Rogers v. Carmichael

192 S.E. 39, 184 Ga. 496, 1937 Ga. LEXIS 580
CourtSupreme Court of Georgia
DecidedJune 17, 1937
DocketNo. 11755
StatusPublished
Cited by33 cases

This text of 192 S.E. 39 (Rogers v. Carmichael) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rogers v. Carmichael, 192 S.E. 39, 184 Ga. 496, 1937 Ga. LEXIS 580 (Ga. 1937).

Opinion

Bell, Justice.

Certiorari was granted because there appears to be some confusion in the decisions regarding the liability of a partnership in such cases, and because of the public interest in having the law clarified. While several decisions by this court contain language which if followed literally would amply sustain the judgment of the trial court and the decision of the Court of Appeals, we are of the opinion that there is no authoritative ruling by this court which should bar a recovery in a case like the present. Other decisions to the same effect as the one now under review have been rendered by the Court of Appeals; but they too were induced by statements contained in decisions by this court which, though tending to support the conclusions reached, were made in cases materially different from the instant case, or which for other reasons to be pointed out are not controlling as authority. See Corbett v. Connor, supra; Battle v. Pennington, 14 Ga. App. 56 (80 S. E. 297). In the circumstances, it is not surprising that both the 'Court of Appeals and the trial courts may have been led astray in cases of this character. The following are pertinent Code provisions: “As among partners, the extent of the partnership shall be determined by the contract and their several interests in the partnership property. As to third persons, all shall be liable, not only to the extent of their interests in the partnership property, but also to the whole extent of their separate properties.” § 75-103. “Each partner may examine into the affairs of the firm, and, unless otherwise agreed, have joint possession of its effects, collect and apply its assets, contract or otherwise bind the firm in matters connected with its business, and execute any writing or bond in the course of the business; at no time transgressing the rights of other partners or seeking in bad faith to evade or violate their wishes.” § 75-202. , “All the partners shall be bound by the acts of any one, within the legitimate scope of the business of the partnership, until dissolution or the commencement of legal proceedings for that purpose, or express notice of [501]*501dissent to the person about to be contracted with.” Codfe, § 75-302. “An agent of the partnership is generally bound to obey each partner. If contradictory instructions shall be given by different partners, he shall not be bound to obey either, but shall act for the best interest of the partnership.” § 75-309. “Third persons acting with a partner in a matter not legitimately connected with the partnership shall have no right against the firm or any other member.” § 75-303. “All the partners shall be responsible to innocent third persons for damages arising from the fraud of one partner in matters relating to the partnership.” § 75-307. “Partners shall not be responsible for torts committed by a copartner. For the negligence or torts of their agents or servants they are responsible under the same rules which apply to individuals.” § 75-308. “The surviving partner, in case of death, may control the assets of the firm to the exclusion of the legal representatives of a deceased partner, and he shall be primarily liable to the creditors of the firm for their debts.” § 75-208. “ Title to personal property shall vest in the surviving partners, who have the right to dispose thereof for paying the debts and making distribution.” § 75-209..

The difficulty in the present case relates to the construction of the first sentence in section 75-308, that “Partners shall not be responsible for torts committed by a copartner.” This statement appears to have been placed in the Code of 1863 by the codifiers, and has been carried in the same language in all the subsequent Codes. That Code having been adopted by the General Assembly, the provision should be treated as a legislative declaration, having the force of statute (Central of Georgia Railway Co. v. State, 104 Ga. 831 (5) (31 S. E. 531, 42 L. R. A. 518); but this does not necessarily mean that a partnership is not liable for the torts of one of the partners committed within the scope of the partnership business. The statement must be given a reasonable construction; and in arriving at its meaning several considerations must be observed, including a study of cognate sections and common-law principles. In an editorial note in Michie’s Code (1926), it is stated that this section is a marked departure from the rule in most jurisdictions, and does not seem to be founded on sound principle, in that it disregards entirely the well settled rule that a partner is an agent of the partnership. This, however, was to [502]*502construe the séction as implying that the partnership is not responsible for torts committed by a partner in pursuance of the partnership business. The editor proceeds to illustrate the unsoundness of such a construction by stating: “And yet, if the tort is committed by an agent instead of a partner, the partnership is liable. For instance, if partners engaged in a small grocery business, should hire a driver of their delivery-wagon, the partnership would be liable to a person injured by his negligent driving. But apparently it would not be liable if a partner were driving.” Section 75-309 of thé Code, supra, provides that “an agent of the partnership is generally bound to obey each partner.” It would be wholly illogical to say that a partnership is liable for a tort committed by an employed servant or agent in obeying instructions. from a partner, and then to deny liability if the partner himself had done the very thing which he instructed the agent or servant to do. And what reason is there for saying that the partnership is liable for the fraud of one of the partners in matters relating to the partnership, and not liable for other torts arising in like manner? Again, there would seem to be even stronger reason for holding the partnership liable for a tort committed by a partner in pursuance of the partnership business than for sustaining such liability for the tort of an agent or servant, since a partner is an alter ego of the firm, usually having larger powers than a mere servant or agent. While there is no previous decision so stating in express terms, we lay it down as a truism, that, under the English common law, a partnership and each member thereof was liable for a tort committed by a copartner acting within the scope of the firm business, and that such liability was not dependent upon the personal wrong of the other members of the partnership.

The rule as thus expressed has been stated in many decisions and texts as a matter of principle; and the statements being so made regardless of statute must have been based on the common law. In Stockwell v. United States, 80 U. S. 531 (20 L. ed. 491), the United States Supreme Court referred to the rule as “familiar doctrine.” That the common law was the basis of this statement will scarcely admit of doubt. Gershon v. Mendel, 37 Ga. App. 650, 652 (141 S. E. 328). We have searched among the old English cases, and find what we conceive to be conclusive [503]*503evidence that such was the rule in England on and before May 14, 1776, so as to have become the law of Georgia by the adopting statute of February 25, 1784. Harris v. Powers, 129 Ga. 74 (58 S. E. 1038, 12 Ann. Cas. 475). The following is a report of the decision in Attorney-General v. Burges and others, Bunb. 223, 145 Eng. Rep. 654, decided on November 29, 1726: “Upon an information by way of devenerunt for the treble value on the stat.

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Bluebook (online)
192 S.E. 39, 184 Ga. 496, 1937 Ga. LEXIS 580, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rogers-v-carmichael-ga-1937.