252 F. 403 | 7th Cir. | 1918
(after stating the facts as above).
Such, however, is not the ordinary bill to wind up a partnership, and such was not the bill in this case. It was charged, and for many rears believed by all the parties, that there were partnership assets of very great value, namely, the claim against the city of Chicago. In and by the bill itself creditors were expressly invited to come into the proceedings. One of the essential objects of the original litigation was to prevent the defendants from exercising their power over this claim or judgment to the detriment both of the complainant, as executor of the deceased’s personal estate, and of the firm creditors.
When the copartners ihemsclves have asserted, and it may be assumed have honestly believed in, the existence and value of firm assets, and thus have invited and led their creditors to come into the dissolution litigation for satisfaction of their claims, instead of resorting to a direct action at law or in equity against the estate of the deceased partner or die surviving members of the firm, and to remain therein until their rights in such an original action would be barred by the statute of limitations, neither principle nor any authority cited or found compels or justifies a court of general chancery jurisdiction in refusing to exercise that jurisdiction, and to render personal judgment in favor of the firm creditors, merely because the supposed firm assets have finally proven to be valueless.
The decree must therefore be reversed, and the cause remanded, with directions to permit appellants to proceed with the taking of evidence, and for further proceedings consonant with the views herein expressed.
<§^>For other cases see same topic & KEY-NUMBER. in all Key-Numbered Digests & Indexes
<gssFor other cases see same topic & KEY-NUMBER in all Key-Numbered Digests & Indexes