McKee v. Capitol Dairies, Inc.

99 P.2d 1013, 164 Or. 1, 1940 Ore. LEXIS 71
CourtOregon Supreme Court
DecidedFebruary 28, 1940
StatusPublished
Cited by22 cases

This text of 99 P.2d 1013 (McKee v. Capitol Dairies, Inc.) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McKee v. Capitol Dairies, Inc., 99 P.2d 1013, 164 Or. 1, 1940 Ore. LEXIS 71 (Or. 1940).

Opinion

KELLY, J.

On the 11th day of July, 1939, this case was instituted by Mr. S. J. McKee, now deceased. On or about the 24th day of August, 1939, Mr. McKee died. On August 29, 1939, his widow, Gertrude Dickinson McKee, was appointed administratrix of his estate; *3 and upon September 13, 1939, Mrs. McKee, as such administratrix, was substituted as plaintiff herein.

During the trial in the circuit court, it appeared from plaintiff’s testimony that the equipment was furnished and the services performed, for which recovery is sought herein, by plaintiff’s intestate pursuant to an agreement with defendants, which created the relation of joint adventurers between them.

We quote from plaintiff’s testimony on cross-examination :

“Q. Now do you remember the day when you and Mr. McKee tallied with Mr. Hurley and Mr. McKenney at the dairy? Remember when that was ?
A. It was the latter part of June, I wouldn’t say just what day, and Mr. Hurley said he would furnish the turkeys and feed and Mr. McKenney would furnish the range and Mr. McKee do the work. Mr. McKee would do the over-seeing, would do all the over-seeing, furnish the brooding and over-see the birds through.”

# * ' * # *

Plaintiff testified that during the conversation above referred to by her, nothing was said about the pay that her late husband was to receive.

We quote further from her testimony on cross-examination :

“Q. You have told us that. You said at that time there was nothing said as to what Mr. McKee was to have?
A. There was not.
Q. Mr. Hurley said he would take care of the money and all and would run the turkeys on Mr. McKenney’s ranch and Mr. McKee was to use his brooder house and his equipment and see the flock through the summer.
*4 Q. You have told us that.
A. At that time — they were to divide the profits. If they went behind they were each to pay their part and if they made anything, they were to divide.
Q. Was that discussed that first time when you were at the dairy?
A. That was the beginning of these turkeys.
Q. What was said about what Mr. McKee was to receive for this work in dollars and cents ?
A. One-third of what they got on those turkeys when sold.
^ ^ % ’fé
Q. (By Mr. McKinney) Now tell the jury, what, if any, other conversations were had between Mr. McKee in your presence, and Mr. Hurley and Mr. McKenney, in regard to what he was to get for doing this work?
A. He was supposed to have one-third of what was made on the turkeys raised on McKenney’s ranch.
Q. Bid they have any other agreement on what was to be paid, on that day, do you remember?
A. They had not.
Q. That is the agreement he operated under?
A. He did.
Q. And no other agreement?
A. No other agreement.
# * # * &
The Court: What this jury are entitled to find out is, was the contract — were these turkeys taken care of on the theory they were to furnish certain things and your husband and you were to look after them and then when sold, why you folks were to get one-third the profits?
A. One-third the profits. That is exactly it, and they denied it all, and that is the reason I came to them for wages, I figured we should have the wages.”

“A joint adventure is analogous to, but not identical with, a partnership. It has been defined as, ‘An association of two or more persons to carry out a single *5 business enterprise for profit’ (Fletcher v. Fletcher, 206 Mich. 153), and is ‘usually but not necessarily, limited to a single transaction, although the business of conducting it to a successful termination may continue for a number of years.’ 33 C. J., p. 842. ‘This name seems to be applied to those special combinations of two or more persons, where in some specific venture a profit is jointly sought without any actual partnership or corporate designation. All such persons are partners or quasi partners, rather than joint or common owners; * * * with essentially the rights and disabilities which pertain to the partnership relation, although less comprehensive or permanent in the scope intended.’ Schouler on Personal Property (5 ed.), § 167a. See, also, Salem-Fairfield Telephone Assn. v. McMahan, 78 Or. 477 (153 Pac. 788), and Campbell’s Gas Burner Co. v. Hammer, 78 Or. 612, (153 Pac. 475).” Elliott v. Murphy Timber Co., 117 Or. 397, 244 P. 91.

“Generally speaking, it may be said that practically the only distinction between a joint adventure and a partnership is that the former relates to a single transaction * * * while the latter relates to a general business of a particular kind.” Annotation, 48 A. L. R. 1060, citing authorities.

“Though a joint adventure is not, in a strict legal sense, a copartnership, the rules and principles applicable to the partnership relation govern and control the rights, duties, and obligations of the parties as to each other.” Ibid, citing Church v. Odell, 100 Minn. 98, 110 N. W. 346.

“The rule is quite general that an action at law will not lie in favor of one or more partners or their representatives against one or more copartners or their representatives upon a demand growing out of a partnership transaction until there has been a settlement of account and a balance struck: 15 Pl. & Pr. 1005; Wilson v. Wilson, 26 Or. 251 (38 Pac. 185); McDonald v. Holmes, 22 Or. 212 (29 Pac. 735).” Simpson v. Miller, 51 Or. 232, 235, 94 P. 567; See also Li Sai Cheuk v. Lee Lung, 79 Or. 563, 146 P. 94, 156 P. 254.

*6 Many authorities supporting this rule, including these, are collated in Vol. 21, A. L. R., p. 34. A supplementary annotation is given in Vol. 58, page 621, ibid.

We are aware that an execption to the rule may be recognized when a partnership is formed to carry out a single transaction or venture, which is fully closed and does not involve complicated accounts, one partner may maintain an action at law against his copartner for his share of the profits or losses of the venture without first having a formal accounting; but neither the pleadings nor the proof herein disclose such a state of facts. While there are other exceptions to the rule unnecessary to record here, the instant case does not fall within the scope of any of them.

As stated, plaintiff’s testimony was to the effect that there was the relationship of joint adventurers between the parties defendant and plaintiff’s intestate with regard to the transaction upon which plaintiff seeks a recovery.

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Bluebook (online)
99 P.2d 1013, 164 Or. 1, 1940 Ore. LEXIS 71, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mckee-v-capitol-dairies-inc-or-1940.