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Concerning the Action of Accounting

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CONCERNING THE ACTION OF ACCOUNTING. The statute of limitation is not technically a bar to a suit for an accounting, but if a great length of time has elapsed without action on the part of the complainant, the court may refuse to en tertain the suit on the ground of negligence. (Bell v. Hudson, 73 Cal. 285.) A demand for settlement is not necessary before bringing the suit, and the omission only affects the matter of costs. It is sometimes said that the pend envy of a suit for an accounting is a bar to a second suit for the same purpose; this is not strictly true, but the court of equity will compel the plaintiff to elect which of the two suits he will follow. Pending dissolution or the accounting a receiver may be appointed, and a partner who owns capital in the firm should be pre ferred to a third person as receiver, unless he is an unfit person.

When the partnership accounts have been settled and a decree rendered, they are not to be reopened unless within a reasonable time and upon proof of fraud, or error as to some matter unknown to the complain ing party when it was committed. If a fraud is clearly proven to have been committed in the first account ing, the account will be reopened, though considerable time have elapsed.

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