Dennison v. Chapman

39 P. 61, 105 Cal. 447, 1895 Cal. LEXIS 678
CourtCalifornia Supreme Court
DecidedJanuary 5, 1895
DocketNo. 15525
StatusPublished
Cited by14 cases

This text of 39 P. 61 (Dennison v. Chapman) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dennison v. Chapman, 39 P. 61, 105 Cal. 447, 1895 Cal. LEXIS 678 (Cal. 1895).

Opinion

Searls, C.

This is an action by W. E. Dennison, the respondent, against E. W. Chapman, the appellant, upon an alleged breach of a contract by which the defendant agreed to purchase a mine for the joint benefit of plaintiff and defendant.

Plaintiff had a verdict and judgment for thirteen hundred and twelve dollars and fifty cents and costs. The appeal is from the final judgment and from an order denying defendant’s motion for a new trial.

On the second day of September, 1889, plaintiff and defendant entered into a written contract, by the terms of which defendant agreed (provided the purchase could be made at a price satisfactory to the parties respectively) to purchase, within thirty days from the date of [451]*451the agreement, the Bumfeldt Hydraulic Mine, situate in the county of Trinity, California.

Upon such purchase being made the plaintiff was to be placed in charge as superintendent for a term of one year at a monthly salary of one hundred and fifty dollars.

Defendant was for the period of one year to reserve and carry for the plaintiff a one-fourth interest in the mine, and at or before the expiration of the year to give plaintiff a clear title to such one-fourth interest at cost price thereof up to the time of conveyance, the defendant to he paid such cost price out of the proceeds of the mine. Defendant was to furnish plaintiff suitable quarters for himself and family.

The agreement was to be a full settlement of all accounts between the parties up to the date of its execution, and five hundred dollars paid by defendant to the plaintiff on the execution of the agreement was to be considered as an advance on account of salary.

Omitting some minor provisions of the agreement, not essential to present purposes, it contains this further clause: “It is further mutually agreed by the parties herein, respectively, that should the said Bumfeldt mine be not purchased, then this agreement shall extend and apply to any other mine or mines that may be obtained by the said party of the first part at prices mutually satisfactory to the parties hereto within ninety (90) days from the date of this agreement.”

The Rumfeldt mine, upon examination, proved unsatisfactory, and was not purchased. There was in El Dorado county, California, a gold-bearing quartz mine known as the “Taylor mine,” owned by E. S. Chester and W. E. Straut, who, with defendant and some others, organized a corporation under the name of the Idle wild Gold Mining Company, to which corporation the Taylor mine was conveyed.

On the ninth day of October, 1889, said Chester and Straut, as parties of the first part, entered into an agreement with defendant and his brother, W. S. Chapman, [452]*452which recited that there were one hundred thousand shares of the capital stock of the Idlewild Gold Mining Company, all of which were owned by the parties of the first part, of which they sold one-half, or fifty thousand shares, to the Chapmans for fifty-five thousand dollars, to be paid as follows: Five thousand dollars within sixty days, and the residue (less one-half of the expense ■ of building a mill, or altering and adding to the capacity of a mill on the mine, and other specified improvements to be placed thereon by the said Chapmans within ninety days) in three equal installments, at twelve, fifteen, and eighteen months, respectively, etc.

All the profits and dividends on the fifty thousand shares of stock sold were to go to the parties of the first part until they were fully paid, and the fifty thousand shares of stock was to be issued in the names of the Chapmans, and deposited in escrow, to be held until payments were all made, and then delivered to the parties of the second part, the said Chapmans, of whom defendant was one.

The complaint avers that the purchase by defendant of such interest in the Taylor mine was made under and pursuant to their agreement, that plaintiff and defendant began to operate the mine, that plaintiff continued to operate and superintend the mine, as per his agreement, and on his part performed all his obligations under the contract, that defendant failed to furnish any quarters for plaintiff and his family, and on the first day of October, 1890, defendant discharged him and refused to deliver to him any share of the stock, etc.

The answer denies that the purchase of stock in the Idlewild Gold Mining Company by defendent was made under, or pursuant, or in fulfillment of his agreement with the plaintiff, or that plaintiff was ever superintendent of said mine, etc.

The complaint averred the value of twelve thousand five hundred shares of stock to which he was entitled to be sixty-two thousand five hundred dollars; by an amendment thereto it was averred that, by reason of [453]*453defendant’s failure to deliver to plaintiff said shares of stock, he was damaged in the sum of sixty-two. thousand four hundred dollars.

The complaint averred that W. S. Chapman was only a nominal party to the purchase of the stock, that defendant really owned the whole fifty thousand shares purchased, and that plaintiff was entitled to one-fourth part thereof.

This was denied by the answer, and it may be remarked here that the uncontradicted evidence showed defendant to be the owner of only one-half of the purchase, or of twenty-five thousand shares of the stock. It followed that if plaintiff was entitled to recover, it was for one-fourth part of defendant’s purchase, equal to six thousand two hundred and fifty shares. The shares were admitted by the answer to be worth two dollars each.

Appellant urges certain objections to the complaint, viz: 1. That so far as it relates to the stock it sounds in replevin, which does not lie upon an unexecuted agreement for the purchase and sale of personal property; 2. That the contract of September 2,1889, never became operative, for the reason that no purchase of a mine ever occurred; 3. That there is no allegation in the complaint that the Idlewild stock was purchased at prices mutually satisfactory.

There was no demurrer interposed to the complaint. It follows, therefore, that all merely technical objections are waived, and we have only to determine whether the complaint states facts sufficient to constitute a cause of action.

The prayer of the complaint was for judgment against defendant for the possession of the shares of stock, or their value in the event possession cannot be' had, in the sum of, etc.

Where, as in this case, there is an answer to the complaint, the court may grant the plaintiff any relief consistent with the case made by the complaint and embraced within the issue. (Code Civ. Proc., sec. 580.)

[454]*454The complaint, as amended, after setting out facts showing that he was entitled to the stock under the contract, that he had demanded it, and defendant had refused to deliver, averred in apt terms that by such refusal he was damaged in the sum of sixty-two thousand four hundred dollars. These facts were within the issues, and entitled plaintiff to such judgment as he. recovered, irrespective of the prayer of the complaint, provided, always, the evidence was sufficient to uphold it.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Blair v. Guarantee Title Co., Inc.
284 P. 719 (California Court of Appeal, 1930)
Morales v. Velez
18 F.2d 519 (First Circuit, 1927)
Jones v. Stanley
233 P. 598 (Arizona Supreme Court, 1925)
Treadwell v. Nickel
228 P. 25 (California Supreme Court, 1924)
Kelley-Clarke Co. v. Leslie
215 P. 699 (California Court of Appeal, 1923)
Potter-Huffman Land & Livestock Co. v. Witcher
291 P. 725 (California Court of Appeal, 1920)
Young v. New Pedrara Onyx Co.
292 P. 55 (California Court of Appeal, 1920)
Poor v. W. P. Fuller & Co.
159 P. 233 (California Court of Appeal, 1916)
In re the Charges Against Darrow
92 N.E. 369 (Indiana Supreme Court, 1910)
People v. Hower
91 P. 507 (California Supreme Court, 1907)
Sampson v. Hughes
81 P. 292 (California Supreme Court, 1905)
Wall v. Marshutz Cantrell
71 P. 692 (California Supreme Court, 1903)
Faulkner v. First National Bank
62 P. 463 (California Supreme Court, 1900)
Smitson v. Southern Pacific Co.
60 P. 907 (Oregon Supreme Court, 1900)

Cite This Page — Counsel Stack

Bluebook (online)
39 P. 61, 105 Cal. 447, 1895 Cal. LEXIS 678, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dennison-v-chapman-cal-1895.