Opinion ID: 1361063
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Heading Rank: 1

Heading: suit against partners.

Text: The validity of the judgment against the garnishee depends upon the validity of the judgment in the main action  that is on the validity of the judgment against parties, whose indebtedness had been garnisheed. 38 C.J.S. 343; 5 Am. Juris. 41, Section 711. Hence, we shall first investigate the proceedings and judgment relating to Fletcher and Shaw. At common law a partnership is not a legal entity but only a contractual status, and hence, except as modified by statute or rule of practice, suits in behalf of a partnership must be brought in the individual names of the members of the partnership, and not in the firm name, although by statute in many jurisdictions a partnership is permitted to sue in the name which it has assumed or under which it does business. 40 Am. Juris. 430, Section 432; 68 C.J.S. 609; Note, 29 L.R.A.N.S. 282. Section 3-619, Wyo. Comp. St. 1945 provides: A partnership formed for the purpose of carrying on trade or business in this state, or holding property therein, may sue or be sued by the usual or ordinary name which it has assumed, or by which it is known; and in such case it shall not be necessary to allege or prove the names of the individual members thereof. According to Section 3-1009, Wyo. Comp. St. 1945, it is provided that service of process may be had as follows: If the defendant is a partnership, sued by its company name, by leaving a copy of the summons and petition at its usual place of doing business. (Italics supplied). It may be noted that the service mentioned upon a partnership may be made in the manner specified by statute only when the partnership is sued by its company name. In many of the other states statutes provide that service may be made by serving one of the partners. That provision is not in our statutes but we have no doubt that where the partnership does not have a usual place of doing business in this state, it may, nevertheless, be sued by serving each and all of the members of the partnership in order that it may be held liable as a partnership. Herron vs. Cole Bros., 25 Neb. 692, 41 N.W. 765. If the partnership is sued as an entity as above mentioned, a judgment in such action reaches the joint property of the partnership. Hamner vs. B.K. Block and Co., 16 Utah 436, 52 P. 770, Peterson vs. W. Davis and Sons, 216 Minn. 60, 11 N.W.2d 800. See also 40 Am. Juris., Sections 434 and 435. Thus it is seen that the statute provides a comparatively easy method by which a plaintiff who has a claim against a partnership may reach it and its property. Moreover, in addition to that, such plaintiff may in such action reach the members of the partnership according to the following provisions in Section 3-3905 providing: The members of a partnership, against which a judgment has been rendered by its firm name, may be made parties to the judgment by action. The plaintiff herein did not choose to follow the statutory method provided by our statute and chose to pursue the procedure under the common law, or one similar to it. It is contended by the appellant herein that the action brought by the plaintiff against Fletcher and Shaw was an action against the individuals only, citing Good vs. Red River Valley Co., 12 N. Mex. 245, 78 P. 46. That contention, we think, is correct. The action was brought, as heretofore stated, against Jo E. Fletcher and John B. Shaw, doing business as Fletcher and Shaw. The petition alleged that the defendants made, executed and delivered to plaintiff their promissory note in writing. Then the note is set up. The petition further proceeds: That no part of said promissory note has been paid,    and that there is now due and owing to the plaintiff from the defendants and each of them    the principal sum of $5623.35   . WHEREFORE, plaintiff prays judgment against the defendants and each of them for the sum of $5667.45   . Summons was issued which had the caption contained in the petition and was directed to the sheriff for him to notify Jo E. Fletcher and John B. Shaw, to answer the petition in the case. The foregoing shows, we think, that the petition was one against individuals and not against a partnership as an entity. It is stated in 68 C.J.S. 683: An action against certain named individuals as partners doing business under a certain firm name is an action against them as individuals, and is not an action against the partnership as a separate entity. Statement to the same effect is found in 47 C.J. 955 and a number of cases are cited. The subject is discussed at length in the case of Maclay Co. vs. Meads, 14 Cal. App. 363, 112 P. 195, 198. In State ex rel. vs. Gray, 92 Fla. 1123, 111 So. 242, the court, citing numerous cases, states that the authorities are practically unanimous that an action against named defendants is against them as individuals and not as copartners. In view of this rule the court in the case of Steele vs. Wardwell, 57 Cal. App.2d 642, 135 P.2d 628, 633 drew the conclusion that in such case the liability of the individual sued is an individual liability regardless of whether or not it arises from partnership relation. On the face of things, that is undoubtedly correct. Nevertheless, according to the weight of authority the facts may be shown. Thus it is stated in 40 Am. Juris. 438: In a few jurisdictions it has been held that the fact of partnership should be alleged in the complaint in an action against the persons composing a partnership. In most jurisdictions, however, the general rule is that in bringing suit against a firm it is sufficient to designate the names of the parties, and it is unnecessary to allege the existence of a partnership. And if suit is brought against individuals who in fact are partners trading under the name of a certain company, it is not necessary to allege that they were partners, in order to admit evidence of their joint liability as the legal result of their association as partners, or evidence of their making a contract under the name of such company. The subject is annotated in Annotated Cases 1912A, 512-513, and is considered at length in the case of First Nat. Bank of Deadwood vs. Hattenbach, 13 S.D. 365, 83 N.W. 421 where the court said in part: The action is against individuals, and not against the co-partnership. Shoe Co. vs. Stebbins, 3 S.D. 540, 54 N.W. 593. It has in some cases been held necessary to allege the co-partnership, for the purpose of letting in proof that one member of the firm was authorized to sign the firm name, but the weight of authority is in favor of the rule that proof of the partnership is admissible as evidence to show a joint liability where no partnership is alleged. 15 Enc. Pl. & Prac. 920, 921; Jemison vs. Dearing's Ex'rs, 41 Ala. 291; Swinney vs. Burnside, 17 Ark. 38; Pollock vs. Glazier, 20 Ind. 262; Howard vs. Woodward, 52 Kan. 106, 34 Pac. 348; Stix vs. Mathews, 63 Mo. 371; Singleton vs. Thornton (Sup.) 9 N.Y. St. Rep. 600; Hawley vs. Hurd, 56 Vt. 617; Fetz vs. Clark, 7 Minn. 217 (Gil. 159). In 15 Enc. Pl. & Prac., supra, the rule is thus stated: `As a general rule, in an action against partners upon a partnership obligation it is not necessary to allege the partnership between the defendants, but they may be declared against as any other joint debtors; and under an allegation that defendants contracted, without any averment of partnership between them, proof of a partnership is admissible as evidence to show a joint liability. Indeed, in such a case, if the partnership is averred in the complaint and denied in the answer, the issue formed is immaterial.' In Hawley vs. Hurd, supra, the supreme court of Vermont, speaking upon this subject, says: `The note for $800 was admissible under the general counts. There is nothing peculiar relating to the form of declaring against partners, except that care must be taken that all the causes of action be stated to be joint. 2 Saund. Pl. & Ev. 708. They may, as a general rule, be declared against as you declare against other joint contractors. The substance of the holding in a number of other cases is found in the case. In the case at bar the testimony is conclusive to the effect that Jo E. Fletcher and John B. Shaw were copartners, doing business as Fletcher and Shaw. Jo E. Fletcher, according to the allegations of the garnishee in this case, promised to pay the judgment that was rendered in the main action herein, thus recognizing the debt as a partnership debt. The note purports to be executed on behalf of the firm by Jo E. Fletcher. Hence, the court in this case must have found in order to warrant a judgment against John B. Shaw, that the indebtedness was an indebtedness of the partnership of Fletcher and Shaw. At least in this action which is a collateral attack on the judgment herein, that must be accepted as true. Nor is anything to the contrary claimed herein. So we must proceed to consider the process in the main action and the judgment rendered therein.