Rosenstiel v. Gray

Citations

• 112 Ill. 282

Syllabus

<p>1. Partnership—accounting between partners—overdraft by one partner—how adjusted. On bill for an accounting between partners, it is not proper to render a personal decree against one partner for the excess of his receipts over his disbursements, until his interest in the firm assets has first been exhausted, to make good the deficiency.</p> <p>2. A partner had overdrawn his private bank account for a considerable sum, the checks having been applied to the benefit of the firm, for which he received credit on the firm’s cash book. The firm then drew a draft on him for such amount in favor of the bank, which he accepted, and the amount was credited on his bank account. He afterward paid a portion of the amount of the draft out of his own money, and the note of the firm was given for the balance: Held, that he was not entitled to have the part of the draft paid by him credited in his favor in the partnership account, as he had already received credits for the same on the firm books.</p> <p>3. Same—in case of a new partner—adjustment as to amount due Mm from the firm. Where a person acquired an interest in a partnership and its property prior to the dissolution of the firm, and was recognized as a partner, it was held, that he was a proper party to a bill for an adjustment of the partnership and for the statement of an account, and there was no error in decreeing that the defendant partner pay him a sum found to be due him, even though the defendant had not consented to his becoming a partner.</p> <p>4. Same—sale by one partner—what passes thereby. The sale by one of three partners of all his interest in the partnership property, including debts due the firm, will pass only his share of what would remain after the payment of all the debts of the firm, including a debt due from the firm to another partner for advances. A purchaser of a partner’s interest in the partnership property acquires only such interest as the vendor had, and that is, his share of the residue aft