Thomas v. King

95 A.2d 822, 33 Del. Ch. 470, 1953 Del. Ch. LEXIS 116
CourtCourt of Chancery of Delaware
DecidedApril 2, 1953
StatusPublished
Cited by2 cases

This text of 95 A.2d 822 (Thomas v. King) is published on Counsel Stack Legal Research, covering Court of Chancery of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thomas v. King, 95 A.2d 822, 33 Del. Ch. 470, 1953 Del. Ch. LEXIS 116 (Del. Ct. App. 1953).

Opinion

Seitz, Chancellor:

The sole issue is whether an oral partnership agreement was established by the evidence.

The plaintiff, Thomas, brought this action for an accounting on the ground that he and the defendant, John Rodney King, were partners in connection with work done on certain specific jobs and that the defendant, King, has refused to account. The defendant, King, contends that plaintiff was not a partner but an employee. King’s wife and Viking Engineering Company, a Delaware corporation, were joined as parties defendant solely to implement any judgment for plaintiff. Unless otherwise indicated, future reference to “defendant” will embrace only John Rodney King.

It is conceded that plaintiff has the burden of showing that he and defendant entered into a partnership arrangement. See Pappas v. Venetsanos, 19 Del.Ch. 347, 167 A. 842; affirmed, per curiam, 20 Del.Ch. 453, 171 A. 925.

[471]*471To resolve the issue of partnership it is necessary to analyze the evidence in some detail. I now proceed to that chore.

Plaintiff, while working with the Army Engineers doing dredgr ing work, had occasion to meet the defendant and so they were acquaintances at the time the plaintiff was released by the Army Engineers in late 1947. Plaintiff was a much younger man who then had no business of his own. Defendant was then and had been in partnership with Charles T. Johnson doing marine salvage work. He was also in business for himself, as he had been for many years, as a distributor of DuPont explosives. He also did specialized blasting connected with road building, marine work, etc. However, it appears that these connections did not require his full time during that period. It also appears that he had very little money at the time.

It is undisputed that they had a discussion in about November, 1947 but plaintiff alleges and defendant denies that they agreed to form a partnership at the time of that discussion. According to plaintiff it was agreed that they would get some type of work and get enough money to build a dredge and then go into the dredging business. It was further agreed that the profit from this and other undertakings would be equally divided between them. Plaintiff says that each was to have a drawing account of $500 per month to be charged against profits. He further says that they agreed that a corporation was to be formed to take over and conduct the business, the stock to be owned equally by them. He further testified that his share of the money — presumably that in excess of the drawing accounts — would go into the corporation, Viking Engineering Company.

The following are the “jobs” which plaintiff claims were subject to their partnership agreement:

1. The Sparrows Point Pennsylvania Railroad job under a subcontract with Langenfelder & Son Corp. (hereinafter called “Langenf elder”).

2. The job of Johnson & King to remove a sunken barge at Tampa, Florida.

[472]*4723. The job of Johnson & King to remove a sunken barge at Ocean City, Maryland.

4. The seeding job at Friendship Airport for Langenfelder.

5. The Patapsco River dredge job 'for Langenfelder.

In addition to his share of the profits from the jobs enumerated, plaintiff claims a one-half interest in the dredge “Patpaquassett” and a motor work boat.

Returning to the chronological narrative, in December, 1947 a bid was made to secure a job for the removal of the bridge at Ocean City, Maryland. Plaintiff was employed on other work at the time. He says that if they were awarded the job he and defendant were to share equally in 50% of the profit with the other 50% to go to a financial “backer” in New York. It does not appear that the backer knew of plaintiff. Certainly the backer only dealt with defendant. The evidence here is most unsatisfactory but since the job was not awarded to defendant I pass over it without further comment except to say that the evidence connected with it clearly does not justify any finding of partnership.

The first of the jobs in dispute is the so-called Pennsylvania Railroad job at Sparrows Point. The facts are that this job was awarded by the Pennsylvania Railroad to Langenfelder, and Lang-enfelder in turn entered into a subcontract with defendant alone to do the blasting work involved. It appears that the sales agent for the DuPont Company, whose powder was specified, recommended King to the Railroad for the job in January, 1948. The same man also recommended defendant to Langenfelder. The explosives for the job were sold by DuPont for defendant’s use. He was admittedly the only man in the area capable of handling the job. As noted, defendant had long experience in blasting work and had previously done work for Langenfelder. Defendant did not get in touch with plaintiff about the job until about March 12-14. Plaintiff was then working on a job of his own. There is no doubt in my mind that defendant obtained the railroad job without any aid from plaintiff. Whether, as between plaintiff and defendant, a partnership existed as to this job must be resolved by considering the evidence generally.

[473]*473Plaintiff admittedly commenced work on the railroad job in March, 1948, but defendant says he worked only as his employee superintending the job. Plaintiff himself testified that he knew defendant could not pay him until he received the first payment on the job. He was not paid during the first three months but in early July he received a check drawn on Mrs. King’s account for $1500 representing — says plaintiff — his agreed $500 per month drawing. Defendant says it represented pay at $500 per month. The first payment was made shortly after defendant received the first large payment on the job. Plaintiff says that $500 per month drawing was about what he had been paid by the Army Engineers and was a minimum living requirement and was agreed to by defendant.

A large number of daily work form sheets for the railroad job were run off on a duplicating machine by plaintiff who placed thereon the name “Viking Engineering Company”. Most of these sheets were signed by plaintiff but some were signed by defendant. It appears that the certificate of incorporation of Viking Engineering Company was filed with the Secretary of State on March 15, 1948, by defendant’s attorney. However, the corporate defendant never qualified to do business, never issued stock, etc. Certainly the corporation was not significant in the mind of Langenfelder because their agreement was with defendant and payment was made to him.

Parenthetically, plaintiff was working on two jobs of his own from January until May 1948. According to plaintiff’s version of the partnership these jobs, of course, formed no part of the partnership. Also the defendant had another job going on which plaintiff worked for a few days. For some reason he does not consider this subject to their agreement even though it was apparently obtained after the alleged agreement of partnership was made.

Some time in the latter part of April, 1948 plaintiff left the railroad job and went, at defendant’s request, to supervise the removal of a wreck in Tampa. This job was being performed by Johnson & King bu.t plaintiff says that King’s share, being 40%, was to be divided with plaintiff under their arrangement. The job was completed in the same month and plaintiff returned to [474]

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Related

Gammel v. Candler-Hill Corp.
103 A.2d 228 (Supreme Court of Delaware, 1954)
Thomas v. King
99 A.2d 778 (Supreme Court of Delaware, 1953)

Cite This Page — Counsel Stack

Bluebook (online)
95 A.2d 822, 33 Del. Ch. 470, 1953 Del. Ch. LEXIS 116, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomas-v-king-delch-1953.