McElroy v. Elledge

69 S.W.2d 199
CourtCourt of Appeals of Texas
DecidedFebruary 27, 1934
DocketNo. 9918.
StatusPublished
Cited by1 cases

This text of 69 S.W.2d 199 (McElroy v. Elledge) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McElroy v. Elledge, 69 S.W.2d 199 (Tex. Ct. App. 1934).

Opinion

LANE, Justice.

T. K. McElroy brought this suit against Raymond P. Elledge and Vernon L. Elledge to recover the sum of $3,054.68 as damages, which he alleged he suffered by reason of a breach by defendants of a partnership agreement, which said agreement had been entered into between said parties, or, in the alternative, for a breach of an employment contract entered into between him and. Raymond P. Elledge and Vernon Elledge.

Plaintiff alleged:

Í. That in February, 1928, plaintiff became a member of the firm of Elledge, McElroy & Elledge, attorneys.

2. That preceding plaintiff’s entry in said firm, his father, W. A. McElroy, organized the -Houston Building & Roan Association while plaintiff was still in school.

3. That plaintiff’s father, W. A. McElroy, had the operating contract for said Building & Loan Association, giving the said W. A. McElroy the entire control and management thereof.

4. That about the year 1925 said W. A. McElroy made an agreement with Raymond P. Elledge whereby he was made general attorney for said "Building & Loan Association on a year to year contract, the compensation to be the fees which he would receive for the legal work of said association and its clients.

5. That said W. A. McElroy, father of plaintiff, acting as plaintiff’s agent, informed Raymond P. Elledge, just before 1928, that plaintiff would soon finish his law course and be admitted to the practice of law and that he wanted it agreed and understood that the plaintiff, T. K. McElroy, upon his being admitted to the bar, should become associated with said Raymond P. and Vernon Elledge in the practice of law.

6. That Raymond P. Elledge agreed that plaintiff should become associated with said law firm under the firm name of Elledge, McElroy & Elledge, general attorneys for the Houston Building & Loan Association, and that plaintiff should be entitled to one-fourth of the net profits received by said firm as fees as general attorneys for said association.

7. That plaintiff, acting on said agreement, became a member of said firm.

S. That at the time of joining said firm it was agreed that Raymond P. Elledge had his own clients and that plaintiff should assist Raymond P. Elledge in attending to the business of the personal clients of Raymond P. Elledge, for which plaintiff was to receive no additional compensation; also; that plaintiff might have his own individual clients, the fees from which should be his own, unless he called in Raymond P. Elledge to assist him in said business. It was further agreed that business might come to the firm as firm business, in. which event the fees therefrom should be shared on a reasonable and proper basis to be agreed upon at the time thereof.

9. In pursuance of said agreement, plaintiff received for the months of February to July, inclusive, 1928, as his one-fourth of the profits from the business of the Houston Building & Loan Association under said agreement, the sum of $1,950.07.

10. Prior to July 26, 1928, there was no firm business, save and except that of probating the Martin ’will.

11. That about June 1, 1928, negotiations were begun by the said association with the plaintiff’s father, W. A. McElroy, for the purchase of the operating contract owned by the said W. A. McElroy. That "W. A. McElroy at the time thereof asked Raymond P. Elledge what effect the sale of his contract would have on the attorneyship contract of T. K. McElroy, to which Raymond P. Elledge replied, “Absolutely none.”

12. That plaintiff himself asked Raymond P. Elledge what effect the surrender of the contract would have upon his status as attorney, and was told that it would be unchanged ; that plaintiff’s work had been satisfactory ; but that Raymond P. Elledge thought it should be agreed that they increase the salary paid to his brother, Vernon L. Elledge, on January 1st,' succeeding, to which suggestion plaintiff agreed.

13. Thereafter W. A. McElroy sold the operating contract of said Building & Loan Association.

14. About July 15, 1928, Mr. W. 8. Martin, of Port Arthur, Tex., employed the firm of Elledge, McElroy & Elledge to probate the will of the father of W. S. Martin, which plaintiff accepted in behalf of said firm and discussed with Raymond P. Elledge. The filing of such will for probate was not immediately called to the attention of Raymond P. Elledge; whereupon, learning of same, he accused plaintiff of disloyalty and stated that the firm was thereupon dissolved and plaintiff discharged.

15. Plaintiff further alleged the issue of *201 the partnership earnings from the time of his discharge and that they averaged $325 per month.

16. That plaintiff was wrongfully discharged and excluded from participation in the partnership earnings and profits; that such exclusion was wrongful and without justification.

17. Plaintiff further alleged that Raymond P. Elledge was elected annually general attorney for said Building & Loan Association, and that it was anticipated and agreed that plaintiff's connection would| continue and remain in force throughout the contract year during which Raymond P. Elledge was general attorney for said association, and in connection therewith alleged that as consideration to Raymond P. Elledge for the admission of plaintiff, T. K. McElroy, into such firm, W. A. McElroy agreed to turn over to said attorneys $5 additional for each matter transacted for the Building & Loan Association.

18. That the term of such partnership was for one year.

19. That plaintiff endeavored to mitigate his damage, and that his earnings for the months of August to December, 1928, inclusive, were the sum of $172, and that his earnings from January to July, 1929, inclusive, were the sum of $873.90.

20. That plaintiff’s damage by reason of such breach and the loss of his profits therefrom was the sum of $2,854.68, and that in addition thereto plaintiff is damaged' through the loss of one-third part of the Martin will probate fee of $400.

21. Plaintiff prayed that the partnership he dissolved, for an accounting and settlement thereof, and for judgment for his part, of the net profits and fees, for costs of suit and general relief, and, in the alternative, in ease it should be held that plaintiff was an employee only, for like damages, for breach of contract of employment, and general relief.

Defendants answered by. general demurrer, general denial, and by specially alleging:

That when plaintiff became associated with the firm of Elledge, McElroy & Elledge it was understood he was not to participate in any of the personal business of the defendants ; that he was only to receive his portion of the fees from the Building & Loan Association and his personal fees; that it was expressly agreed, that plaintiff should not attempt to control any of the personal business of Raymond P. Elledge; that the handling of the estate of W. A. Martin, die-ceased, was personal business of Raymond P. Elledge, and was so known to plaintiff; that plaintiff solicited the probate of the will of W. A.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Verhalen v. Nash
330 S.W.2d 676 (Court of Appeals of Texas, 1959)

Cite This Page — Counsel Stack

Bluebook (online)
69 S.W.2d 199, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcelroy-v-elledge-texapp-1934.