Russell v. White

• Decision Date: 28 October 1886
• Citation: 63 Mich. 409,29 N.W. 865
• Court: Michigan Supreme Court
• Parties: RUSSELL v. WHITE.

29 N.W. 865

63 Mich. 409

RUSSELL v. WHITE.

Supreme Court of Michigan

October 28, 1886

Appeal from Branch. In chancery.

Barlow & Loveridge, for complainants.

Wm. E Ware and Frank L. Skeels, for defendants and appellants.

CHAMPLIN J.

The bill in this case was filed by Benton T. Russell for the purpose of dissolving a partnership and winding up its affairs. The bill alleged that on and previous to January 10 1884, the defendants were copartners, doing business in the city of Coldwater in the grocery and provision business, and on that day complainant purchased from John B. Wells his interest in the assets of the firm, with the consent of his copartner, White, and entered into a copartnership with White in said business under the firm name of George M. White &amp Co.; that they continued in business as such copartners until the filing of the bill on the fourteenth day of January, A.D.1886; that by the partnership agreement White was to devote his time and attention to the business, for which he was to be paid eight dollars a week for his services, the partners to share the profits and losses equally. The bill of complaint then set forth the amount of capital put in by each partner; that during the year 1885 the business was in a flourishing condition, and a fair profit made, which complainant left in the business; that in 1886 an inventory was taken, which showed that the firm was insolvent.

The complainant charges the defendant White with the misapplication of the partnership property in paying his individual debts, and in giving to the defendant John B. Wells a chattel mortgage to secure a real or pretended indebtedness of White to him; charges that White is insolvent, and claims that he is himself responsible; prays a dissolution, an appointment of a receiver, an injunction, and an accounting and settlement of the partnership transactions. An injunction was granted, and, with the subpoena, was served upon each of the defendants. On the second day of February, 1886, and before answer, the complainant and defendants entered into a stipulation, by which they consented and agreed upon an order appointing a receiver. This order reads as follows:

"FIFTEENTH JUDICIAL CIRCUIT--IN CHANCERY.

"This cause came on to be heard on motion for the appointment of a receiver therein, of all the partnership assets of the firm of G.M. White & Co., and thereupon, after reading the affidavits and the consent indorsed on such motion, it is ordered that Levi W. Lee, of Coldwater, Michigan, be appointed receiver of the partnership assets of said firm of G.M. White & Co., and that each of the said partners, G.M. White and Benton T. Russell, surrender to the said receiver all moneys and property in their hands belonging to said firm of G.M. White & Co., and all books of accounts, papers, vouchers, and instruments in any way relating to said business.

"And it is further ordered that the said receiver file his bond, with one sufficient surety, to be approved by the register of said court, in the penal sum of $3,500, for the faithful performance of such trust.

"And it is further ordered that the said receiver take immediate possession of said assets, and that, within 12 days from the date of this order, he sell, at public sale, the stock of groceries and merchandise coming to his

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