Pate v. Martin

681 S.W.2d 410, 13 Ark. App. 182, 1985 Ark. App. LEXIS 1710
CourtCourt of Appeals of Arkansas
DecidedJanuary 2, 1985
DocketCA 84-289
StatusPublished
Cited by6 cases

This text of 681 S.W.2d 410 (Pate v. Martin) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pate v. Martin, 681 S.W.2d 410, 13 Ark. App. 182, 1985 Ark. App. LEXIS 1710 (Ark. Ct. App. 1985).

Opinion

George K. Cracraft, Chief Judge.

Jimmie Pate brings this appeal from an order of the circuit court denying his motion to quash a writ of garnishment issued on an award from the Arkansas Workers’ Compensation Commission and served upon a person having in his hands assets belonging to him. The sole issue presented by this appeal is whether an award of the Workers’ Compensation Commission entered against a partnership in its firm name only and which makes no reference to the individual co-partners may be enforced as a judgment by garnishment or execution against a co-partner. We conclude that it cannot.

In order to bring this narrow issue into focus a recitation of the events leading up to the issuance of the writ is necessary. In April 1978 Troy Martin notified the Arkansas Workers’ Compensation Commission by letter that he had been injured within the scope of his employment with “P & P Fabrication.” Upon receipt of the letter the Commission prepared and filed a “Dummy A-8” which designated the employer to be “P & P Fabrication.” Appellant’s counsel filed a controversion of the claim on behalf of “P & P Fabrication.” After a hearing the Commission affirmed the findings of the administrative law judge and awarded the appellant all medical expenses and accrued benefits in excess of $7500 against “the respondent.” The award and opinion identified the respondent only as “P & P Fabrication.” They made no reference as to whether it was a partnership or corporation, or, if a partnership, the identity of the co-partners. The appellee subsequently filed a copy of this award in the circuit court pursuant to Ark. Stat. Ann. § 81-1325(c) (Repl. 1976). There was nothing on the face or contents of the award that would connect or relate to the appellant Jimmie Pate when the writ of garnishment based on it was issued. At the suggestion of appellee’s counsel, the clerk placed the name of “Jimmie Pate” on the writ of garnishment as the judgment debtor.

It was undisputed that “P & P Fabrication” was a partnership in which Jimmie Pate and Jimmie Pate, Jr. were equal partners. It was also undisputed that both partners appeared in the hearings before the Workers’ Compensation Commission in defense of the claim and admitted that they were equal owners of the firm.

The trial court ruled that because the appellant had notice, appeared and defended before the Commission and was co-owner and partner in P & P Fabrication the circuit court had a right to consider the record before the Commission to determine his legal liability, even though appellant was not named as a party to those proceedings or in the award of the Commission.

In reaching its conclusion the trial court relied on Ethridge v. Brown & Associates, 258 Ark. 444, 527 S.W.2d 591 (1975). There Ethridge filed his claim against “Alexander Brown and Associates” and the proceedings before the Commission were styled “Edward Ethridge, Claimant, v. Alexander Brown and Associates, Respondents." Brown appeared and was represented by counsel who contended that the partnership, Alexander Brown and Associates, was not in existence at the time of the injury, and that the claimant was actually employed by Alexander Brown, Inc. There was evidence that the claimant was hired and paid by Mr. Brown and received all of his instructions from him. On conflicting evidence the Commission found that:

When the claimant filed his claim against Alexander Brown ir Associates, he was, in effect, filing a claim against Alexander Brown individually.

In the style of the award the respondent was referred to as “Alexander Brown and Associates’ ’ and the award was made against the “respondents.” On appeal the circuit court ruled that the entity designated as respondent was not a legal one against whom an award might be made and remanded the case for further proceedings. The Arkansas Supreme Court reversed the circuit court stating:

The circuit court apparently was guided more by the style of the claim before the Commission than by the substance of the Commission’s findings.
Whether Mr. Brown appeared at the hearing in response to notice served personally or by registered mail makes no difference in this compensation case. It is perfectly clear from the record that Mr. Brown was before the Commission and testified. It is also clear that the Commission’s findings were based on substantial evidence. As we read and interpret the Commission’s findings, the Commission simply found that Mr. Brown was doing business as Alexander Brown ir Associates at the time of the appellant's injury, long before the limited partnership by that name was formed, and that Alexander Brown was the appellant’s employer and the actual respondent in the case.

In Ethridge, although the claim was made against the partnership and the award was so styled, the body of the award shows that on conflicting evidence the Commission found that the actual employer and “respondent” was Alexander Brown individually.

It has long been the rule that in construing a judgment where the identity of a person against whom judgment is rendered is ambiguous or uncertain, resort may be had to the entire judgment or opinion for purposes of identification. In Ethridge the body of the award clearly identified the “respondent” against whom that award was being entered. Here, however, the claim was made against “P & P Fabrication” and the award was so styled. The award made no mention of appellant or his son and made no finding that they were the actual employers of the respondent. There was no finding by the Commission that the actual respondent was anyone other than “P & P Fabrication,” which was not designated as either a partnership or a corporation. We find it to be error for the circuit court to have made a finding not made by the Commission.

Nor do we find merit in the argument that one may be bound by a judgment even though not a party to the action where he has appeared and actually participated in the proceedings. While we agree that a court may enter a binding judgment against the individual parties under those circumstances, the Commission did not do so here. Nothing in the award or the opinion indicated an intent to make the appellant personally liable for the award.

Both parties agree that at common law a partnership is not an entity separate from its members and is nothing more than the aggregate of the individuals making it up. The partnership was not recognized as a legal entity separate and apart from the individuals owning it and had no capacity to sue or be sued. It was necessary to bring suit by or against a partnership in the names of the individuals comprising it rather than in the names of the partnership itself. The appellee argues, however, that this rule was abrogated by the Uniform Partnership Act and that a partnerhip may now be sued in the firm name and liability thereby imposed upon the members. We conclude that the enactment of the Uniform Partnership Act set forth in Ark. Stat. Ann. § 65-101 et seq. (Repl.

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

Related

Green v. Farmers Ins. Co., Inc.
57 F. Supp. 2d 729 (W.D. Arkansas, 1999)
Bice v. Green
981 S.W.2d 105 (Court of Appeals of Arkansas, 1998)
Nisenzon v. Sadowski
689 A.2d 1037 (Supreme Court of Rhode Island, 1997)
Hill v. Patterson
855 S.W.2d 297 (Supreme Court of Arkansas, 1993)

Cite This Page — Counsel Stack

Bluebook (online)
681 S.W.2d 410, 13 Ark. App. 182, 1985 Ark. App. LEXIS 1710, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pate-v-martin-arkctapp-1985.