McMillan v. James

105 Ill. 194, 1882 Ill. LEXIS 250
CourtIllinois Supreme Court
DecidedNovember 20, 1882
StatusPublished
Cited by6 cases

This text of 105 Ill. 194 (McMillan v. James) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McMillan v. James, 105 Ill. 194, 1882 Ill. LEXIS 250 (Ill. 1882).

Opinion

Mr. Justice Sheldon

delivered the opinion of the Court:

Ebenezer James and Augustus T. Stelle filed their bill of complaint in the Stephenson county circuit court, against Dugald McMillan, May 22, 1878, praying for a dissolution of the partnership between the parties, an accounting, the appointment of a receiver, and for relief generally. The' bill alleged a verbal co-partnership was formed in 1871, between the complainants, who were residents of Wisconsin, where they had been engaged in manufacturing lumber, and the defendant, who ivas carrying on a lumber yard at Free-port,* Illinois, the partnership being formed to do a lumber business at Freeport, and all that was agreed to-being, that complainants should each share one-fourth, and defendant' one-half, the profits and losses, and defendant to devote his entire time and attention to the business. A receiver of the firm assets was appointed, the defendant filed his answer to the bill, and at the March term, 1880, of the circuit court, the parties agreed to submit the cause to arbitration, and in accordance with their written -stipulation the-court made an order of reference and submission of the “cause and the • matters involved in said suit, the same being for a full and final settlement of the partnership, ” to the arbitration of three persons chosen by the parties. The arbitrators made their award on the 4th day of September, 1880, and the complainants filed a copy of the award in the circuit court, at its September term, 1880, and at the December term, 1880, moved for judgment on the award, and the defendant filed objections. The motion was heard at the -March term, 1881, and the defendant’s objections .were overruled, and a decree rendered -upon the award. Defendant brought this writ of error to reverse the decree.

The question' which is presented is upon the sufficiency of the objections to the entry of judgment on the award. There is no pretense of any fraud or misconduct whatever in respect of the making of the award.

There were several specific objections to the award filed in the court below, one of which was, that the 17th clause of the award is indefinite and uncertain. That clause is as follows:

“17. That the two-thirds (§) interest in the land occupied by Ebenezer James for his saw-mill, be charged to him at $10 per acre,—descriptions and acres being as follows: The undivided two-thirds (§) of lot two (2), section six (6), town forty-one (41) north, range 15 west, containing forty-six (46) and acres, according to government survey, and amounting to $307.33.”

It is said to be uncertain whether James is to have title to the land described in this clause at $307.33, or whether that sum is to be charged to James for the use of the land. Reading the clause by itself does raise a doubt in this respect. This two-thirds interest was the interest of the partnership in the land, the title standing in the names of James and McMillan, one-third in each, in trust for the partnership, the other one-third being owned by one McArthur. The next following clause in the award finds that the partnership do not own any of the improvements on the land mentioned in clause 17. By the 19th and 20th clauses of the award both the defendant and'James are ordered to convey all partnership lands, including said lot 2, to the receiver, and he is ordered to sell the same for partnership purposes. This seems to clear up the uncertainty there is in clause 17,— whether James is to have the title to the 46-J^ acres described therein.

Taking th'e whole award together, then, it would seem to show that this tract was not to be conveyed to James, and he have title to it, but that it was to be conveyed by James and McMillan to the receiver, to be sold by him for partnership uses, and that the construction should be that this charge of $307.33 against James was for the use and occupation of the land. An award being the judgment of a tribunal of the parties’ own choosing, should be liberally construed to sustain it. Henrickson v. Reinbeck, 33 Ill. 302.

The affairs of this partnership were very extended and complicated. The award must have been the result of a long and laborious investigation. Counsel say several weeks were spent in hearing evidence. This 46 acres of land was but one tract of a quantity of some 14,000 acres of pine lands in which the partnership had a two-thirds interest, and it would be a matter of regret if the whole award should have to be set aside for the uncertainty which appears in this comparatively insignificant portion of it. We can not think that the legal rule as to the certainty of awards requires that this award should be set aside upon the ground of this objection, and we hold it insufficient.

The 5th and 6th clauses of the award are:

“5. That Ebenezer James, individually, has paid on lands belonging to the firm the sum of $20,301.60, being the lands described in the bill.

“6. That Ebenezer James paid the above mentioned amount to protect partnership property, and is entitled to interest thereon from the time of making said payments, at the rate of seven per cent per annum, which, up to the date of this finding, amounts to $8044.”

Another of the objections is to this allowance of interest. It is claimed that this interest was not involved in the suit, and so was not a subject of the submission which was made to the arbitrators. The bill sets out that the landed property which is found by the 5th and 6th clauses of the award to belong to the firm, was purchased by and for the firm in 1872, of the vendors, Dean and Decker, for $41,315; that the lands were pine lands, situate in the State of Michigan ; that the legal title thereto was taken in the names of James and defendant, McMillan, as tenants in common, but that they held the same as trustees of the firm; that to secure part of the purchase money therefor, McMillan and James gave their joint notes to Dean for $16,087, and to Decker for $21,226, and secured the payment of the notes by their joint mortgages on the lands to Dean and Decker; that some of the notes drew interest at ten per cent, and the remainder at eight per cent, per annum, and that the notes and mortgages were given pursuant to an agreement between the firm and James that the same should be paid, as they fell due, by the partnership; and that when the notes to Decker fell due, the firm made default in payment, and James was forced to pay the same himself, out of his individual funds, and did so pay $19,196.06. This sum, together with two other sums, of $375 and $724.64, which James paid individually on the lands, amounting to $20,295.70, constitute the amount which is mentioned in the 5th clause of the award as paid on the lands by James,—there appearing the slight discrepancy of $5.90 in the two amounts.

The first ground upon which it is contended this interest was not involved in the suit, and so not within the submission, is, that “the bill fixes the character of the money on which interest is allowed, as capital invested, upon which, perse, interest is not allowed.” The bill treating this money so advanced as capital invested, and interest not being allowable by law upon capital, it is claimed there could be no recovery of interest under the allegations of the bill,—that they would preclude any such recovery, and therefore this interest was not involved in the suit, and not a matter submitted to the arbitrators.

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

Related

Harris v. Buder
62 N.E.2d 131 (Appellate Court of Illinois, 1945)
Pinellas Packing Co. v. Clearwater Citrus Growers' Ass'n
78 So. 16 (Supreme Court of Florida, 1918)
Deal v. Thompson
1915 OK 633 (Supreme Court of Oklahoma, 1915)
McCormick v. Unity Co.
142 Ill. App. 159 (Appellate Court of Illinois, 1908)
Dormitzer v. German Savings & Loan Society
62 P. 862 (Washington Supreme Court, 1900)
Cushman v. Bonfield
28 N.E. 937 (Illinois Supreme Court, 1891)

Cite This Page — Counsel Stack

Bluebook (online)
105 Ill. 194, 1882 Ill. LEXIS 250, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcmillan-v-james-ill-1882.