Arizona-Parral Mining Co. v. Forbes

146 P. 504, 16 Ariz. 395, 1915 Ariz. LEXIS 151
CourtArizona Supreme Court
DecidedFebruary 20, 1915
DocketCivil No. 1419
StatusPublished
Cited by26 cases

This text of 146 P. 504 (Arizona-Parral Mining Co. v. Forbes) is published on Counsel Stack Legal Research, covering Arizona Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arizona-Parral Mining Co. v. Forbes, 146 P. 504, 16 Ariz. 395, 1915 Ariz. LEXIS 151 (Ark. 1915).

Opinion

ROSS, C. J.

The appellee, plaintiff below, instituted this action against the appellant, the defendant below, on November 7, 1912, for his services as a broker or middleman under a contract dated November 16, 1910. The contract, which is in the form of a letter from appellant to appellee, was set out in the complaint, and is in words and figures as follows:

“Arizona-Parral Mining Company,

“1012 Baltimore Avenue.

“Kansas City, Mo., November 16, 1910.

“Mr. A. W. Forbes, P. 0. Box No. 868, Tucson, Arizona—■ Dear sir: I have your letter of November 11th, and in reply beg to say that this company cannot consider giving you a bond or option on the San Xavier property, and cannot entertain the putting of such negotiations through third parties.

“If responsible parties really desire to take up the matter seriously, they can be put by you in communication with us direct, so that we may satisfy ourselves that they are thoroughly capable of carrying out any engagement they might enter into in connection with same, and unless such parties can give us ample assurance that the matter will be taken up seriously and actively, with a full recognition of the fact that the company would not accept less than $250,000 for the property, we do not care to spend time in negotiation on the subject.

[397]*397“In the event that anyone should buy the property from us as the direct result of an introduction to the company by yourself, we should of course be glad to recognize your intervention by a suitable commission on any deal that might be made.

“If the parties you have in mind can fill the conditions above required, we shall be pleased to have you put them in direct communication with us. Otherwise we shall not pursue the matter further.

“Tours very truly,

“B. D. ROWE, President.”

The complaint alleged that, in pursuance of the contract, the appellee did on or about April 9, 1912, present the San Xavier mining properties to the Empire Zinc Company, and, as a direct result of his efforts, on or about August 26, 1912, a contract was entered in to with the Empire Zinc Company, by the terms of which the Empire Zinc Company was given possession of the property with privilege of purchasing the same for $200,000, to be paid in installments of $50,000. This contract was made a part of the complaint and was clearly an optional contract of sale. It is further alleged that thereafter in November, 1912, said optional contract was changed and modified into a sale of the property by appellant to the Empire Zinc Company for $175,000.

This complaint was before us in Forbes v. Arizona-Parral Min. Co., 15 Ariz. 30, 135 Pac. 715, on the question as to whether it stated facts sufficient to constitute a cause of action, and our holding on that appeal sustained the complaint. The case was remanded for further proceedings, whereupon the defendant, whose answer had theretofore been a general denial, filed a plea in abatement of the action, alleging that the action was prematurely brought, in that when the action was instituted on November 7,1912, the property had not been sold to anyone whomsoever, but remained and was the property of defendant; that property was not sold nor conveyed, nor the purchase price paid until after at least the 21st day of November, 1912, and long after the bringing of plaintiff’s action. Defendant also demurred to the complaint for the same reasons, the facts appearing upon the face of the complaint, alleging for said reason the complaint did not state facts sufficient to constitute a cause of action against the defendant. '

[398]*398The answer contained specific denials of all. of the material allegations of the complaint, and set up another contract between plaintiff and defendant, in writing, dated April 1, 1912, in which the plaintiff was constituted the agent of defendant to sell said properties extending to July 31, 1912, for $250,000 to the Exploration Company, Limited, of London, or to such other person as should be approved in writing by the defendant, with the agreement that plaintiff should receive 12 per cent commission for effecting any such sale, on the total purchase price. It is alleged that, if plaintiff did anything toward the sale of said property, it was done under and by virtue of the last-mentioned contract, and that that was the sole and only contract in existence between the plaintiff and defendant at any time whatsoever in regard to the sale or disposition of said property, and the only contract subsisting between them from April 1, 1912, in regard to the sale of said properties.

The contract dated April 1, 1912, was not set out in the answer, but was pleaded according to its tenor and effect. It consisted of two instruments—one an optional contract of sale of the San Xavier properties to appellee, the latter, according to the recitals, acting for the Exploration Company, Limited, of London, and the other was a commission contract. In the trial these contracts were introduced in evidence. Their importance in the determination of the ease is such that we here give the part of the optional contract that we deem vital and the whole of the commission contract.

Optional contract.

‘ ‘ Sixth. This agreement shall bind and inure to the benefit of the parties hereto, their successors, executors, administrators and assigns; provided, however, that this agreement shall only be assignable by the party of the second part to the Exploration Company, Limited, of London, or to such other person, firm or corporation as shall have been approved in writing endorsed hereon by the party of the first part.”

Commission contract:

‘ ‘ This agreement made this 1st day of April, 1912, between Arizona-Parral .Mining Company, a corporation under the laws of Arizona, party of the first part, and A. W. Forbes, party of the second part, witnesseth: Whereas, a certain option contract has been entered into between the parties hereto for the sale to party of the second part, or his assignees as in [399]*399that contract limited, of certain mining properties situated in-the Pima mining district, state of Arizona, belonging to party of the first part, and dated evenly herewith; and whereas, said A. W. Forbes is acting in behalf of the Exploration Company, Limited, of London, in making such agreement, now if said agreement shall result in a sale of said properties by party of the first part, it agrees to pay said Forbes’ commission as commission for effecting such sale as follows, to wit: Twelve (12) per cent of the total purchase price to be payable in installments after receipt by said party of the first part of each of the payments of twenty-five thousand ($25,000.00) dollars as in said contract provided, that is to say, three thousand C$3,000.00) dollars after receipt of each of said twenty-five thousand ($25,000.00) dollar payments, making a total, if said purchase price shall have been made, of thirty thousand ($30,000.00) dollars to said party of the second part, but no commission to be paid other than twelve (12) per cent on the amounts actually received in cash by party of the first part.”

The plea in abatement was denied, and the demurrer was overruled. A trial was had before a jury, and the plaintiff obtained a verdict for $8,750, upon which judgment was had.

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Bluebook (online)
146 P. 504, 16 Ariz. 395, 1915 Ariz. LEXIS 151, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arizona-parral-mining-co-v-forbes-ariz-1915.