Milleman v. Kavanaugh

Citations

• 213 Pa. 240
• 62 A. 907
• 1906 Pa. LEXIS 456

Syllabus

<p>Equity — Jurisdiction—Remedy at law — Partnership.</p> <p>The creditors of a deceased partner who were not creditors of the partnership, agreed with the surviving partner and the widow of the deceased partner, who was also his administratrix, that the surviving partner should purchase the partnership property, pay the partnership debts, and pay the administratrix whatever should be due to the deceased partner’s estate. He was also to furnish to the deceased’s creditors a statement of the amounts paid. By a second agreement dated one day after the first, between the creditors and the widow as an individual, and not as administratrix, it was agreed that if the interest of the deceased’s estate in the surplus after the payment of the partnership debts, was not sufficient to discharge the debt of the creditors, she would pay it with the profits to be derived from a new partnership between herself and the surviving partner. The creditors agreed that they would not demand payment of her in any other manner. Subsequently, the creditors, who were not paid, filed a bill in equity against the administratrix, the members of the new partnership, and a corporation that succeeded to the partnership, praying for an account of the second partnership and the payment of their debts. Held, that the bill was properly dismissed, inasmuch as the creditors’ remedy was against the widow alone, as an individual, and as to her they had an adequate remedy at law.</p>