Ott v. Boring

110 N.W. 824, 131 Wis. 472, 1907 Wisc. LEXIS 185
CourtWisconsin Supreme Court
DecidedApril 30, 1907
StatusPublished
Cited by43 cases

This text of 110 N.W. 824 (Ott v. Boring) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ott v. Boring, 110 N.W. 824, 131 Wis. 472, 1907 Wisc. LEXIS 185 (Wis. 1907).

Opinion

The following opinion was filed February 19, 1907:

Dodge, J.

1. The first position contended for by respondent, and adopted by trial court in an opinion filed, was to the effect that the evidence did not disclose an acceptance by the plaintiff of the written proposition quoted in the statement of facts, except as to the $15 per week compensation. The evidence on the subject is that the plaintiff received this proposition and, immediately thereafter, commenced and has continued to comply in all respects with the terms thereof on his part. From such facts no reasonable inference can be drawn that his intention was to accept only one part of the tendered compensation to him for such acts and to reject the other part. If the acts of the plaintiff in going to Ashland and associating himself with Mr. Pool were done in response to this proposition, they are plenary proof of the acceptance thereof ae-[477]*477cording to its terms, in the absence of any evidence to show a-contrary purpose or understanding.

2. There is considerable confusion in the contentions made by different counsel for appellant as to the force and effect of the contract resulting from Mr. Pool’s written proposition and plaintiff’s acceptance thereof. At one moment they seem to contend that a partnership was immediately created thereby, and at another that it was a mere employment with a promise of additional payment at some indefinite date in the future; but whether that additional compensation was to be in the form of a partnership, or a mere transfer of title to one-quarter of the property in the business, they are not very clear, nor, indeed, whether the contract was self-executing so that at some time an interest did, by force of law, vest in plaintiff, or some conveyance from Pool was necessary. After a careful examination of the writing in the light of the conduct of both parties, which certainly indicated complete-concurrence by them in their understanding of their relations, we think it plain that no copartnership was originally formed between them. Mr. Pool’s agreement was that some time in the future, in a certain contingency, “I will give you a one-quarter interest in the store,” and the conduct of the parties-at all times was consistent with the understanding that Mr. Pool was the owner of this business, exercising full autonomy and control thereover as owner, and that the time had never come when he had executed that promise by giving or transferring any part of the ownership thereof to the plaintiff. This view, of course, might not be inconsistent with the idea that- some equitable rights had existed in the plaintiff at all times such as to enable him to protect against unreasonable or destructive conduct upon the part of Pool in managing the business so as to impair the probability that the time would ever come when plaintiff would be entitled to an interest, or would impair the value of that interest when such time did come, thus imposing a trust or fiduciary quality upon Pool’s [478]*478'title and management. This right might -well exist without any actual ownership having yet been acquired. Suffice it to ■say that it is obvious that Mr. Pool’s management never did ■at any time arouse disapproval by the plaintiff, but that he seems at all times to have had entire confidence in the wisdom ■and fairness thereof.

Having concluded that this was a contract that at some 'time Mr. Pool was to transfer to plaintiff a share' either in the property or business, the next question of construction is when that duty was to be performed, so that if the transfer were not made Mr. Pool was in default and the plaintiff had a present complete cause of action. The proposition itself prescribed the time as “when I shall be able to withdraw from the concern the sum of $10,000 besides keeping the stock up.” The view contended for by the respondent, and .adopted by the trial court, was that, whenever that business had so increased that it was possible to withdraw $10,000 and leave a stock equal to that existing at the time of the contract, the agreement had been fully performed by the plaintiff and the transfer was due. We are persuaded that this is altogether too narrow a view of the situation. These parties, or rather Mr. Pool, was about to establish a business in Ashland, obviously with the expectation of a successful development thereof. Haturally, he hoped that the new city and surrounding country would grow in population, and, as phrased in the very proposition, the purpose of associating plaintiff with himself was “to make the store the greatest success possible.” Obviously that was not to be accomplished by operating with a stock confined to some $10,000 in value, as at the start. It involved increasing varieties of goods, or departments, increasing volume of stock in each department, .and, undoubtedly, the building up of a larger business. This 'hope and expectation is well illustrated by the course of -events, fully understood by Pool and, at least in a degree, apparent to plaintiff, and obviously acquiesced in by both par[479]*479ties as in accordance with, their hope and purpose. In two .years the net inventory worth of the business had been increased to $29,000, in three years to $37,000, and so onward, until in 1897 it reached $71,000 and in January, 1904, $119,000. 'Mr. Pool had deemed necessary, or at least advisable, for the proper development of the business to organize it on the lines of what is called a department store, so that, instead of the little establishment such as originally opened, the various kinds of goods were classified into departments, necessitating a department head to keep track of the demands and to see that every department was equipped with such supplies of goods in quantity and variety as would meet the demands of customers, and attract others, in competition with other dealers. We reach the conclusion that “keeping up the stock” in this contract was used and understood by both parties to mean the maintenance of such a volume and variety of merchandise as would most enhance the ultimate purpose of making the store “the greatest success possible,” and that only when, consistently with the most effective promotion of that purpose, Mr. Pool could withdraw from the business $10,000, should he be under obligation to perform his promise to give the plaintiff the one-quarter interest.

Further than this, it is undisputed that the whole policy of the business rested with Mr. Pool and that such was the contemplation of the parties from the first. He decided what stocks to buy, what departments to establish, what credits to give, and what extent of indebtedness to incur. With him rested the judgment and discretion as to what were the needs of the business, and he, better than any one else, was capable of deciding when, consistently with the best policy, he was able to withdraw $10,000. Just this situation must have been in the contemplation of the .parties, and just this autocracy would doubtless have been insisted on by Mr. Pool had any question arisen in regard to it. Plaintiff’s confidence in Mr. Pool’s ability, wisdom, and integrity is obvious through[480]*480out. So that there can he little doubt that this contract, as between the parties, meant that not until Mr. Pool, in the exercise of honest and reasonable judgment, deemed that he was able to withdraw this sum, consistently with keeping up the most advisable volume of business, should plaintiff have the right to demand a transfer of one quarter thereof. Doubtless here,' again, if difference of opinion arose and plaintiff felt that Mr.

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Bluebook (online)
110 N.W. 824, 131 Wis. 472, 1907 Wisc. LEXIS 185, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ott-v-boring-wis-1907.