Putnam v. Shoaf

Carolyn Putnam sold her one-half partnership interest in the Frog Jump Gin Company to the Shoafs (defendants) by quitclaim deed, with the Shoafs assuming all her partnership debts and liabilities, in a transaction where neither party knew that a former bookkeeper had been embezzling from the partnership. After the Shoafs acquired Putnam's interest, the embezzlement was discovered, Frog Jump sued the bookkeeper and the banks that honored forged checks, and Putnam intervened seeking half of any recovery; she died during litigation, and after the partnership recovered $68,000 (with the other partners, the Charltons, receiving their half), Putnam's estate (plaintiff) and the Shoafs disputed entitlement to the remaining half, with the trial court ruling Putnam had no interest in the recovery.