Smith v. Burnham

22 F. Cas. 465, 3 Sumn. 435
CourtU.S. Circuit Court for the District of Massachusetts
DecidedOctober 15, 1838
StatusPublished
Cited by36 cases

This text of 22 F. Cas. 465 (Smith v. Burnham) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Burnham, 22 F. Cas. 465, 3 Sumn. 435 (circtdma 1838).

Opinion

STORY, Circuit Justice.

The main questions in the cause are, (1) in the first place, whether there was an agreement of general copartnership; (2) in the next place, whether any such advances or purchases were ever [466]*466made in pursuance thereof, as are charged in the bill; (3) and, in the next place, whether, if there was any such agreement, it not being pretended to be in writing, but merely by parol, it is not utterly void within the statute of frauds. To enable the plaintiff to maintain his suit, it is indispensable that he should make out the affirmative upon each of these points; that there was such a copart-nership; that such advances and purchases were made; and that the agreement is not within the statute of frauds. The answer having positively denied the two former, as matters of fact, and the denials being responsive to the allegations of the bill, it follows, of course, that it is incumbent upon the plaintiff, by competent and satisfactory evidence, to overcome the answer, and falsify its statements by two witnesses, or by one witness and other equivalent proofs, or it must stand for verity. It will not be sufficient, that some of its statements may be brought into doubt. They must all be positively overcome, so far at least as the merits of the controversy are concerned. And, first, as to the existence of the agreement of copartnership. And. here, it is most material to remark. that there is not a single scrap of paper in the cause between the parties, alluding to, or in any manner whatsoever touching, the matter of such copartnership. Although, as the allegations of the bill show, large operations in the purchase and sales of land were contemplated, and large advances might from time to time be required to meet the exigencies of such a business, and entire confidence must have existed between the parties, not a single letter is produced, which alludes to any negotiations or speculations or advances. The absence of all such documents, in a case of this sort, during the whole period of the supposed operations of the partnership, is certainly an awakening circumstance, difficult to account for in a satisfactory manner, if the agreement be real: but of easy and natural explanation, if it be a mere figment, or an unexecuted proposal. In the next place, there is no exact proof of the agreement — its terms, its nature, its extent, its duration, or its objects — from any witness present, when it was formed. All, that we know about it, is derived from after conversations and loose confessions of the defendant, testified to by certain witnesses, which conversations and confessions, if entirely confided in. still leave the nature and terms of the agreement so loose and indefinite, that it is utterly impossible to ascertain its exact and full import in all respects, so as to enable a court of equity to execute it with a confidence that it understood the whole intentions of the parties. For example, in what proportions were the parties to be interested, and to supply funds? To what purchases was the copartnership to extend? To all purchases of land or timber made by either of them respectively, or to those only made on joint account? If the latter, how were the purchases to be ascertained, and, as it were, ear-marked ? What was to be the duration of the partnership ? During pleasure, or life, or for a limited period? All these are questions, which must be-answered with definite exactness and clearness before the court could make a satisfactory decree; and yet, looking to the whole evidence, it is scarcely possible to find sufficient materials for satisfactory answers to them; or, at least, for such answers as a court of equity might rely on with undoubting confidence. And then, again, the whole substance of the case is to be made out, as has been already intimated, by confessions. Now, evidence of this sort, especially where it goes to the whole merits of the case, is certainly open to much objection. It was well remarked, by Sir William Grant, in Lench v. Lench, 10 Ves. 518. where an attempt was made to establish, by parol declarations and confessions of a party, a trust in real estate, that “it is in all cases most unsatisfactory evidence, on account of the facility with which it may be fabricated, and the impossibility of contradicting it. Besides; the slightest mistake or failure of recollection may totally alter the effect of the declaration.” He added, in reference to the case before him, what is equally true in the case before us, that “there are no corroborating circumstances by any writing under his (the party’s) hand. In most of the cases there has been at least something in writing, some account by which it appeared that the fund was laid out. This case has not the circumstance, considered of weight in other cases, the inability of the defendant to make the purchase with other funds.” Indeed, it is scarcely possible to avoid feeling, that this language meets the very difficulties of the present case. Here there is no writing, n<> account, no proof of the funds of the plaintiff being actually laid out in any lands; and no proof of inability of the defendant to make the purchases, which he did make, without the money or credit of the plaintiff to aid him.

I have read over the whole evidence in this case; and although there is much from the confessions of the defendant, which, if it stood alone, might lead one to the conclusion, that there was some sort of partnership, or joint interest, intended by the parties, in certain purchases, made or to be made of lands and lumber in Maine; yet I am not entirely satisfied, that it is so definiteand satisfactory, as to its nature or extent, or the proportions of the parties, as would lead a court of equity to enforce it; for it is a general rule of such courts, not to interfere to direct a specific performance of any agreement, where the terms of the contract are not all definite and full, and its nature and extent are not made out by clear and unambiguous proofs. See 2 Story, Eq. .7ur. §§ 751, 7C4. 7G7, and the cases there cited. But the countervailing proofs, on the part of the defendant, do certainly throw great doubts and uncertainties over the proofs on the other side, and lead us 1o the conclusion, that there may have been [467]*467some mistakes and misapprehensions, to say the least, on the part of the plaintiff’s witnesses, as to the purport and effect of the conversations of the defendant, to which they testify.

But, if this difficulty could he overcome, there are other considerations of very grave importance, touching the next point, namely, of the advances, made by the plaintiff on account of the asserted copartnership; and, if such advances were made, of the actual investment of such advance moneys in any lands or timber on account of the asserted copart-nership. Upon this subject, the bill states, that about the 20th of June. 1834, the plaintiff and defendant, being in the state of Maine, for the purpose of prosecuting the business of the copartnership, purchased of one Babbitt, at Bangor, “one undivided moiety of a large quantity of logs or timber, for the sum of thirty-five hundred dollars, or thereabouts”; and the other undivided moiety was at the same time purchased of Babbitt by one Robert M. N.

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Bluebook (online)
22 F. Cas. 465, 3 Sumn. 435, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-burnham-circtdma-1838.