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mer vs. Young, 1 Vern. 276." The precise point was decided later in Leach vs. Leach, 18 Pick. 76, in which case Wilde, J., delivering the opinion, said: "The renewed lease formed a part of the partnership property at the time of the dissolution of the partnership. It was so decided, and we think on sound principle, in the case of Featherstonhaugh vs. Fenwick, 17 Ves. 298." The whole subject is learnedly discussed in the notes of Messrs. White and Tudor to the case of Keech vs. Sandford (in which case it was held that a trustee for an infant could not obtain a renewal in his own name of a lease held in trust for the infant), and it is there shown that the current of decisions is in harmony with Featherstonhaugh vs. Fenwick. The principle upon which the cases rest is, that there is an implied obligation on each partner to act for the common benefit. This principle is embodied in Section 2441 of the Civil Code, which is as follows:

"In all proceedings connected with the formation, conduct, dissolution, and liquidation of a partnership, every partner is bound to act in the highest good faith toward his partners. He may not obtain any advantage over them in the partnership affairs by the slightest misrepresentation, concealment, threat, or adverse pressure of any kind."

It is perfectly true that the application of this principle is limited to matters which are within the scope of the partnership business. Thus, in Wheeler vs. Sage, 1 Wall. 578, the Supreme Court of the United States held that one partner in a "general produce business" could acquire the title to a valuable lot on which the firm had taken a mortgage to secure a debt, and Davis, J., delivering the opinion, said: "Each partner is the agent of his co-partners in all transactions relating to partnership business, and is forbidden to traffic therein for his own advantage, and if he does, will be held accountable for profits. But, beyond the line of the trade or business in which the firm is engaged, there is no restraint in his right to traffic. As one partner has no authority to bind the firm outside of their ordinary business, he cannot, of course, be held liable to account should he make a profitable adventure in a matter not legitimately connected with the business of the firm;" and following this case, our Supreme Court held in McKenzie vs. Dickinson, 43 Cal. 119, that one partner could purchase a judgment against his co-partner, and sell under execution on it the co-partner's interest in the firm assets; and Wallace, J., delivering the opinion, said: "The obligations of co-partners inter sese, whatever may be their nature and extent, refer only to the conduct of the business in which the firm is engaged."

But the facts of this case bring it fairly within the operation of the rule above stated. The unshaken authority of Featherstonhaugh vs. Fenwick, shows that the obtaining of a renewal of the lease of the premises where the firm business is conducted, is a matter within the scope of the partnership business.

It is contended, however, that the evidence shows that Kitzmiller once made an attempt to get the renewal in his own name, and that this left Plath at liberty to secretly acquire it for himself. I do not think so. I do not think an attempted fraud by one partner justifies a counter-fraud by the other, although it might in certain cases induce a Court of equity to withhold its relief; but assuming that it does, there is no evidence to show that Kitzmiller acted fraudulently in the matter. It is true he once applied to Mrs. Glinden for a renewal in his own name; but there is no evidence that he did so fraudulently. I accept as true the statement of Mrs. Glinden as to what occurred. She says that what Kitzmiller said was, that "he would like to get a longer lease in case he bought his partner out." There was no injunction of secrecy (as in Plath's case); and Mrs. Glinden did, in fact, tell Plath about it the next time she saw him.

There is nothing which makes me think Kitzmiller atattempted to overreach his partner. He did not get the renewal, and the fact that he did not say anything about his attempt is not inconsistent with an innocent intention on his part. I hold, therefore, that Plath had no right to act as he did, and that the renewal which he clandestinely obtained and concealed for nearly two years was partnership property. Now, as above stated, Plath never transferred or offered to transfer this renewal to Kitzmiller. At first he expressly refused to do so, unless paid an additional sum for it, on the ground that it was his own private property, and on such refusal Kitzmiller declined to proceed with the trade. Even if Plath had the right after this to offer performance and hold Kitzmiller to his contract, it is apparent that he has not done so. He never subsequently offered any transfer of the lease. He subsequently offered to sub-let the premises to Kitzmiller, but that was not the same thing as a transfer, and Kitzmiller was not bound to accept it as such. I am convinced from the evidence that Plath could obtain from Mrs. Glinden permission to assign the lease, but he did not choose to do so. It results that there was no performance of the contract sued on, and the plaintiff cannot recover. The foregoing is sufficient to dispose of the case; but there is an issue as to whether the contract was rescinded; and it may be material to the parties to have it disposed of.

The plaintiff contends that there was no rescission, because the parties were not restored to the condition they were in before the contract. It is an undoubted rule that the party seeking to rescind must restore the other to the condition he was in before the contract, and cannot retain anything, which but for the contract, he would not have been entitled to. (Civil Code, Section 1691; Bohall vs. Diller, 41 Cal. 532; Herman vs. Hofennegger, P. C. L. J., vol. 4, p. 561.) But there is no room for the application of this rule to the facts of the case. The fact upon which the argument is based is, that on the morning of the acceptance of the offer there was about $359 cash on hand, and by agreement each 'party took one-half. The argument is that Kitzmiller ought to have returned the half he got. But Plath never had any right to that. He only had a half interest in the firm, and it would not have been without foundation had a claim been put forward by Kitzmiller to all the money, on the ground that under the contract he was entitled to all the partnership property on payment of a certain sum. No such claim was put forward, however; and Plath was allowed to take half the cash on hand, Kitzmiller taking the rest. How there was any obligation on Kitzmiller to pay the whole of the cash over to Plath on rescinding, passes my comprehension. But if Kitzmiller had taken more of the partnership assets than he would have been entitled to under the articles of partnership, I still think he could rescind without returning it; for on rescinding he was entitled to possession by virtue of his being a partner in the concern. Before the contract Kitzmiller was entitled to possession with Plath of all the partnership assets; and on rescinding it was not necessary for him to give Plath the exclusive possession of any portion of them. The parties were simply restored to their former rights and relations. I hold, therefore, that Kitzmiller was entitled to rescind, and did rescind the contract sued on.

The defendant has put in a cross-complaint, praying for a dissolution of the partnership and an accounting, and a decree applying the assets to the payment of the debts. The partnership has already been dissolved by the death of Plath. The surviving partner has authority to go on and settle up the affairs. No evidence sufficient to close the affairs has been given, and a reference would have to be ordered to take such evidence. I decline to order such reference, the case having been finally submitted, but will dismiss the cross-complaint, leaving the parties to take such further course as they may be advised.

Cross-complaint dismissed, and judgment for the defendant, with costs in his favor.

INDEX.

ABATEMENT-Matter in abatement must be pleaded specially, so as to exclude every
conclusion to the contrary.-Hillman vs. Newington......
ABORTION—A person charged with murder, in attempted abortion, may be admitted
to bail.-Ex parte Wolff.......

ACCEPTANCE-Of papers waives irregularities.-Livermore vs. Webb...
ACCORD AND SATISFACTION-Unexecuted, is no defense to an action on a note.-
Simmons vs. Hamilton....

ACKNOWLEDGMENT-Of a certificate of partnership by a Justice of the Peace is
sufficient.-Fabian vs. Callahan....

ACT OF GOD-Where damage was caused by the accumulation of sand in a ditch,
causing an overflow, it cannot be said that it was caused by the "Act of God,"
entirely without the intervention of man, so as to constitute a defense to an
action for such damage.-Chidester vs. Consol. Peop. Ditch Co....
ACTION-A dismissal by agreement becomes effective as soon as filed and entered in
the register.-McLeran vs. McNamara

An action transferred from the Justices' to the District Court must be tried on
the pleadings in the Justices' Court.-City of Santa Cruz vs. Santa Cruz R. R.
Co.....

Under the Swamp Land Act, two causes to enforce liens may be united.-Swamp
and O. Recl. Dist. vs. Feck.........

PAGE

88

725

914

947

484

890

138

473

741

An action by a school district is properly brought in the name of the district.-
Carpenteria School Dist. vs. Heath..

898

An action for damages for injury to land may be brought against the agents of
a swamp land district, personally.-Brownell vs. Fisher.....
An action is maintainable on a joint note against one maker and the personal
representative of a deceased maker.-Bostwick vs. McEvoy........

905

ACTION PREMATURE-An action on a renewed note is premature if brought before
the renewed time expires.-Koutz vs. Clief...

An action cannot be brought against a tenant at will, for an unlawful detainer,
until notice is given as provided by law.-Martin vs. Splivalo..

ADVERSE POSSESSION-See STATUTE OF LIMITATIONS.

AFFIDAVIT-A want of venue is not a fatal defect.-Reavis vs. Cowell.....

An attorney, who is also a notary, may take an affidavit of his client.-Id.
AGENTS-In the ordinary course of business, in shipping wheat, may bind their em-
ployers.-Hayes vs. Campbell.......

1031

67

442

846

..........162, 327
An assignment of a book account by the managing agent of a corporation is
valid.-McKiernan vs. Lenzen......

905

436

Agents of swamp land districts are personally liable for injuries to land by acts
which the district had no power to authorize.-Brownell vs. Fisher.....
Delivery of a promissory note by one of several makers is presumably a deliv-
ery by all through him as their agent.-Bostwick vs. McEvoy....
AGREEMENT for sale of goods on commission construed.-Golden Gate Packing Co.
vs. Farmers' Union.....

....

On an agreement by a creditor to give up a claim in consideration of a note of
the debtor for a less amount, the tender of the new note must be made before
the debtor can demand a relinquishment of the original debt.-Stewart vs.
Tipton.

An agreement in a building contract that in case of dispute the extra work
should be valued by two competent persons is not an agreement to submit to
arbitration.-Holmes vs. Richet...

1031

284

704

730

AIDER AND ABETTOR—The presumption is that the aider, abettor and insti gater
intended to kill, though the killing was by the person instigated.—People vs.
Jaramillo
APPEAL IN CIVIL CASES-An appeal taken after the death of one of the plaintiffs
without suggestion of his death is premature.-Sheldon vs. Dalton.....

.......

An order refusing to revoke letters of administration is not appealable.-Keane
vs. Rutherford....

No appeal lies from an order directing a sale of certain realty of decedent's
estate.-Matter of Martin.......

An appeal lies from an order granting a new trial.-Hodgdon vs. Griffin.......
But the transcript must contain the evidence, and show error on the trial.—Id.
A specification of the particulars in which the evidence was insufficient is an
essential part of the statement.-Fabian vs. Callahan..

That an objection to the evidence was not passed on will not be considered if
the transcript fails to show that the evidence was before the Court.-Clarke
vs. Fowler.....

On appeal from order overruling intervenor's motion for a new trial, but no
appeal from the judgment, the error in overruling intervenor's demurrer
could not be noticed.-Marbury vs. Ruiz........

The Supreme Court cannot determine the truth or falsity of the allegation in
the answer, either by reference to the testimony or to the findings of the
Court. Harlan vs. Ely.........

681

941

425

591

1025

484

956

1012

85

An appeal will be heard on its merits when there is enough in the transcript,
although there is no statement or bill of exceptions.-Matter of Pico........
An interlocutory decree cannot be reviewed on appeal from the final decree in
partition.-Barry vs. Barry....

144

461

Judgment will be affirmed where it appeared that the appeal was taken for
delay. Clark vs. Fowler......

384

Or where the ruling of the Court was in accordance with law, and no error in
the transcript.-Menke vs. Miller............

664

Where the objection was not taken in the Court below, it will not be consid
ered.-Bostwick vs. McEvoy....

1031

Where the record discloses no error the judgment and order will be affirmed.-
Gharky vs. Werner........

500

Where the record of judgment was amended so as to conform to the fact by
changing the date, it was not error.-Sheldon vs. Gunn....
Judgment will not be disturbed because some of the instructions are subject
to mere verbal criticism.-Phoenix M. and M. Co. vs. Lawrence.....
Where errors in proceedings do not prejudice defendant, the judgment will not
be reversed.-Id.

895

37

Where an order is inoperative and the parties are not aggrieved, appeal will be
dismissed.-Miller v Bate....

541

The institution of an inquiry in the Court below by the defendant is sufficient
answer to his objection to such inquiry.-Clarke vs. Fowler..

956

The Court will not reverse an order denying a motion for new trial where the
testimony is conflicting.-Jones vs. Bryan...

30

Smith vs. Silsby.....

111

The motion for new trial is addressed to the sound legal discretion of the
Court, and will not be reversed except for manifest abuse of discretion.-
Bronner vs. Wetzlar.....

280

Pierce vs. Schader..

169

Where judginent by default was set aside and there appeared to be a fuer-
itorious defense, the discretion of the Court will not be interfered with.-
Walsh vs. Hutchings..

593

An order granting a new trial for errors of law will be reversed where errors
are not shown.-Hinkle vs. S. F. & N. P. R. R. Co.......
where a decree is not warranted either by the complaint or findings, it is erro-
neous.-Carinichael vs. McGillivray..

428

786

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