Marshall v. Anderson

92 S.E. 421, 80 W. Va. 228, 1917 W. Va. LEXIS 27
CourtWest Virginia Supreme Court
DecidedApril 17, 1917
StatusPublished
Cited by1 cases

This text of 92 S.E. 421 (Marshall v. Anderson) 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
Marshall v. Anderson, 92 S.E. 421, 80 W. Va. 228, 1917 W. Va. LEXIS 27 (W. Va. 1917).

Opinion

Miller, Judge:

The questions certified for decision, presented by the demurrer to tbe bill and to each paragraph thereof, overruled, are: (1) Is a good cause of action against defendant Anderson presented in any one of the twelve paragraphs of the bill? (2) Is a good cause of action against said Anderson presented by the bill taken as a whole?

The main purpose of the bill was for discovery and an accounting by Anderson of alleged assets and profits derived by him from certain real estate transactions, which the bill alleges belonged to a co-partnership composed of Marshall and Anderson.

The bill first alleges that about May 1, 1912, Anderson sold to Marshall an undivided one sixth interest in a tract of 5,360 acres of land, situated in Lake and Orange Counties, Florida, and then it is alleged that thereafter, at and prior to the date of the partnership agreement next thereinafter mentioned, the parties to the said agreement associated themselves together for the purpose of selling said tract in conformity with an agreement of May 1, 1912, between said Anderson and one Bare, and Bowman Realty Company, whereby Anderson, co-owner, was constituted sole sales agent to sell said land; and also for the purpose of contracting for, buying and selling other tracts of land in the State of Florida, and elsewhere, as the partnership might thereafter undertake.

And it is alleged that the parties to said partnership agreement began the prosecution of said business as therein provided, and that it was then and there and prior to the organization of the Anderson-Marshall Land Company, called for in said partnership agreement, agreed between the partners that other tracts of land in Florida should be sought and con[230]*230tracted for or purchased, and the sales thereof in parcels promoted by them as part of the business of said firm; that about June 10, 1912, for the purpose of furthering the business of said partnership, and the joint and mutual interests of the parties, a joint stock company was organized by them, in which company Anderson and Marshall each became the owner of ten shares of stock, and that for the purpose of making the organization complete and comply with the requirements of law, three other persons became owners of one share of stock each, and one of the purposes expressed in the charter, among others, was to sell real estate for others upon commission, and to own, buy and sell real estate; and that the business of selling said 5,360 acre tract, and of contracting for, buying and selling, other tracts as aforesaid, was, by the said parties, turned over to the said company.

And it is furthermore alleged that in the prosecution of said partnership and company, and in the sale of the land already in hand, and the discovery of other tracts, plaintiff in discharge of his obligations, as partner and representative of said company, made a number of trips to Florida, and while there learned that a tract of 14,000 acres, belonging to one Black, was for sale and could be purchased at six dollars per acre, on terms, so that payment could be met by sales of parcels as aforesaid; that on his return, not having been able to see the owner while in Florida, and to personally negotiate for the purchase of said tract, he reported the fact to said Anderson, and to said company, and that upon consideration of the proposition it was agreed between him and Anderson, that Anderson should at once negotiate with Black for the purchase of said property, and endeavor to secure subscriptions to the capital stock of said company sufficient to pay Black the purchase price, the land to be sold said company by Marshall and Anderson at an advance of two dollars per acre, equally divided between them, and to be covered or represented by stock subscribed for by them.

It is furthermore alleged that until March 18, 1913, plaintiff continued in the discharge of his labors in connection with the business of said partnership and company, that he [231]*231and Anderson were both directors therein, that Anderson was president, and Marshall sales manager thereof; that thongh there were others connected with said company as stockholders and directors as aforesaid, .said company was in fact owned wholly by Anderson and Marshall, and that all dividends, profits and accounts, were the joint property of the two parties to said partnership.

These are the main allegations upon which it is sought to establish the partnership between Anderson and Marshall, and entitling plaintiff to a discovery and an accounting by Anderson, for the property and assets, and profits, derived by him in his prosecution of the business subsequent to March 18, 1913, when it is alleged defendant, by fraud and deceit, procured plaintiff to part with his interest in said property, in the manner and by the means employed as hereinafter set forth.

The first point made on the demurrer is that by the terms of the alleged partnership' agreement the business of said partnership, notwithstanding the recital therein, was limited solely to the business of dividing and marketing of the 5,-360 acre tract; and that notwithstanding the discovery by plaintiff of the Black tract of 14,000 acres, and the agreement aforesaid to purchase and sell the same, made subsequent to said partnership agreement, respecting the 5,360 acre tract, that the Black tract was not within the terms or scope of said partnership contract, wherefore no liability or obligation upon the part of Anderson to account to Marshall for dealings with respect to the latter tract, and for the profits; made thereon; and it is contended that having vouched the-said partnership agreement, in support of the allegations off his bill, plaintiff is limited on demurrer to the proper construction of said contract, and can not within the rules of good pleading by allegation merely enlarge upon the scope and business of the alleged co-partnership. This proposition is undoubtedly sound if applicable, but we do not think it covers the case presented by the bill.

As already observed, the bill avers the existence of a partnership, prior, as well as subsequently, to the making of said agreement of. May 27, 1912, and that agreement recites [232]*232that the parties thereto for the convenience of handling the real estate specifically mentioned therein, as well as other undertakings they might have, were contemplating the formation of a corporation, to act as sub-agent in the sale of said land, but it is provided therein that “the commissions and profits, however, shall be determined as between the said Marshall and said Anderson by this agreement.” A careful analysis of the written agreement shows that it was otherwise undoubtedly limited to the division and sale of the 5,360 acre tract, but that paper though not specifically recognizing the existence of a prior co-partnership, nevertheless contemplates the formation of a corporation by the parties thereto to deal in other lands; and the bill alleges the existence of a co-partnership of general scope, which was to be absorbed by the corporation to be formed, as an agency of the co-partnership, and the profits derived from which were to. be divided between the parties upon the same basis provided with reference to the sale and disposition of the 5,360 acre tract.

Of course we do not know what the facts may turn out to be, but upon demurrer the allegations of the bill, well pleaded, are taken to be true, and as alleged, we think, the case here falls cleax’lv within the rule laid down in Kyle v. Griffin, 76 W. Va. 214, 85 S. E.

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Bluebook (online)
92 S.E. 421, 80 W. Va. 228, 1917 W. Va. LEXIS 27, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marshall-v-anderson-wva-1917.