Case Title: Grimm v. Pallesen

Citation: 215 Kan. 660, 527 P.2d 978

Docket Number: 47,460

State: kansas

Court: Kansas Supreme Court

Date: 1974-11-02T00:00:00Z

Document:
215 Kan. 660 (1974)
527 P.2d 978
DWANE GRIMM, Appellant,
v.
E.E. "PETE" PALLESEN AND JAMES PALLESEN, Appellees.
No. 47,460

Supreme Court of Kansas.
Opinion filed November 2, 1974.
Paul W. Clark, of Topeka, argued the cause, and William L. Stevenson, of Hiawatha, was with him on the brief for the appellant.
Charles Rooney, Sr., of Topeka, argued the cause, and Harry E. Miller, of Hiawatha, was with him on the brief for the appellees.
The opinion of the court was delivered by
FOTH, C.:
This is an action for the dissolution of an alleged partnership. The trial court found that no partnership ever existed and rendered judgment for the defendants. Plaintiff appeals, contending the evidence shows a partnership as a matter of law, or in the alternative that the trial court should at least have determined what the actual relationship of the parties was and rendered an accounting among them.
The trial court made extensive findings of fact, none of which are disputed on appeal. From them we find the following:
Plaintiff Dwane Grimm was married to the former Carolyn Pallesen, daughter of the defendant E.E. "Pete" Pallesen and sister of the defendant James Pallesen. He was raised on a farm in Brown county and in his youth worked in the dairy business. In the early *661 1960's he took up barbering, and worked in the Kansas City area. He was so engaged when, in late 1969 and early 1970, he approached his in-laws about the prospects of joining them in their farming operations.
The Pallesens were engaged in feeding cattle and farming some 1100 acres in Brown and Nemaha counties. The senior Mr. Pallesen owned all the land in joint tenancy with his wife except for 97 acres in which son James was also a joint tenant. Their arrangement was that the 61 year old Mr. Pallesen furnished the land and a full line of farming equipment, while the 25 year old James did most of the work. Each kept separate books, each received one-half of the gross income, each paid one-half of the expenses; they were not partners. They were, however, full partners in a grain elevator at Goff, Kansas. Their income tax returns reflected the distinct nature of the two enterprises and the difference in the legal relationships; i.e., as farmers they filed as individual entrepreneurs, as elevator operators they filed partnership returns.
The Pallesens were receptive to plaintiff's overtures, and the three discussed how they could produce enough cash income to support all three families. It was determined that they would start a dairy operation, but there was no specific agreement as to their business relationship, ownership of property or division of profits. There was never a written agreement.
Plaintiff nevertheless sold his home and his interest in one of two Lenexa barbershops, and in late October, 1970, moved his family into the Fairview home of his father-in-law. (He later made a down payment on and moved into a mobile home, which he located on the Pallesen farm.) He brought with him the $11,000 proceeds from his Lenexa property, which he deposited in a Fairview bank. Later $10,000 of this money was placed in an account designated the "Pallesen Dairy" account.
Over the winter this account was used to erect a dairy barn on the Pallesen land. When it was depleted, in April, 1971, Mr. Pallesen deposited $4,000 to the account, and furnished $1,500 to plaintiff for personal expenses. In May, Mr. Pallesen put another $10,000 into the account, and in June yet another $10,000 was contributed, this time by James.
While completing the barn all three parties looked for dairy cows. All three parties viewed several herds, and a consensus was reached that certain cows would be suitable. When time to purchase *662 the cows arrived, plaintiff and James each withdrew $2,400.00 from the "Pallesen Dairy" account and placed this amount in the personal account of each. Each used this money for the purchase of the cows, and each individually borrowed the balance of the purchase price from the bank. As security, each individually executed a security interest in an undivided one-half interest in the total number of cows.
Plaintiff and James began milking in June, 1971. These two went to the company that was to purchase their milk, and sought to have two seperate checks issued for the milk, equal in amount, payable one check to each of them. This was against company policy, and the company would issue only one check for the total milk at any one delivery. In each instance, therefore, plaintiff and James divided the milk check equally, and each placed one-half in his own individual checking account. They bought commercial feed from the Goff elevator (at the elevator's cost) and plaintiff and James each paid one-half of the feed cost. These expense items were paid from the individual checking account of each.
As the spring and summer of 1971 wore on friction developed among the parties, and there were severe personality conflicts. Mr. Pallesen finally announced to plaintiff that they could no longer work together, and he would have to leave. About October 1, 1971, plaintiff left the dairy operation.
Settlement negotiations between the parties failed, and in June, 1972, plaintiff brought this action, claiming to be a one-third partner with the Pallesens and claiming a one-third ownership in all the land, all the farm machinery, all the crops and all the cattle. As to these contentions the trial court made the following findings, which we deem fatal to plaintiff's claims:
The court went on to cite a number of our cases and other authorities dealing with the elements of a partnership, and observed that "Many tests are set out in the various cases, but it is also axiomatic that one may not be made a partner (as between the parties, and not involving third parties) against his will or by accident or by the conduct of others, for the reason that partnership is the result of contract, of agreement. Of all the tests set forth, the most important element involved, it seems to the Court, is intent. What did the parties intend?"
The court reached the following conclusions on that issue:
In challenging these conclusions on appeal plaintiff asserts that the record reflects a concurrence of many of the recognized elements *664 of a partnership, citing our leading case of Potts v. Lux, 161 Kan. 217, 222, 166 P.2d 694:
In that case the court declined as a fruitless enterprise to cite and analyse the multitude of decisions setting forth the various tests of partnership, observing (p. 221-2):
Plaintiff points out that each of the parties contributed capital and labor to the enterprise, and each participated in the decision-making process. He is met, however, with the unchallenged and unequivocal findings of the trial court that neither of the Pallesens ever intended to become his partner, and that Mr. Pallesen flatly and specifically refused to enter into such a relationship. We have observed:
On the defendants' side, it is clear they wished to enter into some sort of business relationship with the plaintiff. They knew what a partnership was  they were engaged in one at the elevator. They expressly did not wish that to be the relationship. They also knew what a non-partnership sharing of receipts and expenses was  they *665 had that relationship in their farming. They (or at least James) opted for the same relationship with plaintiff in the dairy business. No third parties are involved, so the question of holding-out or estoppel does not arise. We think the trial court correctly refused to declare them partners against their will.
There remains plaintiff's claim that the trial court should nevertheless have settled the parties' accounts. It is clear, he says, that there was at least a joint venture in the dairy business, and there must be some balance due one way or the other. The trouble with that is, plaintiff was the one to frame his claim for relief. To claim only an interest in the dairy barn might have meant foregoing his claim to one-third of the land, machinery and livestock. (His one-half interest in the dairy cattle had already been foreclosed by the bank.) The question was squarely put to plaintiff's counsel by the trial court:
"MR. CLARK: I think 
"THE COURT: Would that be a separate lawsuit?
"THE COURT: Yes.
In the face of these statements of counsel the trial court had no alternative but to render judgment for the defendants, once it found *666 no partnership existed. Plaintiff cannot now urge on appeal a claim for relief which was not only not urged below but was expressly withdrawn from the trial court's consideration. "Where a party procures a court to proceed in a particular way and invites a particular ruling, he is precluded from assailing such proceeding and ruling on appellate review." (Popp v. Popp, 204 Kan. 329, 332, 461 P.2d 816. See, also, Manhattan Bible College v. Stritesky, 192 Kan. 287, 387 P.2d 225 and Gilliland v. Kansas Soya Products Co., 189 Kan. 446, 370 P.2d 78.)
The judgment is affirmed.
APPROVED BY THE COURT.