Setzer v. Beale

19 W. Va. 274, 1882 W. Va. LEXIS 2
CourtWest Virginia Supreme Court
DecidedMarch 11, 1882
StatusPublished
Cited by20 cases

This text of 19 W. Va. 274 (Setzer v. Beale) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Setzer v. Beale, 19 W. Va. 274, 1882 W. Va. LEXIS 2 (W. Va. 1882).

Opinion

GreeN, Judge,

announced the opinion of the Court:

Before considering the main question involved in this cause [285]*285I will notice a preliminary question in reference to the pleadings. The original bill stated, that the plaintiff together with James M. H. Beale, deceased, and said Alexander McCaus-land, deceased, and said Charles T. Beale were partners doing business in the town of Point Pleasant, State of "West Virginia, from the year 1854 to July, 1863, and were actively engaged as such during that time; that the business aforesaid was carried on in the name and style of Setzer, Beale & Co. from 1854 until January, 1861, and from this last date the ffrm was known and styled Beale, Setzer & Co. to July, 1863. Plaintiff alleges, that the said change of the partnership-name did not affect the relative interests of the original partners as to each other or any one else; that the aforesaid original partners were to share in the profits and losses of said concern according to their several and respective interests therein, which interests the plaintiff avers to be as follows: Himself one third, said McCausland one third and said Charles T. Beale representing one third, one moiety of which last interest was owned in fact by said James M. H. Beale, deceased, who, plaintiff alleges, was a silent partner in said firm to the extent of. his said interest. Plaintiff also avers further, that he was not advised of the interest aforesaid being held and owned by said James M. H. Beale, and did not know, that he was the owner thereof, until after the year 1865, but alleges that the said Charles T. Beale was all the time during said partnership so advised and did know of the interest thus held by J. M. H. Beale, and that he, the said Charles T. Beale, kept from the plaintiff the knowledge of such interest of said J. M. H. Beale during the said partnership and until after the year 1865.”

To this bill the defendant Charles T. Beale filed an answer, in which he took the position, that “a partnership was a matter ofcontract. It can only be formed and exist by the express mutual and concurrent understanding, arrangement and agreement of all the parties thereto; and one person can no more be a partner in a firm without the knowledge and assent of all his co-partners, than he could sell his home and execute a deed thereof without knowing it;” and therefore insists, that the bill should be dismissed as fatally defective on its face. The plaintiff then moved the court to grant him leave to amend by striking out those portions of the bill and by [286]*286intei’lining it and making other and different allegations. The court refused to permit him to amend in this manner but granted him leave to file an ameneded bill; and the plaintiff excepted to the action of the court, but did file an amended bill as allowed by the court, in which speaking of the portion of the original bill above quoted he says : “your orator would now explicitly state and without mental reservation or qualification, charge that so much of his said original bill as is here-inbefore quoted and repeated, except so far as the same is corrected by this amended bill, is untrue and was written and prepared by his counsel, when your orator was not present, under a misapprehension of the facts, that he desired to have set forth in his said original bill, a misapprehension super-induced, you orator has no doubt, by his confused statement to him of his cased’

The amended bill then proceeds to state the plaintiff’s case substantially, as it has been set out in the statement of the case preceding this opinion, not however going into any details, as to how J. M. H. Beále became a member of the firm of Foley, Setzer & Beale, but simply alleging, that he was a partner in this firm and had put $750.00 of merchandise in it as stock, and stating positively, that he was a member of the subsequent firms of Setzer, Beal & Co. and Beale, Setzer & Co., owning one sixth interest in them as a partner. This amended bill was replied to, the answer setting out the defendant’s case substantially as hereinbefore stated, but not in detail. The answer was replied to generally and depositions on both sides taken. It is obvious, that the court did not err in refusing to permit the plaintiff to amend his bill by obliterating a portion of it; but upon the allegation, that the counsel had erred in drawing the bill from a misapprehension of the facts stated by the plaintiff to him, it was proper for the court to permit the plaintiff to amend by filing formally an amended bill, as was done.

The principal question in this case is : Was James M. H. Beale as between the parties a partner in the firms of Setzer, Beale & Co. and Beale, Setzer & Co. ? This question must be answered by determining, whether he was a partner in the firm of Foley, Setzer & Beale. If he was, then he was also a partner in these subsequent [287]*287firms, which were formed by the admission into the firm of MeCausland in lien of Foley, who had died ; for it is not pretended, that any other change of partners in the firm was ever made, the evidence proving, that none of the original partners in the firm ever withdrew from it; and if Col. J. M. H. Beale was a member of the firm of Foley, Setzer & Beale, he must-have continued a member in the subsequent firms, as it is not pretended, that he was subsequently excluded as a partner in the subsequent firms; and of course he would have remained a partner in the subsequent firms, just as Setzer and Charles T. Beale remained partners. The only change made was by admitting a new partner; and no change was made by excluding any old partner.

A partnership between the parties is a voluntary contract between two or more persons for joining together their moneys, goods, labor and skill or any or all of them with an understanding, that there shall be a communion of profits between them and for the carrying on of a legal business. By a communion of profits I mean a joint and mutual interest in the profits, not simply a joint interest in the property ; for persons may be jointly concerned in a purchase of goods, yet if they are not jointly concerned in the profits arising from the goods after their purchase, they are not partners as between themselves. The authorities fully sustain this definition of a partnership inter se given by Colyer. See Chace v. Barrett, 4 Paige (N. Y.) 148; Bowman v. Bailey, 10 Vt. 170; Patison v. Blanchard, 1 Selden (5 N. Y.) 186; Robbins v. Laswell, 27 Ill. 365; Philips v. Philips, 49 Ill. 437; Chapline, Lewis & Co. v. Conant & Wheat, 3 W. Va 507. A partnership, so far as third parties, creditors for example, are concerned, may exist without any contract between the parties forming the partnership and contrary to the intention of the parties; but a partnership in fact, that is, a partnership as between the parties results from the intention of the parties to be gathered from their contract, if there be one, or if not, from their relations and dealings with the property of each other. See Salter v. Ham et at., 31 N. Y. 321; Hazard v. Hazard, 1 Story 371.

From these views of what constitutes a partnership as between the parties themselves, it necessarily follows, that if a [288]*288stranger contracts with one of several partners to share in that partner’s profits, such a contract does not render the stranger so contracting a partner in the concern.

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Cite This Page — Counsel Stack

Bluebook (online)
19 W. Va. 274, 1882 W. Va. LEXIS 2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/setzer-v-beale-wva-1882.