Webster v. Schwartz

114 N.W.2d 280, 262 Minn. 63, 1962 Minn. LEXIS 682
CourtSupreme Court of Minnesota
DecidedFebruary 23, 1962
Docket38,397
StatusPublished
Cited by2 cases

This text of 114 N.W.2d 280 (Webster v. Schwartz) 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
Webster v. Schwartz, 114 N.W.2d 280, 262 Minn. 63, 1962 Minn. LEXIS 682 (Mich. 1962).

Opinion

Nelson, Justice.

This is an appeal from an order for judgment and from an order denying plaintiffs alternative motion for amended findings or for a new trial upon the minutes of the court but limited to two issues designated under the topics — (a) Negro Funds, and (b) Richfield Garden Tract Purchase.

The facts which appear in a scant abridgment of the testimony and minutes of the court are as follows: In 1952 Frank L. Webster, plaintiff, entered into an agreement whereby he was to search out and acquire certain lands and build houses thereon. Paul Schwartz, one of the defendants, as his part of the bargain was to arrange for the necessary financing and procuring suitable customers. This has been referred to as the Negro Fund or Negro Housing Development.

After the parties entered into this agreement, one Carl Johnson granted plaintiff an option to buy an addition known as Tonka Gardens to be used for Negro housing. Paul Schwartz bought a money order and tendered it to Johnson as part payment for the right to exercise the option. This was refused by Johnson and suit was commenced for specific performance. Johnson prevailed in that action. In December of the same year Webster and Schwartz incorporated a company known as Lincoln Park Development Corporation in order to carry through the Negro housing project. On or about May 7, 1953, $800 was paid to Jack and Lucille Radisch and Barney Realty Company for an option to purchase other property but it eventually lapsed. The $800 was paid by Schwartz from his own funds. Schwartz, acting as an agent for the venture, began taking earnest money from prospective Negro purchasers. The plan never materialized and *65 Schwartz saw to it that all the earnest money payments were returned to the depositors beginning in January 1954, with a final payment occurring August 1, 1954.

On July 31, 1953, this corporation was changed to the Penn Development Company and the whole of the stock issued to defendant Schwartz and his nominees.

In 1953 plaintiff and Schwartz entered into a joint venture to build and sell houses on three lots in Minneapolis. The building and sale of these houses was to be carried on in the name of Penn Development Company. Plaintiff was to furnish plans and supervise the construction of the homes, and Schwartz, through the defendant company, was to provide the necessary financing and the agency for selling the properties. The profits from the three houses, if any, would be split equally between the parties to the venture. The houses were built and sold pursuant to the foregoing agreement. No accounting between the parties is indicated by the record. Defendant Schwartz looked after and furnished all the money for the incorporation of the Penn Development Company, and either Schwartz or the Penn Realty Company, a corporation owned by Schwartz, made loans to the Penn Development Company for the financing of the three homes and other projects in which the plaintiff was not engaged. No agreement appears to have been entered into which prevented Schwartz from engaging in other transactions as he saw fit.

Subsequent to the foregoing venture, plaintiff by chance obtained from Thorpe Brothers a price for a lot in the Richfield Gardens Addition. He later recommended to Schwartz that he buy the same and that he either engage the plaintiff or some other builders in developing the lot. The trial court found that defendant Penn Development Company purchased the Richfield Gardens lot with money borrowed from either Schwartz or the Penn Realty Company. The trial court also found that this was an independent transaction and in no way involved plaintiff who contends on this appeal that this purchase was a joint venture.

The findings of the court so far as applicable to the present appeal are: (1) The Negro housing development was a joint venture; (2) the building and sale of the three houses was a joint venture; *66 (3) the Richfield Gardens lot was not a joint venture; and (4) even though the court found a joint venture in two projects, plaintiff had no standing to sue for an accounting.

Plaintiff makes the following assignments of error: (1) The trial court erred in failing to grant a full and complete accounting to the plaintiff of the use of joint venture funds and any profits arising therefrom which defendant Schwartz may have made by depositing and using funds from sales made in the Negro housing development; and (2) the trial court erred in failing to grant to plaintiff a full accounting in connection with the purchase of the Richfield Gardens lot on the grounds that this involved a joint venture.

Plaintiff in his brief admits that there is no disagreement as to the basic fact of handling and possession of all funds by Schwartz arising out of the earnest money contracts involved in the Negro housing development; that defendant Schwartz took possession of the funds and put them into his own bank account. The trial court found that since this project was never carried out but later abandoned and the money returned to the prospective purchasers plaintiff was not entitled to an accounting for any use of said funds during the interim.

An order allowing the settled case upon which this appeal is based reads in part as follows:

“It is hereby ordered that the following shall be and shall constitute, and hereby are certified as the ‘settled case’:

“1. The transcript (partial) of the testimony heretofore filed herein, consisting of 227 pages of testimony.

“2. The defendant’s proposed ‘Settled Case’, consisting of 21 pages of notes as excerpted from the Minutes of the Court.

“3. All exhibits pertinent to the two issues to be appealed.

“4. All pleadings, depositions, motions and affidavits in the file pertinent to the two issues proposed for appeal.

“And the Court does hereby certify that it has examined the same and found it conformable to the truth and to contain the evidence, objections, rulings, orders and other proceedings of such trial, together with the exhibits therein referred to as may be necessary for the purposes of an appeal limited to the issues set forth in the affidavit of *67 Louis Sachs dated the 24th day of October, 1960, herein in support of a Motion for a ‘Settled Case.’ ”

We note that the trial court in a memorandum attached to its order indicated as follows:

“It is with considerable reluctance that I am certifying the settled case by the foregoing order. I do not clearly understand what points the plaintiff proposes to have reviewed by the Supreme Court * *

Defendants contend that they cannot determine with any certainty on what grounds plaintiff has appealed.

Defendants, in objecting to plaintiff’s motion for a new trial, made the following statements:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Merz v. Oftedal
144 N.W.2d 58 (Supreme Court of Minnesota, 1966)
Truesdale v. Friedman
127 N.W.2d 277 (Supreme Court of Minnesota, 1964)

Cite This Page — Counsel Stack

Bluebook (online)
114 N.W.2d 280, 262 Minn. 63, 1962 Minn. LEXIS 682, Counsel Stack Legal Research, https://law.counselstack.com/opinion/webster-v-schwartz-minn-1962.