Shannon Manufacturing Co. v. McCaulley

Citations

• 214 Pa. 377
• 63 A. 794
• 1906 Pa. LEXIS 665

Syllabus

<p>Contract — Assignment—Attachment—Partnership—Corporation.</p> <p>A partnership consisting of two persons were subcontractors in a building operation. During the progress of the work the members of the partnership organized a corporation which took up and carried on a part of the work. Subsequently the contractor objected to the work thus being done, and stopped payments. A third person who was interested in the completion of the work, took an assignment of the contract together with all money due or which should become due thereon to the partnership, and the work was completed. Subsequently a creditor of the corporation summoned the contractor as garnishee in a foreign attachment. It did not appear that the contract had ever been assigned to the corporation, and it did appear that all of the contractor’s relations, dealings and correspondence were with the partnership and not with the corporation. On the trial of an issue between the plaintiff and the contractor, the plaintiff requested the court to charge that if the partnership turned over the contract to the corporation, and the corporation performed it, and the contractor accepted the performance, he was liable to plaintiff as to the moneys in his hands unpaid on account of the contract. The court answered that the point should be affirmed unless the jury found that the owner of the contract, and those entitled to receive money under it in good faith and for an honest and valuable consideration parted with their interest by assigning such interest to the person who completed the contract. Held, that there was no error in the answer, and that a verdict and judgment for the garnishee should be affirmed.</p>