Broomhall v. Edgemont Mining Co.

340 P.2d 869, 139 Colo. 496, 1959 Colo. LEXIS 463
CourtSupreme Court of Colorado
DecidedJune 22, 1959
DocketNo. 18,263
StatusPublished
Cited by1 cases

This text of 340 P.2d 869 (Broomhall v. Edgemont Mining Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Broomhall v. Edgemont Mining Co., 340 P.2d 869, 139 Colo. 496, 1959 Colo. LEXIS 463 (Colo. 1959).

Opinion

Mr. Justice Sutton

delivered the opinion of the Court.

[497]*497The parties are here in the same order they appeared in the trial court and we will refer to them as they there appeared or by name.

Plaintiff, Viola S. Broomhall, brought this action seeking a declaratory judgment to confirm her ownership of an interest in a certain mining lease, known as the “Gould Lease,” upon property located in Fall River County, South Dakota. The complaint alleged execution of a mineral lease from the owners of the property to one Brockman, and an assignment of a ten per cent interest therein by said Brockman to Walter L. Broom-hall, the husband of plaintiff, on March 31, 1952. It was further alleged that Broomhall assigned his interest to plaintiff on March 31, 1952; that on May 9, 1952, the said Walter L. Broomhall executed a general release to the defendant Edgemont Mining Company and as a result thereof the defendant claims that it is the owner of the said ten per cent interest in the Gould lease and threatens to withhold her share of the profits from the sale of ore from said Gould lease. She prayed for a judgment declaring her interest in the Gould lease to be in no way affected by the general release made by Walter L. Broomhall to defendant.

Defendant by its answer admitted the execution and delivery of an interest in the Gould lease to the plaintiff’s husband, and alleged that on May 9, 1952, Walter L. Broomhall, in consideration of the payment to him of the sum of $2468.25, remised and released all rights and claims against defendant and in the said Gould lease, and at such time represented that he was the sole owner of such interest. By leave of court Walter L. Broomhall was brought into the case as a third party defendant by complaint alleging that on March 31, 1952, one Brockman assigned to the said Walter L. Broomhall an undivided 10% interest in the Gould lease, and that plaintiff is the wife of said Broomhall, who, on the 9th day of May, 1952, representing himself to be the sole owner of said interest, assigned all his right, title and [498]*498interest therein to the Edgemont Mining Company in consideration of the payment to him of the sum of $2468.25. The prayer is that the plaintiff and the third party defendant be adjudged to have no interest in the Gould lease, and such other and further relief as may seem proper.

Trial was to the court resulting in findings and judgment favorable to the defendant, and plaintiff is here by writ of error seeking reversal.

The evidence shows that during the month of March 1952, Walter L. Broomhall, husband of the plaintiff, a lawyer and employee of the United States Internal Revenue Department, had occasion to contact one E. J. Brock-man concerning governmental business. Brockman, with others, was then engaged in obtaining leases and promoting development of uranium properties in Fall River and Custer Counties, South Dakota, in the name of Edgemont Mining Company, the name of a yet to be formed corporation. All such leases obtained were negotiated in the name of E. J. Brockman in behalf of himself and his associates. As a result of this contact Broomhall became interested in the activities of Brockman and his associates, and they being without funds to secure desired leases, Broomhall agreed to advance certain funds for that purpose. Among the leases so obtained was the Gould lease, the subject matter of this controversy, for which Broomhall advanced $1,000.00. On March 26, 1952, the Gould lease was negotiated by Brockman, and on March 31, 1952, he assigned to Broomhall an undivided 10% interest therein, represented by a written instrument acknowledged on the same day and recorded on April 10, 1952, in Fall River County, South Dakota. On the day he received his assignment of an interest in the Gould lease, March 31, 1952, Broomhall asserts that he forthwith assigned the same to the plaintiff. This assignment was recorded May 19, 1952, some ten days after the settlement hereafter referred to was effected. On August 8, 1952, the plaintiff assigned pll her interest in [499]*499the Gould lease to Carroll W. Parmeter, and it is claimed that thereafter Parmeter reassigned to the plaintiff. Controversy arose as to the admissibility of the document purporting to be a reassignment from Parmeter to plaintiff, and that instrument, identified as Plaintiff’s Exhibit E, was not admitted in evidence by the trial court. Since it is not in the record before this court we will not consider the issue of its admissibility.

Within a few weeks after the transactions above related, Mr. Broomhall became dissatisfied with the operations as they were being conducted by Brockman and his associates. He expressed a belief that he had been deceived by them as to the prospects and value of the mining claims involved and desired to have his money returned. To this end he contacted Ray C. Ludwig, a brother of Arthur Ludwig, one of Brockman’s associates, and threatened to bring an action for fraud unless his demands were complied with. This situation led to a conference between Mr. Broomhall, Ray Ludwig and Max G. Ivey, where the matter was explored and the sums advanced by Broomhall in--connection with-the several leases and for other purposes, were itemized, including a specific reference to the $1,000.00 paid for the Gould lease. These several sums totaled $2468.25, and it was proposed by Ivey that if Mr. Broomhall would accept this amount in full satisfaction and release of all his interests in the venture, he, Ivey, would undertake to raise the money. This meeting occurred during the last of April or the first few days of May 1952, little more than a month after Broomhall first became interested in the uranium leases. At that time Mr. Broomhall declined to accept the amount offered and in addition expressed a desire to retain an interest in the Gould lease. He was told by Ludwig and Ivey that if he wished the return of his money he would- have to release every thing, • including-the-Gould lease.' ' .

Following this meeting Mr. Broomhall wrote letters to parties in South Dakota, and himself made-a trip to [500]*500Hot Springs in that state, near which the properties were located. The trip and inquiries apparently persuaded him that his best course was to settle the dispute, as upon the day after his return, May 9, 1952, he again contacted Ray Ludwig and advised him that he would release his claims against Brockman and Arthur Ludwig for a cash settlement. Ray Ludwig thereupon advised Ivey who arranged to obtain $2500.00, which he delivered to Ray Ludwig in the form of a bank check. Ludwig took the check to the office of Richard J. Simon, counsel for defendant here, where Simon’s check for $2500.00 was drawn, payable to the order of Walter L. Broomhall. Mr. Simon not being available at that time, his secretary and Ludwig undertook to prepare what they believed to be a sufficient release and reassignment to the Edgemont Mining Company of all Broomhall’s interest in the several mining leases involved, including the Gould lease. At this time the Edgemont Mining Company was in the embryo stage and was not actually incorporated until June 11th following. The document mentioned was prepared upon a standard printed form of general release and recites that in consideration of the sum of $2500.00 to him in hand paid, Broomhall “remises, releases and forever discharges” the Edgemont Mining Company from any and all claims and demands, etc., which he has or ever had against the company, and specifically refers to the several mining properties in which Broomhall had acquired an interest, including the Gould lease.

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Bluebook (online)
340 P.2d 869, 139 Colo. 496, 1959 Colo. LEXIS 463, Counsel Stack Legal Research, https://law.counselstack.com/opinion/broomhall-v-edgemont-mining-co-colo-1959.