquidate the affairs of the said partnership, and render an account thereof, when thus liquidated to the heirs or representatives of such deceased partner or partners.”

The 8th art. requires, that efforts should be made to bring the concerns and dependencies of the partnership into as narrow a com' pass as possible before the period at which it was to close. Profits and losses at its termination were to be taken into account, from the 1st day of December, 1820, until the time limited for its duration, &c.

[389]*389According to these stipulations, the COU11- , sel for the appellants contended, that the surviving partners had a right to use the name and style of the firm in transacting commercial business to any extent that they might deem proper, and that the heirs of William Kenner, the deceased partner, are bound in solido with the survivors, by all notes or other instruments in writing, executed in the partnership name, in pursuance of the contract by which it was continued, although such business may have been transacted, and the name signed to the notes, &c. since the death of their father.

In support of this proposition, reliance is had on the Old Civil Code, and on the commercial laws or usages of England, of Scotland, of the United States, of France, of Holland, ofGermany, and those which have been understood as existing in Louisiana.

We have examined the authorities cited, to show the laws and usages in these foreign governments, in relation to questions analogous to that which is now under discussion; and they seem to authorize stipulations in contracts of partnership, by which they may be continued after the death of one of the part[390]*390ners, for the benefit of his heirs. But whether they would be binding on the latter, without their consent or acquiescence, is perhaps doubtful. In relation to minors, to whom the law does not attribute the power ofwilling, or consenting, the principle contended for by the appellants, would involve great difficulty, if not legal absurdi ty in their consequences. Heirs are bound to discharge the obligations of their ancestors, contracted by the latter while living, to the extent of the property which they inherit. But the power of an ancestor,(particularly according to our laws, relating to forced heirs,) to confer a right on other persons to make contract's after his death, by which his heirs should be bound even in reference to property inherited, to say the least of it, is very doubtful on general principles of law and justice.

Whether stipulations in contracts of partnership, by which they may be continued after the death of one of the partners, for the benefit ofhis heirs, be binding on the latter, without their consent? Quere.

In opposition to the consequences and effects assumed by the plaintiffs as giving them a right to recover the sum claimed from the heirs of Kenner, under the provisions of the Old Civil Code, as laid down in art. 50, p. 400. The counsel for the latter relies on art. 61, found on the same page, and on the [391]*391laws of Spain, relating to commercial part- ‘ ° # # nerships. He insists, also, that a just and proper interpretation of the contract of partnership, will restrict the power of (he surviving partners to mere acts of administration of the property, credits and debts, which appertain-el to it at the time of the death of the principal partlier; and that his intention as evidenced by the contract of the two last articles of the agreement was to continue the survivors in the exercise of the powers granted for the sole and only purpose of winding up and settling the affairs of the concern, and not to enter into new and extensive transactions. After a strict examination of all the words and clauses contained in these articles, we have, (although not without hesitation,) come to the conclusion that they did authorize the surviving partners to contract new obligations in the name of the firm as it stood previous to the death of Kenner, and that the acts in this respect are obligatory on his heirs, if it be admitted that he could legally constitute them his successors in the partnership. And this compels us to enter into an investigation of the legal principles adduced in support of the claim, and those which are offered to destroy it.

[392]*392We have already noticed, in a slight manner, the laws of foreign states, and which may perhaps be considered as somewhat foreign to the present question, and giving but little aid in its decision. We will now examine those which have immediate relation to it.

By art. 50 of the Code above cited, it ia declared that every partnership ends o.f right; by the death of one of the partners, unless an. agreement has been made to the contrary,, According to aid, 61, such a dissolution extends to the surviving partners, unless there be a contrary stipulation. In case of a continuance between the,survivors, art. 52 provides for the rights of the heirs of the deceased partner. These rules are found

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Bluebook (online)
1 La. 384, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louisiana-bank-v-kenners-succession-la-1830.