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41 Mich. 677

Learned v. Ayres

Michigan Supreme Court

Decided October 21, 1879

Michigan Supreme Court · decided 1879-10-21

<p> Individual partners cannot be sued by the firm. </p> <p>The assignor of a partnership interest cannot be sued by his assignee and the remaining partners on a claim held by the original firm against him.</p> <p>An assignee cannot sue where his assignor could not.</p> <p>The settlement of claims as between a firm and single partners where there are more than two, belongs to a court of equity, and in ease of a claim by the firm against one oí them, should be disposed of on a general accounting.</p> <p>A joint owner of a cause of action cannot introduce a new joint owner into the contract by individual assignment.</p>

Good law ✅— No negative treatment on recordhow we know

Decided 1879-10-21

How this case has been cited

Cited by 7 later decisions — most recently February 1910

7 state decisions

3018791880189019001910decided

Later decisions citing this case, by decade. The current decade is in progress, and our corpus holds fewer opinions from the most recent years, so the latest bars are undercounted — not a real decline.

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Campbell, C. J.

¶1Jonas B. Learned, who had been a partner of Frederick and James S. Ayres, transferred his interest to Ebenezer B. Ayres. His private account with the firm before this sale showed a balance against him. For this balance the three defendants in error, as partners, sued him and were allowed to recover a portion of that • amount. The only ground of liability set up was that this was one of the firm assets. If so, the original owners of the debt were Learned himself and his co-partners. They could not have sued him at law on the claim, because a man cannot sue himself, and it is not possible for an assignee to sue when his assignor could not do so. If he could do so, it would not help this case, because the whole claim has not been assigned, and there is no principle which will allow a joint owner of a cause of action by individual assignment to introduce a new joint owner into the contract.

¶2Moreover it is a general rule of the law of partnership that the whole settlement of claims between the firm and single partners belongs to a court of equity, where there are more than two partners, and must be disposed of in such transactions as the present on a general accounting. Elder’s Appeal in Rosier’s Estate, 39 Mich.

¶3There is no principié which will sustain the recovery for the item referred to or any part of it.

¶4The judgment must be reversed with costs, and a new trial granted.

The other Justices concurred.
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