McKee v. Covalt

Citations

• 71 Kan. 772
• 81 P. 475
• 1905 Kan. LEXIS 229

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Partnerships — Dissolution—Sale of Mortgaged Land— Bights of Purchaser. Where land is purchased by a co-partnership by an exchange of property, and as a part of the purchase-price the copartnership assumes and agrees to pay a mortgage that is a lien upon the land at the time of the purchase, and the title to the land is taken in the name of the copartnership, which is composed of the individual names of the partners, and before payment of the mortgage the partnership ceases to do business, but there is no accounting or settlement of the partnership affairs, and the mortgage upon the land remains in part unpaid, and other partnership obligations are outstanding, neither party owns an undivided one-half interest in the land which he can convey for his individual benefit to a purchaser having knowledge of the facts, so as to devest the land of its .character as partnership assets; and the purchaser under such circumstances takes the land subject to the mortgage, the rights of creditors, and the rights of the partners as between themselves.</p> <p>2. Mortgages — Part Payment — Limitation. Under such circumstances, after the partnership has ceased to do business, and after one partner has attempted to convey an undivided one-half interest in the land, the other partner may pay a portion of the mortgage indebtedness, and thus extend the running of the statute of limitations on the mortgage upon the entire tract.</p> <p>3. Practice District Court — Service by Publication — Opening a Judgment. On the showing made in this case, the defendant, who was served by publication only, is entitled to have the judgment opened at any time within three years after the rendition thereof, and to be allowed to come in and defend.</p>