McGowin v. Robinson

39 So. 2d 237, 251 Ala. 690, 1949 Ala. LEXIS 42
CourtSupreme Court of Alabama
DecidedFebruary 24, 1949
Docket8 Div. 472.
StatusPublished
Cited by9 cases

This text of 39 So. 2d 237 (McGowin v. Robinson) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McGowin v. Robinson, 39 So. 2d 237, 251 Ala. 690, 1949 Ala. LEXIS 42 (Ala. 1949).

Opinion

*692 SIMPSON, Justice.

The demurrer was sustained to that aspect of the bill praying for an injunction ■and the appointment of a receiver and overruled as to the other aspects, from which latter ruling the defendants McGowin bring this appeal.

The case made by the bill (except aspect praying for injunction and receiver) is: Thomas E. Robinson was the owner of a certain tract of land in Marshall County, Alabama, subject to a $500 mortgage held by defendant Lusk, and in May, 1947, conveyed, subject to said mortgage, an undivided one-half interest to defendant Ralph A. McGowin for a named consideration, but in reality the real consideration was a greater sum than as stated in the conveyance, leaving still a balance on the purchase price of $14,500. Said Robinson died intestate in November, 1947, leaving Gertrude K. Robinson and D. O. Robinson as his sole heirs at law. Appellee Giles is the administrator of his estate. Prior to the sale to McGowin, Robinson had begun an enterprise in the nature of a tourist court business and was constructing certain cottages and buildings, a restaurant, etc., on the land and the two men, after McGowin’s purchase, formed a partnership to operate the tourist court business and Robinson until 'his death was managing it; a joint bank accouht was opened in which to place the operating capital and decedent deposited $7,000 of his own funds and Mc-Gowin was also supposed to have deposited a sum. The appellees, as the personal representative and the mother of intestate Robinson, brought the bill against Ralph A. McGowin, D. O. Robinson (father of decedent), Lusk, the mortgage holder, and Clifford McGowin, whom Ralph McGowin 'had placed in charge of the management of the business after Robinson’s death. The bill prays for a division in kind or sale for distribution of the jointly owned real estate, for an accounting by Ralph Mc-Gowin of his trusteeship in winding up the dissolved (by death of Robinson) partnership, and a settlement thereof, and also an accounting by the younger McGowin as manager after decedent’s death of the firm’s business, for an establishment of a vendor’s lien on Ralph McGowin’s interest for the balance due of the unpaid purchase price, and for the settlement of other incidental equities such as the payment of the Lusk mortgage.

There are many grounds of demurrer, but boiled down the appeal challenges the action of the court in overruling them because it is contended the bill shows (1) the real estate was partnership property and as such was not subject to such proceeding until the surviving partner had exercised his exclusive prerogative of managing and controlling the business until (within a reasonable time) it had been wound up and settled; (2) the same contention as to the partnership business; (3) a misjoinder of *693 parties. We think a consideration of these three propositions will suffice to dispose of the contentions advanced here for a reversal. They will be discussed in order.

We do not construe the bill as showing that the lands were partnership property, but on the contrary as the joint property of the individual partners as tenants in common. No pretense is made by the allegations that the lands were acquired with partnership funds or as partnership lands or were so considered and agreed to after the organization of the partnership. It was only the business operated on the real estate that constituted the partnership between Robinson and McGowin. The law is plain on this point.

Prima facie the status of title to real estate is precisely as indicated by the muniment. McKleroy v. Musgrove, 203 Ala. 603, 608, 84 So. 280. And, generally, in order to constitute land partnership property its acquisition must have been “with partnership funds or on partnership credit and for the uses of the partnership”; these two factors must concur and the mere use of real estate for partnership purposes does not “impress upon it the character of partnership property.” Hatchett v. Blanton, 72 Ala. 423, 425; Humes v. Higman, 145 Ala. 215, 223, 40 So. 128.

And, though the land has been paid for with partnership funds, prima facie, it is clothed in all its legal characteristics as property of the individual members of the firm as tenants in common, its equitable ownership depending on the intention of the partners to be deduced from a consideration of their conduct, and course of dealing or their agreements, express or implied. McKleroy v. Musgrove, supra, .203 Ala. 603, 608(7, 8, 23), 84 So. 280; Hurst v. Smith, 227 Ala. 664, 151 So. 825.

It is clear the bill does not reveal the land as partnership property, but only ■as used for partnership purposes, the title thereto resting in the individuals as tenants in common, Robinson’s title and interest at his death descending to his lawful heirs subject to such rights as his personal representative might have in the process of administering on his estate.

The challenge (2) to the bill that the surviving partner could not thus he called to account and made to settle the business because of the right, generally, of a partner to the exclusive management and control of the firm’s assets for a reasonable period, in order to wind up the business, is answered by a reference to Sections 5th, 6th, and 9th of the bill, which set forth special conditions and circumstances which if proven would warrant equitable interposition. The case made by this aspect of the bill is that shortly after Robinson’s death Ralph McGowin, the surviving partner, assumed active control of the enterprise and property, including the firm’s bank account and, over the protest of complainants, made changes in the physical properties and in the policy, management, and uses thereof and, contrary to an agreement between the parties as to the method of winding up the dissolved firm’s business, installed his own son and family in the main dwelling house, utilizing some of the firm’s funds for the upkeep and support of this son’s family; that in violation of his duty to wind up the business of the dissolved partnership without delay and with due regard to the interest of those entitled to the benefits of the partnership, he had, together with his said son, to whom he had entrusted the management of a portion of the firm’s business, failed to report weekly earnings of the business, as was agreed between the parties, but has presented false reports and refused to divide the cash receipts as contemplated; that the two McGowins have disposed of some of the properties of the partnership and utilized the proceeds as their own; have commingled partnership property with their own, resulting in danger of deterioration or destruction of the partnership assets; that since the death of Robinson, not only have the two McGowins incurred additional debts against the old firm in such operation of the business, but have radically departed from the original adventure entered into between McGowin and the deceased Robinson.

Our judgment is that these allegations suffice to invoke the beneficent powers of equity to call the partner to account and force him to wind up and settle the partnership affairs. When “special circumstances and conditions are shown that will justify the intervention by a court of equity *694 to protect and enforce the rights of persons interested in assets of the dissolved copartnership, Davis v. Sowell, 77 Ala. 262; Blackburn v. Fitzgerald, 130 Ala. 584, 30 So.

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

Related

Galvanizers v. Kautzman
2021 ND 169 (North Dakota Supreme Court, 2021)
Nelson v. Mattson
910 N.W.2d 171 (North Dakota Supreme Court, 2018)
Strother v. Strother
436 So. 2d 847 (Supreme Court of Alabama, 1983)
Estate of Autry v. McDonald
332 So. 2d 377 (Supreme Court of Alabama, 1976)
Cooper v. Cooper
266 So. 2d 871 (Supreme Court of Alabama, 1972)
Higgins v. Higgins
97 So. 2d 812 (Supreme Court of Alabama, 1957)
Merrill v. Zera
91 So. 2d 472 (Supreme Court of Alabama, 1956)
Martin v. Carroll
66 So. 2d 69 (Supreme Court of Alabama, 1953)
Moore v. Moore
51 So. 2d 683 (Supreme Court of Alabama, 1951)

Cite This Page — Counsel Stack

Bluebook (online)
39 So. 2d 237, 251 Ala. 690, 1949 Ala. LEXIS 42, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcgowin-v-robinson-ala-1949.