84 Md. 143 | Md. | 1896
delivered the opinion of the Court.
The appellant and appellee were owners and partners in the publication of a weekly newspaper called the “ Herald and Torchlight,” at Hagerstown, Maryland. There were no written articles of partnership, but at the time of the purchase of the property and business for $7,025, each partner contributed the sum of $1,512.50 in cash and
The first account upon the report of the receivers charged them with the sum of $2,121.34, and after an allowance for 'commissions and expenses, distributes the residue to the payment of, the firm’s indebtedness, including the claim of the appellee for $1,191.74, advanced the firm beyond his share of capital, and there being a balance of $441, it was distributed equally to the partners. To this account exceptions were filed, but the account was ratified and confirmed, except as to the allowance of the appellee’s claim.
First, then as to the allowance of the appellee’s claim. The proof is clear that this money had been paid by Mr. Adams, and at a time when it was necessary to be paid in order to preserve the property and carry on the business.
And it is equally clear that it was money paid by him in excess of his share of the capital not derived from partnership profits. In the case of Pierce, Admr. et al. v. Tiernan et al., 10 Gill & Johnson, 253, it was distinctly held that the excess of one of the partner’s advances over those of the other constitutes a preferred claim upon the partnership property or its proceeds, and must be paid before any surplus can be ascertained which is to be divided among partners. So advances or loans to the partnership by one partner are not like capital, but like borrowing from a third person, and interest is allowed thereon. Turner v. Holloway, 61 Md. 219; 2 Bates on Partnership, 785; Lindley on Partnership, 390; Baker v. Mayo, 129 Mass. 517; Hill v. Beach, 12 N. J. Equity, 31; Uhler v. Semple, 20 N. J. Equity, 288. So far as the Statute of Limitations relied upon by the appellant is concerned, we need only say, that it cannot avail him here. The statute does not begin to run until an account has been settled between the partners and a balance ascertained, when a right to sue arises. Holloway v. Turner, 61 Md. 223.
We find no error in the allowance of the claim of Mr. Small for clerical services rendered in making out books for the receivers. For a long period during the continuance of the partnership no books had been kept by the firm, and the receivers found it impossible to adjust the accounts without capable and experienced clerical assistance.
Having disposed of all the questions raised on this appeal, the orders appealed from will be affirmed, and the cause
When this appeal was before us at the October term, 1895, we affirmed the orders appealed from and remanded the case to the end that an accounting could be had between the partners. Upon petition and leave of Court a re-argument of the case was allowed upon notes. We find no reason for changing the conclusion reached by us at the first hearing of the case, and shall affirm the orders for the reason expressed in the foregoing opinion.
Orders affirmed, cause remanded with costs to the appellee.