Afton Live Stock Co. v. Peterson

220 P. 710, 62 Utah 437, 1923 Utah LEXIS 121
CourtUtah Supreme Court
DecidedNovember 22, 1923
DocketNo. 3956
StatusPublished

This text of 220 P. 710 (Afton Live Stock Co. v. Peterson) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Afton Live Stock Co. v. Peterson, 220 P. 710, 62 Utah 437, 1923 Utah LEXIS 121 (Utah 1923).

Opinion

FRICK, J.

The plaintiffs commenced this action against one Oscar Peterson and the Deseret National Bank to declare a certain contract entered into between plaintiffs and Peterson terminated, the payments made by Peterson thereunder to be forfeited to the plaintiffs, and that all the documents, papers, etc., placed with the Deseret National Bank in escrow, together with all other property delivered to said Peterson under such contract, to be forthwith returned to the plaintiffs as provided in said contract. The case was tried to the court, which made findings of fact and conclusions of law in favor of plaintiffs, and entered judgment accordingly. Peterson, hereinafter called appellant, alone appeals.

The pleadings in the ease cover 42 pages of the printed abstract, and it is therefore impractical to set them forth here. It should be stated, however, that appellant, in his [439]*439answer, in addition to certain admissions and denials, pleaded an affirmative defense, and, in connection therewith, also set np three counterclaims, all of which were either denied or avoided by the plaintiffs in their reply. The counterclaims will be more particularly referred to hereinafter. The findings of the court are likewise too voluminous to be set forth in full. We shall hereinafter refer to and set forth such portions of them as may be deemed necessary to a full understanding of the questions decided.

In view of the questions raised by the appellant it becomes necessary to set forth certain parts of the contract entered into between the parties in full, and to state the substance somewhat fully as to other parts.

In the contract it is stated that said corporation, the Afton Live Stock Company, is the owner of lands, sheep, and other property, and is engaged in conducting the business of raising, grazing, buying, selling, and dealing in sheep, and that J. S. Ostler, Hattie K. Ostler, S. L. Ostler, and P. K. Goddard are the only stockholders and officers of the Afton Live Stock Company, a corporation; that said “stockholders are desirous of selling all of the outstanding capital stock of said corporation upon the terms and conditions herein set forth, it being the purpose and intention of the parties hereto that such sale shall carry with it all of the property and'assets of said corporation;” that, in consideration “of the promises and covenants hereto, hereinafter set forth, said stockholders hereby agree to sell to” appellant and the appellant “hereby agrees to purchase from said stockholders all of the outstanding capital stock of said corporation, consisting of (5,000) five thousand shares, payment for the same to be made as follows, to wit: Cash, upon the execution of this agreement, receipt whereof is hereby acknowledged by said first parties [plaintiffs], $25,000.00. * * *” The deferred payments are to be made as follows: November 1, 1919, $25,000 as principal and $4,834.90 as interest, leaving a balance of $113,140; July 1, 1920, the sum of $9,428.66, and interest, $4,525.60, leaving a balance of $103,711.34. Thereafter the sum of $9,428.66, with interest, is to be paid on November 1, 1920, on July 1, [440]*4401921, November 1, 1921, July 1, 1922, November 1, 1922, July 1, 1923, November 1, 1923, July 1, 1924, November 1, 1924, July 1,1925, and the balance of $9,424.74, with interest, on November 1, 1925. "We have omitted the amounts of the interest and the amounts due on each installment, all of which are set forth, however, in the contract at each installment period. The contract then proceeds:

“Reserving tile right unto the said party of the second part (appellant) to cancel this agreement by full payment of the amount due * * * at any of the above installment dates.”

It is then provided that the certificates of stock, together with a copy of the agreement, shall forthwith be “deposited in escrow” with the Deseret National Bank, together with other documents, all of which are specifically mentioned, and all of which shall remain in escrow “pending the full performance of this agreement or until such time as the same is terminated” as provided in the agreement; and, in case of full performance by the appellant, the certificates of stock placed in escrow shall, by the escrow holder, be delivered to appellant. The contract then provides:

“It is further understood and agreed that the said second party (appellant), in connection with the proper officer or officers of the said corporation, shall control and manage the affairs and business of said corporation during the life of this agreement it being understood, however, that said second party (appellant) is not to incur any expenses or indebtedness in that behalf except such as are reasonably necessary for the proper and businesslike conduct and management of said business, and is not to issue checks of the party of the first part (respondents) in amounts greater than ten thousand ($10,000) dollars, except the same be first countersigned by the president of said Afton Live Stock Company; and, whenever called upon to do so by the proper officer or officers of said corporation, said second party (appellant) shall exhibit a full and complete statement of the accounts relating to said business and showing, in detail the final condition thereof; provided, however, that all monthly statements from bank, together with canceled checks showing what they are issued for, shall be delivered to the bookkeeper of the Afton Live Stock Company monthly by said party, and expenses of bookkeeper, not to exceed one hundred ($100) yearly, shall he paid by said second party (appellant), as are all other expenses from April 1, 1919.
“It is further understood and agreed that said corporation is [441]*441now the owner of sixty-nine hundred and thirty-five (6,935) head of sheep, of which there are seven hundred and thirty-one (731) ewe lamhs of last year’s crop, three hundred (300) Cotswold bucks, and fifty-nine hundred and four (5,904) stock ewes ranging in ages from two to six years, the graded ages being as follows: 900 head of 2 year olds; 3,500 head of 3 year olds; the balance 4, 5, and 6 year olds. And it is agreed that at the beginning of each winter season for the period of two (2) years from and after the date hereof, said second party (appellant) shall have on hand, unin-cumbered, at least eight thousand (8,000) head of sheep of the same qualities and ages as those above specified, and at the beginning of each winter season thereafter shall have on hand at least six thousand (6,000) head of sheep of said qualities and ages.”

It is further provided that all the sheep and their increase shall be “kept marked and branded,” specifying the marks and brands. The contract then further provides:

“No sales of said sheep, or the increase thereof, or the wool therefrom shall be made without the written consent of said corporation; the proceeds of all sales shall be first applied to the payment of taxes and the expense of operation of said business, and the balance, or so much thereof as may be necessary, shall be applied to the installments of the purchase price as and when the same respectively fall due. Said second party (appellant) shall pay indebtedness incurred by him in connection with said business whether said indebtedness be incurred in the name of said second party (appellant) or in the name of said corporation. Said corporation is to pay all accrued indebtedness and all expenses in the operation of said business prior to the date hereof.

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Bluebook (online)
220 P. 710, 62 Utah 437, 1923 Utah LEXIS 121, Counsel Stack Legal Research, https://law.counselstack.com/opinion/afton-live-stock-co-v-peterson-utah-1923.