Magilton v. Stevenson

Citations

• 173 Pa. 560
• 38 W.N.C. 45
• 34 A. 235
• 1896 Pa. LEXIS 743

Syllabus

<p>Partnership — Equity—Bill for dissolution of partnership and for an. account.</p> <p>A partnership between plaintiff and defendants was formed for the single purpose of constructing waterworks. The only contribution of capital was that of $5,000 made by the plaintiff. The articles provided that “ The profits and losses are to be shared equally by the partners, each being entitled to one-fourth of the profits and to be liable to one-fourth of the losses : Provided, however, that the said Magilton (plaintiff) shall in no event be put to a loss of more than $1,250, and that the balance shall be made up and paid to him in case of greater loss, by the other-partners.”</p> <p>After the land on which the works were to have been constructed had been transferred, the enterprise abandoned, and the business become a total failure, plaintiff made a demand on defendants for settlement which was refused, and he then filed a bill in equity for a dissolution and an account. The receiver appointed by the court under the bill was unable to obtain a bid for the personal property on the premises, and nothing of value came into his possession. The master found that such property as remained was worthless. Held, (1) that as there were no assets, no accounts to settle, and nothing remained but to adjust the equities between the parties, a decree in favor of plaintiff to make good to him his loss in-excess of $1,250 could be entered; (2) that the liability of the defendants to pay the loss of the plaintiff in excess of $1,250 was a joint and several liability; (3) that as the partnership had ended and the defendants had refused after demand to adjust the accounts in accordance with the agreement, there was no error in the allowance of interest.</p>