Patrick v. Skinner

288 S.W.2d 726, 199 Tenn. 683, 3 McCanless 683, 1956 Tenn. LEXIS 369
CourtTennessee Supreme Court
DecidedMarch 9, 1956
StatusPublished
Cited by1 cases

This text of 288 S.W.2d 726 (Patrick v. Skinner) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Patrick v. Skinner, 288 S.W.2d 726, 199 Tenn. 683, 3 McCanless 683, 1956 Tenn. LEXIS 369 (Tenn. 1956).

Opinion

Mr. Justice Swepston

delivered the opinion of the Court.

Appellees have filed a motion to dismiss this appeal which will he referred to hereinafter, but it is deemed necessary first to state the pleadings and the action of the Court thereon.

Appellant ■ filed his original bill on April 20, 1950, against appellee, W. M. Sldnner, in which it was averred [685]*685that late in September 1947, they had formed a partnership nnder the name and style of W. M. Skinner Lumber Company for the purpose of buying standing timber and logs and cutting and manufacturing same into board lumber for the market, with its business to begin on October 1, 1947, at Clifton, in Wayne County, Tennessee. After stating the terms of said agreement it was averred that the partnership was dissolved by mutual consent April 1, 1950, and that a large sum of money was owing to appellant for his share of the profits and the assets of the partnership. A full and complete accounting was prayed. The People’s Bank of Clifton was called on to exhibit all ledger accounts and depositor records kept for the company since June 30, 1949, and the defendant was called upon to answer the bill under oath and to make a full and complete discovery of all matters, and the bill prayed for the appointment of a receiver.

The defendant promptly filed his answer and cross-bill in which he denied the existence of a partnership, plead an accord and satisfaction between them and denied the right of complainant to a discovery as prayed for, and declined to divulge his private business until complainant should show some interest in the matters and things inquired about. He filed a cross-bill at the same time alleging that complainant was indebted to him for lumber sold and delivered in the amount of something over $500. Complainant excepted to the answer for insufficiency but the exception was overruled. The Bank of Clifton declined to furnish the information demanded of it. Exceptions for insufficiency of its answer were likewise overruled.

The bookkeepers for the lumber company answered the bill exhibiting certain financial statements covering the period from October 1, 1947, to December 31, 1949, and [686]*686averred that they had fully complied with the orders of the Court with respect to the surrender of all books and papers in their possession relating to the controversy, except a list of books and papers showing those which had been turned over to the receiver in the cause.

When the case was heard by the Chancellor he held that no partnership existed and dismissed the bill. Complainant appealed to the Court of Appeals and, as appears from the briefs of respective counsel, the parties limited the question presented on appeal to one proposition, namely, whether or not a partnership existed between the parties as alleged in the bill. The Court of Appeals held that there was no partnership but a joint adventure, stating that for the purposes of this case there was no difference between the one and the other. The Court of Appeals, however, not only decided the sole question submitted to it but went further and determined there was a joint adventure and the extent thereof, and as a result held that the agreement of the parties included only two tracts of timber, the Miller and the Spears tracts, and the custom logs, which are logs brought by other parties to the mill and there purchased, which were sawed and stacked along with the Miller timber. It further held that when the Miller tract and the Spears tract of timber were sawed, along with the custom logs and all this lumber was stacked on the yard, the business adventure ended and nothing was left to be done except to sell the lumber and to account, stating as a reason thereof that no contract which involved any timber or lumber except that mentioned above existed between the parties. The accounting was ordered to be limited to the above stated items.

Upon the entry of the order on the procedendo in the Chancery Court Skinner then by order of the Court al[687]*687lowing same, filed an amendment to his cross-bill in which he claimed that by reason of certain errors committed by the firm’s bookkeeper he was entitled to a credit of an additional $1,000 in the accounting. In said cross-bill it is averred that although this defendant and cross-complainant originally took the position in the Chancery Court that he had had a stated and settled account with the complainant and that neither of the parties could go behind such statement, it is averred that the Court of Appeals held to the contrary when it remanded the case for reference as above stated.

Cross-defendant Patrick filed his answer to that cross-bill in which in substance it was denied that Skinner had paid him a greater sum than he was entitled to, and it is further averred that the bookkeeper, Mr. Hessey, was employed by Skinner to keep the books and records of the company and that Skinner furnished him with all the information with regard thereto and, therefore, the said Patrick, not knowing the facts, could only deny said allegations and demand strict proof thereof.

Following the filing of the above cross-bill on July 12, 1954, the original complainant Patrick, on August 31, 1954, filed by permission of the Court an amended and supplemental bill. In same Patrick avers that despite the fact that the relationship of joint adventure has been decreed as having existed between them, the said Skinner still refuses to produce any of the records called for by prayer No. 5 of his original bill; that Skinner is practicing a gross fraud upon the Court in maintaining himself to have been a man of means on the date of the commencement of the alleged partnership, whereas in fact he was possessed of little means and could not possibly have commenced the operation of the partnership by the purchase of the Miller tract for which in fact Patrick paid [688]*688over $10,000; that Skinner has nsed the profits of the joint adventure for his own individual benefit in the purchase of other timber, etc., carrying on clandestinely without the knowledge of complainant these several ventures for his individual benefit, whereas, under the original agreement between the two of them Skinner agreed to devote his entire time, efforts and attention to carrying on the joint business, of which Skinner would be in full charge of all operations from the standing timber in the woods to and through the manufacturing and marketing of the products thereof; that while in breach of the agreement between them which required him to devote his full time to the joint adventure, the said Skinner has intermingled his so-called personal affairs with the joint ■affairs to the extent that he alone knows the true condition thereof and that he has failed to give the said bookkeeper all the information in regard to same; it'is further averred that it was agreed that the funds of the joint adventure would be deposited in the individual name of Skinner and that all such funds constitute a trust fund and complainant is entitled to trace same into whatever form of property they have been converted.

The foregoing acts complainant charges were not known to him at the initial hearing of this cause, that ■they constitute both actual and constructive fraud, and it is sought to set aside the decree of the Court of Appeals with reference to the limited accounting by reason of such fraud.

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Bluebook (online)
288 S.W.2d 726, 199 Tenn. 683, 3 McCanless 683, 1956 Tenn. LEXIS 369, Counsel Stack Legal Research, https://law.counselstack.com/opinion/patrick-v-skinner-tenn-1956.