Westbrook v. Reneau

DORAN, J. The present appeal is concerned primarily with the nature of certain contributions made towards the purchase, reconversion and operation of a small vessel known [716]as the “M. V. Star of Honduras. ’ ’ It is contended by plaintiff that these contributions were by way of loans, for services rendered, etc., and were not intended as partnership contributions.

During the early part of 1948, Henry Reneau and Hugh E. Macbeth banded together for the exportation of such items as bananas, cocoanuts and hardwood from British Honduras. In an attempt to finance this venture these parties obtained certain moneys from various individuals, promising that a limited partnership would be formed, and that the money contributed would be returned at any time demanded regardless of whether the partnership made a profit. The funds obtained were used by Reneau and Macbeth to purchase the vessel, previously known as the “L. C. I. 1062,” and to convert the same into a cargo vessel. Title was taken in the name of Henry Reneau. The various claims had been assigned to plaintiff.

Henry Reneau employed plaintiff’s assignor, Percy Anderson, to work aboard the vessel while it was being converted, at wages of $400 per month, and later when the ship sailed on September 11, 1949, Anderson was persuaded to continue employment as purser or owner’s agent. It was promised that money would be sent ahead to finance operations, but at several ports Percy Anderson was obliged to expend personal funds for this purpose.

Prior to the sailing of the M. Y. Star of Honduras from Long Beach, appellant Hugh E. Macbeth prepared articles and certificates of limited partnership, but these papers were not signed by all of the parties named therein, none of the signatures were notarized, and the papers were never filed; nor was an accounting ever given to plaintiff’s assignors. One of the parties, Brandon A. T. Bowlin, refused to sign, and received back the money paid.

During the trip, at the defendants’ demand, plaintiff’s assignors on various occasions furnished more money for operating expenses, some of which was sent to Percy Anderson. When the vessel arrived at Havana, Henry Reneau flew there to take charge of affairs and Percy Anderson returned to the United States. Thereafter the ship was grounded on a reef off British Honduras; after being removed therefrom, a cargo of lumber was carried to the Port of Isabela de Sagua, Cuba, at which port the vessel was sold by Henry Reneau on November 16, 1949.