Smith v. Shotliff

154 S.W. 177, 169 Mo. App. 66, 1913 Mo. App. LEXIS 401
CourtMissouri Court of Appeals
DecidedMarch 3, 1913
StatusPublished

This text of 154 S.W. 177 (Smith v. Shotliff) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Shotliff, 154 S.W. 177, 169 Mo. App. 66, 1913 Mo. App. LEXIS 401 (Mo. Ct. App. 1913).

Opinion

ROBERTSON, P. J.

Plaintiff sued the defendant in the circuit court of McDonald county alleging that on July 26, 1907, he and the defendant entered into a partnership for the purpose of purchasing a stock of merchandise and carrying' on and conducting a mercantile business in Southwest City in that county, investing therein $3500, of which plaintiff and defendant each agreed to contribute one-half; that the partnership agreement was .verbal; that the defendant was to devote his time to the management of the business and to receive therefor, besides his share of the profits, a reasonable compensation; that the stock of goods when this suit was commenced was of the value of $5000 and that the firm OAvned notes and accounts amounting to about $2400, and that the defendant shortly before the commencement of the suit denied all rights of the plaintiff in and to the business; and the plaintiff prayed that the partnership be dissolved, a receiver appointed with power to dispose of the assets of the partnership and to distribute the proceeds thereof betAveen the plaintiff and defendant. To this petition an answer was filed consisting in substance of a general denial.

The application for a receiver Avas taken up before the judge of the circuit court in which the suit was [69]*69instituted and was denied, but for what reason is not shown. A change of venue was then taken to Greene county where the cause was tried on its merits and judgment rendered for the defendant. After an unavailing motion for a new trial, the plaintiff brought the case here. The printed record covers 468 pages. Four hours were consumed in the oral argument of this case in this court, and we have carefully and critically read all of the testimony in the case.

Plaintiff testified that he had lived in Southwest City since 1867; that he was engaged in the mercantile business there from 1883 to 1897, and that for a number of years he had been and was then cashier of a bank at that place; that at the time the negotiations took place, out of which this controversy arose, and for a long time prior thereto the defendant was in the employment of a party by the name of Clark who. was conducting a mercantile business in one of the store rooms owned by plaintiff, and that along about the first of July, 1907, the defendant told plaintiff that Clark was offering to dispose of this stock at 25 per cent discount and plaintiff suggested to defendant that he buy it and defendant replied that he was not able; that the plaintiff then suggested to him, after the defendant had another conference with Clark, that it was a good proposition and that he would like to see it continue ; that after discussing the proposition again with defendant, plaintiff proposed that if the defendant would take entire charge of the business and attend to the buying and selling arid the help, and put in $900' of his own money, that the plaintiff would see that he got the■ remainder of the money, but that plaintiff didn’t want to be known in the business because he was working in the bank which had a line of customers engaged in the mercantile business that would likely take offense if it were known that he was in the same line of business; that the defendant agreed to purchase the stock of goods, and on the following day [70]*70Mrs. Clark and plaintiff and defendant and one of the clerks in the store commenced the invoice of the stock,' which amounted to something like $4600, and that the plaintiff -and defendant then executed and delivered their note for $1700 to the bank of which plaintiff was cashier, and plaintiff contributed his $900 and defendant his $900, making $3500, which was the purchase price paid to Clark for the stock of goods.

The defendant testified that the plaintiff came into the Clark store where defendant was clerking and said to the defendant that he understood that the stock of goods was to be sold and moved to a point in Oklahoma, telling defendant that he owned the building in which the stock of goods was located and the buildings on both sides of it, and that if the stock was taken away that it would leave the buildings vacant and suggested to defendant that he buy the stock; that defendant told him he didn’t have the money and that the plaintiff asked how much he had and plaintiff told him a little over $900 and that plaintiff asked what the stock of goods could be bought for and defendant told him seventy-five cents on the invoice price; that plaintiff told defendant he had $900 that he was not using that he would loan Mm and that he would go on defendant’s note at plaintiff’s bank for the balance of the purchase price.

This is the testimony of the parties, and all of the testimony as to what the agreement between them was concerning the formation of a partnership, and the remainder of the voluminous record is devoted entirely to an effort on each side to corroborate his contentions or to discredit the contentions of his adversary.

Several years before this controversy and the negotiations which led up to it defendant had married the niece of the plaintiff and plaintiff had taken considerable interest in the welfare of the defendant. The defendant testified at the time the arrangements were being made for the purchase of this stock that he had [71]*71offered to have the $900 (which he claimed was loaned to him by plaintiff) included in the note to the bank and to have his wife sign the note or to give the plaintiff a note for the $900 signed by himself and wife.

Shortly before negotiations were commenced for the purchase of the stock of goods Mr. Clark left Southwest City and placed the store in charge of his wife, with whom all negotiations for its sale were had, and the defendant testified that at her request the services of the plaintiff were secured to assist in invoicing, but Mrs. Clark testified that she made no such request and that it was her understanding that the plaintiff was a partner in the business. Plaintiff and one other witness testified that an inventory, in which plaintiff claims to have assisted, was made in the year 1909, but that it was lost; plaintiff claims that the invoice disclosed $6000 net assets, after deducting $700 for the defendant’s salary, which it was agreed should be $50 per month. In 1910 an inventory was taken in which plaintiff assisted, which showed $8000 net assets and in 1911 an inventory was taken, in which plaintiff assisted, showing the net assets to be $10,150. Defendant claims he used plaintiff in the invoicing because of his ability in that line.

The inventory of January, 1911, was being taken, by defendant and a son-in-law of the plaintiff, when the defendant claims there was a suggestion made, or he had heard it rumored to the effect, that plaintiff claimed to own an interest in the store and that at that time he suspended the taking of the inventory until the plaintiff, who had been called away to serve on a grand jury, returned; and defendant claims that the plaintiff advised him that since he had been so liberal in his accommodation of the defendant he thought he should have a small interest in the business; but the plaintiff says that about that time the defendant commenced negotiating with him for the purchase of plaintiff’s interest in the business. However, at or near that time [72]*72the plaintiff and defendant disagreed as to their respective rights and this litigation followed.

Mrs.

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Cite This Page — Counsel Stack

Bluebook (online)
154 S.W. 177, 169 Mo. App. 66, 1913 Mo. App. LEXIS 401, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-shotliff-moctapp-1913.