2 Iowa 20 | Iowa | 1855
The record and argument of counsel,, present four questions for our determination: First. Is the averment in the bill, that complainant and Wilson were in partnership, sustained ? Second. If in partnership, what were the interests of the parties therein ? Third. Was the amount decreed to complainant, correct under the proof made?' Fourth. Should the property and effects of said partnership,, be held liable for any balance found due the complainant ?
The first inquiry must be answered in the affirmative.. Such partnership relation is, in fact, virtually admitted in the answers, and all of the testimony taken by both parties,, abundantly proves the' same fact. The interest of each partner therein, is a question of more difficulty. And herein lies the prominent matter of controversy between these parties. As shown in the statement of the case, the defend
We next inquire whether the amount decreed to complainant was correct, under the proof made. And this inquiry we must answer in the negative. It appears from the master’s report, that treating the parties as equal partners,.
The last inquiry is, whether, for the amount found due complainant, he is entitled to a lien upon the partnership property and assets. The sale by Wilson operates, of course, to dissolve the partnership. That De Lorimier and Hannan made the purchase with notice that complainant was a partner, and had an interest in the property, part of which they purchased, we think is abundantly shown. Upon what equitable principle, then, is it claimed, that complainant should not have recourse, by specific lien, upon this property, to be reimbursed the amount advanced by him ? We understand the general principle to be, that each partner has a specific lien on the partnership stock, not only for the amount of his share, but for moneys advanced by him beyond that that amount, for the use of the copartnership, as also for moneys abstracted by his copartner, beyond the amount of his share. Collyer on Part, section 125, and a very full reference to the authorities in notes 1 and 2 to said section, and also, sections 126-7. The same doctrine will be found fully recognized in Story on Part. §§96 and 441, and in Story’s Equity Jur. § 675. -In section 96 of his work on Partnerships, the learned author, after speaking of the rights of the joint creditors, and of the lien which may be worked out through the partners, in favor of such creditors, proceeds to state and recognize the above rule, by saying that each partner also, has a specific lien on the present and future property of the partnership, not only for the debts and liabilities due to third persons, but also for his own amount or share of the capital, stock, funds, and for all moneys advanced by him for the use of the firm. This right or lien is, of course, subordinate to the right of the joint creditors, to be first paid from the partnership capital, funds, or stock, And
The decree will therefore he so far modified, as to allow complainant $666.44, with interest, instead of $518.66, and that the same be a specific lien on the property belonging to said partnership, and in all other respects it is affirmed.