McKenzie v. Dickinson

1 Cal. Unrep. 426
CourtCalifornia Supreme Court
DecidedJune 29, 1868
DocketNo. 1462
StatusPublished

This text of 1 Cal. Unrep. 426 (McKenzie v. Dickinson) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McKenzie v. Dickinson, 1 Cal. Unrep. 426 (Cal. 1868).

Opinion

SAWYER, C. J.

The complaint avers that prior to the 18th of January, 1861, plaintiff and defendant were partners in business under the firm name of McKenzie & Co.; that on said day the partnership was dissolved, and subsequently thereto, and prior to November, 1861, all the interest of the defendant in the property and assets of the firm was sold by the sheriff under an execution issued upon a judgment [427]*427against said defendant; that the said defendant, at some time unknown to plaintiff, and without his knowledge or consent, executed a promissory note, in the name of said firm, in favor of one Burns, for the sum of sixteen hundred dollars and interest at two per cent per month; that plaintiff was in no way informed of the execution of said note, and that it was in no way taken into account in the settlement and accounting had with reference to said partnership affairs; that, afterward, in March, 1864, said Burns recovered a judgment upon said note against said plaintiff, which said plaintiff was obliged to pay, and did pay, to the amount of three thousand and ninety dollars; and that no part of the consideration of said note ever came to the use of said plaintiff, or said firm of McKenzie & Co., but that the same ivas wholly received by said defendant, and applied to his own private use and benefit. Judgment for the amount is prayed.

The defendant denies that the partnership was dissolvoc! at the time alleged in the complaint, or any other time, or that there had been a final settlement of accounts; or that plaintiff had ever paid said judgment, or that he had paid it out of his individual funds, or that the consideration h^d in whole, or in part, been received by said defendant for his own benefit, or applied to his own use; but avers that the note was executed on behalf of the firm, and that the cash received therefor was applied to the use of the firm; that the judgment thereon is against both parties and still remains unsatisfied.

The defendant then, by way of counterclaim, or cross-complaint, and for the purpose of obtaining affirmative relief, avers that on the 1st of January, 1857, said plaintiff and defendant entered into partnership as equal partners under the namd of McKenzie & Co., without any limitation as to the time of /its duration; that there has been no dissolution, and the pai/tnership matters are still unadjusted and unsettled, and that on an accounting there will be over three thousand dollar's due defendant; that it was the custom of plaintiff and defendant to make a yearly statement of their affairs; that on th/e 19th of January, 1861, an inventory of the affairs of McKenzie & Co. was taken, and there “was upward of seven thousand dollars of available cash — assets due said firm, besides| the stock in trade, together with a. large number of [428]*428sewing machines, steam engine, and building and lot,” goodwill, etc.; that out of these assets McKenzie was to retain four thousand five hundred and seventy-seven dollars, and of the balance one-half belonged to each; that plaintiff had collected and received of the firm assets some fifteen thousand dollars and upward, and retained the same, refusing to account ; that at the time of said partial accounting, on the 19th of January, 1861, it was agreed that the partnership should continue, and that defendant should go to New York and purchase goods on account of the firm; that, in pursuance of the understanding, the defendant did go to New York by the steamer of January 21, 1861; that immediately on his arrival at New York defendant commenced purchasing and shipping, and continued till the 1st of April to purchase and ship goods through the house of Wm. T. Coleman & Co., to be delivered to McKenzie & Co. at San Francisco; that the amount so purchased and shipped was twenty-five thousand dollars; that, he then proceeded to San Francisco, and on his arrival on the 6th uf May, the plaintiff for the first time informed defendant that he considered the partnership dissolved, and that during defendant’s absence all the interest of said defendant in the assets of the firm of McKenzie & Co. had been sold out by the sheriff on an execution against said defendant individually, in favor 'of one Laiie, and all debts due defendant, or credits belonging to him, had been garnished in plaintiff’s hands; that plaintiff refused to give any account of the partnership matters; tffat plaintiff has carried on the business ever since under the.^same firm name, with the capital stock, machinery and instruments, and in the firm building, and defendant claims that i! shall be held to be on joint account. Defendant further avers that on the 22d of January, 1861, while they were partners, as aforesaid, the plaintiff, “as trustee for the defendants,” purchased of one Lane a certain judgment against the defendant; that said plaintiff purchased the judgment for the sum of two hundred and fifty dollars, ‘ ‘ and that the same wlas for the use and benefit of plaintiff”; that, at the request of jplaintiff, the assignment was made in the name of one Goiklon; that Gordon did not give any consideration, but that the assignment to said Gordon was made with the fraudulent iiitent on the part of plaintiff to have an execution issued anal the [429]*429interest of said defendant in the partnership assets sold; that plaintiff afterward caused an execution to be issued, and, by virtue thereof, sold the defendant’s interest in the partnership assets, and himself purchased the same in the name of Gordon; that Gordon paid nothing whatever for said purchase, “but the same was really, in fact, made for the sole benefit of McKenzie & Co.,” and for the purpose of defrauding the defendant; that, at the time of procuring the assignment to Gordon, the plaintiff had in his own hands belonging to the defendant, a large amount of money, greatly exceeding the amount paid to said Lane for said assignment, and that the same was purchased, and paid for, with the private and individual funds of the defendant; and that the same ought to have been taken in his name; that the said proceedings were had for the purpose of defrauding the defendant of his share of the partnership assets; that Gordon never claimed to own any portion of the property purchased under the execution, but that plaintiff has always received and claimed, and now retains and claims, the whole property, so sold, as his own, and that he only used Gordon as an instrument for accomplishing his scheme of defrauding the defendant. Defendant claims that there is a large amount of property now in the hands of plaintiff which belongs to the firm, and prays an account of the partnership affairs, and for a final settlement and dissolution of the firm.

The foregoing is the substance of the material allegations of the pleadings on both sides, particularly of the counterclaim or cross-complaint, upon which affirmative relief is prayed. It will be seen that the allegations of the answer all relate strictly to property which is alleged to be partnership property, and the only relief sought is an account of the partnership affairs. There is no allegation that any individual property, real or personal, of the defendant was sold under the judgment, purchased by the plaintiff, and no lands described at all. The only allusion, direct or remote, to lands of any sort, is the very general one in the statement, that among the assets of the firm, of which an inventory was taken on the 19th of January, was a “building and lot,” without describing the lot. This lot, wherever it was, is thus averred to be a part of the assets of the firm, and not individual property. There seem to be some inconsistencies in the allega[430]

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Bluebook (online)
1 Cal. Unrep. 426, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mckenzie-v-dickinson-cal-1868.