Reeves v. Jordan

72 So. 322, 197 Ala. 64, 1916 Ala. LEXIS 10
CourtSupreme Court of Alabama
DecidedApril 13, 1916
StatusPublished
Cited by1 cases

This text of 72 So. 322 (Reeves v. Jordan) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reeves v. Jordan, 72 So. 322, 197 Ala. 64, 1916 Ala. LEXIS 10 (Ala. 1916).

Opinion

GARDNER, J.

Appellee files this bill against appellants, seeking a partnership settlement and accounting. In the answer it was denied that the complainant had any interest in the partnership. The issue was determined by the court below in favor of the complainant; hence this appeal.

The following facts we consider as well established by the record, some of which are without dispute: Appellants, L. Reeves and R. L. Scott, were engaged, prior to August 1, 1913, in conducting a nursery business under the name of the “Citronelle Nursery & Orchard Company.” The parties designated in the record as the Draimes brothers held a one-third interest in the business, and Reeves and Scott are shown to have been anxious to have them eliminated. The business was very unsatisfactory, and these parties were objectionable to Reeves and Scott. Reeves testified that he had intended placing the matter in the chancery court when they conceived the idea of buying out the interest of the Draimes. They thought it necessary to keep the Draimes brothers in ignorance of this purpose, so they procured one Cowan to act as the ostensible purchaser, and they requested appellee, G. T. Jordan, to act as agent of Cowan in putting through the sale and in negotiating with the Draimes brothers. Inventory of stock was taken by Jordan, and a valuation of $6,000 was agreed on with the Draimes brothers, and they conveyed their interest to Cowan for $2,000. Cowan immediately transferred the interest thus acquired to Reeves. In negotiating with Jordan in regard to this particular service nothing was agreed as to his compensation, but he was offered a one-third interest in the business, and was, in fact, invited to become a partner with Reeves and Scott. Jordan at first declined, stating that he did not have the money on hand at the time. Reeves testified that he told Jordan he would not hurry him, and Jordan finally agreed to come into the partnership and drew up the agreement, which is made Exhibit A to the bill, and which will be embodied in the report of the case. Jordan was given the management of the business, and conducted it successfully from that day, August 1, 1913, till he was ousted from the affairs of the concern on or about April 1, 1914. It is insisted by Jordan that it was agreed among them that for a while his interest [67]*67should not be made public, because of the ostensible purchase by Cowan. Jordan was to draw a salary as manager, but agreed to draw no money before January 1st, after which date each of them was to draw a salary of $50 a month. Previous to this time Scott had been paid for his services, but' at no fixed salary. Jordan had tendered no note to Reeves until after Reeves had terminated his (Jordan’s) connection with the company; nor had Jordan paid any part of .the $2,000 for the one-third interest he was to secure from Reeves. It is quite apparent that Scott is interested only incidentally in the result of the suit, and that he is merely looking after his own interests.

Reeves insists that the execution of the note by Jordan was a condition precedent to the latter’s admission to the partnership, and that, not having tendered same before his connection with the company was severed, he therefore had acquired no interest. The agreement does' not specify any particular time in which the note was to be executed, nor as to its date of payment. It does stipulate that “Reeves agrees to sell a one-third interest and that Jordan agrees to buy said interest” in the company for a consideration of $2,000. The failure to tender the note for this sum within a reasonable time seems to be the fact upon which appellant Reeves and his counsel lay great stress. Testifying in regard to a conversation Jordan had with him after receiving his letter of dismissal, Reeves said: “And he said, ‘Do you mean to ignore my interest?’ I said, ‘You never acquired any interest.’ He said, ‘How about my contract ?’ I said he was to deliver the note. He said he considered his contract binding. I said I did not; that that was where we differed.”

Other evidence in the case, indeed that of Reeves himself, convinces us that the question, when the money should be paid was treated as a matter not of vital importance by Reeves; and the above-quoted testimony, as well as this entire record, leads to the conclusion that the failure to tender the note is, after all, the gist of the controversy and the essence of Reeves’ defense in this case.

(1) It may be conceded, for the purpose of this case, that the wording of the agreement, standing alone, might be construed as providing that tender of the note and payment thereof should be conditions precedent to the acquiring of an interest by Jordan. However, the general rule seems to be that such terms will not be treated as conditions precedent unless it is so expressly stated, or [68]*68unless they are of a nature to raise the presumption that they are such. — Bates on Partnership, vol. 1, § 84; Saunders v. McDonough, 191 Ala. 119, 67 South. 591. In this case the complainant insists that the execution of the note was waived by the parties, and that it was mutually agreed that the mater drift along until the end of the season, when, possibly, profits realized from the business might practically liquidate the indebtedness.

(2) We think the record shows that appellant Reeves did not consider the execution of the note a matter of any material moment. It appears, and we think it well established by the evidence, that the complainant was all along treated by the appellants as a partner having an equal interest in the business. He was consulted about all matters pertaining to the business or concerning its advancement, and he seems to have had control, to a large extent, of the business of the company. Appellants insists, however, that all of this was consistent with his duties as manager. Indeed, but for this, the question would be one of easy solution. We think, however, that the evidence in the record sufficiently corroborates the theory of the complainant that he was in fact treated and considered as an active partner in the business. That he was so recognized by Scott is quite clear, as he admits in his testimony that he introduced the complainant as a “partner in the business.” Appellant Reeves denied that he ever introduced Jordan as such, but admits that he may have “told one or two that he had a chance to get an interest in the business.” The witness Hand testifies that: “Scott, Jordan, and Reeves, each and every one, gave me to understand that they were equally interested in the business.”

The witness Cotting states that either Jordan or Reeves — he could not recall which, but that both were together at the time— informed him that complainant had been taken into the partnership. The witness said: “The substance of it was that now that the Draimes’ interest had been acquired, Mr. Jordan had come into the business as an equal partner with Reeves and Scott.”

The witness Pick testified that Reeves told him that “Jordan was now connected with them in the nursery business.” Witness Davis and Caver both said that in the presence of Scott, Reeves, and Jordan, the latter was introduced to them as “our partner.” Witness Lynch testified that in the early part of 1914 Reeves said that he “was satisfied that in less than five years, [69]*69with the interest Jordan had in the business, he could make more money in it than at anything else he could do.”

But we need not follow the evidence by further detail.

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Bluebook (online)
72 So. 322, 197 Ala. 64, 1916 Ala. LEXIS 10, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reeves-v-jordan-ala-1916.