Utley v. Clements

81 N.W. 739, 79 Minn. 68, 1900 Minn. LEXIS 732
CourtSupreme Court of Minnesota
DecidedFebruary 2, 1900
DocketNos. 11,910-(197)
StatusPublished
Cited by3 cases

This text of 81 N.W. 739 (Utley v. Clements) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Utley v. Clements, 81 N.W. 739, 79 Minn. 68, 1900 Minn. LEXIS 732 (Mich. 1900).

Opinion

COLLINS, J.

Counsel for defendant Clements fairly state this case in their brief, as follows:

“This action was brought by the plaintiff to recover of the defendants, Joseph R. Clements and Maurice R. Todd, as surviving partners of a copartnership previously existing between said defendants and one Julia F. Greenleaf, since deceased; said copartnership having conducted a general banking business at the village of Preston, in the county of Fillmore, and state of Minnesota, under the copartnership name of the Fillmore County Bank. Said co-partnership was formed in September, 1886; and the Fillmore County Bank, under which name said three named persons commenced to do business, continued to receive deposits and do a general banking business until August 20, 1898, when said bank closed its doors and ceased to do business. Subsequent to the time said bank closed [70]*70its doors, and prior to the commencement of this action, said Julia F. Greenleaf died. It was claimed on the part of plaintiff that appellant, Joseph R. Clements, continued a member of said copartnership from the time said bank commenced to do business until it closed its doors. On the part of appellant it was contended that said copartnership between himself, Julia F. Greenleaf, and Maurice R. Todd was dissolved on October 19, 1894, since which time he claims to have been in no manner interested in said Fillmore County Bank, or in any manner to have been connected with Julia F. Green-leaf or Maurice R. Todd; nor had he any knowledge of or connection with said banking business after said date.
“Plaintiff at the time said bank closed its doors held four several certificates of deposit issued by said bank, and some twenty-two other parties likewise held certificates of deposit issued by said bank; and the Bank of New Richland had also deposited with said Fillmore County Bank several thousand dollars in open account, subject to check in the usual course of banking. The plaintiff procured from all of these parties assignments of their respective demands, and brought this action to recover the sum thereof, which aggregated $24,292.75. Each and every of these deposits were made subsequent to October 19, 1894, none of them being earlier than March 15, 1895; and each and every of said certificates of deposits were issued and signed by 'Greenleaf & Todd, Bankers.’
“The cause was tried to the court without a jury, the chief bone of contention being whether or not the defendant Clements continued to be a member of said copartnership. The court found against the contention of defendant Clements, and found that he was a member of the copartnership from its commencement until it ceased to do business, and ordered judgment for the plaintiff as demanded in his complaint. Judgment was entered upon said findings September 15, 1899, and from such judgment the defendant Joseph R. Clements brings this appeal. The evidence at the trial consisted largely of drafts, certificates of deposit, numerous entries in the books of account kept by the bank,” (the original exhibits being produced for our inspection at the argument here).

A large number of assignments of error have been made, but [71]*71counsel have grouped them with great success, and they may -be considered in the same manner.

1. Several of these assignments go to the sufficiency of the evidence to support the finding that there was no dissolution of the copartnership in 3894, as claimed by counsel, and also that the pretended withdrawal of Clements in .November of that year was a sham, and was made for the purpose of cheating and defrauding present and future creditors of the bank. The latter part of this finding, with respect to the purpose of the pretended withdrawal of Clements from the previously existing firm, is made the subject of a special assignment of error; and, to dispose of this point, it is well to say at this time that if the main finding, as to the continuance of the copartnership down to the day of the collapse in August, 1898, was sustained by the proofs, the motive which prompted Clements to pretend to withdraw in 1894 is -of no consequence, and the finding as to his purpose becomes immaterial. We therefore pass to a consideration of the evidence, some of which Clements’ counsel insist was inadmissible, upon which was based the principal finding of fact.

Four days after the bank failed, Todd was arrested and incarcerated in jail. He was there confined when he testified a.s the plaintiff’s chief witness in this action. His story as to the manner in which the funds of the bank were abstracted by Clements before and after the alleged dissolution, and in fact corroborated and conclusively established by documentary proofs, was remarkable, although not without its duplicate in these days, when an attractive sign on the outside of a building, a finely-finished counter, and a few blank books on the desks inside, seem to be all of the capital needed in order to start a bank, and all that is required to establish men of good address in position to “confidence” and swindle the people in almost any community. Todd’s_testimony was that, from the begihning to the end of this financial enterprise, Clements was one of the firm, and that the written notice of dissolution executed October 19, 1894, by the three persons who had previously been copartners, and the two receipts, — one dated October 25 of that year, and the other March 32, 1896, — in each of which Todd, in behalf of the firm of Greenleaf & Todd, acknowledged full -payment [72]*72of all claims and demands against Clements, were devised, signed, and delivered as a part of the scheme previously concocted to loot the hank.

Clements and Todd were traveling dentists prior to 1886. They first became acquainted in 1858, when boys, and had always been intimate friends. Mrs. Greenleaf, a widow with some means, was Todd’s mother-in-law, and lived in his family. When the co-partnership was formed, and the bank started, all three of the partners moved to Preston from La Crosse, Wisconsin, and there made their residence. Mrs. Greenleaf, who seems to have had great confidence in Todd, contributed $11,500 of the bank capital, Todd about $3,000, while Clements, although posing as a capitalist, contributed nothing but his presence occasionally behind the counter. Todd was the active manager.

Soon after the execution of the notice of dissolution, Clements removed to his former home, La Crosse, and, according to the testimony, never returned to Preston, although living within 50 miles,— about two hours’ ride by rail. The notice of dissolution, composed* as if for publication, was never published. In newspapers issued for the use and benefit of banks and bankers, it was stated that Clements had withdrawn from the firm; and the words “Greenleaf & Todd, Bankers,” were thereafter stencilled upon blank drafts, certificates of deposits, and stationery then on hand. Business was continued after Clements removed about as before,- — -obtaining money on deposit, and issuing certificates bearing a good rate of interest. There were some open accounts, and among them one with the “Bank of New Richland,” which seems to have been organized by Clements in December, 1894, and transferred by him to the firm of Cramm & Fish in March following. This firm continued the account, and had quite a sum of money to their credit when the Preston bank closed.

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Related

Clements v. Utley
98 N.W. 188 (Supreme Court of Minnesota, 1904)
State v. Clements
85 N.W. 229 (Supreme Court of Minnesota, 1901)

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Bluebook (online)
81 N.W. 739, 79 Minn. 68, 1900 Minn. LEXIS 732, Counsel Stack Legal Research, https://law.counselstack.com/opinion/utley-v-clements-minn-1900.