Holzman v. De Escamilla

[859]

MARKS, J.

This is an appeal by James L. Russell and H. W. Andrews from a judgment decreeing they were general partners in Hacienda Farms Limited, a limited partnership, from February 27 to December 1,1943, and as such were liable as general partners to the creditors of the partnership.

Early in 1943, Hacienda Farms Limited was organized as a limited partnership (Civ. Code, §§ 2477 et seq.), with Ricardo de Escamilla as the general partner and James L. Russell and H. W. Andrews as limited partners.

The partnership went into bankruptcy in December, 1943, and Lawrence Holzman was appointed and qualified as trustee of the estate of the bankrupt. On November 13, 1944, he brought this action for the purpose of determining that Russell and Andrews, by taking part in the control of the partnership business, had become liable as general partners to the creditors of the partnership. The trial court found in favor of the plaintiff on this issue and rendered judgment to the effect that the three defendants were liable as general partners.

The findings supporting the judgment are so fully supported by the testimony of certain witnesses, although contradicted by Russell and Andrews, that we need mention but a small part of it. We will not mention conflicting evidence as conflicts in the evidence are settled in the trial court and not here.

De Escamilla was raising beans on farm lands near Escondido at the time the partnership was formed. The partnership continued raising vegetable and truck crops which were marketed principally through a produce concern controlled by Andrews.

The record shows the following testimony of de Escamilla:

“A. We put in some tomatoes. Q. Did you have a conversation or conversations with Mr. Andrews or Mr. Russell before planting the tomatoes? A. We always conferred and agreed as to what crops we would put in. . . . Q. Who determined that it was advisable to plant watermelons? A. Mr. Andrews. . . . Q. Who determined that string beans should be planted? A. All of us. There was never any planting done—except the first crop that was put into the partnership as an asset by myself, there was never any crop that was planted or contemplated in planting that wasn’t thoroughly discussed and agreed upon by the three of us; particularly Andrews and myself.”