Daily v. Fitzgerald

125 P. 625, 17 N.M. 137
CourtNew Mexico Supreme Court
DecidedMay 5, 1912
DocketNo. 1441
StatusPublished
Cited by14 cases

This text of 125 P. 625 (Daily v. Fitzgerald) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Daily v. Fitzgerald, 125 P. 625, 17 N.M. 137 (N.M. 1912).

Opinion

OPINION OP THE COURT.

ROBERTS, C. J.

1 The appellant contends that the findings of the trial court are not sufficient to support the judgment. The findings are set out in the statement of facts and it is not necessary to repeat them here. The appellant evidently proceeds upon the theory that if any doubt exists as to the meaning of the findings that doubt is to be resolved in his favor. He endeavors to create such doubt by combining and confusing the language of the sixth finding of fact that Fitzgerald had authority to make the contract with the first conclusion of law that this authority was not given in express terms. The rule as to the construction of findings is exactly the opposite from that contended for by appellant. The general rule is “that every reasonable intendment and presumption will be resolved against the appellant and in favor of the correctness of the proceedings below.” 3 Cyc. 275. Applying this rule to the construction of findings, every inference not contrary to the evidence or otherwise appearing to be unreasonable will be drawn from the facts'found and in case of doubt that presumption will be presumed correct which supports the judgment. 3 Cyc. 310. In Kuschel v. Hunter (Cal.) 50 Pac. 397, the court says: “The presumptions wo are permitted to indulge must be in support of the judgment. If there are doubts as to the meaning of any finding-they must be resolved in support of the judgment.” Tested by this rule we think the findings are sufficient to support the judgment.

2 Appellant argues that the findings are not supported by the evidence. This court has held, by an unbroken line of' decisions, that it will not disturb findings of fact, where there is any substantial dispute upon the evidence. A great many of the disputed facts in the-case were established by circumstantial evidence and we-cannot say that the lower court was not justified in arriving at the conclusion it did.

The principal contention urged by appellant is,, that the defendants were mining partners, and therefore that Fitzgerald did not have the power to bind Foster by his engagements with the plaintiffs. That a mining partnership-has special features, differing from other partnerships, among which are a want of the delectus personarum and a consequent want of that authority in the individual members to pledge the personal credit of their associates except for the employment of labor and similar essential purposes. There is, of course no dispute as to the existence-of these special associates, known as raining partners, and as to the lack of ¡rower of any member thereof to bind his associates to the extent of the implied powers of a commercial partner. But under the findings of the court it is apparent that the principle does not apply to the case at bar.

Under the 6th finding the court found that Fitzgerald, on the evidence, had authority from the defendants Foster and Iielmer to market all ores extracted from the mine and to procure advances from the plaintiffs on account of ores thereafter mined, and that the defendant Foster knew that such advances were being made, and by its fourth finding1 the court found that the parties were “partners doing business under the firm name and style of the Torpedo Copper Companj', and as such partners were engaged in the development and operation of the mining property.” It is evident that the court found that the parties did not sustain the relation to each other of mining partners, but that they were partners, subject to the rules relating to an ordinary partnership in trade. This conclusion is strengthened by the fact that the appellant, at the conclusion of the testimony, requested the court to find facts showing the existence of a mining partnership, and to state the conclusion of law therefrom that the relationship existing between the said parties, constituted a mining partnership. This the court infused to do, but made the findings set out in the statement of facts.

3 The appellant contends that the agreement of August 3, 1906, set out in the statement of facts was the measure of the power of the partners, and limited their rights, and that the liability of the defendant Foster must be determined under the provisions of said contract. If this proposition is correct there could be no doubt as to the non-liability of the defendant Foster. The lower court however evidently did not determine his liability upon such contract. A reading of the contract will evidence the fact that it did not provide for the working of the mine. It was simply a preliminary arrangement between the three parties, providing for the purchase b3r Fitzgerald of the property, the furnishing of the indemnity bond by Foster, the organization of a corporation and the distribution of the shares of stock. It was evidently never the intention of the parties to carry on, under this written agreement, the extensive mining operations which they did. Immediately after the purchase by Fitzgerald of the property, or the signing of the contract for the purchase, steps were taken to complete the formation and organization of a corporation to take over the property. This was delayed from time to time, and Fitzgerald continued working the mine and Foster to advance money far beyond the amount specified in the preliminary written agreement. Other undertakings were begun by the parties, and from all the circumstances shown on the trial we believe the court was justified in concluding that a partnership existed between the parties and that it was subject to the rules relating to an ordinary partnership in trade. We have set forth in the statement of facts many of these facts and circumstances. The appellant contends that every agreement for the working of a mine is a mining partnership, except where there has been an express agreement to constitute a full trading partnership, but we do not understand that appellant contends that by “express agreement” he means one proven by some express words of the parties describing in exact language the relation intended to be assumed or negativing in express words their intent to become mining partners. In the leading case in this country on mining partnerships, Skillman v. Lachman, 23 Cal. 204, the court says: “Still there may be a partnership in the working of a mine subject to the rules relating to an ordinary partnership in trade. Story Part. sec. 82. And this relation of partnership may be constituted either by express stipulation or by implication deduced from the acts of the parties.” The court evidently found that the relation of the defendant Foster to the enterprise was not that of a mining partner.

4 The chief fact which distinguishes mining from general partnerships is the absence of the delectus personae in the former and the resultant rules, that the shares of mining partners may be transferred to others, who become partners in turn by acquiring such interests; and as the partners therefore have not the right to choose their associates, it necessarily follows that such associates have no power to personally bind their fellow members. Skillman v. Lachman, 23 Cal. 198; Duryea v. Burt, 28 Cal. 569; Meagher v. Reed (Col.) 24 Pac. 681.

5 Where there is an express agreement between the parties, and it appears therefrom that they contracted with the object a,nd purpose of retying on the delectus personae in their relations, the fact that their business was the working of a mine does not affect their relation or liability as general partners.

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Bluebook (online)
125 P. 625, 17 N.M. 137, Counsel Stack Legal Research, https://law.counselstack.com/opinion/daily-v-fitzgerald-nm-1912.