Business Associations -- 1955 Tennessee Survey

Nature and Formation of Partnerships: The question whether a contract sued on was a partnership arrangement so as to be cognizable only in equity was considered by the Tennessee Court of Appeals in Powel v. Bundy.' There Bundy, a real estate broker, sued Powell on the lawside to recover $500, alleged to be plaintiff's one-half share of a commission earned by their joint efforts in selling a tract of real estate, but which commission had been collected and wrongfully retained by defendant. Among other defenses interposed was defendant's contention that the contract sued on was that of a partnership arrangement between the parties and that one partner cannot sue another partner at law, exclusive jurisdiction of such a suit being in a court of equity. Although the question of jurisdiction may not have been squarely before the court, nevertheless the court concluded that the contract was not one of partnership but was a mere agreement of the parties to work together and divide the commissions. The court held that the suit was properly brought on the law side and affirmed a lower court judgment for the plaintiff.