Opinion ID: 1642640
Heading Depth: 1
Heading Rank: 2

Heading: Whether the equitable action of accounting fully disposed of the claims of Bachand, thereby negating a jury trial on allegations founded on fraud?

Text: Bachand claims the trial court erred in refusing to permit a jury trial on the allegations of fraud set forth in his amended complaint. Prior to the trial to the court, counsel for Bachand asked the court what issues would be tried. Counsel indicated that he understood the issues of the accounting of the partnership, breach of the contract as to the partnership and as to the land, part performance as it related to the statute of frauds and as to estoppel were to be tried. Counsel further stated that he understood the issues of fraud and conversion would be tried to a jury. The trial court agreed these issues would be tried to the court, and said, The issues later on of fraud, deceit and conversion would be given to the jury, if such is left, you know. At a pre-trial conference on November 28, 1988, the court indicated that all equitable issues would be tried to the court and stated, And then when we get done with that we'll try it to the jury if there is anything left. The trial court entered findings of fact on the breach of contract, land claims, and the accounting, and concluded that the court trial on these issues fully disposed of all of Bachand's claims, making a jury trial on the fraud claim unnecessary. We determine, with the exceptions noted, that the findings are not clearly erroneous and are supported by competent evidence. The amended complaint alleges an oral agreement for a 50/50 purchase of the land. On the first day of trial an additional prayer for specific performance was allowed as an amendment to the complaint. In Ellenbecker v. Volin, 75 S.D. 604, 609, 71 N.W.2d 208, 210 (1955), this court adopted the rule that: An accounting and settlement between copartners is a condition precedent to an action by one against the other on partnership claims and transactions for the following principal reasons: (1) A dispute of this nature ordinarily involves the taking of a partnership account, for, until that is taken, it cannot be known but that the plaintiff may be liable to refund even more than he claims in the particular suit. (2) In partnership transactions a partner does not as a rule become the creditor or the debtor of a copartner, but of the firm. (3) Such a suit would necessitate that the party complained of be both plaintiff and defendant. (4) One partner does not own or have a right to any specific portion of the partnership property. In Munce v. Munce, 77 S.D. 594, 96 N.W.2d 661 (1959), this court reaffirmed the Ellenbecker, supra, rule and held that the trial court was correct in striking from the complaint an action at law for conspiracy to defraud since no accounting had occurred. We have held that when an action is one of equitable cognizance, the right to grant full and complete relief, legal and equitable, attaches. Black v. Gardner, 320 N.W.2d 153 (S.D.1982). Bachand claims there were at least fourteen different instances of fraud and deceit. Bachand claims that the first instance of fraud was Walker's failure to honor the terms of the oral contract relating to the land. It is clear this issue was tried to the court with the consent of all the parties. This was part of Bachand's breach of contract claim. The trial court found there was no oral agreement, concluded that the land was not a partnership asset, and excluded the land from the accounting. Absent the validity of the oral agreement, Bachand has no claim of fraud. The trial court was not clearly erroneous in entering this finding. An examination of the thirteen remaining claimed instances of fraud reveals that all deal with claimed errors in record keeping by Walker. The actual accounting cleared up any discrepancy in credits or draws of the respective partners. Thus the trial court was correct in concluding all claims of Bachand had been fully resolved by the accounting, and in refusing to allow a jury trial on the various alleged fraud claims.