Mitchell v. O'Neale

4 Nev. 504
CourtNevada Supreme Court
DecidedJuly 1, 1868
StatusPublished
Cited by6 cases

This text of 4 Nev. 504 (Mitchell v. O'Neale) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mitchell v. O'Neale, 4 Nev. 504 (Neb. 1868).

Opinion

[514]*514By the Court,

Lewis, 0. J.

The examination of this case has conducted us to these conclusions : 1st. That the evidence is not sufficient to establish a co-partnership between the plaintiff and defendant of the general character alleged in the bill; but, 2d, whether a partnership of any kind were proven or not, the plaintiff made out a case entitling him to an accounting with respect to the operations of the Marys-ville Mill, and therefore that his bill should not have been dismissed.

As it is desirable to dispose of this case upon its merits, we will proceed to give the reasons which have conducted us to these conclusions. Whether a general partnership between the parties existed or not is a proposition not by any means relieved from doubt, for the plaintiff testifies positively, as alleged in the bill, that a partnership was entered into which was to extend to the business of milling and crushing metalliferous rock, and generally to all matters and things, which the said defendant might see proper to engage in; but the testimony of the defendant is direct, positive and unqualified that no partnership agreement of any kind was ever entered into between himself and the plaintiff. Such conflict in the testimony of two persons of unquestioned veracity must necessarily involve the first conclusion arrived at in considerable doubt. The burden of proof, however, is on the plaintiff, and in a case of this kind where it is sought to obtain the legal title to, and possession of, a large amount of property, both real and personal, all the outward evidence of right and title to which is in the defendant, the proof should be very satisfactory indeed to justify a decree such as that sought by this bill. He who claiming an interest in property yet allows another to take the title in his own name and to treat it as his own for years, cannot complain if when he seeks to establish his right to such property he is required ta make out a strong and satisfactory case. The Courts have ever been averse to disturbing the title of the ostensible owner of real property, except upon clear and weighty proof. The inclination is always to favor the legal title and maintain it in him who holds it. But the testimony on behalf of the plaintiff in support of the partnership falls far short of being satisfactory or convincing. Indeed, upon a candid weighing [515]*515of all the testimony and placing upon it the most favorable construction possible for the plaintiff, still, whether such general partnership as that attempted to be proven was in fact entered into remains exceedingly doubtful. The very inequality of the original agreement of partnership, accepting it as explained by Mitchell, at once creates the impression that he must have been mistaken as to its character. It appears that all the work and labor were to be performed by O’Neale, whilst the only obligation which the agreement seems to have imposed upon the plaintiff was that of sharing the profits and accepting an-equal interest in the property acquired by the efforts of the defendant. The latter was to emigrate to Nevada, where he was to enter into any and all kinds of speculations and business .which he might deem proper, and without being obliged to furnish any means or doing anything to further the common enterprise the plaintiff was to have an interest in every transaction entered into and all property obtained by the defendant. This copartnership agreement, in short, appears to have been nothing more than a promise on the part of O’Neale to give to the plaintiff an equal interest in all the property which he might secure in the State of Nevada. Upon the showing thus made by the plaintiff himself the contract or agreement was entirely without mutuality, founded upon no consideration and hence entirely void. Let it be supposed that such a promise -was made and the defendant with the intention of fulfilling it came to Nevada and acquired property, taking the title in his own name, can it be said that upon such a promise the plaintiff could secure a half interest in all such property ? We think not; and yet there is little if anything else than such a promise upon which the plaintiff can claim an interest in the property held by the defendant, except the Marysville Mill and the Crown Point stock. He advanced money for the purchase of the mill, and it is acknowledged that he was admitted to, or interested in, the stock. But it is not claimed that he furnished any money whatever for the purchase or acquisition of the balance of the jjroperty in which he claims to be interested, and hence his interest in it must rest solely upon the agreement testified to as having been entered into in the State of California.

It seems to us the plaintiff’s own testimony fails to make out his [516]*516case, establishing as it does only a naked promise by O’Neale founded upon no consideration. As,'however, this point is not made by counsel, we will not rest our decision upon it, but proceed with the consideration of the question as to whether any contract or agreement of copartnership whatever is established by evidence sufficient to justify a recovery by the plaintiff.

Mitchell’s testimony, as has already been stated, is positive and explicit that a conti-act of partnership, as above described, was entered into, and the defendant as positively denies it — and so there is a direct conflict between the parties as to the existence of any contract of partnership whatever. So far as the plaintiff’s interest in the Marysville Mill is concerned, there is no conflict in the evidence — O’Neale himself testifying that he purchased a quarter interest in the mill, and afterwards sold one-half of such interest to Mitchell for a consideration, a part of which was paid before the mill was completed. And this acknowledged interest in the mill will serve to explain many of the expressions employed by the defendant in the letters to which reference will hereafter be made. The very nature of the contract, as stated by Mitchell himself, would doubtless make the evidence thus far preponderate in favor of the defendant; for it is very improbable that any person would enter into a contract so burdensome to himself, and yet yielding him no advantage. There is, however, some other evidence, which it is claimed tends to establish the copartnership, and thus to corroborate the plaintiff’s testimony. But in our opinion counsel attach more weight to that evidence than it is entitled to. McGowan’s testimony does not go beyond showing a joint interest or partnership in the Marysville Mill. So, too, with Barbour’s. He states explicitly that in the conversation between himself and O’Neale the admission of partnership was confined to the mill. And in the papers and pleadings in the case of Reilly v. O'Neale and others, not a syllable appears indicating any community of interest beyond that. Hall’s testimony is confined exclusively to the transaction of the purchase of the Crown Point stock, and there is nothing tending to show any partnership connection between the parties in any matter beyond that particular transaction.

In the letters written by the defendant to Mitchell there are some [517]*517fugitive expressions which may be construed as a recognition of a general partnership, but they admit of so many natural and rational explanations and are so vague in themselves that they cannot be accepted as proof entitled to much, if any, weight. In the letter of March 28th, A. D. 1863, this portion is referred to in support of the plaintiff’s case: “ I made a purchase yesterday of sixty feet of Crown Point stock, in which Joe Clark is equally interested.

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Bluebook (online)
4 Nev. 504, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mitchell-v-oneale-nev-1868.