Orr v. CooledgeOrr v. Cooledge
- Reporters:
- , ,
- Before:
- Fish
The error assigned in the bill of exceptions sued out in this case is that the trial judge improperly dismissed on demurrer the plaintiff’s petition. The material portions of this petition, as well as the grounds of the demurrer filed thereto, are set forth in the official report.
It is to be observed that the payment by the plaintiff of her contribution of $1,000 was not, under the contract as originally framed or as subsequently modified, a condition precedent to her becoming a member of the partnership. On the contrary, thp partnership was formed and entered into active operations “about the first of October, 1898,” the plaintiff immediately turning over to the firm, as her proportionate part of the assets upon which it was to commence business, the identical salesman whom she had agreed to at once invest in the enterprise. By so doing, her status as a partner became fixed early in October, 1898. Under the *204agreement whereby the partnership was formed, she was not called upon to further contribute to its capital until January 1 of the following year, when she was to pay over to the firm $1,000 in cash. By failing to do so, she on that day for the first time became in default. If time was of the essence of the contract, the defendants might have exercised their right to then rescind it, because of her breach thereof, accounting to her for her share of such profits, if any, as had up to that time been realized. They did not, however, elect to treat the contract as rescinded, but chose to regard it as still subsisting, retaining and using the salesman she had furnished to the firm, and holding her to her obligation to pay to it her cash contribution of $1,000. Doubtless it is true there was po consideration moving to them for their agreement to extend the time of payment of this sum for six months; but it is equally true that she was not released from her obligation to pay that amount, as per her original undertaking. In other words, she was not only permitted to retain her status as a member of the firm, but was granted indulgence for which there was no consideration. She had partially performed an executory contract, and was, on the date last mentioned, as much a member of the firm as any of the defendants. Though she made default in the payment of the $1,000, her status as a partner could not be affected save by an election on their part to treat that contract as rescinded. They could not so treat it and at the same time hold her to her obligation to fully perform it by paying to the firm in cash that amount. By electing to regard the contract as still binding on all parties thereto, the defendants placed the plaintiff in the situation of a debtor liable to suit as upon a demand past due and unpaid. If for any reason they deemed it inexpedient to attempt by legal process to enforce this demand, it was their right to insist that her share of the profits of the business be applied to the satisfaction of her indebtedness, until it became fully discharged. They could not, however, successfully maintain the position that, while bound to comply with the obligations she had as a partner assumed, she had no right as such to share in the profits. Nor, having once made their election to hold her to the contract, could the defendants thereafter claim any right to treat the contract as rescinded because of her failure to pay such demand, and force her retirement as a member of the partnership. In January, 1900, they undertook to exclude *205her from further participation in the fruits or labors of the enterprise. She then ceased to be a partner, not because they had the right to terminate her connection with the firm, but solely by reason of her election to treat the partnership as having been dissolved by their action in the premises. They now hold against her a claim arising out of her failure to pay her cash contribution of $1,000. She has against them a claim based on her undoubted right, as a partner, to share in the profits realized from the business up to the time her connection with the firm was severed. There can and should be had an accounting and settlement between the plaintiff and the defendants.
It may have been somewhat inconsistent to assert that the plaintiff’s recovery was to be measured by the value of the services performed by her husband, when, by the very terms of the contract set up, she could not possibly have hoped to receive any compensation whatever for such services save in the event the venture proved a success, and then only by way of participation in such profits as were actually realized. But, if so, the defendants should, by special demurrer, have directed their objections to any such apportionment as the plaintiff’s share in the profits of the’ enterprise. As no such point was made, we make no direct ruling thereon. We do, however, mean to be understood as holding that a distinction is to be drawn between mere useless pleading and that which may appropriately be styled duplicitous.
*207
Judgment reversed.
By five Justices.