Way v. Stebbins

• Decision Date: 05 January 1881
• Citation: 11 N.W. 166,47 Mich. 296
• Court: Michigan Supreme Court
• Parties: WAY and others v. STEBBINS and others.

11 N.W. 166

47 Mich. 296

WAY and others v. STEBBINS and others.

Supreme Court of Michigan

January 5, 1881

The presentation in the probate court of a claim against an estate does not estop the claimant from afterwards suing it in equity as a partnership claim, if its former presentation was not intended as an abandonment of it as such, and if it was expressly rejected on that ground at the respondent's instance.

Partnership property subject to partnership debts vests in the surviving partner; and the heirs of a deceased partner in whose name it was purchased cannot retain it until such payment.

Partnership lands are to be equally divided among the survivors and the heirs of a deceased partner when there are no partnership debts to be satisfied.

Property purchased with the design that it shall become partnership property, and actually used in accordance with that design must be regarded as firm assets.

Where one partner purchased property for the use of the firm but in his own name, though with the money of another partner, and the property is actually used as firm assets, the case does not fall within the principle of Comp.Laws,� 4120 prohibiting resulting trusts, but must be treated as partnership property.

Appeal from Ionia in chancery.

Wells & Morse, for complainants.

Blanchard Bell & Cagwin, for defendants and appellants.

CAMPBELL J.

Complainants as heirs at law of John M. Way deceased, filed a bill against the heirs of Joseph Stebbins in the circuit court for the county of Ionia to obtain a conveyance of an undivided half of certain lands in that county which it is claimed were held during his life-time by Josephus Stebbins in his own name, but in fact for a partnership composed of himself and Way. The court below granted the relief prayed, and defendants appeal. The facts show that there was a verbal agreement between Way and Stebbins to buy the land, which was to be sold at an administrator's sale. Way could not be present and Stebbins was to arrange for the purchase,--Way advancing money for a payment down. The title was taken in the name of Stebbins, as a mortgage had to be given back for a part of the price. Way made further advances from time to time, and the land was used and lumbered on for partnership purposes. The business seems to have practically ended before the death of Stebbins.

The testimony indicates that Stebbins designed to convey to Way and actually signed a deed for that purpose, which was not completely executed by acknowledgement because his wife would not join in it. There is no...