May v. Hettrick Bros.

Headnote

Accounting — joint adventure — agreement by defendant to furnish ■ merchandise to plaintiff’s assignor for sale to third party — negotiations by defendant with third party resulting in sale direct to him — action to compel defendant to account for profits.

May v. Hettrick Bros. Co., 200 App. Div. 754 , affirmed.

Appeal from a judgment of the Appellate Division of the Supreme Court in the first judicial department, entered May 19,1922, modifying and affirming as modified a judgment in favor of plaintiff entered upon the report of a referee The plaintiff, as assignee of the A. B. Kirschbaum Company, brought this action against the defendant Hettrick Brothers Company, tent manufacturers, alleging that in December, 1914, the Kirschbaum

Company entered into negotiations with one George Panagoulopoulos for the sale and delivery to him of 100,000 individual shelter half tents at two dollars each and.that the defendant agreed to furnish the tents to the Kirschbaum Company for sale to Panagoulopoulos at one dollar and seventy-four cents each; that a quasi partnership or trust relation existed between the defendant and the Kirschbaum Company because the former' had learned from the latter of its negotiations with Panagoulopoulos and that defendant in violation of its duty to the Kirschbaum Company as a co-adventurer opened negotiations with Panagoulopoulos which resulted in a contract between defendant and Panagoulopoulos, whereby the defendant furnished tents direct to Panagoulopoulos. The relief demanded is: That the defendant, the Hettrick Brothers Company, account to the plaintiff for all profits and advantages accrued or accruing to it over and above the sum of one dollar and. seventy-four cents received or to be received by it for each individual tent sold and delivered by it to the said George Panagoulopoulos or for damages. (See 226 N. Y. 680 .)