McDaniel v. Bell

4 Tenn. 258
Tennessee Supreme Court·Decided February 15, 1817·Published

Opinion

Per Curiam.

The case from the bill, answer, and testimony, appears to be thus: The complainant and the defendant Brown, on the 26th of February, 1804, entered into an article of agreement under their hands and seals, by which they mutually covenanted to build a furnace on Yellow Creek, in the county of Montgomery and State of Tennessee, on the lands of Brown, and to commence the building thereof immediately; the said Brown to furnish [211]*211$1,500 worth of such articles and good property towards carrying on said building, to be passed to his credit; and the said McDaniel to furnish, on or before the first of the succeeding May, the sum of $1,500 in cash to be passed also to his credit on the partnership books ; that said furnace should be built at the joint and equal expense of the said McDaniel and Brown, and that they should be equally entitled to the profits arising from said furnace for the term of seven years ; and that their partnership should end the last day of May, 1811 ; and that at the end of the aforesaid term, said furnace, together with all her tackling, &c., should belong to the said Brown, his heirs, &c. In consideration of which, said Brown covenanted to pay said McDaniel, his heirs, &c., one half of the original costs of building said furnace, after deducting a sufficient and reasonable allowance for the wear and tear and damages which she may have sustained during the term aforesaid. The said Brown also covenants, that iron ore for the use of said furnace during the term aforesaid might be gotten off his land, and cord-wood also; for which latter article the said McDaniel was to pay him at the rate of $100 * per annum. It was also covenanted that the said McDaniel, during the continuance of the aforesaid term, should furnish such quantities of pig metal for the use of the forges of Brown, as he, Brown, might require, not exceeding 200 tons in any one year; for which Brown was to give McDaniel at the rate of one ton net of barn iron for six tons gross of pig metal, and also receive from the furnace the grates and scraps, rating three tons of grates and scraps equal to two tons of pigs. There are some other covenants in the foregoing articles, which are not necessary upon this occasion to be noticed. It seems that after Brown and McDaniel had entered into the foregoing articles, in pursuance thereof they commenced the building of a furnace, and carried it on almost to completion, when, through some cause unexplained, they became exceedingly hostile to each other. At this time McDaniel’s advances towards the-building of said furnace amounted to the sum of $2,957.41], and Brown’s to the sum of $5,987.52], when Montgomery Bell, on the 26th of April, 1805, entered into an article of agreement -with Brown, by which he purchased the whole of the interest of Brown in said furnace and partnership concern, together with a considerable quantity of other property, which belonged exclusively to Brown; and by said article bound himself, his heirs, &c., to do and perform [212]*212all and singular the articles in the covenant before mentioned, between McDaniel and Brown, which were on the part of Brown to be performed, in the same manner which the said Brown ought, in law, equity, and good conscience, to perform them. ■ After this, Brown withdrew his hands and funds from the partnership business, and Bell did not assist McDaniel in carrying it on as a partner .ought to have done. McDaniel was not able to carry it on himself, but endeavored to do so, as far as in his power lay ; and in doing this, was * compelled to make considerable sacrifices: Bell declared that he would not be in partnership with McDaniel ; that he would have the exclusive interest in the whole business himself. After a while a negotiation took place between Bell and McDaniel, by which Bell was to become exclusively entitled to the furnace. And the parties not agreeing as to terms, on the 13th day of May, 1805, entered into bond, containing, among other things, the following clauses, to wit: “ We, Clement McDaniel and Montgomery Bell, having mutually agreed that George West, Samuel Thornton, Doctor Brunson, and William Clement, shall and do value, ascertain, and award the amount of the interest, right, and title of the said Clement McDaniel in and to the one half of the furnace for the term of seven years, on Yellow Creek, lately the property of said McDaniel and Doctor Brown, do hereby bind ourselves, our heirs, &c., in the penal sum of $50,000, to abide by •the decision■ and award of the aforesaid persons or a majority of them, &c.., and that the said Montgomery Bell shall pay the amount of the award to the said Clement McDaniel, which he shall receive as full payment and compensation for his right and interest in the furnace, for the term aforesaid, to be paid, &c. And further, we bind ourselves, our heirs, &c., to lay before the aforesaid referees, articles agreed upon, between ourselves for their government.” After this bond was executed, the parties agreed by bond that the balance of the arbitrator’s, exclusive of Shelby and Brunson, should act upon the matters before mentioned. The arbitrators accordingly met on the 18th of May, 1805, when the parties submitted to them the following preliminary articles for their government, to wit: “ Montgomery Bell having ¿greed to purchase of Clement McDaniel one half for seven years of the furnace on Yellow Creek, and having appointed arbitrators to ascertain the value thereof, it is agreed that said arbitrators shall take * into [213]*213consideration, and act upon and in conformity to the following articles. Montgomery Bell agrees to assume the payment of said McDaniel’s furnace debts, as they stand in the book, and to make good every contract, made by or under the direction of Clement McDaniel in behalf of the firm of Brown and McDaniel.” Other articles were also submitted, which it is not important upon this occasion to notice. The arbitrators, in the presence of the parties, then went into an ascertainment of the matters submitted to them, and used the books in which an account of the expenses of Brown and McDaniel had been kept as evidence. After reciting their authority, they say “ that Montgomery Bell shall pay all McDaniel’s furnace debts as they stand stated in said furnace books, and make good every contract, made by or under the direction of the said McDaniel, in behalf of the firm of Brown and McDaniel; which debts the said Bell shall hold himself responsible for, and shall pay to the individual creditors of the said Brown and McDaniel ; ” and shall also hold himself and be accountable to Morgan Brown, or any other person or persons claiming under him, for any charge or charges, claim or claims that may be made or produced against the said McDaniel, for any privilege of any kind or nature whatsoever granted by the said Brown for the benefit of said furnace, or relative to the working or carrying on the business thereof; and said Bell to advertise, &c. And moreover, that the said Bell do pay the said Clement McDaniel for and in consideration of his, said McDaniel’s, interest, right, title, claim, and property in and to the furnace aforesaid, for the aforesaid term of seven years, and for and including all accounts of advances of every nature and kind made by said McDaniel for the purpose of huilding said furnace, the-sum of $4,754.05, which said sum of money may be discharged in castings, &c. Should any error or mistake be discovered to have * taken place in said McDaniel’s aceount in the books of the furnace aforesaid, and which has been considered as a part of his interest in said furnace, amounting to $2,766.07^, they are to be admitted and rectified.

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McDaniel v. Bell, 4 Tenn. 258 (Tenn. 1817).

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