34 Fla. 539 | Fla. | 1894
This cause is now before this court for the second time (Dubos & Co. vs. Hoover, Jones & Bowen, 25 Fla., 720, 6 South., 788). Since the reversal here of the former findings of the court below in said cause the same was, by agreement of the parties, referred to and tried by a referee, who rendered judgment in favor of the appellees, (defendants below), and from this judgment the plaintiff appeals. In addition to the pleas filed prior to the former trial, the defendant Bowen filed before the referee the following special plea: <lAnd now comes the above-named defendant, Daniel Bowen, by J. W. Archibald, his attorney, and by leave
The account sued upon was made out against M. L. Hoover. The effort of the plaintiff was to show that Jones and Bowen were partners of Hoover, and that, though the goods were sold and delivered to Hoover, Jones and Bowen were responsible for their price. There was one issue only before the referee: Were Jones and Bowen partners of Hoover in the business conducted by him, or did the facts and circumstances of the case render them liable in law to the plaintiff as partners of Hoover ? To sustain his contention that they were such partners the plaintiff introduced in evidence a certified copy, from the records in the clerk’s office of Duval county, of ah agreement entered into between the firm of Jones and Bowen (composed of R. H. Jones and Daniel Bowen) and M. L. Hoover, dated September 21st, 1885, which agreement is as follows: This agreement entered into this 21st day of September, A. D. 1885, by and between Robert IT. Jones and Daniel Bowen, doing business as firm of Jones & Bowen, of county of Duval, and State of Florida, of first part, and M. L. Hoover, of the same State and county, of the second part. Witnesseth: That the parties of the first part agree to sell and deliver to the party of the second part such groceries and goods usually kept in a grocery store, as may be agreed on between the parties from time to time, to be necessary to keep up and conduct the business carried on in the store of party of second part, on lot ten (10) in block
2nd. That the mortgage of even date herewith from the party of the second part to the parties of the first part, shall include as a lien thereon the said goods as agreed herein to be sold, and shall secure the said indebtedness due parties of first part herein men tioned.
3rd. That the parties of first part may place a person in said store of party of second part, who shall have the control and management of the books and business carried on by party of second part, and no debt shall be created in said business except on the consent of the parties of the first part.
4th. That the party of the second part shall be entitled to draw out of said business fifty dollars per month for his services in conducting the business of selling the said goods so placed in said store, and he shall give his entire time and attention to said business in consideration of said sum of fifty dollars per month, and the profits of said business to accrue to him as herein provided.
6th. That at the end of two years the party of the second part shall be entitled to draw out, or be paid one-half the profits of said business, if at that time all debts due parties of first part and all other debts of said business are then paid, and the remaining one-half of said profits shall be paid to parties of first part, as part of purchase money of the goods sold to party of second part before that time aforesaid.
7th. That the parties of the first part hereto shall not be liable for any debts heretofore created in said business of party of second part by him, or by Hoover and Lewis, nor hereafter created by said party of the second part, their only connection with this business being to furnish the goods to party of the second part on the terms herein expressed.
8th. That at any time when the parties of the first part have been paid their said claims due from party of the second part as herein stipulated, it shall be at the option of either of the parties hereto to treat and regard this agreement as no longer binding or of any effect; and should the parties of first part find that the said business is not paying a profit above mentioned, it shall be at their option to withdraw from this agreement, and to cease to sell goods to party of the second part on the terms herein specified. And that unless otherwise mutually agreed upon hereafter by the
9th. Tliat party of second part will renew lease of store at the end of one year according to' the terms of his lease for same from E. W. Grillen, if so requested to do by parties of first part.
The salary of person placed in charge of business under paragraph 3rd herein shall be paid out of receipts of business herein referred to.
The plaintiff also introduced witnesses who testified in substance as follows: Daniel Bowen for plaintiff testified that he resided in Duval county, Fla. That he was a partner with Robert H. Jones, doing business in the city of Jacksonville under the firm name and style of Jones & Bowen; that their partnership began in 1881, and they dissolved some time in the summer of 1886. The business conducted by said Jones & Bowen was a wholesale and retail grocery business; that his partner R. TI. Jones was the general manager of such business; that he (witness) had access at all times to the books of said firm; that he (witness) resided in Riverside, a suburb of Jacksonville, during the time of his copartnership with Jones. The business of said firm was large and extensive, and was not confined to the limits of the city of Jacksonville.
M. L. Hoover for the plaintiff testified that he lived in South Jacksonville, in Duval county, at and prior to September 21st, 1885; that just previous to September 21st, 1885, he was engaged in the grocery business in South Jacksonville, Duval county, Fla. The witness
J. O. Bessent for the plaintiff testified that he lived :in Duval county, Fla., and that he is the same person sent to ¡take charge of the business at that time run by M. L. Hoover in South Jacksonville. That he was ¡sent there in September, 1885, and that he went there from the business place of Jones & Bowen by direction ■of that firm given to him by Mr. R. H. Jones of that •firm. That he took charge and management of that business in South Jacksonville-, and that during its -¡continuance he paid over to Jones & Bowen from time To time moneys arising from the proceeds of goods sold ¡and the general conduct of that business. During- the conduct of that business goods were, purchased from Dubos & Co. and others, and we bought goods from .Jones & Bowen as well as from others. I considered That I was responsible to Jones & Bowen for my actions in regard to that business. I was not responsible
J. S. Smith, Jr., for the plaintiff testified that he ■ resided in Duval county. That he was at one time a partner of F. J. Dubos. That to some extent he was acquainted with the business of F. J. Dubos in December, 1885, and in January and February, 1886. ' That he (witness) during the months last named was doing a brokerage business for himself in Jacksonville, which business extended to merchandise; that he was .agent for the Geo. S. Plant Milling Co., and carried a stock of flour on his own account. J. O. Bessent was the manager of the business carried on in South Jack- ■ sonville with which the defendants in this suit were • connected in September, 1885, and February, 1886. I frequently had opportunities to sell M. L. Hoover goods, but declined to do so, but learning from Mr. Dubos and what I had seen by Mr. Bessent paying-bills and having a check book and paying Mr. Dubos’ bills promptly, and learning from Mr. Dubos and • others that Jones & Bowen had taken charge of the -business, Mr. Hoover came to me to buy twenty bar
Daniel Bowen, on his own behalf, testified, after examining the agreement made by R. H. Jones in the firm name of Jones & Bowen with M. L. Hoover, that he had never signed that agreement, or authorized R. H. Jones to sign his name to it, or to sign the name of Jones & Bowen to same; that he first heard of that •agreement and his first knowledge of it, was immediately after Mr. Hoover’s assignment. Hoover was a customer of Jones & Bowen before that agreement was made, and was a debtor on the books of the firm; and subsequent to this agreement he continued to make purchases of goods from the firm that were charged to him as before the agreement, and he made payments thereon that were credited to him in like manner. I ■did not know of any change made in the keeping ■of the accounts between the firm of Jones & Bowen and M. L. Hoover. To my best knowledge and belief there was not any other or different account ■opened on the books between Jones & Bowen and Hoover other than as a general customer of the firm, with regular debits and credits the same as other customers. I dissolved partnership with R. H. Jones after the assignment of Hoover to said firm. I did not personally examine the books kept by the firm of Jones & Bowen, but I leaned upon our book-keeper for any information about the firm or about the books. The book-keeper never gave me any information from the
The foregoing is the entire evidence before the referee, as shown by the record, and upon this evidence the referee made the following findings: “1st.. That the paper filed in evidence, marked exhibit A,, did not constitute a copartnership as between M. L.. Hoover, R. H. Jones and Daniel Bowen. 2nd. That at the time the debt sued upon herein was contracted there was no copartnership existing between* M. L. Hoover, R. H. Jones and Daniel Bowen. 3rd.. That the paper filed in evidence marked exhibit A constituted an agreement not within the scope of the partnership business as conducted by R. H. Jones and Daniel Bowen under the firm name and style of Jones- & Bowen. 4th. That Daniel Bowen had 210 knowledge of the execution of said agreement. 5th. That after said agreement was made, he never ratified or confirmed the same; and, during the time he was a member of the firm of J ones & Bowen, never knew of the-execution of said agreement until M. L. Hoover had made an assignment. It is therefore considered by the referee that the defendants, M. L. Hoover, R. H. Jones- and Daniel Bowen, partners doing business under the-firm name and style of Minard L. Hoover, go hence' without day, and that they do have and recover of the-plaintiff their costs herein expended, taxed,” etc.
It becomes necessary to determine, first, whether the written agreement entered into between R. H. Jones on behalf of the firm of Jones & Bowen, of the-one part, and M. L. Hoover of the other part, consti
The agreement under considaration provides, as before stated, for the repayment, in any event, by Hoover • of the advancements made to him by Jones & Bowen, and we do not think it subject to the charge of being a mere subterfuge to secure the benefits of a partnership ■ minus its responsibilities. The conclusion reached by the referee, to the effect that this agreement, within and of itself, did not constitute Hoover, Jones and Bowen partners inter sese, or as to third persons, we - think was correct. Parties, however, who can not be regarded as partners as between themselves, may, nevertheless, under certain circumstances, growing out of their acts, declarations and dealings, be regarded as such as to third persons. Thus a person holding himself out as a partner iii a firm, or permitting himself to • be so held out, will be held liable as such as to third parties, whatever may have been his actual relations with the firm or its members. The doctrine now in the • ascendency, however, is that one not a partner in fact can not be held liable to third persons on the ground of having been held out as such, except upon the principle that where third persons have been misled by such holding out, he is equitably estopped from denying that he is a partner, and consequently he is now
It seems to be well settled also that the question whether the plaintiff was induced to change his posi
We have already seen that the agreement between the firm of Jones & Bowen on the one hand and Hoover on the other did not, in and of itself, constitute them partners inter sese or as to third persons, but that its provisions, if carried out, involved the performance of such acts by the defendants as would tend to constitute such a holding of themselves out as partners as that third persons might readily be misled into the belief that they were partners in fact, and upon the strength thereof might extend credit to them as such, in which event the law would hold them liable as such, and they would be estopped to deny it. The feature of the agreement tending most strongly to this result is the provision for Jones & Bowen placing their agent in charge and control of the books and business carried on by Hoover, and taking charge of the funds arising from the sale of goods and paying it out to the •creditors of Hoover, and their control over the incurment of debts in the business by Hoover. All of these things tend strongly to mislead third persons into the belief that they were responsible for the business and its liabilities; but, as before shown, in order for them to be liable to third persons as partners when they are not such in fact, in consequence of a holding out as such, it is incumbent upon the party seeking to establish the liability to show that he has been misled by the holding out, and that he has-been induced thereby
There are some assignments of error upon the rulings • of the referee in refusing certain questions to M. L. Hoover as a witness for plaintiff, and in permitting other questions to be answered by Bowen on behalf of the defense, but as none of this evidence, included or • excluded, tended at all to mend the defects already pointed out in the plaintiff’s case upon the facts, we •.deem it unnecessary to touch upon them further.
The judgment apjjealed from is affirmed.