City of Goldfield v. MacDonald

52 Colo. 143
CourtSupreme Court of Colorado
DecidedSeptember 15, 1911
DocketNo. 6274
StatusPublished
Cited by4 cases

This text of 52 Colo. 143 (City of Goldfield v. MacDonald) 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
City of Goldfield v. MacDonald, 52 Colo. 143 (Colo. 1911).

Opinion

Mr. Justice Bairey

delivered the opinion of the court:

The action is for the cancellation of certain outstanding municipal obligations of the city of Goldfield, referred to as “water right obligations,” the precise form of which is set out at length in the complaint. The allegations of the complaint disclose, in substance, this state of facts:

That prior to the 12th day of November, 1900, the defendants, Minnie, Christina, Tenna and Kittie MacDonald, now Kittie Eliason, were the owners of an undivided half of ten acres of land described in the complaint; [145]*145that these defendants, .with one John MacDonaM, • who was- then acting as attorney in fact for the other MacDonalds as well as for himself, claimed to own an undivided one-half of a pretended water right, said to be connected with the land: The defendants, Smith, Collins, LaKamp and Allen, were members of the city council of the-city of Goldfield, which consisted of a -mayor and: si-x aider-men; that the defendants, Hoyt, Parks and Little, were attorneys at law and acted in an advisory capacity 'to Smith,- Collins, LaKamp and Allen, as members of the city council, and-also represented and acted for-the MacDonalds-in the transactions involved in this .suit. -• >

•That prior to November 12th, 1900; the defendants, the MacDonalds, for the' purpose of defrauding the city of Goldfield, entered into an agreement with the defendants, Smith, Collins, LaKamp 'and . Allen, and: Hoyt, Parks and Little, whereby it was agreed that the MacDonalds should- offer to sell, and did sell to -thát -city, the land and water-right described for $30,-ooo in watertight obligations of the city of Goldfield; that when the proposition should be submitted to the city council,) Smith, Collins, LaKamp and Allen, in their official capacity as-members of the council, should vote to accept- the: proposition on behalf of the city, and should order the issuance- of the water right obligations in payment-therefor. ■■ ■ ■•■-

That on or about October 12 th a proposition i-h writing- was submitted in behalf of the MacDonalds--to -said four- members of the council, proposing to sell said property to the city, and to carry out this deal thirty or more obligations for $1,000 each were prepared and lithographed in words and figures as pleaded. It was -also arranged that LaKamp, president of the .council, should sign and execute the obligations, and all- necessary details were arranged for the immediate delivery thereof to John [146]*146MacDonald. A deed conveying the land and water rights to the city was prepared, executed and signed 011 November 12th, ready for delivery prior to the acceptance of the proposition.

On November 12th a regular meeting of the city council was held, at which meeting the proposition of sale was first presented; also a resolution, which purported to accept the proposition for the city and to authorize the issuance of the water obligations.

Immediately on the passage of the resolution, on. November 12th, LaKamp signed the obligations. The next morning he caused the city clerk to attest his signature and the seal of the city to be impressed thereon. They were delivered to the MacDonalds and other unknown parties, and were secretly taken away to hinder the taxpayers of.the city from bringing suit to prevent their delivery and disposal. These obligations were never presented to the mayor for signing and were never signed, by him. No ordinance providing for the -purchase and issuance of these obligations was ever passed by the city.;, nor was the proposition to purchase the property in question submitted to the taxpaying voters.

• The defendants Smith, Collins, LaKamp and Alien were to and did receive a part of the water right obligations, or the proceeds thereof, for voting for and carrying out the fraudulent purchase scheme. The land and alleged, water rights were not worth to exceed $2,000, and. were, and are of no use whatever to the plaintiff, which the defendants well knew, and in selling same to the city they intended to defraud the city of $30,000; that the obligations are fraudulent and void, as the city never received. any valuable or adequate consideration therefor.

:On April 15th, 1901, a new city.council was inducted iiito office, whereupon, and at the earliest possible [147]*147moment, it passed a resolution declaring all of the acts done by defendants Smith, Collins, LaKamp and Allen, in carrying out said scheme, to be wholly fraudulent and void. Qn April 22nd, 1901, the city by resolution authorized and instructed the mayor to reconvey said land and water rights to the MacDonalds; that deeds attested by the city clerk have been made out, executed and sent to John MacDonald, reconveying same accordingly.

Prior to April 15th, 1901, defendants Smith, Collins, LaKamp and Allen were members of the council and parties to the fraud, and it was impossible to induce them to take any action to cancel the obligations. Defendants MacDonalds, Eliason, Hoyt, Parks and Little have in their possession a number of these obligations and are using every endeavor to dispose of them, and the defendant, The Struby-Estabrook Company, has two of them, which are held as security for the personal debts of John MacDonald, all of which will be disposed of if not enjoined. That plaintiff has no speedy or adequate remedy at law. Then follows an allegation of urgency, with prayer for temporary and final relief. «

A demurrer was interposed to the complaint on three separate grounds:

1. That it does not state facts sufficient to state a cause of action against all, or any one, or either, of the defendants ;

2. That the plaintiff has no legal capacity to sue; that is to say, that this action is misconceived and cannot be maintained by plaintiff, as it is without power or authority to do so; and,

3. That the complaint is ambiguous, unintelligible and uncertain, in that it does not connect the matters and things alleged with the defendants or either of them, and does not state the place, day or date of any of the sup[148]*148posed facts; nor which, if any, of the defendants per formed the alleged acts; that the allegations thereof, so far as the defendants are concerned, are general and not specific as to any one defendant.

The court below sustained the demurrer, and, the plaintiff failing to amend, rendered a judgment of dismissal. Tire case is brought here on error to review the ruling of the court upon the demurrer and its action in dismissing the complaint.

The order sustaining the demurrer is general, and means that the court held the complaint bad for all the legal reasons assigned; that is, the court resolved every legal issue tendered by the demurrer in favor of the defendants. In legal effect this ruling was to hold: x. That the complaint states no cause of action; 2. That the plaintiff, the city of Goldfield, is without legal capacity to-sue; and, 3. That the complaint is ambiguous, uncertain and unintelligible.

If the court meant to hold the complaint bad simply because of uncertaint}', ambiguity or unintelligibility, it was its duty to so advise, and then doubtless an attempt would have been made to amend it in conformity with such ruling. But when it was held that plaintiff had no legal capacity to sue, and that no cause of action was stated, amendment was impossible, and plaintiff could do nothing except stand by its cause as made.

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Bluebook (online)
52 Colo. 143, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-goldfield-v-macdonald-colo-1911.