Schlicher v. Vogel

• Decision Date: 02 November 1900
• Citation: 47 A. 448,61 N.J.E. 158
• Parties: SCHLICHER v. VOGEL et al.
• Court: New Jersey Court of Chancery

47 A. 448

61 N.J.E. 158

SCHLICHER

v. VOGEL et al.

Court of Chancery of New Jersey.

Nov. 2, 1900.

Bill by Peter Schlicher against Louis Vogel and others for an accounting. Denied.

George O. Vanderbilt and John T. Bird, for complainant.

Edward M. Hunt, for defendant.

Louis Vogel. Prank S. Katzenbach, for defendants.

John R. White and Catharine White.

REED, V. C. On September 22, 1897, a partnership was formed between Peter Schlicher, Louis Vogel, and John R. White, under the firm name of White & Vogel. Schlicher was not to be known as a partner. Each member of the firm was to put in as capital $1,500. Vogel only paid $150, and gave his note to the firm for the balance, $1,350, which note was indorsed by the firm and discounted in the Princeton Bank. This firm continued in the butcher and meat business at Princeton until October 22, 1898, when Schlicher bought out Vogel's interest in the firm. One of the terms of the agreement to sell to Schlicher was that Schlicher assume the payment of the Vogel note of $1,350. It was agreed that the business should be continued in the name of Schlicher & White. On October 27, 1898, Schlicher and White entered into a contract looking to the dissolution of their partnership relations. By the terms of this contract, one Lyons was to have charge of the business, and collect all moneys of the said firm, and deposit them in the Princeton Bank, and render an account each day. It was agreed that no money should be checked out of the bank, unless on checks signed by both Schlicher and White. White was to have 10 days to buy out the interest of Schlicher, and, if he should not do so within 10 days, the partnership was to be dissolved. On November 3, 1898, they signed another agreement of dissolution, and by it White bought all the horses, wagons, fixtures, and stock of the firm. All book accounts were to be put into the hands of Martin W. Hubbard for collection, and the moneys collected were to be put into the Princeton Bank, to be drawn on the joint checks of the parties. All obligations of the firm were to be first paid, and the balance equally divided between Schlicher and White and Vogel. The amount collected had not been sufficient to pay the debts of the firm. Schlicher files this bill for an accounting. The defendants are the two partners White and Vogel and the wife of Mr. White. The principal question is whether Mrs. White should be called upon to account. The way she became involved in the firm transactions is that she kept a boarding house, and bought meats from the firm. On September 20, 1898, Mrs. White was indebted to the firm in the sum of $1,622.15. On October 27th White caused a credit to be given to his wife upon the books of the firm, and had the same amount charged up against himself. This seems to have been done by Mr. White upon his own motion, and for the purpose of relieving his wife, who was responsible, and substituting himself as the creditor of the firm, who now appears of doubtful responsibility. It is not contended that this arrangement discharged the debt of the wife. The contention is that Mr. Schlicher has discharged her debt to the firm, and accepted the husband as the creditor of the firm, by force of a receipt which he gave to White on December 12, 1898. It is in these words: "Received of Mrs. J. R. White one hundred and five 67/100 dollars in full settlement of book account due White and Vogel, or Schlicher and White. Dated December 12, 1898. Peter Schlicher." The facts preceding the giving of this receipt are as follows: When White bought out Schlicher, the terms were, as already remarked, that all debts due to the firm should be collected by Hubbard. White, who proposed to continue the business, wished to retain the trade of the old firm; and, for this purpose, he did not wish certain of the old customers who owed the firm to be pressed at once by Hubbard. He made a list of such customers, and the amounts of their debts, and proposed to give his own note for the amount to Schlicher, and that he himself should thereafter collect those debts. Schlicher consented, and White gave such a note for $1,068.52, payable in 15 days. It appears that Hubbard, in making other collections, inadvertently included some of the debts retained by White; and, when the $1,068.52 note matured, White refused to pay it, alleging these collections by Hubbard. Schlicher wrote on November 22d to Hubbard to look into the matter. Upon consultation it was agreed that the amount so collected should be fixed at $105.67. Now, it appears upon the firm books that Mrs. White after September 21, 1898 (being the date when her husband canceled her debt on the firm of $1,622.15), had...