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Burns v. Gonzalez

时间:2009-05-15 点击:

CADENA, Justice.

Plaintiff, William G. Burns, sued Arturo C. Gonzalez and Ramon D. Bosquez, individually and as sole partners in Inter-American Advertising Agency (herein called ‘the partnership’), to recover on a $40,000.00 promissory note executed by Bosquez in his own name and in the name of the partnership.

The sole business of the partnership was the sale, on a commission basis, of broadcast time on XERF, a radio station located in Ciudad Acuna, Mexico, and owned and operated by a Mexican corporation, Compania Radiodifusora de Coahuila, S.A. (herein called ‘Radiodifusora’). Bosquez and Gonzalez each owned 50% Of the Radiodifusora stock, with Bosquez acting as president of the corporation.

The events culminating in this litigation began in 1957 when a written contract was entered into between Radiodifusora and the partnership, on the one hand, and Roloff Evangelistic Enterprises, Inc., and Burns, on the other. Under this contract, Radiodifusora and the partnership, in consideration of the payment of $100,000.00 by Roloff and Burns, agreed to make available to them two 15-minute segments of broadcast time daily over XERF so long as the franchise of the radio station remained in force, beginning July 1, 1957. In accordance with the terms of the contract, Roloff and Burns paid the $100,000.00 in four equal installments on July 1, 1957, *130 November 1, 1957, March 1, 1958, and July 1, 1958, with Burns retaining 15% Of such payments as his commission, as he had a right to do under the terms of the contract.

Subsequently, Roloff assigned all of its rights under this contract to Burns, effective June 16, 1962. Both Radiodifusora and the partnership approved such assignment.

Because of labor disputes and other circumstances, the radio station was shut down at various times. With some exceptions, the broadcast periods described in the 1957 contract were not made available to Burns or to persons to whom he sold such broadcast periods, after June 16, 1962.

On November 28, 1962, Bosquez, purporting to act on his own behalf and on behalf of the partnership, executed the note in question, payable to Burns on November 28, 1964. According to a separate instrument signed by Bosquez on the same date, the radio station was in receivership and it was unlikely that the broadcast periods to which Burns was entitled under the 1957 contract would be made available to him for the two-year period ending November 28, 1964, the date on which the note was payable. This instrument recited that since Burns would derive an income of $20,000.00 a year from sale of such broadcast periods, the note in the amount of $40,000.00 had been executed and delivered to Burns to compensate him for the income which he would have derived during the two-year period ending November 28, 1964.

Under Sec. 9(1), U.P.A. ‘Every partner is an agent of the partnership for the purpose of its business, and the act of every partner, including the execution in the partnership name of any instrument, For apparently carrying on in the usual way the business of the partnership of which he is a member binds the partnership, unless the partner so acting has in fact no authority to act for the partnership in the particular matter, and the person with whom he is dealing has knowledge of the fact that he has no such authority.’ (Emphasis added.) In this case, in fact, Bosquez had no authority to bind the partnership by executing a negotiable instrument. But, since this express limitation on the authority of Bosquez was unknown to Burns, then, under the language of Sec. 9(1), his act in executing the note would bind the partnership if such act can be classified as an act ‘for apparently carrying on in the usual way the business of the partnership.'

As we interpret Sec. 9(1), the act of a partner binds the firm, absent an express limitation of authority known to the party dealing with such partner, if such act is for the purpose of ‘apparently carrying on’ the business of the partnership in the way in which other firms engaged in the same business in the locality usually transact business, or in the way in which the particular partnership usually transacts its business. In this case, there is no evidence relating to the manner in which firms engaged in the sale of advertising time on radio stations usually transact business. Specifically, there is no evidence as to whether or not the borrowing of money, or the execution of negotiable instruments, was incidental to the transaction of business, ‘in the usual way,’ by other advertising agencies or by this partnership, Inter-American Advertising Agency. It becomes important, therefore, to determine the location of the burden of proof concerning the ‘usual way’ of transacting business by advertising agencies. #p#分页标题#e#

We conclude that, under a reasonable interpretation of the language of Sec. 9(1), and the provisions of Rule 93(h), the burden of proving the ‘usual way’ in which advertising agencies transact business was upon Burns.

Our conclusion is supported by the fact that the liability of partners with respect to third persons is largely determined by reference to the principles of the law of agency. Restatement 2d, Agency Sec. 14 (1958); U.P.A., Sec. 4(3). One who asserts that the particular act of an agent is within the scope of the agent's authority has the burden of proving the extent of such authority. Amerada Petroleum Corp. v. Mexia Big Pool Royalty Co., 220 S.W.2d 497 (Tex.Civ.App.-San Antonio 1949, writ ref'd n.r.e.). We recognize, of course, that there are aspects in which the partner-agent differs from the ‘ordinary’ agent. But we know of no distinction which compels application of different rules concerning the burden of proof in connection with establishment of the extent of the agent's power. The principle for imposing liability on the non-acting party, be he partner or ordinary principal, is that he has ‘held out’ the actor as being empowered to perform acts of the nature of the act in question. If A seeks to impose liability on B for the act of C on the theory that B held C out as having power to do such act, clearly the burden of establishing the facts which constitute such holding out is on A.

In the case of an ordinary agent, ‘holding out’ is established by showing that the principal placed the agent in a position which ordinarily carries with it generally recognized powers. The agent will then have, as far as third parties are concerned, the power to do the things ordinarily done by one occupying such a position, unless the third party has knowledge of limitations on the powers of the agent. In Collins v. Cooper, 65 Tex. 460, 464 (1886), the Supreme Court said that in determining the extent of an agent's power, it ‘becomes necessary, to consider the character of the business, the manner in which it is usual to carry on such a business, and, where the agency has continued for a long time, the manner in which the particular business was carried on, * * *.’ This is the same principle which is made applicable to problems concerning the power of partners by Sec. 9(1).

The power of a partner to issue commercial paper arises not from the existence of the partnership, but from the nature of the partnership business and the manner in which such business is usually conducted. This is the plain meaning of Sec. 9(1).

The only thing we know of the nature of the partnership here is that it was restricted to the sale of broadcast time over XERF on a commission basis. There is nothing to show that the transaction of such business required ‘periodical or continuous or frequent purchasing’ or made ‘frequent resort to borrowing a necessity, not existing by reason of embarrassments, or on account of some fortuitous event, but for the advantageous prosecution of *134 even a prosperous business.'The assets of the partnership consisted of a few desks, chairs, typewriters and office supplies.

We disagree with the contention put forward by Burns to the effect that Bosquez was the managing partner. At best, the record reflects that both Bosquez and Gonzalez were active in the management of the business. As a matter of fact, with the exception of the transactions involving the 1962 note and the 1963 agreement, the record discloses that all instruments significantly affecting the relations between the partners and Burns were signed by both Bosquez and Gonzalez.

Since the evidence does not disclose that Bosquez, in executing the 1962 note, was performing an act ‘for apparently carrying on in the usual way the business of the partnership,’ there is no basis for holding that the note sued on was a partnership obligation.

The judgment of the trial court is affirmed.

 
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