Orr v. Cooledge

43 S.E. 527, 117 Ga. 195, 1903 Ga. LEXIS 195
CourtSupreme Court of Georgia
DecidedFebruary 11, 1903
StatusPublished
Cited by35 cases

This text of 43 S.E. 527 (Orr v. Cooledge) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Orr v. Cooledge, 43 S.E. 527, 117 Ga. 195, 1903 Ga. LEXIS 195 (Ga. 1903).

Opinion

Fish, J.

The error assigned in the bill of exceptions sued out in this case is that the trial judge improperly dismissed on demurrer the plaintiff’s petition. The material portions of this petition, as well as the grounds of the demurrer filed thereto, are set forth in the official report.

1. The cause of action upon which the plaintiff relied for a recovery was, in brief, as follows: She entered into a copartnership with the defendants, agreeing on her part “ to contribute to the capital of the business, on or before the first day of January, 1899, the sum of one thousand dollars, ” and to also contribute towards the success of the enterprise the services of her husband. Her interest as a partner in the proposed venture was to be equal to that of each of her copartners, to wit, a one-fourth interest, save in the event one or more of them should elect to acquire a greater proportionate interest by investing in the enterprise additional funds, as expressly provided for by the articles of copartnership. In that event her interest in, and right to share the profits of, the concern was to be measured by the ratio which the amount of cash she agreed to contribute should bear to tbe sum 'total of the amount contributed respectively by her copartners. She actually complied, in part, with her obligations in the premises by immediately putting her husband to work for the firm, and keeping him at work for it up to January 1,1899. She was unable on that day to comply with her obligation to pay over to the firm $1,000 as agreed. Her copartners did not, however, elect to treat her failure to pay as a breach of contract, but agreed to a novation, whereby, in consideration of her continuing to furnish the valuable services of her [203]*203husband, her relation to the firm as a member thereof was still to •subsist, and the time of payment of her cash contribution was to be extended for six months. Indeed her copartners “ expressed their willingness to indulge her even further, in the event that at the end of six months she was not able to make the contribution contemplated.” The husband continued to work. At the expiration of this extension of time, the money due by her was not forthcoming ; but the other members of the firm chose to waive any right they may have had to take advantage of her failure to pay by forcing her to retire from the partnership. Some time “ during the summer of 1899, petitioner’s husband,” apparently more in his own behalf than as the representative of his wife, “wrote to the defendants from Birmingham, Alabama, that petitioner was still unable to get the money to- put into the concern as agreed, and he was unwilling to work for the company as he had been without compensation. In this letter he proposed that he should be put upon a basis of employment,” receiving from them for his services a portion of the profits of the enterprise. The defendants declined to give countenance to this proposition on his part to quit the employment of his wife and hire himself to them, and “ still insisted upon his going on with his work and devoting his time, skill, and influence to said business,” as theretofore, agreeably to the contract entered into by and between themselves and the plaintiff. The result was that she was enabled to comply with her obligation to furnish to the firm the services of her husband, whom she kept at work for it up to January, 1900, when “petitioner was entirely excluded from said business.” The defendants refuse to account to her for her share of the profits thereof, or to come to any settlement with her.

It is to be observed that the payment by the plaintiff of her contribution of $1,000 was not, under the contract as originally framed or as subsequently modified, a condition precedent to her becoming a member of the partnership. On the contrary, thp partnership was formed and entered into active operations “about the first of October, 1898,” the plaintiff immediately turning over to the firm, as her proportionate part of the assets upon which it was to commence business, the identical salesman whom she had agreed to at once invest in the enterprise. By so doing, her status as a partner became fixed early in October, 1898. Under the [204]*204agreement whereby the partnership was formed, she was not called upon to further contribute to its capital until January 1 of the following year, when she was to pay over to the firm $1,000 in cash. By failing to do so, she on that day for the first time became in default. If time was of the essence of the contract, the defendants might have exercised their right to then rescind it, because of her breach thereof, accounting to her for her share of such profits, if any, as had up to that time been realized. They did not, however, elect to treat the contract as rescinded, but chose to regard it as still subsisting, retaining and using the salesman she had furnished to the firm, and holding her to her obligation to pay to it her cash contribution of $1,000. Doubtless it is true there was po consideration moving to them for their agreement to extend the time of payment of this sum for six months; but it is equally true that she was not released from her obligation to pay that amount, as per her original undertaking. In other words, she was not only permitted to retain her status as a member of the firm, but was granted indulgence for which there was no consideration. She had partially performed an executory contract, and was, on the date last mentioned, as much a member of the firm as any of the defendants. Though she made default in the payment of the $1,000, her status as a partner could not be affected save by an election on their part to treat that contract as rescinded. They could not so treat it and at the same time hold her to her obligation to fully perform it by paying to the firm in cash that amount. By electing to regard the contract as still binding on all parties thereto, the defendants placed the plaintiff in the situation of a debtor liable to suit as upon a demand past due and unpaid. If for any reason they deemed it inexpedient to attempt by legal process to enforce this demand, it was their right to insist that her share of the profits of the business be applied to the satisfaction of her indebtedness, until it became fully discharged. They could not, however, successfully maintain the position that, while bound to comply with the obligations she had as a partner assumed, she had no right as such to share in the profits. Nor, having once made their election to hold her to the contract, could the defendants thereafter claim any right to treat the contract as rescinded because of her failure to pay such demand, and force her retirement as a member of the partnership. In January, 1900, they undertook to exclude [205]*205her from further participation in the fruits or labors of the enterprise. She then ceased to be a partner, not because they had the right to terminate her connection with the firm, but solely by reason of her election to treat the partnership as having been dissolved by their action in the premises. They now hold against her a claim arising out of her failure to pay her cash contribution of $1,000. She has against them a claim based on her undoubted right, as a partner, to share in the profits realized from the business up to the time her connection with the firm was severed. There can and should be had an accounting and settlement between the plaintiff and the defendants.

2.

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Cite This Page — Counsel Stack

Bluebook (online)
43 S.E. 527, 117 Ga. 195, 1903 Ga. LEXIS 195, Counsel Stack Legal Research, https://law.counselstack.com/opinion/orr-v-cooledge-ga-1903.