Schlesinger v. Kennerly

41 S.W.2d 1002, 1931 Tex. App. LEXIS 1403
Court of Appeals of Texas·Decided July 3, 1931·No. No. 2098.·Published

Opinion

WALKER, J.

This is an appeal by writ of error, but the parties will Be referred to as appellants and appellees. The appeal was taken to the Galveston Court of Civil Appeals, but transferred by the Supreme Court to the docket of this court. Appellee Pies B. Kennerly instituted this suit on- March 5, 1928, against H. B. Schlesinger, J. H. Rafferty, E, J. Jarrard, J. R. Plumb, and the partnership of Jarrard & Plumb, and many other defendants, on the theory that the defendants were partners doing business under the partnership name of University Ice Cream Company, and that he was employed by the partnership as general manager. His suit was for unpaid salary in the'sum of $1,198.66, for money advanced by him to the partnership $814.62, and for judgment that the partnership b.e adjudged primarily liable and he secondarily liable upon a certain note for $1,000 executed by him for the partnership, and a bank overdraft of $21.-99 made by him in managing the business of the partnership, the note and the overdraft being fully described in the petition, and further for title and possession of a certain dwelling house built by him upon the property *1003 ■of the alleged partnership. Aiter appellee filed his suit, Marine Bank & Trust Company instituted a suit upon the $1,000 note and overdraft, against University Ice Cream Company, as a corporation, and appellee Pies B. Kennerly. On the 16th day of November, 1928, these suits were consolidated. After-wards Fidelity & Deposit Company of Maryland was made a party to the suit on allegations that it owned the note. By proper pleas filed by appellants, all allegations of the plaintiffs’ pleadings were put in issue. Upon trial to a jury a peremptory instruction was given in favor of all the defendants except Schlesinger, Rafferty, Jarrard, and Plumb, and no complaint is before us against that instruction. As to the four defendants named, the jury found that they were partners, doing business under the firm name of University lee Cream Company, and that one D. VV. (Denton) Cooley had general authority to act for the partnership in handling and managing its business. It was further found that Cooley, within the scope of his authority, employed appellee as manager of University Ice Cream Company at a salary of $200 per month, and that this contract was directly authorized by appellants Schlesinger and Rafferty; that the partnership was due ap-pellee $1,183.50 on his salary account; that Cooley, within the scope of his authority, received for the partnership, from appellee Pies B. Kennerly, and receipted therefor, the sum of $700, and that this act was directly authorized by appellants Schlesinger and Rafferty; that no part of the $700 was repaid to appel-lee Kennerly. It was further found that ap-pellee Kennerly advanced to the partnership' the sum of $114.62, no part of which was repaid to him. The $700 was paid by Kennerly to Cooley, as agent for the partnership, as earnest money on a proposed sale of the property and business of University Ice Cream Company to appellee Kennerly. The jury found that this sale was not consummated. On the pleadings and evidence judgment was entered in favor of appellee Kennerly against all parties adversely interested for the title and possession of the house sued for, with the right to remove it from the premises of University Ice Cream Company, except as against the administrator of the estate of Cooley, Cooley being sued as one of the defendants, but having died after the institution of the suit, an administration having been sued out upon his estate. Judgment was also entered in favor of appellee Kennerly against University Ice Cream Company and appellants Schlesinger, Rafferty, Jarrard, and Plumb jointly and severally, for all the relief given him by the jury’s verdict, and that the $1,000 note was a primary obligation of the partnership, for which appellee Kennerly was secondarily liable, and that the overdraft was the obligation of the partnership, for which appellee Kennerly was in no way liable. Judgment was also entered in favor of Fidelity & Deposit Company of Maryland against the University Ice Cream Company and Schlesinger, Rafferty, Jarrard, and Plumb, for the amount of its claim against them. Interest on all recoveries was adjudged to run from the 21st day of February, 1930. Appellants are Schlesinger, Rafferty, Jarrard, and Plumb, and appellees are Pies B. Kennerly and Fidelity & Deposit Company of Maryland.

Appellants’ first proposition is that the petition of appellee Pies B. Kennerly does not allege that they were partners. This proposition is overruled. Appellee Kennerly alleged that the defendants were resident citizens, or owned property within the corporate limits of the town of West University Place in Harris county; that they decided to change the status of this municipal corporation so that it could levy a greater tax rate and thereby to-st all certain municipal improvements, which would result in greatly enhancing the value of the property of the defendants within the corporate limits of the town; that to accomplish this purpose it was necessary to have a manufacturing plant established within the corporate limits of the town; for the purpose of organizing and operating the manufacturing plant the several defendahts made independent contributions to the joint fund, which was: delivered to one D. W. Cooley, who took the fund and bought certain property within the corporate limits of the town, taking the title in his name as trustee; that upon this property was erected the plant of the University lee Cream Company, in which the necessary machinery was installed, and further, to quote from appellees’ summary of -the petition:

“It is alleged that prior to November 1, 1926, the town of West University *Place in Harris County, Texas, had the legal status of an incorporated town or village which had not accepted the provisions of Title 28 of the Revised Civil Statutes of Texas, 1925; that it contained less than 600 inhabitants; that it had no manufacturing establishment within its corporate limits; and that therefore it could not legally adopt the provisions of Title 28 and become vested thereby with all the rights, powers and immunities conferred by such law.
“Reference to the statute (Articles 961, et seq.) will disclose that this change of status could only have been accomplished by a town of at least 600 inhabitants, or by a town of whatever population containing one or moré manufacturing establishments within its corporate limits.
“The town of West University Place having less than 600 inhabitants and no manufacturing establishment, it is alleged that these defendants provided the missing requisite by erecting and operating the ice cream *1004 factory In question within the corporate lim-. its of the town.
“It is alleged that the town thereby,became legally qualified to adopt, and on November 1, 1926, did adopt, the provisions of said Title 28, the Ordinance of adoption and acceptance containing, among others, a finding that the town of West University Place had theretofore been regularly incorporated as a town or village, etc., and further:
“ ‘And it further appearing affirmatively that there is located within the corporate limits of such corporation a manufacturing establishment, to-wit, an ice cream factory, and that therefore said corporation is entitled to adopt and accept the provisions of Title 28, Revised Civil Statutes of 1925, relating to Cities and Towns.

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Schlesinger v. Kennerly, 41 S.W.2d 1002, 1931 Tex. App. LEXIS 1403 (Tex. Ct. App. 1931).

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