Costa v. Maggio

GRIFFIN, J.— This is an action for termination of partnership and for accounting. In August, 1941, plaintiff and respondent discussed with defendant and appellant the matter of transacting business in jointly buying and selling certain lettuce and carrot crops in Imperial Valley. As defendant expressed it: “We go out and buy certain patches and we joint. We are supposed to put up so much money apiece and joint them, pack them and split the profits.” To furnish the necessary funds to carry out this enterprise plaintiff Costa, [458]on January 7, 1942, delivered to defendant Maggio, $3,200, which amount was, according to agreement, to be placed in Maggio’s private bank account at Holtville. On January 7, 1942, Maggio had $596.83 in his private account. He deposited an additional $900 and also deposited plaintiff’s $3,200. Maggio was an experienced buyer and had partnership deals with persons other than plaintiff. He had conducted a packing business and owned sheds and machinery used in connection therewith. As of April 1, 1942, there had been ten patches of carrots and two of lettuce purchased by the partnership. Five patches of carrots and two of lettuce had been harvested. On March 16, 1942, carrots from the “Watanabe Ranch” were purchased and on May 6th-14th, 1942, were sold at a net profit of $4,446.71. According to the audit of a referee appointed by the trial court the gross sales by the partnership during the several months of the partnership enterprise were $159,949.12. The operating expenses were $124,-422.62. The net profit was $35,526.50.

The main dispute here presented is whether the ‘‘Watanabe Ranch” deal was a partnership deal in,which plaintiff and defendant were entitled to participate in the profit, or whether it was a private deal of defendant Maggio and should not have been included in the partnership accounting.

On January 12, 1942, and thereafter, Maggio executed certain chattel mortgages and notes to one Sam Andrews. They were executed to secure advancements made by Andrews to carry on and conduct the packing business, pay expenses, labor in digging carrots and transporting same. These loans approximated several thousands of dollars. The notes and mortgages were signed by Maggio personally. In addition to the partnership patches of carrots the mortgage also covered two patches of carrots (115 acres) in which Maggio personally had a one-half interest. On January 7, 1942, Maggio deposited $2,250 additional in his bank account. All monies received from the sale of the carrots and lettuce were deposited in Maggie’s bank account. All expenses were paid from that account. Costa spent a considerable part of his time in harvesting and looking after the patches of carrots which Maggio had purchased. On February 23, 1942, Costa asked Maggio for and received $200. On March 7, 1942, an additional $300 was paid. Later, on March 18, 1942, Maggio advanced Costa, at his request, $2,700, and on April.1, 1942, $3,900. The $2,700 was to be used by Costa in some claimed personal cherry deal