McCutcheon v. Smith

Citations

• 173 Pa. 101
• 33 A. 881
• 1896 Pa. LEXIS 665

Syllabus

<p>[Marked to he reported.]</p> <p>Partnership — Equity—Dealing in real estate — Secret profit.</p> <p>Where two partners, after the dissolution of the partnership, unite in purchasing the real estate of a debtor of the firm, for the purpose of selling it again and making up a portion or all of the debt, they occupy such a relation of trust and confidence to each other that one of them will not be permitted to make a profit at the expense of the other by entering into an agreement to sell the whole tract at a certain price, and without disclosing the agreement purchase from the other his half interest at a price much less than the price which the seller is to receive for it.</p> <p>Equity practice — Amendment—Evidence.</p> <p>Where a bill is filed by one partner against another for an account, and fraud is not alleged in the bill, but in the testimony taken before the master it appears that the defendant made a secret profit at the expense of his partner by fraudulently concealing a transaction connected with the partnership affairs, the court on exceptions to the master’s report will permit an amendment of the bill so as to charge fraud, and refer the case back to the master to permit the defendants to produce such testimony as they may deem fit.</p>