Masters v. Freeman

17 Ohio St. (N.S.) 323
Ohio Supreme Court·Decided December 15, 1867·Published

Opinion

Scott, J.

The defendants in error, Freeman and Zent, were plaintiffs in the court below, and, in their petition, alleged that the plaintiffs and the said Peter Masters, against whom suit was brought, “ during a portion of the year 1857, were partners, doing business in the State of California, as such, which partnership is now dissolved; and while thus doing business as such partners, said Peter Masters collected $2,645, which belonged to said plainiffs and said Peter Masters jointly, as partners, each having an equal interest in the same; and plaintiffs aver that said defendant [301]*301fraudulently converted and appropriated the same to his own use.. And plaintiffs further say, that $1,763.33 of the aforesaid sum of' money, thus converted and appropriated, belonged to plaintiffs; and that said defendant wholly neglects and refuses to account and pay over to plaintiffs said sum of money last mentioned, or’ any part thereof; and plaintiffs aver that said defendant is indebted to them for said money, converted and appropriated as-aforesaid, in the sum of $1,763.33, which is now due and wholly unpaidand for which, with the interest thereon from the 1st. day of July, 1857, they ask judgment.

*To this petition defendant below answered, denying every material allegation of the petition, except the averment of' partnership during a part of the summer of 1857; but he averred" that the partnership created between the parties was limited, and not general; that it had reference to a single mining claim, on Loss Creek in California, known as S. Meed’s claim, in which he-had purchased an interest of one-fourth ; that the plaintiffs agreed with him to work said claim on his behalf, in conjunction with the other owners; and that they would account for and pay over to him one-third part of the one-fourth of the gross proceeds arising from the working of the claim. He avers that plaintiffs did, accordingly, work said claim, with the other owners, in the summer of 1857, and received, on account of his interest therein, one-fourth of the proceeds or yield thereof, being a large quantity of gold dust, etc., for which he charges that they wholly refuse to account to him, or deliver to him his third part thereof, and he asks for a judgment on this account, against plaintiffs for $4,000.

The averments of this answer having been traversed by a reply, the defendant below, in pursuance of leave previously obtained, filed an amended answer, in which, among other things, he avers- “ that he is not liable for any indebtedness to said plaintiffs jointly, or as partners, in any claim against him; and therefore alleges that there is a misjoinder of parties plaintiff in this action; for-which cause he asks judgment in his favor.”

This ground of defense was, on motion of plaintiffs, ordered by the court to be stricken from the files, and a demurrer to the answer was sustained.

In the progress of the pleadings three other amended answers were successively filed by the defendant, upon leave; to the first, two of which demurrers were sustained.

[302]*302In each of these answers, the defendant set out a copy of the written contract of partnership between the parties, which he alleged was the only agreement of partnership ever entered into between them ; and after averring that such agreement was void for ambiguity and uncertainty, he denies that he became indebted to the plaintiffs jointly as is in said petition alleged.

*The several averments, by which the defendant sought to make an issue as to the joint character of the claim sued upon by plaintiffs, were, on motion of plaintiffs, ordered to be stricken from each of the answers; and to an order of this kind made in regard to the fourth amended answer, the defendant excepted; and this action of the court is, among many other rulings, assigned for error.

' We do not readily perceive why the defendant below should not have been allowed to aver, and prove that the claim sued upon was not joint in its character, and that, if anything was owing by him to the plaintiffs, on account of partnership transactions, it was owing to them severally, and not jointly.

The cause of action stated in the petition is an alleged indebtedness of the defendant to the plaintiffs jointly; and they have obtained a joint judgment against him; whilst the defendant was not permitted to gainsay the joint character of the claim upon which a recovery has been had.

It is said that the defendant having failed to demur to the petition, thereby waived his right to such a defense.

Perhaps the petition may be fairly construed as alleging that the partnership assets in the hands of the defendant belonged to the partners severally, in equal proportions; and therefore, as showing that one moiety of the claim sued upon, belonged to each of the plaintiffs severally; and perhaps the petition might, therefore, have been demurred to. Rut if so, the demurrer must have been, because the petition did not state facts sufficient to constitute a cause of action in favor of the parties plaintiff; and such defect is not waived by a failure to demur. Code, sec. 89.

A cause of action in favor of each, or either of two plaintiffs, is no cause of action in favor of both. We think the court below erred in requiring the defendant to strike from his answer this .ground of defense.

And as this error may have prejudiced the defendant, by ex-[303]*303eluding all matters of set-off against the plaintiffs severally, it is sufficient ground for reversal of the judgment.

The cause was finally submitted, in the court below, to a jury (called upon the demand of the plaintiffs), upon various issues raised by thq fifth amended answer, and the reply ^thereto. The verdict and judgment were for the'plaintiffs for $1,736.

This answer, among other matters of defense and counter-claim, alleged, in substance, that the affairs of the said partnership agreed upon by the parties remain wholly unsettled; that the most of the mining claims and other property of the partnership are undisposed of, and the mutual accounts of the parties unadjusted, and that plaintiffs have no foundation in equity for the claim asserted against him in their petition.

The record shows that evidence was offered on the trial, by the defendant, strongly tending to maintain these averments, and to show that, from the date of the contract of partnership till its dissolution, the plaintiffs were working at one of the partnership mining claims, and the defendant at another; and that neither during all this time, nor afterwards until this suit was brought, was any settlement made, or attempted to be .made, by and between the partners, touching any part of the partnership business, or the work done, expenses incurred, or proceeds realized by the partners, or either of them, from their respective transactions under the partnership.

Indeed, all this is shown by the evidence of the plaintiff Zent himself; and it is difficult to resist the impression that the plaintiffs have misconceived their appropriate remedy, and have sought a judgment as upon an action at law, when they should have sought an account and settlement of the partnership business in equity.

By giving to their action its present form, they have compelled the defendant to submit to a trial, by jury, of issues which would otherwise have been for the decision of the court alone, from whose decision he might have appealed to the district court.

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Masters v. Freeman, 17 Ohio St. (N.S.) 323 (Ohio 1867).

17 Ohio St. (N.S.) 323 (Masters v. Freeman) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.