Ward v. Hartley

77 S.W. 302, 178 Mo. 135, 1903 Mo. LEXIS 347
CourtSupreme Court of Missouri
DecidedNovember 25, 1903
StatusPublished
Cited by2 cases

This text of 77 S.W. 302 (Ward v. Hartley) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ward v. Hartley, 77 S.W. 302, 178 Mo. 135, 1903 Mo. LEXIS 347 (Mo. 1903).

Opinion

VALLIANT, J.

Plaintiff and defendant entered into co-partnership, in 1890,» in the city of St. Louis, to transact the business of building and bricklaying. The firm continued in business from the date above named until September, 1895, during which period they transacted a large business, the gross receipts from which amounted to more than $300,000.

There had been no statement or adjustment of their accounts between themselves in September, 1896, when, to enforce such settlement, this suit was begun. By agreement the cause was referred to a referee who, after due hearing-, stated the account and made his report. After that report was filed it became necessary to refer the case again to the same referee to supplement his report by taking account of payments of debts of the firm which the plaintiff had since paid. The referee made his second report which was final. The conclusion of the referee was that if neither party had drawn anything out of the firm treasury there would be in the treasury for division between the two $9,114.11, whereof each would be entitled to $4,557.05, but that defendant had drawn out for his own use $9,765.10, while [138]*138the plaintiff had drawn out nothing, and therefore but for one outstanding debt amounting to $671.01, the defendant would be indebted to the plaintiff in the sum of $5,208.04. But the report recited that the plaintiff, for the sake of a final disposal of the case, without further delay, consented that the referee might state the account as if that firm debt had been paid by the defendant, and in pursuance thereof the referee so stated the account and found that there was a balance due from the defendant to the plaintiff of $4,872.54, for which sum the referee recommended that judgment be rendered in favor of the plaintiff and that each party pay half the costs.

It is unnecessary to state'the account more in detail, for the reason that there is really but one item in dispute, that is, $7,200 charged in the firm’s expense account under the head of ‘election expenses. ’ ’ The report of the referee on this Item is as follows:

This item is one of the main points of disagreement between the partners. And it seems to have stood in the way of their arriving at any settlement of their accounts among themselves. In the spring of 1893 plaintiff was a candidate for the office of president of the City Council. And he claims that the expenses he incurred in that election amounted to about $9,000, and ■ he charged $7,200 of this amount to the firm. He testifies that it was agreed between him and defendant that his election expenses should be borne by the firm. Sev- • eral other witnesses testified to the fact that defendant told them that the firm was paying the election expenses of plaintiff. It appears that plaintiff had been a member of the House of Delegates, and he testified that the firm secured its business largely by reason of the fact that he was in politics. He further testified that his election would further the chances of payment of several claims which the firm held. Defendant was present at the hearing before me but was not sworn as a • tness. T accordingly find that defendant believed [139]*139that the election of plaintiff would he an advantage to the firm in a business point of view, and that defendant did agree that the firm would pay the election expenses of plaintiff and that they might be paid with the funds of the firm. Having agreed that the firm funds should be paid out for this purpose defendant can not now object to that expenditure. Ordinarily, defendant would be entitled to an itemized statement of the expenditures; from the nature of the expenditures it might not be reasonable that all the items of small expenditure should be given in detail, but defendant would be entitled to a statement itemized to a reasonable degree, at least. But it was testified by plaintiff and Mr. O’Reilly that this item of $7,200 was entered in the books of the firm, in June, 1893, a few months after the election, and that defendant some times looked over the books. Defend- . ant did not take the stand at all, but remained silent. I conclude, therefore, that this item was entered in the books at the time stated and was seen by defendant. But he does not appear to have made any objection to it until sometime in 1896. And then, as I gather from the testimony, his objection was to the entire item as an unauthorized expenditure. Defendant having agreed that the expenditures should be paid by the firm when he saw the amount entered in the books if he questioned the correctness of the amount, he should then have called for an itemized statement or other proof of the correctness of the sum entered in the book, and not let the charge stand unchallenged for about three years.”

Accompanying the referee’s report is a schedule showing the works upon which the firm had been engaged, from which its receipts had been derived. Much the larger part of these were public works in the city.

The defendant filed exceptions to the report of the referee, the chief of which was aimed at this item of election expenses which the referee had allowed. The main ground of the defendant’s exception to the item was that the agreement that the firm should pay it [140]*140was void because it was without consideration and against public policy. The court sustained the exception and struck out that item, the effect of which was to reduce the amount which plaintiff was entitled to recover to $1,272.54, for which sum judgment for the plaintiff was entered, each party to pay half the costs.

The plaintiff appeals from that judgment and assigns for error the action of the court in striking out that disputed item.

When an agreement has no legal considerations to support it, it can not be made the basis of a cause .of action nor of an affirmative defense. If such an agreement is relied upon for the cause of action, the plaintiff can not prevail; if such is relied on by the defendant in a plea of confession and avoidance, the defense will fail. The question, therefore, of who is to suffer, because the agreement is invalid, depends upon which party is forced to rely upon it. And so it is with a contract void because contrary to public policy; whichever party comes into court relying on it will be turned out, and not only will he be turned out when he comes seeking to enforce a contract contrary to public policy, but when he comes, either as plaintiff or defendant, seeking relief touching past transactions growing out of such a contract, the court will not listen to him. The court has no more regard for the man who comes seek- . ing to recover what he voluntarily laid out in furtherance of an unlawful project than it has for one who seeks to enforce an unlawful contract. Courts prefer to have nothing to do with transactions growing out of such contracts, and to leave parties just where their own voluntary acts in such cases have placed them. [Ty-ler v. Larimore, 19 Mo. App. 458; Attoway v. Bank, 15 Mo. App. 578; Green v. Corrigan, 87 Mo. 359.]

It appears from the record before us that the plaintiff and defendant were partners engaged in the trade of bricklaying and building; they undertook large contracts, the largest of which were for public works; they [141]*141were competitors in the market with other concerns for like work; the plaintiff had been a member of the House of Delegates, and was, at the time of incurring the expenses in question, a candidate for the office of president of the Council.

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Cite This Page — Counsel Stack

Bluebook (online)
77 S.W. 302, 178 Mo. 135, 1903 Mo. LEXIS 347, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ward-v-hartley-mo-1903.