In Powell v. Maguire, the plaintiff alleged a pre-existing verbal agreement with the defendant to jointly obtain and operate a legislative franchise for a steam ferry between Vallejo and Mare Island, claiming he helped secure the 1866 grant in the defendant's name and was entitled to a half-interest, but the defendant built and operated the ferry alone after refusing to transfer any share. The trial court ruled for the plaintiff and ordered an accounting, but the Supreme Court reversed, holding that the agreement amounted at most to an unlaunched partnership with no joint operations or contributions by the plaintiff. The core reasoning was that public policy bars equitable enforcement of secret antecedent deals to divide a legislative franchise not disclosed to the granting body, as this could enable undisclosed combinations and improper influence; the plaintiff's remedy, if any, was limited to a contract action at law, and precedents like Miles v. Thorne were distinguished because they involved post-grant ratification and actual participation.

business & regulatoryproperty

The case involved a replevin action by Stokes and others to recover grain they had purchased from Neuart, one partner in Neuart & Young, in satisfaction of his individual debt; the grain was harvested and stored in the plaintiffs' name at a warehouse. Defendants Stevens & McKeown, creditors of the partnership for goods and services used in growing the crop, later obtained attachments and seized the grain as partnership property. The court affirmed judgment for the plaintiffs, holding that the sale conveyed valid title because a partner may dispose of partnership assets, and firm creditors hold only an equitable lien that must be enforced through equity proceedings to marshal assets rather than by attachment at law after a bona fide conveyance. The court further reasoned that even if only Neuart's interest passed, the plaintiffs became tenants in common with the right to possession, and any levy should have targeted only the remaining interest.

business & regulatorypropertyprocedure