Todd v. Lorah

Decision Date26 January 1874
Citation75 Pa. 155
PartiesTodd <I>versus</I> Lorah.
CourtPennsylvania Supreme Court

Before AGNEW, C. J., MERCUR and GORDON, JJ. SHARSWOOD, J., at Nisi Prius.

Error to the Court of Common Pleas of Montgomery county: No. 280, to January Term 1874. J. O. Gotwalts and G. N. Corson, for plaintiff in error, cited Browrigg v. Rae, 5 Exch. 489; Wallace v. Kelsall, 7 M. & W. 264; Gordon v. Ellis, 7 Man. & Gr. 609.

H. K. Weand, for defendant in error.

The opinion of the court was delivered, January 26th 1874, by GORDON, J.

In the case stated, which was submitted to the court below for its decision, there is one controlling statement, that is, that Lorah, the partner of Willman, was not a party to the arrangement by which Dr. Todd was to get the goods of the firm in satisfaction of his bill against Willman, neither did he consent thereto. But this consent is exactly what is necessary in order to bind a firm to an arrangement by which the partnership assets are to be taken to pay an individual debt: Noble v. McClintock, 2 W. & S. 152; Tanner v. Hall, 1 Barr 417; Purdy v. Powers, 6 Barr 494. Ordinarily this consent may be gathered from attendant circumstances, such as the knowledge of the other partners that the goods are so being appropriated, and their silent acquiescence in the transaction, when they ought in good faith to speak out and dissent. But we apprehend that knowledge alone would not be sufficient to bind the other member or members of the firm, and especially where the individual creditor is being regularly charged with the goods on the firm books, and there is no assumption thereof upon such books by the individual partner. Every one is bound to know that a partner has no right to appropriate the partnership property to the payment of his individual debts, and if one so deals with him, he must run the risk of the interposition of partnership rights.

Whatever difficulties might otherwise be raised in the interpretation of this case, they were, as we have already intimated, settled by the concession in the case stated, that Lorah did not consent to the arrangement between Willman and the defendant, and it is therefore certain that the firm was not compromised by it.

Judgment affirmed.

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4 cases
  • McIntosh v. Detroit Sav. Bank
    • United States
    • Michigan Supreme Court
    • 3 juin 1929
    ...v. Meigs, 53 Barb. (N. Y.) 272;Purdy v. Powers, 6 Pa. (6 Barr) 492; Ex parte Bushell, 3 Montagu, Deacon & De Gex's Rep. 615; Todd v. Lorah, 75 Pa. 155; Wise v. Copley, 36 Ga. 508; Arden v. Sharpe, 2 Esp. 524; Kendal v. Wood, 6 Law R. Ex. 243; Green v. Deakin, 2 Starkie, 347; 3 Kent, Comm. p......
  • Leonard v. Smith
    • United States
    • Pennsylvania Supreme Court
    • 11 juillet 1894
    ...it. But if we read the answer as referring to an express agreement, all difficulty disappears. No express agreement was required (Todd v. Lorah, 75 Pa. 155) and the referee properly say that its existence was not material. Turning now to the other construction suggested, that the referee's ......
  • Thomas v. Stetson
    • United States
    • Iowa Supreme Court
    • 14 décembre 1883
    ... ... & Bat. Eq. 284; Weed v. Richardson, 19 N.C ... 535, 2 Dev. & Bat. Law 535; Pierce v. Pass, 1 Port ... 232; Caldwell v. Scott, 54 N.H. 414; Todd v ... Lorah, 75 Pa. 155; Everingham v. Ensworth, 7 ... Wend. 326; Dob v. Halsey, 16 Johns. 34; Viles v ... Bangs, 36 Wis. 131. Possibly it may ... ...
  • J. B. Larzelere & Son v. Tiel
    • United States
    • Pennsylvania Superior Court
    • 7 décembre 1896
    ...circumstances, such as the knowledge of the other partners, that the assets are being so applied, and their acquiescence therein: Todd v. Lorah, 75 Pa. 155; Leonard v. Smith, 162 Pa. But is this a case where one partner seeks to pay his individual debts with the firm's assets? If, as indica......

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