Wilson v. Etheredge

• Decision Date: 05 April 1949
• Docket Number: 16206.
• Citation: 52 S.E.2d 812,214 S.C. 396
• Parties: WILSON v. ETHEREDGE et al.
• Court: South Carolina Supreme Court

52 S.E.2d 812

214 S.C. 396

WILSON v. ETHEREDGE et al.

No. 16206.

Supreme Court of South Carolina

April 5, 1949

J. Perrin Anderson, of Greenwood, for appellant.

P L. Felder, Jr., and A. J. Hydrick, both of Orangeburg, and L M. Gressette, of St. Matthews, for respondent.

FISHBURNE Justice.

This appeal brings up for review the validity of a claim filed by the appellant, Paul B. Wilson, against the receivers of the estate of L. K. Etheredge, who died March 11, 1947. Payment of the claim which amounted to $1,648.35 was refused by the receivers, and the matter was referred to a special referee who after hearing the evidence, rejected certain items. He recommended that the balance of $611.87 should be paid as constituting a valid claim against the estate. Upon exceptions being taken by both parties to the circuit court that court disallowed the claim in its entirety.

The amount involved in this litigation is the value of certain tools and items of machinery, the property of appellant, which it is charged were under the control and in the possession of L. K. Etheredge as a gratuitous bailee. It is argued that the estate should be held liable for their loss because the legal relationship of the parties was that of bailor and bailee. No formal pleadings were filed in the proceeding.

The circuit judge in reversing the special referee held that under the evidence no bailment was created, but that Wilson and Etheredge entered into a limited partnership from which no liability arose with reference to the machinery.

The first question for determination is: What was the nature of the bailment, if one existed? The issue arises under the following circumstances:

The appellant, Wilson, for many years prior to 1936, operated a machine shop in the city of Greenwood, South Carolina, and was also an inventor of various mechanical devices, on some of which he obtained patents. L. K. Etheredge resided about three miles from North, in Orangeburg County, and in addition to conducting large farming interests, was engaged in the operation of a sawmill, cotton gin, and other business enterprises. Prior to the events giving rise to this cause of action, he had employed Wilson on various occasions to come down to North from his home at Greenwood, to install and repair machinery.

Wilson conceived the idea of inventing a 'magnetic loom' for the weaving of cloth which would eliminate the noise incident to the operation of looms. He interested Etheredge in the project and a written agreement was entered into between them during the year 1936, under the terms of which Etheredge was to furnish certain money to defray the cost of applying for Letters Patent on the magnetic loom, and was to participate in any profits which might be made from the sale of the loom or the patent rights, to the extent of one-half. This patent was obtained in 1938.

The loom, however, was still not perfected sufficiently for successful operation, and it was agreed between Wilson and Etheredge that Wilson would continue his work in an effort to perfect the loom so as to get it in commercial production. Pursuant to this agreement, which was verbal, Wilson was to furnish the tools and machinery which would be needed in fully developing the inventon, and Etheredge was to provide the money for buying necessary material and for other expenses, such as electric current for operating the machinery used by Wilson in his work.

The machinery in question, an itemized list of which was filed with the receivers, was owned by Wilson and had been in his possession several years prior to the time he and Etheredge entered into their agreement. It was moved from Wilson's machine shop in Greenwood in trucks furnished by Etheredge, to a shop located about 200 feet behind the residence of Etheredge at North.

Wilson would, from time to time, go to North from his home at Greenwood, eighty miles away, to work on the loom in this shop on the premises of Etheredge. The work was not constant because of the difficulty of obtaining materials, but this intermittent work was performed by Wilson during the years 1939, 1940 and 1941. Sometime in the year 1941, Wilson sustained serious bodily injuries and was confined in a hospital and at his home for more than a year, which prevented his performing any active labor. Meanwhile his machinery remained in the Etheredge shop at North.

Wilson testified that about one year prior to the death of Etheredge, which occurred March 11, 1947, he went to see him at his home. Etheredge was recuperating from an illness at the time and was confined to the house. At this meeting they discussed the invention, and Etheredge told Wilson that he was not willing to put any more money into the enterprise. Wilson wished to get his machinery from the Etheredge shop in the yard and Etheredge told him he could get it, but that he (Etheredge) was not in shape to attend to it. Consequently, the machinery and tools remained in the custody and under the control of Etheredge. While Wilson had free access to the shop on the occasions when he worked on the loom, he had no key to the building, and he never got possession of his machinery.

Mr Houser, one of the receivers of the Etheredge Estate, testified that when he was appointed receiver he made a complete inventory of the estate, but found no machinery in any way answering the description of the articles listed by Wilson. Witnesses for the respondents admitted, however, that machinery...