Woarms v. Bauer — 32 N.Y. St. Rep. 331

Majority

p. 331

Albert L. Woarms et al., Resp’ts, v. Moritz Bauer, App’lt.^[1]

(New York Common Pleas, General Term

Filed June 16, 1890.)

Headnote

1. Partnership — Parties—When executors of deceased partner may BE JOINED WITH SURVIVORS.

The personal representatives of a deceased partner may be joined as parties with the surviving partners in an action upon a debt due the original copartnership, where such representatives are directed by the will to continue the business with the survivors pursuant to the provisions of the original articles, which provided that in case of death of one of the partners his interest should survive and accrue to and be continued by his representatives and the survivors, and a debtor of the firm has no right to object to such joinder.

2. Same.

It is perfectly competent for partners to make such an arrangement and for one to direct in his will that it be carried out by h's representatives, and for such representatives and the survivors to act upon it.

Appeal by defendant from a judgment of the general term of the city court, affirming a judgment of the trial term, entered in favor of the plaintiffs for $690.14.

This action is brought to recover for work and labor performed for the defendant by the firm of D. S. Hess & Co. The complaint, after setting forth the doing of,the said work, alleges that by virtue of the articles of the copartnership of the firm, it was mutually agreed that in the event of the demise of D. S. Hess, one of the members, before the expiration of the stipulated term, of partnership, his interest as a partner in said firm should sur

p. 332

vive and accrue to and be continued by bis personal representatives, and that said business should be continued by the other partners and the said representatives as copartners. It further alleges that before the expiration of the said stipulated term of partnership, and before the commencement of this action, Hess died, leaving a will, by which the plaintiffs, Albert L. Woarms, Martin S. Fecheimer arid Sarah Hess, were appointed as executors thereof and were directed to carry out the provisions of the copartnership articles aforesaid; that letters testamentary have been issued to the said executors; that they qualified as. such executors and entered upon the discharge of the duties of their office, and carried out the aforesaid provisions of the copartnership articles of the firm of D. S. Hess & Co., as directed by the same.

The answer denied the value of the work, labor and services claimed, and further answering and as a separate and distinct defense, alleged a misjoinder of parties plaintiff.

The cause came on for trial in the city court and was duly submitted upon the pleadings, the sole question raised being the sufficiency of the defense of misjoinder of parties plaintiff. Judgment was given for the plaintiff for the whole amount claimed.

Donohue, Newcombe & Cardozo, for app’lt; Maximus A. Lesser, for resp’ts.

The only question in the case is whether the personal representatives of a. deceased partner may be joined as parties with the surviving partners, in an action upon a debt due the original copartnership, where such personal representatives are directed by their testator, in his last will and testament, to continue with the survivors the business of the copartnership pursuant to the provisions of the original articles, which stipulated that in the event of the death of the testator his interest as partner should survive and accrue to and be continued by his persona] representatives and the other survivors.

There seems to be no possible objection to such a course. While the rule is that in the event of the death of a partner the .survivors “ succeed primarily to all the rights and interest of the partnership and have the entire control of all the partnership property and the sole right to collect partnership dues,” Voorhis v. Childs' Executor, 17 N. Y., 354 , yet the rule is not applicable where by agreement among the copartners the interest of any one of them who dies accrues to and is continued by his personal representatives as copartners.

It is perfectly competent for copartners to make such an agreement, and for one of them to direct in his last will and testament that it be carried out by his personal representatives, and for the surviving partners and such representatives to act under such agreement. Lane v. Arnold, 11 Daly, 293 . When such personal representatives are admitted by the other copartners to continue the business as succeeding to the rights and interest of the deceased, the survivors thereby waive their right to the exclusive control of the copartnership property, and their succession to all the rights

p. 333

and interests of the partnership, and necessarily waive their exclusive right to collect the copartnership dues. The latter right to ■collect and sue for the partnership debts grows out of the exclusive right to possession and control of the copartnership effects, and if the latter right be waived, and the representatives of a deceased copartner are admitted to a share in it, they are also admitted to the right of collection and suit The question is one wholly in the discretion of the surviving. partners, and the debtors of the firm have no ground of complaint. The defendant, therefore, cannot object to the joining of the representatives of the deceased partner with the surviving partners in this action, and the only •question litigated in the court below was properly disposed of.

Upon this appeal the point is made that as the trial was upon the pleadings, the defendant should have had leave to amend as upon the decision of a demurrer, and that the judgment should be reversed. No request for leave to amend was made in the city court, and there is nothing for us to review upon that head. The only point submitted to the court at the trial was the alleged misjoinder of parties plaintiff, the denials in the answer having been apparently waived. Had an application for leave to amend been asked for, it would have been granted. It seems now to be suggested for the first time without the city court having had the opportunity to pass upon it. As it was a matter within the discretion of that court, the application to us cannot be entertained; •and the judgment cannot be reversed in order to permit such •application to be made in the city court.

The judgment should be affirmed, with costs.

Larremore, Ch. J., and Bischoff, J., concur.