Wells v. Babcock

• Decision Date: 09 April 1885
• Citation: 56 Mich. 276,22 N.W. 809
• Court: Michigan Supreme Court
• Parties: WELLS v. BABCOCK.

22 N.W. 809

56 Mich. 276

WELLS v. BABCOCK.

Supreme Court of Michigan

April 9, 1885

Appeal from Ionia.

Mitchel, Bell & McGarey, for complainant.

Morse Wilson & Trowbridge and A.A. Ellis, for defendant.

CHAMPLIN J.

Complainant files his bill praying for the dissolution of a copartnership, and for accounting. She states that in January or February, A.D.1879, she entered into a copartnership with defendant for the purpose of purchasing lands of imperfect title, settling or perfecting the titles to the same, and then selling and disposing of said lands. Babcock was to furnish all the money necessary to carry on the business, and Chauncey P. Wells, the husband of complainant, was to do all the necessary labor, and use all the skill, business tact and ability he possessed in conducting and prosecuting said business, in the profits and loss of which complainant and defendant were to share equally. That the contract was verbal, and no time fixed for its termination; and the firm was to be known as "Babcock & Wells." That immediately after its formation the firm entered at once upon said business, and continued to carry it on until February or March, 1881, at which time an additional arrangement was entered into. That in purchasing lands with imperfect titles the firm purchased of Moses Berridge the pine timber on 40 acres of land, on or about the twelfth day of July, 1880, and on the thirtieth it purchased of A. & J. McPherson 40 acres of pine land, which land and timber was sold a few days after at a profit. That during October, 1880, the firm bought from James McCreedy 80 acres of pine land, and sold the same in December at a profit. That on October 15, 1880, they purchased of Chauncey J. Rumney 200 acres of land. That on the thirtieth of October, 1880, the firm bought of Jacob Weeks the undivided one-third of 300 acres of land, which was afterwards divided, the firm receiving the north one-third of the half section. That on the tenth of November, 1880, the firm purchased the pine timber remaining on about 840 acres of land from Whitney & Stinchfield, and on the twenty-sixth day of August, 1881, they purchased from David E. Wilson 80 acres of pine land. All of these lands were situated in the counties of Ionia and Montcalm. The aggregate purchase price exceeded $18,000.

The bill further charges that the title to all these lands was taken and held by the firm in the name of Burton Babcock that the money paid therefor was furnished by him, and when sold the money was received by him. The bill then alleges that the firm, in the latter part of November or first part of December, 1880, entered into contracts with Freed Brothers, with S. & W.D. Gould, and with Charles A. Chilson to cut the pine and manufacture into shingles upon certain descriptions of said lands; that these contracts were made in the name of Burton Babcock for the benefit of the firm of Babcock & Wells; "that some time during the month of February or March, 1881, the said Burton Babcock and said Chauncey E. Wells (the said Chauncey E. Wells acting as the agent of your oratrix in all the business transactions of said firm) had a talk in relation to how the business of manufacturing and selling shingles should be carried on, and it was then and there agreed by the said Chauncey E. Wells, for and in behalf of your oratrix and the said Burton Babcock, that the business of manufacturing and selling said shingles should be carried on in the name of B. Babcock & Co., in order that the same might be kept separate from the other business of said firm; that as the business of manufacturing and selling shingles would necessarily require a large amount of money to manage the same successfully, which said Burton Babcock agreed to furnish, the said firm should pay him interest on the money advanced by him with which said manufacturing business should be carried on." The bill...