Reiter v. Morton

96 Pa. 229, 1880 Pa. LEXIS 401
CourtSupreme Court of Pennsylvania
DecidedNovember 22, 1880
StatusPublished
Cited by2 cases

This text of 96 Pa. 229 (Reiter v. Morton) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reiter v. Morton, 96 Pa. 229, 1880 Pa. LEXIS 401 (Pa. 1880).

Opinion

Mr. Justice Green

delivered the opinion of the court, November 22d 1880.

We are of opinion that several of the assignments of error are sustained, and upon them this case must be reversed. The action was covenant brought by one of two partners upon articles of partnership to recover damages for the wrongful dissolution of the partnership by the defendant. The plea was covenants performed absque hoe. In answer to the defendant’s fourth point the court charged the jury that it was not necessary, in the first instance, for the plaintiff to prove performance of all the covenants on his part to be performed; and that it was not necessary that the plaintiff should have satisfied the jury that the defendant, without cause, failed to perform his covenants. On the contrary, the court charged that it was necessary for the defendant to prove that, without cause on his part, the plaintiff neglected to keep his covenants. In other words, although the very cause of action was not the mere dissolution, but the wrongful dissolution of the partnership by the defendant, the plaintiff was not required to prove it, but the burden was on the defendant to prove a rightful dissolu[240]*240tion. In this we think there was error. If a partner dissolves the contract for good cause he has a lawful right to do so. The technical breach is no breach at all. To show a breach which entitles the plaintiff to recover he must show a wrongful breach. It is absolutely necessary to allege a wrongful breach in his narr., and that was done in this case, not only in the narr., but also in the affidavit of claim. Being necessary to aver it, it was also necessary to prove it, unless the defendant by his plea admitted the cause of action. But he did not do this. Ilis plea directly put in issue the plaintiff’s performance. It is a very familiar rule, often held by this court, that the plea of covenants performed absque hoe puts the plaintiff to proof of performance: Martin v. Hammon, 8 Barr 270; Wilkinson v. Turnpike Co., 6 Id. 398; Turnpike Co. v. McCullough, 1 Casey 303; Zents v. Legnard, 20 P. F. Smith 192. The court having held that the burden was on the defendant, and not on the plaintiff' in the first instance, in their answers to the defendant’s fourth point and the plaintiff’s fourth point, were in error as complained of in the first and second assignments of error, and these assignments are therefore sustained. Third error. We think the dedefendant was entitled to an unqualified answer in the affirmative to his second point, though perhaps we would not reverse for that reason alone. Fourth error. The plaintiff offered and was permitted to read in evidence detached portions of an entire sentence contained in his own affidavit of claim, thus: '“That said firm engaged in the business from said date last mentioned and continued in business as a firm until the 14th day of October 1878, when said defendant * * * dissolved said partnership.” In point of fact there is no such sentence in the affidavit of claim, nevertheless the court permitted it to be read just as if it were-there and in that exact form. In reality, in the blank indicated by the stars above, the following words occur in the affidavit of claim, “ without any just cause or reason, and without any breach of duty on part of plaintiff to justify the same, wrongfully.” Now the affidavit of defence contains no single and independent admission that the firm was dissolved by the defendant’s act on October 14th 1878. The affidavit of defence vehemently denies that there was any wrongful or causeless dissolution of' the firm, but on the contrary asserts that the plaintiff violated his covenants in particulars which are specified, and thus compelled a dissolution. Now the plaintiff, by getting in evidence what purported to be a bare admission of dissolution by the act of the defendant, was enabled to make out a technical breach of the articles of partnership without giving the affidavit of defence or any part of it in evidence, withr out calling the defendant to prove it, and without putting himself on the stand as a witness to prove it. Of course if there had been a distinct and independent assertion of dissolution by the act of the [241]*241defendant in the affidavit of claim, and a corresponding distinct and independent admission of such dissolution in the affidavit of defence, the defendant would have been obliged to submit to these consequences. But as we have already shown there was no such assertion on the one hand nor admission on the other. To pick out words from different portions of the affidavit of claim and put them together, so as-to make a sentence and then offer them as a whole, is certainly not warranted by any precedent or any principle, and we cannot sanction it. The fourth assignment of error is therefore sustained. Fifth, sixth and seventh errors. The sixth article of the partnership agreement provided that the capital of the firm should be $12,000, to be paid in pro rata, as the need of the business should require. Of .this sum Reiter was to furnish $8000 and Morton $4000. According to this, whenever payments of capital were required to be paid in, each partner was to contribute his proportionate share of the whole amount. Such was the written agreement arrived at after much preliminary discussion. On the .trial the plaintiff offered and was permitted, under objection and exception, to prove a parol agreement made several days before the -written agreement was executed, to the effect that if he (Morton) would consent to make the capital stock $12,000 instead of $6000, he (Reiter) would first contribute his share of the capital stock to the full amount before calling upon Morton for anything in excess of the $2000 which he agreed to pay in at the commencement. Without doubt this was a material change in the terms of the written agreement. There was no allegation or proof that it was omitted to be inserted in the written agreement by fraud or mistake, and we are clearly of opinion that it was error to admit'the testimony. After it was admitted the court gave it effect in the answers to the first point of the defendant and the second point of the plaintiff, and allowed the jury to find a verdict founded upon their belief in the testimony as to the existence of the parol agreement. Now the defendant alleged as one of the-causes justifying him in dissolving the partnership that, in an emergency when additional capital was required to be paid in, he called upon Morton to pay in his proportion of the additional sum required, but that Morton refused to do it, and in consequence of that, certain maturing paper of the firm went to protest. If the parol agreement was to control the rights and duties of the partners, Morton was justified in his refusal, and Reiter was denied the benefit of that refusal as a justifying cause of his act of dissolution. This subject-matter therefore became material to the determination of the issue on trial, and it was allowed by the court to have that effect. In this also there was error. The written agreement was the law of the parties, and could not.be altered, changed or modified in this way. The case is so clear a violation [242]*242of the rule against permitting evidence of a previous parol agreement to change the terms of a subsequent written agreement between the parties, that it is unnecessary to cite authorities or engage in any extended reasoning upon the subject. The defendant’s first point should have been affirmed without qualification, and the plaintiff’s second point should have been refused. The fifth, sixth and seventh assignments of error are sustained. Eighth error.

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Bluebook (online)
96 Pa. 229, 1880 Pa. LEXIS 401, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reiter-v-morton-pa-1880.