Townsend v. Gregory

132 Ill. App. 192, 1907 Ill. App. LEXIS 116
CourtAppellate Court of Illinois
DecidedApril 4, 1907
DocketGen. No. 13,147
StatusPublished
Cited by4 cases

This text of 132 Ill. App. 192 (Townsend v. Gregory) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Townsend v. Gregory, 132 Ill. App. 192, 1907 Ill. App. LEXIS 116 (Ill. Ct. App. 1907).

Opinion

Mr. Justice Holdom

delivered the opinion of the court.

The parties will be referred to in this opinion by their designation in the ¡trial court.

Defendants, doing business under the style of Townsend, Reed & Co., had a contract with the Milwaukee & Waukesha Electric Railway Company to construct and equip twenty miles of its single track road in Milwaukee, and on July 14, 1897, they entered into a contract with plaintiff, by which they, for the considerations in that contract mentioned, gave him a one-fourth interest in the net profits arising out of the construction contract with the M. & W. E. Ry. Co. In this contract it is recited that John W. Wegner of Milwaukee had a one-fourth interest in the net profits of that enterprise, George W. Wilson ten per cent., and that other parties, not named, were interested in 22,000 of the bonds and in eight per cent, of the capital stock of the railway company. On August 7, 1897 defendants made their contract with Wegner for his one-fourth interest, which Wegner on November 22, 1897, assigned to plaintiff by an appropriate indorsement thereon, and delivered it to him. Of this assignment defendants were subsequently informed, and they ratified it by a verbal assent.

Defendants and plaintiff had separate offices and were engaged in business other than that pertaining to the construction contract with the M. & W. E. Ry. Co. There was no general partnership between them. Their joint interests were limited to the matters to be exploited under the contract between them. It was a special joint deal and undertaking—a joint enterprise as distinguished from a general partnership.

Wegner was a lawyer in Milwaukee, and his energies appear to have been exerted in the joint enterprise to the obtaining of the grant of a franchise from the municipal authorities of the city of Milwaukee for the installation of a section of the contemplated electric railway within certain portions of its corporate limits. Wegner procured the franchise and received from plaintiff $4,000. This money was furnished by defendants. For what purpose it was used the record is silent. The construction part of the enterprise seems to have been abandoned, for on September 1, 1897, the parties to this record sold the Milwaukee franchise in New York City to John N. Kinney for $100,000. Of this sum there was paid to Townsend, Reed and Gregory $25,000 by check to their joint order. That check was indorsed by plaintiff and deposited in the Ft. Dearborn National Bank of Chicago to the account of Townsend, Reed & Co. as soon as the parties returned from New York. Bach of the three parties received $1,000 from this fund at the time, Gregory receiving an additional $500 to reimburse him for the expenses of the New York journey, which he had paid. Defendants drew out various sums from this fund, which they applied toward the payment of debts chargeable to the joint enterprise, until there was admittedly over $15,000 still to the credit of the fund in the bank/ which defendants drew out and appropriated to their own use, ignoring the rights of plaintiff .to one-half of this sum for the interest under his own'and the Wegner contract.

A trial before the Circuit Court and a jury resulted in a judgment upon the verdict for $7,500 September 6, 1901, in an effort to reverse which this writ of error has been sued out.

The questions here sought to be reviewed are mainly of law. The facts rest upon the uncontradicted evidence, of plaintiff and the documentary evidence, likewise not in dispute.

The predominating and controlling questions are jurisdictional and they are dual.

First. It is claimed that the suit was, on March 27, 1901, and at the March term of the court, dismissed for want of prosecution and not reinstated on the docket until after the March term had expired, and that the order reinstating the cause was void.

Second. That the suit involves a partnership accounting, of which a court of equity alone has jurisdiction.

The remaining error urged is- the refusal of the court to give at the conclusion of plaintiff’s proof the peremptory instruction tendered by defendants, instructing the jury to find the issues in their favor.

The order of dismissal was entered at the March term. A motion on the last day of that term to vacate the order of dismissal and to reinstate the cause upon the docket was made by plaintiff, entered upon the record, and the motion continued until the April term of the court. That motion and its continuation was effective to continue the jurisdiction of the court over the cause until thereafter disposed of. Under the statute all motions and causes remaining undisposed of stand continued to the succeeding term of court. R. S., Sec. 61, Chap. 37; Bennett v. Bradford, 132 Ill. 269; McNichols v. Hunt, 43 Ill. App. 451.

At the April term of the court the order' of dismissal was set aside, and the cause reinstated. No objection appears to have been made nor the jurisdiction of the court ehallengéd until the case was called for trial at the next'June term, when the order for the first time was disputed. We have examined the order in the record continuing the motion to vacate the order of dismissal, and it appears to be in due form and imports verity, which cannot be overcome by affidavits or the pleadings in the chancery cause seeking to attack that verity which in law it imports. It is binding on the parties and this court. Deutsch v. Lartz, 192 Ill. 485; Reilly v. Wilkins, 67 Ill. App. 104.

Futhermore, plaintiffs did not rely upon their objection to the court’s jurisdiction to try the case, but proceeded to and" participated in the trial. They thereby waived the objection and are estopped from again asserting it after a trial resulting in a decision against them upon the merits. Grand Pacific Hotel Co. v. Pinkerton, 217 Ill. 61; Brownmark v. Livingston, 100 Ill. App. 474.

As was said in the Pinkerton case, supra, “After this cause was reinstated the appellant appeared and took part in the proceedings. * * * It thereby waived its right to except to the order of the court reinstating the cause. After the cause was reinstated the appellant should not have appeared at all, or at most should have confined itself to the resistance of any action proposed by the appellees.” This is pointedly applicable "here and, we think, decisive on this point.

It is clear from the testimony of Gregory and the documentary evidence that" there was. no general partnership between the parties to this record. They were jointly interested in an enterprise, it is true, but to that alone their joint interest was circumscribed. When the Milwaukee franchise was sold to Kenney in New York, and the money coming to them for their interest in that franchise paid "to them, the joint venture was concluded. Nothing remained to be done but to divide the money between them in accordance with their interests as declared in the written agreement evidencing the transaction. Gregory, as assignee of Wegner, was entitled to receive the proportion which would be due Wegner but for the assignment. This assignment had received the assent of the defendants, and Gregory was recognized as having become vested with the interest of Wegner in virtue of that assignment.

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Cite This Page — Counsel Stack

Bluebook (online)
132 Ill. App. 192, 1907 Ill. App. LEXIS 116, Counsel Stack Legal Research, https://law.counselstack.com/opinion/townsend-v-gregory-illappct-1907.