Mortensen v. Ballard

188 S.W.2d 749, 209 Ark. 1, 1945 Ark. LEXIS 503
CourtSupreme Court of Arkansas
DecidedJuly 9, 1945
Docket4-7708
StatusPublished
Cited by11 cases

This text of 188 S.W.2d 749 (Mortensen v. Ballard) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mortensen v. Ballard, 188 S.W.2d 749, 209 Ark. 1, 1945 Ark. LEXIS 503 (Ark. 1945).

Opinion

Bobins, J.

The question for determination is the sufficiency of the following complaint filed by appellant in the lower court:

“Comes the plaintiff, M. Mortensen, and suing the above named defendants, for his cause of action alleges:

“That plaintiff is a resident of Pope county, Arkansas.

“That the defendant Evelyn Pearson Ballard is a resident of Pope county, Arkansas.

“That the defendant Pearson Hotel Company is a corporation duly organized and existing under the laws of Arkansas, with its principal office and place of business in Bussellville, Pope county, Arkansas.

' ‘ That prior to the 3rd day of March, 1924, the plaintiff; M. Mortensen, was the sole owner of the hotel furniture and equipment in and of a lease on The Majestic Hotel located in Mexia, Texas; that on'said date plaintiff entered into a written agreement with the defendant Evelyn Pearson Ballard, then Evelyn H. Pearson, by the terms of which agreement she became manager of said hotel and an equal partner with plaintiff in all the net proceeds derived from the operation of said hotel; that it was further provided in said written agreement that upon a sale of the fixtures in said hotel during the term of the lease then existing or any renewal thereof the said Evelyn Pearson Ballard was to haVb one:half of the net proceeds arising from the sale of said fixtures; that from and after the execution of said agreement the plaintiff, M. Mortensen, and the defendant, Evelyn Pearson Ballard, became and were equal partners in the operations of said hotel and in the proceeds arising therefrom; that a copy of said contract and agreement is hereto attached, marked Exhibit ‘A’ and made a part of this complaint;

“That while plaintiff and the defendant Evelyn Pearson Ballard were so operating said hotel in Mexia, Texas, they agreed and decided to establish a hotel in Bussellville, Arkansas, to be operated under the same terms and arrangements as the one at Mexia, Texas, each to be equal partners in said new hotel; that pursuant to such decision they came to Bussellville, Arkansas, and selected a site for the erection of the new hotel, and entered into a contract with the Trustees of the Elks Lodge at Bussellville, Arkansas, the then owners, for the purchase of said site at and for the sum of Pour Thousand Five Hundred ($4,500) Dollars, same to be paid as follows : Five Hundred ($500) Dollars Cash and Four Thousand ($4,000) Dollars to be paid later; that the $500 down payment and the $4,000 balance were both paid by plaintiff and Evelyn Pearson Ballard out of the earnings of the hotel at Mexia, Texas; that a copy of the contract of sale from the Trustees of Elks Lodge of Bussellville, Arkansas, to M. Mortensen and Evelyn Pearson Ballard, then Evelyn H. Pearson, is hereto attached, marked Exhibit ‘B’ and made a part of this complaint;

“That by the terms of said contract and purchase the plaintiff and the defendant Evelyn Pearson Ballard became the joint and equal owners of the following property situated in Bussellville, Pope county, Arkansas, to-wit: lots one (1), two (2) and three (3) in block ten (10), Mary A. Bussell’s Addition to the city of Bussellville, Arkansas.

“That title to the above described lots was issued in the name of Evelyn Ii. Pearson, but that it was agreed and understood that she held title thereto in trust for herself and plaintiff as equal partners in said venture, and that title to said property should be decreed to be held by her for said purpose;

“That after the procurement of the site for the said new hotel at Bussellville, Arkansas, plaintiff, who is an experienced contractor and builder and had wide experience in the planning and construction of such buildings proceeded to Bussellville and without delay proceeded with the business of building and equipping said new hotel; that he obtained the drafting of plans and specifications therefor which met the approval of himself and defendant, contacted all necessary materialmen, contractors and draftsmen necessary to the planning and erection of said hotel and continued to superintend their operations until said new hotel was fully completed and equipped, leaving the management and control of the hotel at Mexia, Texas, in the control of the defendant, Evelyn Pearson Ballard; that he gave her full power of attorney to act for him in the sale and disposal of the personal property belonging to himself and the defendant, Evelyn Pearson Ballard at Mexia, Texas, and that acting under and by authority of such power of attorney, the said Evelyn Pearson Ballard sold and disposed of their joint property in the hotel at Mexia, Texas, for the sum of Pour Thousand ($4,000) Dollars, and that sum, together with certain items of personal property reserved from said sale, was invested and installed in the hotel at Russellville, Arkansas; that a copy of the contract of sale of the personal property at Mexia, Texas, is hereto attached, marked Exhibit ‘C’ and made a part of this complaint ;

‘ ‘ That it was agreed and understood by and between plaintiff and the defendant, Evelyn Pearson Ballard, that upon the completion of said new hotel at Russell-ville, Arkansas, she was to be installed as manager thereof under the same terms and understanding governing the management of the hotel at Mexia, Texas, and was to reside in said hotel, and that the plaintiff, M. Mortensen was to be installed as assistant manager thereof and was to reside therein and receive room and board therein; ,

“That for several years after the completion of said hotel, plaintiff and the defendant Evelyn Pearson Ballard continued to operate same as a partnership in which each was an equal partner therein; that they made the regular partnership returns required to be made to the U. S. Internal Revenue Department, such returns showing them to be equal partners in the operation of said hotel; such returns sometimes being made by plaintiff, and sometimes by the defendant, Evelyn Pearson Ballard; that copies of such partnership returns for the years 1926 and 1927 are hereto attached, marked Exhibits ‘D’ and ‘E ’ respectively and made a part of this complaint ;

“That while the construction and equipment of the new Pearson Hotel at Russellville was financed in part by issuance of stock to local purchasers of such stock, it was financed in most part by loans and renewals thereof secured by liens upon the property and equipment of said company; that all of said loans are of record in the office of the Recorder of Pope county, Arkansas;

“That for the purpose of refinancing the debts incurred in the erection and equipping of said Hotel Pearson it was deemed advisable to incorporate same under the name of.the Pearson Hotel Company, and on the 21st day of June, 1927, articles of incorporation were issued to Pearson Hotel Company of Russellville, Arkansas; that it was provided that capital stock in the amount of 3,000 shares of such 'stock with no par value, and common stock in the amount of 1,000 shares with no par value, and preferred stock in the amount of 2,000 shares with a par value of $25 per share might be issued;

‘ ‘ That for the purpose of the completion and organization of said corporation, shares of common stock were issued to the amount of 100-shares, 90 shares of which were issued to Evelyn Pearson Ballard, then Evelyn H. Pearson; 2 shares to M. Mortensen; 2 shares to R. L. Smith; 2 shares to J.

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

Related

Andres v. Andres
613 S.W.2d 404 (Court of Appeals of Arkansas, 1981)
Cherokee Carpet Mills, Inc. v. Worthen Bank & Trust Co.
561 S.W.2d 310 (Supreme Court of Arkansas, 1978)
Tri-B Advertising, Inc. v. Arkansas State Highway Commission
539 S.W.2d 430 (Supreme Court of Arkansas, 1976)
O'Neal ex rel. Warmack v. Warmack
466 S.W.2d 913 (Supreme Court of Arkansas, 1971)
McKim v. McLiney
465 S.W.2d 911 (Supreme Court of Arkansas, 1971)
Masterson v. Tomlinson
424 S.W.2d 380 (Supreme Court of Arkansas, 1968)
Donham v. Neely Co.
361 S.W.2d 650 (Supreme Court of Arkansas, 1962)
Spicer v. Spicer
297 S.W.2d 931 (Supreme Court of Arkansas, 1957)
Mortensen v. Ballard
236 S.W.2d 1006 (Supreme Court of Arkansas, 1951)
Story v. Cheatham
229 S.W.2d 121 (Supreme Court of Arkansas, 1950)

Cite This Page — Counsel Stack

Bluebook (online)
188 S.W.2d 749, 209 Ark. 1, 1945 Ark. LEXIS 503, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mortensen-v-ballard-ark-1945.