Pfirmann v. Henkel

1 Ill. App. 145
CourtAppellate Court of Illinois
DecidedApril 15, 1878
StatusPublished
Cited by5 cases

This text of 1 Ill. App. 145 (Pfirmann v. Henkel) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pfirmann v. Henkel, 1 Ill. App. 145 (Ill. Ct. App. 1878).

Opinion

Bailey, J.

This suit was brought by appellants against Emanuel Hartman, Simon Hartman and Frederick Henkel, as co-partners, doing business under the name and style of Hartman Brothers, as acceptors, in their firm name, of a bill of exchange for $390.55, drawn upon them by appellants, dated August 23d, 1877, and payable four months after date. The two Hartmans having before the commencement of the suit been adjudicated bankrupts, no service of process was had on them. Henkel alone appeared and plead non assumpsit, and also a plea verified by his affidavit, averring that at the time of the acceptance of said bill of exchange, he was only a special partner in said firm.

Upon a trial by a jury the issues were found for the defendant, and the court below after overruling a motion by appellants for a new trial, rendered judgment against them on the verdict for costs.

The main question presented here is, whether the evidence in the record sustains the defense set up in appellee’s second plea.

It appears from the evidence that on the first day of March, 1877, the members of said firm made, signed and acknowledged an instrument in writing, whereby they certified that Emanuel Hartman, Simon Hartman and Frederick Henkel, of the city of Chicago, had formed a limited co-partnership for the purpose of carrying on the rectifying and wholesale liquor business in the city of Chicago, under the style and firm of Hartman Brothers; that said Emanuel Hartman and Simon Hartman were the general partners, and the said Frederick Henkel the special partner; that said special partner had contributed $15,000 in cash toward the capital of said co-partnership, and that said co-partnership was to commence March 1st, 1877, and continue until January 1st, 1879. Accompanying said certificate was an affidavit of Emanuel Hartman, one of the general partners, that said special partner had actuaby and in good faith paid in, in cash, the sum of $15,000 toward the capital stock of said co-partnership, as set forth in said certificate.

It was admitted by appellants that all the steps necessary to the formation of a limited partnership under the statute were properly taken, except the filing and recording of the foregoing papers.

The testimony as to the filing and recording of these papers is substantially as follows:

On the 3d day of March, 1877, Emanual Hartman handed said papers and one dollar in "money to one Henry Hoyer, who at the time was employed by the firm to drive their team, work in the store, and do errands for them, with instructions to take said papers to the office of the county clerk and have them filed and recorded, and pay the fee for recording. The messenger being unacquainted with the manner of doing business in the county clerk’s office, never having been there before, went to the first “ window ” in the office, and told the person standing there that he wanted the paper recorded, and was told to go to the next “ window.” He went as directed, and handed the papers to the person inside, and told him he wanted them recorded. The deputy clerk to whom the papers were thus delivered happened to be the one having charge of the issuing of marriage licenses and certificates of magistracy, and understanding, as it seems, that a certificate of the official character of the notary before whom the affidavit was taken was desired, made out such certificate, attached it to the affidavit, and handed the papers back to the messenger, who had remained waiting for them, taking twentylfive cents only as fees therefor, and returning the messenger seventy-five cents change. The messenger took the papers back to the store, and handed them, together with said change, to one of the Hartmans, who opened the papers, looked at them, saw the county clerk’s signature, and then put them in his safe, where they remained until the 30th day of October following, when he took them back to the clerk’s office, and had them filed and recorded.

When the papers were in the clerk’s office in March, they were not recorded nor marked filed, but when taken back by Hartman, in October, he prevailed on the clerk to mark them as filed March 3d; but afterwards, on remonstrance of certain parties, the clerk erased that date, and marked them as filed October 30th.

Apart from the provisions of our statute, the rule of law is fundamental, that he who enters into a contract by which he is to contribute capital, and share in the profits of a firm, shall be liable in sólido for its debts. The intent of the statute is to relax this rule only on certain conditions, and within certain fixed and prescribed limitations. If these are not fulfilled or are-disregarded, the statute furnishes no protection or shield against the ordinary common law liabilities of a general partner.

The authorities are uniform, that in order to the formation of a limited or special partnership, the provisions of the statute must be at least substantially complied with : Pars, on Part. 532; Richardson v. Hogg, 38 Penn. St. 153; Andrews v. Schott, 10 Id. 47; Vandike v. Rosskam, 67 Id. 330; Smith v. Argall, 6 Hill, 479; Brown v. Argall, 24 Wend. 496; Pierce v. Bryant, 5 Allen, 91; Haviland v. Chase, 39 Barb. 283; Van Ingen v. Whitman, 62 N. Y. 513.

By section 4 of the statute in relation to limited partnerships, it is provided that persons desirous of forming such partnership shall make and severally sign a certificate, which shall contain the name or firm under which the partnership is to be conducted, the general nature of the business to be transacted, the names of the general and special partners therein, distinguishing which are general and which are special partners, and their respective places of residence; the amount of capital stock which each special partner shall have contributed to the common stock, and the period at which the partnership is to commence, and the period when it will terminate, which certificate must be duly acknowledged by the several persons signing the same.

Section 6 provides that “ the certificate so acknowledged and certified shall be filed in the office of the clerk of the county in which the principal place of business shall be situated, and shall be recorded at large by the clerk in a book to be kept by him; and such book shall be subject at all reasonable hours to the inspection of, all persons who may desire to inspect the same. If the partnership shall have places of business situated in different counties, a transcript of such certificate^ and of the acknowledgment thereof, duly certified by the clerk in whose office it shall have been filed, under his official seal, shall be filed and recorded in like manner in the office of the clerk of every such county,” etc.

Section 7 provides that “ at the time of filing the original certificate, as before directed, an affidavit of one or more of the general partners shall also be filed in the same office, stating that the amoijnt in money or other property, at cash value, specified in the certificate to have been contributed by each of the special partners to the common stock, has been actually and in good faith contributed and applied to the same.”

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Bluebook (online)
1 Ill. App. 145, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pfirmann-v-henkel-illappct-1878.