Decorso v. Thomas

50 P.2d 951, 89 Utah 160, 1935 Utah LEXIS 17
CourtUtah Supreme Court
DecidedOctober 31, 1935
DocketNo. 5634.
StatusPublished
Cited by3 cases

This text of 50 P.2d 951 (Decorso v. Thomas) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Decorso v. Thomas, 50 P.2d 951, 89 Utah 160, 1935 Utah LEXIS 17 (Utah 1935).

Opinion

ELIAS HANSEN, Chief Justice.

This appeal is prosecuted by O. H. Mohlman. He complains because the court below adjudged and decreed that a lease which he had with the state land board of Utah was held in trust by him for the use and benefit of a copartner *163 ship consisting of plaintiff and defendants Clayborne Thomas and Virgil Thomas doing business under the firm name and style of D. & T. Spring Salt Company. Appellant further complains because the judgment was rendered against him in favor of that copartnership for the sum of $33.76, and because judgment was rendered against him and Clayborne Thomas for costs incurred by the plaintiff in the trial of that cause. Twenty errors are assigned, most of which are directed against the findings of fact and conclusions of law. Some of the assignments attack the ruling of the court below in the admission of evidence. Plaintiff and respondent has assigned cross-errors, but he does not cross-appeal.

Under date of April 29, 1933, plaintiff brought suit against defendants Clayborne and Virgil Thomas for an accounting and for the dissolution of the copartnership theretofore existing between them. He prayed that a receiver be appointed with the usual powers, and that such receiver, when appointed, take possession of the partnership property consisting of a lease on about 32 acres of salt beds, together with the equipment thereon. The salt beds in controversy are on or near the shore of Great Salt Lake in Box Elder county, Utah. On May 8, 1933, the defendants Thomas answered the complaint. They admitted the existence of the copartnership, but denied generally the other allegations of the complaint.

By leave of court and on July 29, 1933, plaintiff filed an amended complaint. In the amended complaint the state land board of Utah, George A. Fisher, L. R. Anderson, and Frank Tolton, commissioners of the land board, and appellant O. H. Mohlman were made defendants. It is in substance alleged in the amended complaint that the additional defendants, added in the amended complaint, are necessary and indispensable parties to this action; that on July 20, 1931, plaintiff and defendants Thomas formed a copartnership to be known as the D. & T. Spring Salt Company for tiie purpose of mining, digging, and selling salt from certain *164 particularly-described salt beds located at Promontory Point, Box Elder county, Utah; that by the terms of the copartnership plaintiff was the owner of five-twelfths, defendant Clayborne Thomas five-twelfths, and Virgil Thomas two-twelfths thereof. The profits derived from the venture were to be divided annually in proportion to the share owned by each, and the losses were to be borne in the same proportion; that soon after the partnership agreement was entered into the copartnership began mining and marketing salt and continued to do so until on or about March 1,1938, when the defendants Clayborne and Virgil Thomas excluded plaintiff from further participation in the partnership business; that the Thomases have appropriated to their own use the copartnership property, including large sums of its money, and have refused, and still refuse, to render an accounting to plaintiff; that the Thomases are insolvent; that prior to the formation of the copartnership by plaintiff and defendants Thomas, the defendant state land board leased the salt lands in controversy to one J. R. Robinson who by and with the consent of the land board assigned and transferred the lease to defendant Clayborne Thomas, who in turn transferred the lease to the copartnership which is, and since its formation has been, the owner of such lease; that since the copartnership was formed the state land board has accepted from the copartnership and from plaintiff payments of rents and royalties on the leased land; that the state land board and its commissioners have been fully advised and know that the copartnership is, and since its formation has been, the owner of the lease involved in this litigation; that on October 15, 1932, the defendants Thomas pledged all of their rights in and to the lease in question to the plaintiff as security for the payment of a loan made by plaintiff to defendant Clayborne Thomas in the sum of $210.40, and to defendant Virgil Thomas in the sum of $86.50; that neither of such loans have been paid; that on or about May 5, 1933, and again on May 24, 1933, plaintiff notified the state land board and its commissioners and employees orally and in *165 writing that the copartnership owned the lease and the defendants Thomas had pledged their interests therein to plaintiff as security for the money loaned to the Thomases, but notwithstanding such oral and written notices so given, and notwithstanding plaintiff requested the land board not to deal with Clayborne Thomas with respect to the leased salt beds, the state land board and its commissioners on June 8, 1983, accepted from defendant Clayborne Thomas a purported release and surrender of the lease on the salt beds; that defendant O. H. Mohlman had knowledge of the copart-nership agreement between plaintiff and the Thomases and had knowledge of the pendency of an action in the district court of Weber county with respect thereto, and knew that plaintiff had made loans to the Thomases and had taken as security for the payment of such loans the interests of the Thomases in the lease of the salt beds, yet notwithstanding the defendant 0. H. Mohlman had knowledge of such facts, he, with intent to defraud and cheat plaintiff, induced Clay-borne Thomas to execute the release and surrender to the state of Utah all of his rights in the lease of the salt beds so that the defendant 0. H. Mohlman could acquire in his own name the lease to such salt beds; that the defendant O. H. Mohlman did acquire the purported lease to the salt beds in question, and since the lease was so acquired by defendant O. H. Mohlman he and defendants Thomas had continued to operate the salt beds and have retained for their own use and benefit all of the proceeds derived therefrom; that unless defendant 0. H. Mohlman is restrained from transferring his pretended lease he will dispose of the same to the irreparable injury of the copartnership and plaintiff; that plaintiff has no plain, speedy, or adequate remedy at law. Plaintiff prays that the purported lease held by O. H. Mohl-man be declared to be held in trust by him for the use and benefit of the copartnership, and that he be required to account for the proceeds which he has acquired from the lease. Plaintiff further prayed that the defendant state land board and its commissioners be restrained and enjoined from *166 transferring the lease, and also that the defendants Thomas render an accounting, and that the partnership between plaintiff and the Thomases be dissolved.

To the complaint the defendant O. H. Mohlman filed an answer in which he admitted that he knew of the working agreement between plaintiff and the Thomases and that there was a controversy between them respecting the same; he also admitted he acquired from the state land board a lease of the salt beds in controversy. He denied the other allegations of the complaint. The defendants Thomas answered the complaint, but as they do not appeal we are not, on this appeal, concerned in the controversy between them and the plaintiff. It appears service of summons was had upon the defendant George A. Fisher, executive secretary of the state land board, as and for the state land board. Mr.

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Cite This Page — Counsel Stack

Bluebook (online)
50 P.2d 951, 89 Utah 160, 1935 Utah LEXIS 17, Counsel Stack Legal Research, https://law.counselstack.com/opinion/decorso-v-thomas-utah-1935.