Tisdale v. Grant

12 Barb. 411, 1852 N.Y. App. Div. LEXIS 30
CourtNew York Supreme Court
DecidedJanuary 5, 1852
StatusPublished
Cited by1 cases

This text of 12 Barb. 411 (Tisdale v. Grant) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tisdale v. Grant, 12 Barb. 411, 1852 N.Y. App. Div. LEXIS 30 (N.Y. Super. Ct. 1852).

Opinion

Willabd, P. J.

If the plaintiff and Kellogg were merely part owners of the steamer Francis Saultus, and she was not a portion of their partnership stock or capital, there can be no ground for upholding a lien on the boat in favor of the plaintiff against the defendants, for the charges which accrued while the plaintiff and Kellogg were owners. The general relation between ship owners is that of part owners, and not partners. Part owners are tenants in common, and not joint tenants. Bach has his distinct, though undivided interest. Ho one can dispose of the interest of the other. (Story on Part. § 417.) It is otherwise with respect to partners; each can dispose of the entire subject, (3 Kent's Com. 153;) but the assignee takes subj ect to all partnership accounts. (Nicoll v. Mumford, 4 John. [425]*425Ch. Rep. 522.) The assignee of the part owner of a vessel is entitled to his part, or the proceeds thereof, without being subject to any general balance of account between the owners. (Ib. Collyer on Part. 666, 687. Mulden v. Whitlock, 1 Cowen, 290.)

With respect to partners, it may be laid down as a general principle, that each of the partners has a specific lien on the partnership stock, not only for the amount of his share, but for moneys advanced by him beyond that amount, for the use of the copartnership. (Coll, on Part. 65. Story on Part. § 441.) In Dodington v. Hallet, (1 Ves. sen. 407,) Lord Hardwicke extends this doctrine to part owners of ships, holding in a case where one of several part owners died without paying his portion of the expense of building and fitting óut a ship, that the other part owners had a specific lien on his share, for the moneys which they had laid out on his account. But Lord Eldon, after great consideration, overruled this decision of Lord Hardwicke, being of opinion that part owners of a ship, being tenants in common and not joint tenants, have not by analogy to partners, a lien on the shares of each other. (Ex parte Young, 2 Ves. & Beame, 242. Ex parte Harrison, 2 Rose, 76. Coll, on Part. 666, a.) Judge Story gives his preference to the doctrine laid down by Lord Hardwicke, as most consonant to equity, and as founded in principle, "public policy and convenience. He treats cases' of .this sort as a species of partnership, with reference to the adventure upon which the ship is to be employed; and, therefore, the repairs, outfits and other expenses incurred to accomplish the enterprise, are deemed to be made on joint account, and intended to be governed, as to rights and liens, by the rules o"f strict partnerships. (Story on Part. § 444.) Chancellor Kent followed, the rule of Lord Eldon in Nicoll v. Mumford, (4 John. Ch. Rep. 522,) but his decree" was modified by the court of errors, and the rule adopted by Lord Hardwicke was sustained. (20 John. Rep. 611, same case.) Ch. J. Spencer, in delivering the prevailing opinion in the court of errors, said, that he did not intend to overrule the distinction between partners in goods and merchandise and part owners of a ship. The former are [426]*426joint tenants, and the latter are, generally speaking, tenants in common; and one can not sell the share of the other. “ But I mean to say,” he observes, that part owners of a ship may, under the facts and circumstances- of this case, become partners as regards the proceeds of the ship; and if they are to be so regarded, the right of one to retain the proceeds, until he has paid what he has advanced, beyond his proportion, is unquestionable.” In that case the question arose between the part owner, who had made the advances for outfits, repairs and expenses, and received the whole avails of vessel and cargo, and the assignees under the insolvent act, of the other part owner. There was a strong equity in favor of treating the vessel as well as cargo as the partnership stock, and thus enabling the part owners, by whose means the fund- had been acquired, to be reimbursed, before the creditors of the insolvent part owner could be permitted to come in for a share.

The case of Dodington v. Hallet, (supra,) before Lord Hardwicke, presented an equally strong case in favor of the application of the partnership rule. The question did. not arise between one part owner, and a purchaser from another part owner, as in this case ;• but between one part owner and the personal representatives of a deceased part owner." The rule of determination was the same as if both part owners had been before the court, and one prayed an account against the other. Lord Hardwieke held that a ship may be the subject of a part-, nership, as well as any thing else. And he thought in that case, it appeared plainly there had been a partnership between the parties.

The present case differs widely from Dodington v. Hallet and Nicoll v. Mumford. The question here arises between the plaintiff, a former part owner, and his own vendee, who was also the purchaser from the other part owner. There is no evidence that the boat was the subject of the partnership between the plaintiff and Charles W, Kellogg, from whom the defendants purchased. The defendants purchased not a share in a partnership, but the forty-six-fiftieths of a steamboat. They took the delivery of it in presence of the plaintiff; and the latter was [427]*427expressly asked if there were any bills against the boat, and he replied that there were none, except to the amount of two or three hundred dollars for current expenses, and that there were funds enough on board to discharge those bills. After such a declaration, under such circumstances, he should be forever estopped from setting up any claim by way of lien. It is precisely one of .those cases where the doctrine of estoppel in pais applies. The representation of the plaintiff, in effect that the boat was unincumbered, influenced the conduct of the defendants in completing the purchase. They had a right to act upon it; and whether true or false, the plaintiff should not now be permitted to controvert it. (1 Cowen & Hill’s Notes, 200, et seq. where many of the cases are collected.)

In determining whether the plaintiff has a specific lien on the boat, for the charges in question, we have a right, also, to consider the special circumstances of the case, in order to determine the equities between these parties. This was done by Lord Hardwicke, in Dodington v. Hallet, and by Ch. J. Spencer, in Nicoll v. Mumford. The boat in question was purchased by the plaintiff and Kellogg, in July, 1845, for forty-five thousand dollars. She was run about three years at a disastrous loss to the parties, when in February, 1848, the defendants, having previously acquired Kellogg’s share, became the purchasers of the plaintiff’s four-fiftieths, for two thousand dollars. At this rate the value of the boat must have depreciated to twenty-five thousand dollars. There is no evidence in the case that the sum given by the defendants was less than the fair value of the plaintiff’s share of the boat. And yet it was attempted before the referee to make the defendants chargeable with liens upon the boat to the amount of over thirty-six hundred dollars; and thus show that they had agreed to give for the four-fiftieths of the boat the sum of $5600 and upwards.

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Bluebook (online)
12 Barb. 411, 1852 N.Y. App. Div. LEXIS 30, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tisdale-v-grant-nysupct-1852.