Colman v. W. Va. O. & O. L. Co.

25 W. Va. 148, 1884 W. Va. LEXIS 127
CourtWest Virginia Supreme Court
DecidedNovember 22, 1884
StatusPublished
Cited by17 cases

This text of 25 W. Va. 148 (Colman v. W. Va. O. & O. L. Co.) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Colman v. W. Va. O. & O. L. Co., 25 W. Va. 148, 1884 W. Va. LEXIS 127 (W. Va. 1884).

Opinion

Giuoen, Junas:

The first question in this' case is : Shall this Court dismiss it as agreed without any enquiry into the merits of the case on the writ of error ? Messrs. Sands and Van Winkle argue, that the case should not be dismissed, and base their argument partly on the assumption, that the evidence clearly shows collusion between the parties making the agreement, and partly on the assumption, that in making, agreeing to and directing this dismissal Penny, the vice-president of the company was acting in bad faith to the company, its stockholders and other creditors and with a view of promoting some personal interest of his own and in violation of the wishes of a majority of the directors. Are they right in this assumption ?

It seems to me that the evidence fails to establish such [162]*162collusion and bad faith on the part of Penny. Of course the presumption in this case, as in all others, is that a party who does an act, which he is authorized to do, does it in good faith, until the contrary is made to appear. - What then is the evidence of bad faith and collusion in this case ? ' Penny himself swears, that “ he executed this agreement to dismiss this writ of error in good faith, believing it to be for the best interest of the company and its stockholders that the writ should be dismissed.” This would be the presumption of law, and this affidavit of Penny should be regarded as adding very little to this presumption, for if in fact he was in collusion with the defendant, Colman, and acted in bad faith, we should naturally expect such'fraudulent person to swear that he acted in good faith.

But does the evidence produced by Sands and Van Winkle establish their allegation that this misconduct of Penny was the result of collusion between him and Colman and in bad faith ? It seems to me it does not. What were the circumstances, under which this agreement between Penny, the vice-president of the company, and Colman, the defendant, to dismiss this writ of error was made? C. D. Colman nearly three years before had recovered j udgment in the circuit court of Kitchie county against the company for $16,514.17 with interest and costs after a long and bitter controversy, the trial before the jury lasting eighteen days. The record shows conclusively, that this judgment was not obtained by any collusion between Colman, the plaintiff, and the West Virginia Oil and Oil Land Company, but on the contrary, that his claim was resisted by the company in every possible way. The record also shows that Penny, the vice-president of the company, did all he could to defeat this claim, even appearing before the jury as a witness against Colman.

The bitterness of this controversy is shown not only in the length of time its trial occupied, but also by the fact, that the defendant took no less than seventeen exceptions to rulings and decisions of the court. There is no evidence before us indicating that Penny ever approved of the obtaining of the writ of error in this ease. The writ was obtained from a judge of this Court in vacation on February 22, 1888, upon the application of the West Virginia Oil and Oil Land Com-[163]*163pauy by their counsel, Sands and VanWinkle, employed by the president of the company; JB. S. Compton; but there is no evidence, that Penny was consulted. For all that appears he may have disapproved and may then have thought, as he thinks now, that the interests of the company would not be promoted bv prosecuting a writ of error. lie may have then and always thought, either that there was no prospect of reversing the judgment ot the circuit court, or that even if it wore reversed for errors committed by the court in its rulings, the company would in no manner be benefited by such reversal, as ho may have thought that on a new trial a like judgment would be rendered in favor of Colman, and that he would then have a lien on all the property of the company real and personal from November 5, 1875, the day the attachment was levied, for he may well have believed, that this Court, though it might possibly reverse the judgment for misrulings of the circuit court during the trial, could not reverse the judgment refusing to quash the attachment. There is no evidence, that these were his views, when the writ of error was applied for; but there is on the other hand no evidence, that these were not his views.

It is true that there is proof by L. B. Dellicker, that in the fall of 1883, Penny told him, that the claim of Colman, on which the judgment was rendered, was a trumped up claim, and that anything the company might have owed him had been paid by Compton. But this was the question tried by the jury; and the claim was sot up before the jury, that the whole claim of Colman had been paid, and a great effort was made to prove it; but in the judgment of the jury the company and Penny, its vice-president, failed to prove this to their satisfaction. And though in 1883, Penny still held the same opinion of the claim, yet he might have thought, that on a second trial the company would still be Unable to prove it to the satisfaction of the jury, even if a new trial could be obtained from this Court, which could only be obtained, if this Court came to the conclusion, that the court below had erred as a matter of law in its rulings, and not because the jury drew a wrong inference from the facts.

Again, W. ~W. VanWinkle, one of the parties who object to the dismissal of this writ of error, does say, that during [164]*164the trial of tins case in the court below Penny told him that Colman had no claim against the company in this suit, that his claim had been satisfied and more than satisfied. This was no doubt Penny’s belief then and may be yet his belief; but does it in any way indicate, that he acts in bad faith in dismissing this writ of error, if he has the right to dismiss it? 'May he not be well satisfied from the former trial, that he could not disprove to the satisfaction of a jury the prima fade case made out by Colman by his holding the note of the company for $9,080.10 with ten per cent, interest from September 1, 1875? He has made the effort once before a jury to prove what he may believe to be the truth, but he failed to convince the jury, and may he not well believe that he cannot strengthen the case of the company on a new trial, even if he could get one from this Court ? Declarations of this character made now do not satisfy me, that Penny acting in bad faith to the company, of which he was vice-president, in desiring this writ ot error dismissed.

• But there is evidence, which proves, that Penny, shortly before the motion was made to dismiss this writ of error, repeatedly said, that he had been urged to agree to dismiss the writ and had refused to do so. Iiis reasons for having refused to do so are not generally given ; but W. S. Sands, one of the parties objecting to the dismissal of this writ of error, states, that he did assign his reasons-to him. .In his affidavit he says : “In the latter part of February, 1884, he informed him, that the matter of the dismissal of this writ of error had been the occasion of considerable correspondence between Colman and his (Colman’s) wife and him (Penny); that the matter was1 then ended, because after consultation with some of the principal stockholders of said company and talking with Governor Borcman upon the subject he thought he had no right to dismiss the writ, and his doing so might lay him open to a great deal of adverse criticism.” He does not in this or any of these conversations pretend to say, that he (Penny,) thought, that it was best for the interest of the company to prosecute this writ of error.

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Bluebook (online)
25 W. Va. 148, 1884 W. Va. LEXIS 127, Counsel Stack Legal Research, https://law.counselstack.com/opinion/colman-v-w-va-o-o-l-co-wva-1884.