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Concra Corp. v. Andrus

Supreme Court of Vermont
Apr 6, 1982
141 Vt. 169 (Vt. 1982)

Summary

holding that a partner in a partnership without limited partners is jointly liable for all the partnership's contract liability

Summary of this case from Willard v. Parsons Hill Partnership

Opinion

No. 295-81

Opinion Filed April 6, 1982

1. Trial — Issues Not Made by Pleadings — Failure To Object

Where advertising agency's complaint alleged contract liability for the balance due for advertising services on the part of two brothers, even if the complaint was not as precise as might be desired, where the record was replete with numerous references in the evidence, statements of counsel, and requests for findings by the brothers that the crucial issue was whether the brothers were partners and hence jointly liable, the partnership issue having been tried without objection, it was treated as having been raised by the pleadings and there was no error in the trial court's finding that the two brothers as partners were jointly liable for the debt. V.R.C.P. 8, 15(b).

2. Appeal and Error — Harmless Error — Particular Cases

In an action for contract liability, where the defendants had filed interrogatories in January 1980 and in July 1980 moved for an order compelling the plaintiff to answer, which the court granted with an order to compel, and which order the plaintiff complied with, although the defendants claimed the answers were incomplete, but only raised the issue at trial, during which the court recessed to allow defendants to look over the relevant documents, and the defendants then proceeded with the trial without any objection or alleging any prejudice, it was harmless error for the trial court not to hear the motion to compel, which defendants had requested one week prior to trial, particularly where, at oral argument, defendant admitted that any discovery issue had been waived.

3. Appeal and Error — Scope of Review — Questions Not Considered Below

In an action for contract liability, where defendant claimed, for the first time on appeal that he was unable to examine an exhibit after trial even though he had requested such permission and it had been granted, and he did not file a motion for enlargement of time in which to file requests for findings or any other appropriate motion below, nor did he bring the matter to the attention of the trial court either before or after judgment was entered, the issue, not raised below, was not reviewed by the supreme court.

4. Appeal and Error — Findings — Tests for Overturning

Findings of fact will not be set aside unless clearly erroneous. V.R.C.P. 52.

5. Appeal and Error — Evidence — Tests and Standards

When the evidence is conflicting, the credibility of the witness, the weight of the evidence, and its persuasive effect are questions for the trier of fact, and its determination must stand if supported by credible evidence even though there may be inconsistencies or substantial evidence to the contrary.

6. Partnership — Partners — Parties Considered Partners

In a contract action for the balance due for advertising services, the record provided ample support of a finding of partnership where advertising for the real estate agencies of both defendants was placed with the plaintiff; both defendants used the same telephone number and address; both defendants placed advertising for the same properties; both defendants made payments on account as well as having made payment from corporations in which both had an interest; when one of the defendants had his real estate license revoked he operated under the other defendant's license; and where there was testimony, although conflicting, that one of the defendants received profits from the real estate office operation. 11 V.S.A. § 1161(a).

7. Partnership — Partners — Parties Considered Partners

In a contract action for the balance due for advertising services, the findings of the trial court were amply supported by the evidence, and the trial court's conclusions of law, that the defendants associated as co-owners to carry on a real estate business for profit and that the defendants were jointly liable, were supported by the court's findings, and it made no difference that the defendants may not have known that their association created a partnership. 11 V.S.A. §§ 1161(a), 1207(2).

8. Partnership — Contracts — Liability of Partners

In a contract action for the balance due for advertising services, the trial court erred in holding the defendants jointly and severally liable for the debt on the basis of a tort committed by a partner, but the error was not prejudicial where tort liability was not pleaded or tried and the trial court's findings supported contract liability only; therefore, the defendants were only jointly liable and not both jointly and severally liable. 11 V.S.A. §§ 1205, 1207.

9. Partnership — Contracts — Liability of Partners

Partners are both jointly and severally liable for torts and breaches of trust, but they are only jointly liable for contract liability. 11 V.S.A. § 1207.

10. Judgments — Parties Affected — Partners

In a contract action for the balance due for advertising services, where the trial court found that the two defendants had engaged in a real estate business and that as partners they were jointly and severally liable for the debt, although the trial court erred in holding the defendants both jointly and severally liable, when they were only jointly liable, the error was not prejudicial, and as both defendants were joined the distinction was academic, since even though a judgment is joint, payment of the entire judgment may be levied against and satisfied by any one of the parties held jointly liable. 11 V.S.A. § 1207.

Appeal from judgment for advertising agency for the balance due for advertising services. Rutland Superior Court, Meaker, J., presiding. Affirmed in part and reversed in part.

Smith, Harlow Liccardi, Rutland, for Plaintiff.

Williams, Williams Vreeland, P.C., Poultney, for Defendant.

Present: Barney, C.J., Billings, Hill, Underwood and Peck, JJ.


Plaintiff-appellee filed a complaint in the Rutland Superior Court against both defendants for the balance due for advertising services. The trial court found that the two defendants had engaged in a real estate business and that as partners they were jointly and severally liable for the debt. Only the defendant W. Otis Andrus appeals the judgment of $9,676.57.

Defendant claims that he is not a partner and is not jointly liable with his brother, defendant John Holmes Andrus. He raises the following issues for review: (1) that the partnership issue was not pleaded or tried; (2) that the trial court's failure to compel an answer to defendants' interrogatories prevented defendant from presenting a defense; (3) that the defendants requested permission, which was granted by the trial court, to examine an exhibit after trial in order to prepare requests for findings but that he was prevented from examining the exhibit prior to filing his requests; (4) that the findings and conclusions are not supported by the evidence; and (5) that the trial court erred in basing its judgment in part upon the wrongful acts of a partner under 11 V.S.A. § 1205 because this issue was not alleged, tried, or proved.

First, defendant claims that the issue of partnership was not pleaded nor tried below. Pursuant to V.R.C.P. 8 plaintiff's complaint simply, concisely, and directly alleged contract liability on the part of the defendants. Defendant had fair notice of the claim and grounds upon which it rests. Mancini v. Mancini, 136 Vt. 231, 234, 388 A.2d 414, 416 (1978). Even if the complaint was not as precise as might be desired, the record is replete with numerous references in the evidence, statements of counsel, and requests for findings by the defendants that the crucial issue was whether the defendants were partners and hence jointly liable. Because the partnership issue was tried without objection, it is treated as having been raised by the pleadings. V.R.C.P. 15(b); Valsangiacomo v. Paige Campbell, Inc., 136 Vt. 278, 280, 388 A.2d 389, 391 (1978). No error appears here.

Second, defendant claims the trial court erred in failing to compel answers to interrogatories. The defendants filed interrogatories pursuant to V.R.C.P. 33 in January 1980. In July 1980, defendants moved for an order compelling plaintiff to answer, V.R.C.P. 37(a)(2), and in August 1980 the court issued an order to compel. Plaintiff answered by the court's deadline, although defendants claim the answers were incomplete. A week before trial in April 1981 defendant asked for a hearing on the motion to compel. Defendants, however, proceeded to trial and only then did they raise the issue. The trial court recessed to allow the defendants to look over the relevant documents. The defendants then proceeded with the trial without making any objection or alleging any prejudice. On appeal the defendants still fail to show any prejudice, and therefore at best it was harmless error not to hear the motion to compel. Paradis v. Kirby, 138 Vt. 524, 528, 418 A.2d 863, 865 (1980). In addition it should be noted that at oral argument defendant admitted that any discovery issue had now been waived.

Third, defendant claims that he was unable to examine, after the conclusion of the trial and prior to filing his request for findings, an exhibit introduced at trial, purported to be pages from plaintiff's accounts receivable, even though he had requested such permission, and it had been granted. Defendant raises this issue here for the first time. He did not file a motion for enlargement of time in which to file requests for findings or any other appropriate motion below. Nor did he bring this matter to the attention of the trial court either before or after judgment was entered. This Court will not review issues that were not raised below. Berlin v. Berlin, 139 Vt. 339, 340, 428 A.2d 1113, 1114 (1981).

Fourth, defendant claims that the findings of fact and conclusions of law are not supported by the evidence. Findings of fact shall not be set aside unless clearly erroneous. V.R.C.P. 52. When the evidence is conflicting the credibility of the witnesses, the weight of the evidence, and its persuasive effect are questions for the trier of fact, and its determination must stand if supported by credible evidence even though there may be inconsistencies or substantial evidence to the contrary. Stamato v. Quazzo, 139 Vt. 155, 158, 423 A.2d 1201, 1203 (1980); Frogate v. Kissell, 138 Vt. 167, 169, 412 A.2d 1138, 1139 (1980).

On the record here there is ample evidence to support a finding of partnership, 11 V.S.A. § 1161(a) : advertising for the real estate agencies of both defendants was placed with the plaintiff; both defendants used the same telephone number and address; both defendants placed advertising for the same properties; both defendants made payments on account as well as having made payment from corporations in which both had an interest; when the real estate license of one of the defendants was first suspended and later permanently revoked the business operated under the other defendant's license; and although it was conflicting, there was testimony that the defendant-appellant received profits from the real estate office operation.

11 V.S.A. § 1161(a) defines partnerships: "A partnership is an association of two or more persons to carry on as co-owners a business for profit."

In viewing all the evidence in the light most favorable to the prevailing party and excluding the effect of modifying evidence as we must do, the findings are amply supported. Stamato v. Quazzo, supra, 139 Vt. at 158, 423 A.2d at 1203; Tallarico v. Brett, 137 Vt. 52, 58, 400 A.2d 959, 963 (1979). The trial court's conclusions of law, that the defendants associated as co-owners to carry on a real estate business for profit, 11 V.S.A. § 1161(a), and that the defendants are jointly liable, 11 V.S.A. § 1207(2), are supported by the trial court's findings of fact which in turn are amply supported by the evidence. It makes no difference that the parties may not have known that their association created a partnership. Raymond S. Roberts, Inc. v. White, 117 Vt. 573, 577, 97 A.2d 245, 248 (1953).

Finally, the defendant claims that the trial court erred in holding the parties jointly and severally liable on the basis of a tort committed by a partner. 11 V.S.A. §§ 1205, 1207(1). We agree there was error, but find it was not prejudicial. Tort liability was not pleaded or tried, Mancini, supra, 136 Vt. at 234, 388 A.2d at 416, and the trial court's findings support contract liability only.

Partners are both jointly and severally liable for torts and breaches of trust, 11 V.S.A. § 1207(1), but they are only jointly liable for contract liability, 11 V.S.A. § 1207(2). Therefore, the lower court erred in holding the defendants both jointly and severally liable. Under 11 V.S.A. § 1207 they are only jointly liable.

As both parties were joined, the distinction at this stage of the proceeding is academic. We raise it only to avoid any potential confusion. Even though a judgment is joint, payment of the entire judgment may be levied against and satisfied by any one of the parties held jointly liable. Traylor v. Grafton, 273 Md. 649, 672, 332 A.2d 651, 672 (1975).

Affirmed as to joint liability. Reversed as to several liability.


Summaries of

Concra Corp. v. Andrus

Supreme Court of Vermont
Apr 6, 1982
141 Vt. 169 (Vt. 1982)

holding that a partner in a partnership without limited partners is jointly liable for all the partnership's contract liability

Summary of this case from Willard v. Parsons Hill Partnership

concluding that partnership issue, which was not precisely pled, was treated as raised by pleadings where it was referenced in evidence, statements of counsel, and requests to find

Summary of this case from Soon K. Kwon v. Edson
Case details for

Concra Corp. v. Andrus

Case Details

Full title:Concra Corporation, d/b/a Colonial Advertising Agency v. W. Otis Andrus…

Court:Supreme Court of Vermont

Date published: Apr 6, 1982

Citations

141 Vt. 169 (Vt. 1982)
446 A.2d 363

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