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2 Haw. 296

Wilcox v. Marshall

Hawaii Supreme Court

Decided October 15, 1860

Hawaii Supreme Court · decided 1860-10-15

<p>Where one of several part owners of the ship or ships, engaged in the whaling business, acts as agent to purchase supplies and outfits for the ships from third parties, he will not be permitted to take beyond a reasonable compensation for his services (or that agreed upon), nor to hold any profits incidentally obtained in the execution of his duty, even if sanctioned by usage.</p> <p>"Where said part owner had furnished the supplies for the said vessels from his own stock in trade at the lowest market rates, with the knowledge of and without objection by the other owner, the latter must be held in law to have waived his right to open up the accounts of said disbursements, they having been furnished him according to the usage of the business.</p> <p>Where said part owner, acting for the others, furnished them, from time to time,</p> <p>' with accounts of the disbursements, and charged interest on advances made by him in fitting out the vessels, without having first made a demand for contribution ; Held — That the furnishing of the accounts must be regarded . as notice to the said part owners and equivalent to an express demand, rendering them liable for interest from the time the accounts were so furnished. An agent or trustee can not become the purchaser of property confided to his care. Such sale not absolutely void, but voidable by the cestui que trust.</p> <p>A party can not ask for gains for which he has incurred no hazard and made no contribution.</p> <p>Although agents are not legally entitled to any incidental profits, arising from the management of the business confided to them by their principals, yet, where it appeared they had exercised due diligence in making their contracts of freightments, and made the most advantageous bargain they could, their principals could not vacate their contracts or make them liable, if at some other period, before or after, a less rate of freight had attained. And if put on board their own ships, the lowest rate of freight in the market only could be charged.</p> <p>A claim for the individual services of one partner can not be joined with the amount due the firm for services rendered by the partnership itself.</p>

Cited by 1 later decisions — most recently July 1944

1 state decisions

Good law ✅— No negative treatment on recordhow we know

Decided 1860-10-15

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Robertson, Justice.

¶1I concur in the decision of the Court in this case, except upon one point: that is, in relation to the freighting of the defendant’s oil and bone to New Bedford. Upon that point, I respectfully dissent from the opinion of my brethren, for the following reasons: j

¶2Firstly — Because the agency of Coady, and Coady & Co., and their duty in relation to that subject, were entirely distinct from their agency in. fitting out the vessels, as ships’s husbands.

¶3Secondly — Because Coady, and Coady & Co., undertook this agency for a stipulated commission of five per cent.; but it appears by the evidence, that in the transaction of such agencj', they made a considerable incidental profit, which the plaintiffs now seek to retain, or to recover, in addition to the stipulated commission. In my opinion, the plaintiffs are not legally entitled to retain, or .to recover that incidental profit from the defendant, in the absence of express proof that he consented to deal with Coady, and Coady & Co., as principal freighters, so as to discharge them from their relations and obligations to him, as simple agents for hire. I know of no case in the books, in which it has been held that freight-brokers, factors, or other like agents, can recover for their services any profit made by them in the transaction of their agency, besides their commissions and expenses ; nor can I perceive that the cases cited by the Court have any bearing upon this point; and I consider the doctrine adhered to in the cases of East India Company vs. Henchman, Bentley vs. Craven, and Massey vs. Davies, as clearly applicable to this part of the present case.

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