Story Case

Ludington Lee and four other men were partners in an oil well venture. Lee, who financed the firm, lived in Detroit, Michigan. The other partners were in Texas where the wells were being bored. Howard Miller, a laborer working at one of the wells, was ordered by the partner, under whom he was working to climb to the top of one of the oil tipples to adjust a broken wheel. Miller objected because the task was dangerous, but, nevertheless, undertook the task. The rope, which he used to hoist himself, broke when he was near the top, and he fell to the ground, breaking a leg. Miller 's lawyer, thereupon, brought suit against Lee alone for $10,000, to cover all the damages suffered by Miller. Should suit have been brought against the other partners too?

Ruling Court Case. Liebold Vs. Green, Volume 69 Illinois Appellate Reports, Page 527

Green and others were partners conducting business under the firm name of Green's Dredging Company. The company, prior to the time of this controversy, had contracted to move a building. The work was supervised by an agent of the company, McGowan. The plaintiff, Liebold, was employed as a teamster in the work. During the course of the moving, an engine house was loaded on a wagon which the plaintiff was driving, and so placed that the plaintiff was compelled to get inside the house in order to drive. In obedience to the orders of McGowan, but contrary to his desire and best judgment, he climbed into the engine house and was driving away when the building collapsed and caused him severe injuries. This action was brought against Green and the other partners for damages caused by the collapse of the engine house.

Decision

Each partner is individually liable for all torts committed in the course of the partnership business, and may be sued alone, or with part or with all the other partners. Accordingly, it was held that the plaintiff was entitled to recover against Green and the others, either separately or severally.

Ruling Law. Story Case Answer

The relation of partnership, as pointed out heretofore, is based upon the principles of agency. Each partner has implied power within the scope of the partnership business, to act for the firm. It follows, therefore, that the firm is liable for the acts of a partner to the same extent and in the same manner that a principal is liable for the acts of his agents. Then, the firm is held liable civilly, for wrongful acts of each partner committed by him in the course of his employment. Suit can be started against all the members of the firm or any one of them.

If Lee was the only man, in the Story Case, who was financially responsible, Miller's lawyer pursued the right course in bringing suit against him alone. Recovery can be had against Lee for all the damages suffered, provided the injury was caused by the negligence of any one member of the firm.