128 Ala. 77 | Ala. | 1900
This suit was brought by Martin H. Sullivan in the relation of surviving partner of a partnership alleged to have existed between himself and D. F. Sullivan, deceased. From the complaint it appears that on the 27th of February, 1880, the Louisville & Nashville Railroad Co. entered into a contract in writing with D. F. Sullivan by which it agreed ito transport for him and liis “assigns” timber and lumber over the Pensacola road, the Selma & Gulf Bailroad and Mobile & Montgom
Amongst other defenses a sworn plea was interposed denying that the defendant had ever made or authorized any one to make the contract sued upon with the partnership doing business under the name D. F. Sullivan, butt that it made the contract sued on with D. F. Sullivan individually and personally and not otherwise, and the said 1). F. Sullivan was dead and that the plaintiff had no right to maintain the suit. There was a trial of the issue presented by this plea in connection with an agreement of counsel [that if there should be a verdict for plaintiff, an accounting should be had in respect to the damages, before referees. There was a verdict for the plaintiff upon the issue, followed by an accounting, upon which the court finally entered a judgment for the plaintiff. A motion for a new trial was made in which, on thirty-eight grounds, it was sought to set aside and vacate the judgment and verdict on the special plea, and in eight of which, alleged errors in respect ito the rulings of the court or the report of the referees, were insisted upon. It was insisted in the first aspect, that the jury disregarded numerous charges relating to the evidence introduced on the trial of the special plea, and thait the cour;t had erred in respect of a number of charges. The charges given and ■which it was insisted the jury had disregarded related to every phase of the evidence and among those refused by the court was the general charge in favor of the defendant.
Among hire guaranteed rights of property is the right to contract; and this includes the persons with AAdiom one may contract, as fully as the property which may he its subject-matter. The fact that one is associated Avith another as a partner does not, as respects third persons, restrict his right to contract individually, and so to contract as to exclude all others, even his co-partner, from participation. These are truisms, hut it may not be improper to refer to them. The leading case announcing this principle is Lucas et al. v. De la Cour, 1 Maule & Selwyn, 250, which was an action brought by the plaintiffs as partners, and the evidence shoAved that the contract was made with only one, of them in his individual capacity, who at the- time declared the subject-matter of the contract Avas his property. Lord Ellenborotjgii, C. J., said: “It struck me at the trial, that Avithout considering this as evidence that the property belonged ito Moravia alone, yet if one partner makes a contract in his individual capacity, and the other partners are willing to take the benefit of it, they must he content to do so according to the mode in Avliich the contract was made.”
In Humble v. Hunter, 12 A. & E. 310, which was an action of assumpsit on a charter-party executed, not by plaintiff, hut by a third person who, in the contract, described himself as Owner of the ship, held, that evidence was not admissible to show that such person contracted merely as the plaintiff’s agent. In the opin
In Boston Ice Co. v. Potter, 123 Mass. 28, A. who bought ice of B. ceased to take it on account of dissatisfaction with B. and contracted for ice with C. Subsequently B. bought C.’s business and delivered ice to A. without notifying him of his purchase until after the delivery and consumption of the ice. Held, that B. could not maintain an action for the price of the ice against A. The court said: '“A party has a right to select and determine with whom he will contract, and cannot have another person thrust upon him without his consent. It may he of importance to him who performs the con-. tract, as when he contracts with another to paint a picture, or white a hook, or furnish articles of a. particular kind, or when he relied upon the character or qualities of an individual, or has, as in this case, reasons why he does not wish to deal with a particular party. In all these cases, as he may contract with whom he pleases, the sufficiency of his reasons for so doing cannot be inquired into.”
In the case of Graves and Barnewall v. Boston Marine Insurance Company, 2 Cranch, 419, a bill was filed the object of which was to have an alleged mistake, in a policy of insurance', corrected, and relief given thereon. The. material wox*ds ixx the policy are: “Do cause John Boonen Graves to be assured, lost or not lost, ten thousand dolbms, on property on hoax’d the ship Northern Libei-ties, as px-opertv may appear, at aixd from Teneriffe to Vera Cruz.” The loss was. proved. The bill alleged that the property belonged to the firm of Graves & Barnewall, of which the complainant, Graves, was a member; that Graves intended to effect insuriince oxx the joint interest, and that, this was known to the respondents. That previous to tire date of the policy it was usual to insert in marixxe policies a clause to the effect that the insurance was, for the benefit of all concerned, axxd that the respondents had made clraixge in this usage without making it known to the agents employed to effect the insurance, and they axxd
The principles announced in these cases are supported in Schmaltz v. Avery, 16 A. & E. Q. B. 655; Darrow v. Produce Co., 57 Fed. Rep. 463; Burwitz v. Jeffers, 103 Mich. 512; Winchester v. Howard, 97 Mass. 303; Lucas v. Southern Railway Co., 122 Ala. 529; 25 So. Rep. 219; George on Partnership, 367, and authorities cited in note; 2 Bates on Partnership, § 1020.
The authorities relied upon by appellant and cited in brief, are not opposed to the principles announced in these cases. In the cases relied upon by him the contract contained no term descriptive of the capacity in which the plaintiff contracted or no statement as to whether he was being contracted with as a partner or as an individual. Indeed, this very right and the exercise of it may he of the very essence of the contract.
When contracts other than for personal services involving trust and confidence, or those which, from any other cause do not survive, are ended by the death of one of the parties, the1 law in the absence of special provisions to the contrary, regulates itlie right of succession. In case of contraéis to which a partnership is. a party, the legal right to execute or close it, vests in the surviving partner — the representative of the partners, for the purpose of winding up the partnersliip. But as we have said, there exists no inhibition upon the right of the contracting parties to provide the succession in case of death, and where -such
But it is insisted by appellant, and seems ito be conceded by the other side, that the term- was one which the parties -could change -or alter by subsequent conduct, without express agreement. The theory upon which this insistence is predicated is upon the principal -of estoppel, and the remaining portion of this opinion will be devoted to a discussion of that question, without reference to its soundness. The -complaint, as -stated above, avers that in the lifetime of D. F. Sullivan, thi-s was done, in that, it was known to the defendant corporation that plaintiff, Martin II. Sullivan, was a partner, and that his rights under the contract as 'such were -recognized by the defendant before -the -death of D. F. Sullivan, and that it continued to recognize his interest and rights as such after his death. Having añade this allegation, the plaintiff must, on issue j-oined, have proved the facts as therein alleged. The burden was upon Mm to prove not only the existence :of the alleged partnership, and that the defendant knew the fact,, but that knowing it, the defendant in the lifetime of D. F. Sullivan, after the making of the contracts, recognized the rights of the plaintiff as a partner in the contract as also after his death.
Some evidence was adduced of oral declarations of 1). F. Sullivan — 'some made long prior and others long subsequent to the date of the contract — to the effect that the» plaintiff was his partner. The proof is positive and undisputed, however, that no such declarations accompanied the execution of the contracts. On the contrary, I). F. Sullivan declared orally, as well as in tlie contracts themselves, that he was sole owner of the property. Nor was one of the declarations that the plaintiff was his partner traced directly to the knowledge of the defendant. For the purpose of fastening knowledge upon the defendant of the existence of the alleged partnership, there was evidence introduced by plaintiff tending to show that its existence was known in Pensacola and along ¡the lines of the. railroads referred to in the contracts. If it be conceded that the fact of its existence after the making of these
These contracts were corporate acts of large importance, and changes, or alterations were wholly without the scope of the duties of an agent or employe, made under -the corporate seal of the corporation by authority of its board of directors, and contained covenants running with the land as shown by the deed made in pursuance to their provisions. “It is not within the general scope of the authority of an agent of a corporation to alter, vary or enlarge contracts made by the corporation under its corporate seal.”’—Boynton v. Lynn Gas Light Co., 124 Mass. 197, 204; Cook on Stockholders, § 719.
In Lyndon Mill Co. v. The Lyndon Literary & Biblical Institution, 63 Vt. 581, it is held, in the absence of some delegation of authority express or implied the president of a corporation can no more bind iit than any other individual trustee, and that his authority to bind the corporation will not he presumed. This principle was recognized and enforced in Sampson v. Fox. 104 Ala. 62.
The change or alteration in these contracts sought to be enforced do not involve the waiver of a condition subsequent made for the benefit of the defendant, but involve, in a measure, an alteration of an express covenant contained not only in the contracts themselves but in the deed executed by D. F. Sullivan to defendant conveying the railroad. Manifestly by the very terms of the contracts these covenants can be assigned and enforced by the assignee and against a purchaser of the property of the defendant.—Gilmer v. M. & M. R. R. Co., 79 Ala. 569. This is not. true as to a condition subsequent—McMahon v. Williams, 79 Ala. 288. See also note to Cross v. Carson, 42 Am. Dec. 742.
The -evidence upon which the plantiff relies as tracing knowledge of the existence of a partnership and a
After I he death of D. F. the defendant transported lumber and logs, for account of plaintiff, rendering the bill to him individually. It is insisted by defendant
If it can be said that his assumption of the relation of surviving partner, if as a matter of fact he ever assumed to occupy such relation, as evinced by the words after his signature of “surviving partner of D. F. Sullivan in liquidation,” was such notice to the agent of defendant to whom they were addressed, as demanded action on the part of the agent, it may be a-s forcibly answered that the agent’s replies put him upon notice that ‘the relation was not conceded; that he was being dealt with as his interest might appear.' The fact that when the agent was addressed by the plaintiff claiming a special relation, he replied generally, cannot, certainly, be construed into an admission of the special relation. Especially is this true when it is made to appear that he wrote other letters covering the same period of time to the same agent signed by him “surviving partner-and successor to 1). F. Sullivan.” As executor .of of ¡the last will and testament, as we have said, he was the successor of D. F. under the very terms of the contract. The reply to these letters by the agent addressing him personally, in no special relation, cannot by any sort of construction be said, to have conceded his rights as surviving partner.
One of the essential elements of an estoppel is certainty; and it cannot be said that it clearly appears-
Another essential of an estoppel is mutuality. Until the plaintiff unequivocally fixed his own status with reference to the contract, that is, until he had by his conduct, declarations or admissions so placed himself in the position of asserting his rights as surviving partnei*, and not otherwise, as that he was bound in that relation and in no other, there can be no estoppel as against the agents with whom he was dealing, much less against the defendant, to dispute his right as such. This he did not do. On the contrary, he left the question of his status, as successor, open and undetermined. In one batch of letters written, he claimed to be asserting his rights as surviving partner. In the next, he asserted his rights as “surviving partner and successor to 1). F. Sullivan.” Whether the succession was claimed in the latter as surviving partner or as executor or as successor of I). F. Sullivan-in the timber and lumber business after his (I). F.’s) retirement was certainly not definitely and conclusively disclosed by this language. The agent whose duty it was to perform for the defendant the obligations of the contract -would certainly not have been authorized to have refused to do
There was an absolute failure on the part of the plaintiff to bring his case, for the several reasons pointed out, within the application of the principle of estoppel invoked by him.—1 Brick. Dig. 796, §§ 2, 5; Hunley v. Hunley, 15 Ala. 91, 105; Pounds v. Richards, 21 Ala. 424; 2 Pom. Eq. Jur., § 805.
However, if it be conceded that the evidence establishes the existence of a partnership and a recognition of the plaintiff’s rights, by the agents of the defendant after the execution of the contracts, in the absence of evidence of the agent’s 'authority to bind the, defendant, here is a failure of proof of the recognition as alleged in the complaint.—Cook on Stockholders, §§ 716-720 and notes. It cannot be held that there has been a ratification by defendant of the unauthorized acts of its agents, conceding, for the sake of argument, they are shown, upon any phase of the case as. made by the evidence.—Dabney v. Stevens, 40 Howard’s Pr. 341; Tracy v. The Guthrie Co. Ag. So., 47 Ia. 27; Wheeler v. McGuire, 86 Ala. 398. In the opinion in the case of Dabney v. Stevens, there i's an elaborate discussion of many of the principles invoked in the queston under consideration. Upon what theory the plaintiff could' contend for a ratification and in the same breath insist upon breaches, of the contracts, as changed or altered by the conduct of the agents, we are quite unable to see. From his standpoint, the acts of the agents consisted in its breach as well as a recognition of his rights as surviving partner to demand performance. If there was a ratification of the one, there Avas. of necessity a ratification of the other. If the contract was changed, as changed it is an entirety. There cannot well be a repudiation of it and ■nt the same time a recognition of it. Or to state ¡the proposition in another form, there cannot be a rati
Affirmed.