Bailey v. Bond

77 F. 406, 23 C.C.A. 206, 1896 U.S. App. LEXIS 2256
CourtCourt of Appeals for the Ninth Circuit
DecidedOctober 26, 1896
DocketNo. 198
StatusPublished
Cited by3 cases

This text of 77 F. 406 (Bailey v. Bond) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bailey v. Bond, 77 F. 406, 23 C.C.A. 206, 1896 U.S. App. LEXIS 2256 (9th Cir. 1896).

Opinion

KNOWLES, District Judge.

S. S. Bailey, plaintiff in error, commenced this action against the defendant in error to recover of' him the sum of $251,250. The complaint sets forth, in form, two causes of action. In the first cause of action it is set forth that John J. Hennessy, William M. Hennessy, John L. Seaton, Frank Flint, and John M. McGuigan were the owners of five certain mining claims situate in West Kootenai district, in the province of British Columbia, in what is known as the “Kaslo-Slocan Mining Region”; that on the 18th day of January, A. D. 1892, plaintiff and. [407]*407defendant entered into an agreement in writing whereby the said defendant did authorize and empower this plaintiff to at once undertake and procure for defendant a bond or agreement for a deed to the said mining claims, from the owners thereof, upon the following terms, to wit: First, the price of said properties was not to exceed the sum of $300,000, unless thereafter agreed to in writing by said defendant; second, the said defendant was not to be required to pay more than $25,000 in cash when said bond was executed and delivered to him; third, the remainder of said purchase price over and above the amount of said first cash payment was to be paid on or before the 15 th day of September, 1802, unless otherwise agreed to by defendant in writing; fourth, the said defendant should claim the right, at any time after the delivery of said bond, and after the making of said first cash payment, to enter into possession of said properties, and work the same, pending the continuance of said bond. The fifth provision provides for a deed upon the payment of the purchase price of said mining properties, when the defendant shall have exploited the same to his satisfaction, during the continuance of the bond. In said contract the defendant agreed, on his part: First, that upon the procuring of said bond, and the delivery of the same to him, he would accept the same, and immediately pay the first cash payment provided in said bond, not to exceed $25,000; second, that he would at once assign by a separate instrument in writing, to this plaintiff, an undivided one-fourth interest in said bond or agreement, free from any charge or expense; third, that if he concluded to take said properties, he would make all payments named in said bond or agreement, and plaintiff should not be held liable, or compelled to pay any portion of said payments; fourth, that, upon the execution by the owners of said mining properties to defendant of a deed to said properties, defendant would, upon request, make to plaintiff, free of any charge or expense, a deed conveying the same title to said properties received by him, for an undivided one-fourth interest in said properties. Plaintiff alleges: That he did procure from said owners of said property a bond or agreement for defendant, duly executed, sealed, and acknowledged, for a deed to said mining properties. That a copy of said bond or agreement is attached to complaint, marked “Exhibit B,” and made a part thereof. That he did deliver said bond or agreement to defendant, and demanded of him that he duly assign, by a separate instrument in writing, to plaintiff, an undivided one-fourth interest in said bond or agreement. That defendant refused to accept the said bond or agreement, and to pay the first cash payment therein provided to be made, and refused to assign to plaintiff said one-fourth interest therein, and failed and refused to keep and perform any of the conditions in said agreements marked “Exhibits A and B.” That defendant alleged as an excuse for his refusal to accept the said bond or agreement, and to carry out the other terms of said contract with plaintiff, that the said bond or agreement deprived him of the right to enter into possession of said [408]*408properties, and work the same, pending the continuance of said bond or agreement. That the mining properties were of great value, namely, $1,000,000, and that plaintiff has been damaged .by a failure of defendant to perform said agreement with him in the sum of $250,000. The second cause of action is based upon a provision of the contract between plaintiff and defendant that, in case plaintiff would procure said bond or agreement from said owners of said mining properties, he (the defendant) would pay plaintiff one-half of all reasonable' expenses required to procure the same, including traveling expenses; that he procured the bond or agreement named in the said contract; that his reasonable expenses were the sum of $2,500; that defendant is liable for $1,250 of this sum. ■ Defendant demurred to each of said causes of action on the ground that the same did not state a cause of action. There was also a demurrer to the second cause of action, based upon the ground that the court had no jurisdiction of the same because the amount involved therein did not equal the sum of $2,000. This last point is not presented in the brief of defendant. The court sustained this demurrer and gave judgment. The cause is brought to this court on writ of error.

The first question for consideration is, does the complaint show that plaintiff in error complied with his portion of said contract, as set forth above, and does the complaint show that" defendant in error failed to comply with his part thereof? The plaintiff was to procure a bond or agreement which would give the defendant the ■ right to enter into the possession of the mining ground described therein, and work the same. This, in effect, would be a lease giving the defendant the right to enter upon and work said mining property. There was a consideration for this lease, of $25,000, paid on the purchase price, which was to be forfeited if defendant failed to take the property. The question is, did the plaintiff procure such an agreement or bond? The instrument obtained, and which is attached to the complaint and marked “Exhibit B,” and made a part of the complaint, provides:

“And it is further mutually covenanted and agreed that the party of the second part shall have the right to enter upon and take possession of all the premises aforesaid immediately upon the execution of this instrument by said first parties, and retain possession thereof until said September 15th, 1892, and that he shall have .the right to work the mines thereon, and extract ore therefrom, at his own expense; and said second .party covenants not to remove any of said ore from the dump of said mines, respectively, until after the full payment of the purchase price according to .the terms thereof, except not to exceed fifty tons thereof for the purpose of shipment and sale, and to do all mining upon said properties in such workmanlike manner as shall be approved by S. S. Bailey. Said second party further agrees that immediately upon receiving the proceeds from the sale of said fifty tons of said ore, or any part thereof, to deposit the net proceeds thereof in Traders’ National Bank of Spokane Balls, AVashington, to the credit of the first parties.”

Was this the possession and right to work said mining property stipulated for by defendant in his contract with Bailey? Possession of real property implies something more than the mere right to enter upon the same and look at the same, or occupy the same. [409]*409Possession of real property implies the right to occupy and enjoy the same. Redfield v. Railroad Co., 25 Barb. 54-58. In the case of Sullivan v. Sullivan, 66 N. Y. 37, the court says:

“Possession is something more than mere right or title, whether to a present or future estate. It implies a present right to deal with the property at pleasure, and to exclude other persons from meddling with it.”

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Cite This Page — Counsel Stack

Bluebook (online)
77 F. 406, 23 C.C.A. 206, 1896 U.S. App. LEXIS 2256, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bailey-v-bond-ca9-1896.