Davis v. Rogers

222 P. 499, 128 Wash. 231, 1924 Wash. LEXIS 1006
CourtWashington Supreme Court
DecidedJanuary 24, 1924
DocketNo. 18229
StatusPublished
Cited by17 cases

This text of 222 P. 499 (Davis v. Rogers) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davis v. Rogers, 222 P. 499, 128 Wash. 231, 1924 Wash. LEXIS 1006 (Wash. 1924).

Opinion

Mackintosh, J.

In 1905, the respondent and his wife were the principal stockholders find officers in the Davis-Comstock Company, which owned coal' land in this state. About that year there was given permission to the appellants to prospect'the property and an option to purchase it. In the prospecting operations the appellants expended some $6,000, and they did not exercise the option. The Davis-Comstock Company was desirous of disposing of the property and the appellants desired, if possible, to recoup their loss in connection with it. On December 12, 191Í, the1 DavisComstock Company, in consideration of $4,000, conveyed to the appellants by warranty deed all of the property, sending the deed from Seattle to Spokane through banks there for delivery upon payment by the appellants of the purchase price. The appellants paid this sum to the bank at Spokane and received the deed, recorded it, and on December 28, 1911, conveyed by warranty deed to Frank Weatherwáx all the property with the éxception of the minerals, which were reserved, for the sum of $6,500, the consideration being expressly stated in the conveyance. This deed was recorded on January 3, 1912.

In March, 1912, the Davis-Comstock Company was voluntarily dissolved and disincorporated, and on December 16,1914, the appellants executed a quitclaim deed to the respondent of an undivided one-half interest in all of the mineral rights upon the land. This deed recited that it conveyed an undivided one-half interest to the minerals “as reserved in that certain deed dated December 28, 1911, between W. S. Rogers and Lizzie Rogers, husband and wife, of Spokane, Washington, first parties, and Frank Weatherwax, second party, the deed being recorded in volume 37, page 449, in the auditor’s office of Spokane. county, [233]*233Washington.” For this quitclaim deed the respondent agreed to pay to the appellants the sum of $500, and on October 6, 1917, the respondent wrote to Weather-wax stating that he was the owner of one-half of the mineral rights and understood that Weatherwax owned the surface rights, asking Weatherwax to purchase the respondent’s one-half interest in the minerals for the sum of $1,000. The respondent not having paid to appellants the $500, on January 1, 1918, quitclaimed all interest in the minerals to the appellants. Later all claims against the appellants on account of the conveyance to them by the Davis-Comstock Company were assigned to the respondent, who, in 1922, began this action to recover $2,500, being the difference between the $4,000 and the amount received by the appellants from Weatherwax, the respondent claiming that the Davis-Comstock Company and he, as its assignee, had been defrauded in the transaction, that the appellant husband had acted as agent of the Davis-Comstock Company in making the sale to Weatherwax and was therefore not entitled to the $2,500 difference in price.

The fraud relied on by respondent is that Rogers represented that he could dispose of the property for $4,000 to Weatherwax and was to receive a five per cent commission of $200 for making the sale; that the deed was made from the company to Rogers and not directly to Weatherwax, for the reason that Rogers had agreed that, if Weatherwax could not pay the purchase price, he, Rogers, would pay it for him and hold the deed as security; that Rogers had no other relation to the transaction than that of agent of the Davis-Com-stoek Company; that Rogers, upon getting possession of the property, sold it to Weatherwax for $6,500, and in addition reserved all the mineral rights; that Rogers represented to Davis that he had received $4,000 for [234]*234the property and remitted $4,000 to the Davis-Com-stock Company; that Davis was ignorant that the property was sold for $6,500 and that the mineral rights had been reserved; that, in 1921, Rogers met Davis a number of times and made no mention of the price he had been paid for the property by Weatherwax nor of the mineral reservation; that Davis did not know of the mineral reservation nor of what the record of the deed to Weatherwax showed; that, in November, 1921, Davis was told that Rogers had sold the land for $6,500, and this was the first intimation that he had that Rogers had obtained more than the $4,000; that, on November 10, 1921, Rogers denied to Davis that $6,500 had been obtained.

The overruling of appellants’ objection to the introduction of evidence, on the ground that the complaint did not state a cause of action, and the overruling of appellants’ objection to the introduction of the assignment from the Davis-Comstock Company to the respondent of its right of action, are assignments of error that need not be considered, as the case is to be determined upon the main question involved, which is, the application of the statute of limitations to the facts as we have outlined them.

There is considerable question whether there was in fact any fraud. There are many facts proved beyond dispute which tend strongly to establish the bona fides of the transaction between Davis-Comstock Company and the appellants. The manner of the delivery of the deed to appellants; the remission of the entire $4,000; the dealings in the half interest in the mineral rights; the respondent’s testimony upon the stand that “I sold it to him;” the prayer in the complaint for $2,500 instead of $2,300; many incidents occurring in the trial, and documents introduced which contradicted the re[235]*235spondent’s bald statement that he had no knowledge of the true situation; for instance, his letter to Weatherwax, offering to sell his half interest in the minerals, clearly indicates that he was cognizant of the exact status of the affairs. But assuming that fraud was proven, the question remains whether the action has been commenced too late.

As we have said in Arthur & Co. v. Burke, 83 Wash. 690, 145 Pac. 974.

The statute of limitations is not an unconscionable defense but a declaration of legislative policy to be respected by the courts” (Syllabus)

And in United States v. Oregon Lum. Co., 260 U. S. 290, it was said:

“Such statutes are not only statutes of repose, but they supply the place of evidence lost or impaired by lapse of time by raising a presumption which renders proof unnecessary.”

More than eleven years elapsed from the time the fraud is alleged to have been committed and the commencement of this action to recover the proceeds of such alleged fraud. Unless some other circumstance than this exists, the action would be barred. But the respondent seeks to furnish this other circumstance by the allegation that he was ignorant of the fraud until shortly before he began this suit.

The law is that the statute of limitations is tolled in actions of fraud by the failure of the defrauded party to make the discovery prior to the time of the commencement of the action. Stearns v. Hochbrunn, 24 Wash. 206, 64 Pac. 165; Irwin v. Holbrook, 26 Wash. 89, 66 Pac. 116; Peyton v. Peyton, 28 Wash. 278, 68 Pac. 757, and Gay v. Havermale, 30 Wash. 622, 71 Pac. 190.

This rule, however, is itself subject to a modification, and that is, that the • defrauded party cannot be [236]

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Cite This Page — Counsel Stack

Bluebook (online)
222 P. 499, 128 Wash. 231, 1924 Wash. LEXIS 1006, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davis-v-rogers-wash-1924.