People v. Wiman

32 N.Y.S. 1037, 9 N.Y. Crim. 490, 66 St. Rep. 442, 92 N.Y. Sup. Ct. 320, 66 N.Y. St. Rep. 442, 85 Hun 320
CourtNew York Supreme Court
DecidedMarch 15, 1895
StatusPublished
Cited by3 cases

This text of 32 N.Y.S. 1037 (People v. Wiman) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People v. Wiman, 32 N.Y.S. 1037, 9 N.Y. Crim. 490, 66 St. Rep. 442, 92 N.Y. Sup. Ct. 320, 66 N.Y. St. Rep. 442, 85 Hun 320 (N.Y. Super. Ct. 1895).

Opinions

VAN BRUNT, P. J.

In the disposition of this appeal it does not seem necessary to discuss all the interesting questions which have been presented by the counsel in their arguments. There is substantially no conflict of evidence; and the questions which arise thereon relate to the inferences which necessarily must be or which may be drawn therefrom. It appears that for some time prior to the 1st of January, 1889, one Robert G-. Dun, the defendant, and others had been engaged in the business of carrying on a mercantile agency, the principal place of business being the city of New York. On said last-mentioned day the said Dun, the defendant, and one Arthur J. King and Robert D. Douglass entered into an agreement whereby they agreed to associate themselves in the business of carrying on a mercantile agency for the period of five years then next ensuing. Such agreement recited that the said Dun was the proprietor and sole owner of the business known as the “Mercantile Agency,” which had been for many years and still was conducted under the name of R. G-. Dun Sc Co. and Dun, Wiman Sc Co. in various cities in the United States and elsewhere, and of all the chattels, plant, fixtures, records, and other property used in said business, as well as the good will thereof, and of said firm names. This agreement provided; That Dun should contribute to the business the property above mentioned and described, but that said property should remain his sole and undivided property, and neither the association nor any other member of it had, nor by said agreement should acquire, any right, title, or interest therein. That Wiman, King, and Douglass should devote their whole time and attention and labor to the work of promoting, enlarging, carrying ón, and making profitable the said business. That for their services Dun should pay to them and to [1039]*1039each of them as follows: To Wiman, a sum equal to 17 per cent, of the net profits of the business; to King, a sum equal to 6 per cent, of said net profits; and to Douglass, a sum equal to 5 per cent, of the net profits,—Dun agreeing that the sums to be paid for such services in any one year should not be less than $10,000 to Wiman, $5,000 to King, and $5,000 to Douglass. Thé agreement further recited that the association was formed for the purpose of encouraging and stimulating in the said Wiman, King, and Douglass a jealous pride and ambition in the character and repute of the said business, as well as to induce their extraordinary exertions in building up and extending the business and increasing its profits; and that to that end the articles provided that their compensation should be to some extent contingent upon the profits of the business, but that as to them the amount of the profits only afforded the basis of determining the amount of their salaries, and that neither of them had 'any right, title, or interest in or to the said profits, as such. Then followed provisions as to how the term “net profits” should be construed, and how they were to be ascertained; also, a provision for the termination of the association at the will of any party thereto by his giving oral or written notice to any other party thereto of his election to terminate; and that the association should be terminated by the death of Wiman, King, or Douglass. The agreement further provided that upon the termination of the association Dun should have the sole and exclusive right to the possession and control of all the property of said agency, and of the records and books of account thereof, and to the liquidation, adjustment, and settlement of the affairs thereof. Then followed provisions relating to the event of the death of Dun pending the term of the association, and that the business during the term of the association should be carried on under the name or style of B. G-. Dun & Co.

By the seventeenth article of said agreement it was further provided:

“That no party to this agreement shall at any time use or employ the said name of R. G. Dun & Co., or any name under which said business shall be carried on, for any purpose except the regular and proper business of the said Mercantile Agency, and that neither the said Wiman, King, nor Douglass shall use the said name in making, signing, drawing, or indorsing any note, bill of exchange, draft, or other obligation or evidence of debt, excepting only indorsements of such papers for the pup>ose of depositing the same to the credit of the said association or of collecting the same for the account of ■the association.

By the eighteenth clause it was provided:

“That neither the said Wiman, King, nor Douglass shall in his own name sign or indorse any note, negotiable instrument, obligation, undertaking, or evidence of debt, as security, either in form or in fact, without the written consent of said Robert G. Dun.”

By the twenty-second article of the agreement, Wiman was permitted to draw each month $3,000, King $1,000, and Douglass $1,000, from the cashier of the agency.

From the time of the entering into this agreement, in January, .1889, as had been done for many years previous, business as a com[1040]*1040mercial agency, in the name of R GL Dun & Co. in the United States, and Dun, Wiman & Co. in Canada, was carried on. The general affairs and business of the concern were under the defendant’s charge and control, subject to Dun’s directions, except the department relating to New York City, which was in charge of King, and the other agencies in this state, which were in charge of Douglass. In the conduct of the financial affairs of the association more than three-quarters of all the checks issued by the concern in the course of its business were signed by the defendant in the firm name of R G-. Dun & Co., the others being signed principally by Douglass, one of the other members of the association; Dun taking but little apparent interest in the business, and being absent more than half of the time. It seems to be admitted by the learned counsel for the defendant that under the prohibition contained in the seventeenth article of the agreement neither of the associates other than Dun would have had the right to sign any checks. But an examination of this clause seems to us to lead to a different conclusion, and that it was never intended to deprive the members of the association of the right to sign the checks of the concern; and that, when bills of exchange, drafts, or other obligations or evidences of debt were referred to, it was not thereby intended to include the checks which were necessary to be signed and issued in the ordinary transaction of the business, but had reference to the other classes of mercantile paper which would come under the definition of “bills of exchange, drafts, or other obligations or evidences of debt.” In fact, the practice under the agreement showed that it was not so construed by any of the parties thereto, inasmuch as checks were uniformly and almost exclusively signed by others than Dun. Therefore, in the consideration of the relation of these parties to each other, we must assume that there was no intention to restrict the rights of those associates in respect to the drawing of checks in the ordinary course of the business of the agency. It seems to have been assumed that, by reason of the association of these parties together, they would have the right to use the firm name in respect to the business of the association generally; and, in order to restrict this right, it was considered necessary to insert the prohibition contained in the articles of the association.

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57 Misc. 295 (New York Supreme Court, 1907)
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Cite This Page — Counsel Stack

Bluebook (online)
32 N.Y.S. 1037, 9 N.Y. Crim. 490, 66 St. Rep. 442, 92 N.Y. Sup. Ct. 320, 66 N.Y. St. Rep. 442, 85 Hun 320, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-v-wiman-nysupct-1895.