Elsom v. Tefft

250 P. 346, 140 Wash. 586, 1926 Wash. LEXIS 756
CourtWashington Supreme Court
DecidedOctober 21, 1926
DocketNo. 19794. Department One.
StatusPublished
Cited by9 cases

This text of 250 P. 346 (Elsom v. Tefft) 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
Elsom v. Tefft, 250 P. 346, 140 Wash. 586, 1926 Wash. LEXIS 756 (Wash. 1926).

Opinion

*587 Holcomb, J.

— This action in equity was brought by four out of five trustees of a common law trust, designated as the Victoria Silver-Lead Syndicate, owning mining properties, some under crown grants and some not granted, in the province of British Columbia, Canada, against L. J. Tefft, as trustee and in his individual capacity, and James C. Allison. The common law trust was a Washington association with its office and principal place of business in Spokane and conducted its mining operations in British Columbia. The mining venture was its sole business.

In the complaint, an accounting was demanded, a restraining order and injunction to maintain the rights of the several unit holders of the trust in the properties of the estate, their respective claims and interests were demanded, a receiver was prayed for and judgment was demanded against the defendants, and an order of court requiring the organization of a corporation to take over the property.

The court granted an injunction pendente lite and appointed a receiver in the person of T. T. Grant, an attorney in Spokane.

It appears also that, under the order directing the receiver to investigate the nature of the claims and holdings of each and every unit holder of the syndicate and take over all the property and assets of the trust of every kind and nature, and investigate the rights of each and all of the parties therein, the receiver took evidence as to the nature of the claims of each and all of the unit holders, all the parties voluntarily submitting their evidence to him. In a report made by the receiver which recites that he “is the duly appointed, qualified and acting receiver of the Victoria Silver-Lead Syndicate” and showing the names and specific rights of all parties interested in the syndicate, he also reported facts and made findings and recommendations *588 to the trial court recommending a certain judgment and decree disposing of all the rights of all the parties and signed the same as referee. The record is wholly silent as to Mr. Grant or anyone ever having been appointed referee.

Upon the filing of the report and recommendations above mentioned, exceptions were taken thereto by all the parties by their then attorneys, as to certain specific items of the report and recommendations, which were brought on for hearing before the court below, which adopted the report, findings and recommendations of Mr. Grant. In the report and findings alluded to, among other things, he recommended as follows:

“That the parties hereto and the unit holders of said Syndicate be given a reasonable time within which to form a corporation to take over the assets of said Syndicate and to pay the obligations outstanding against the same, and to divide the shares of stock in said corporation according to the respective rights of the parties hereto and the unit holders as set forth in Exhibit ‘A’ that the defendant, L. J. Tefft be directed to convey the seven-eighths (7-8) interest in and to the mining claims herein referred to, to said corporation or to such person as the court shall designate.”

The report described the mining property, the trust assets, named the owners of the units and found the rights and interests of each party and unit.holder. Thereafter, according to the transcript, argument was heard by the court upon which the court duly found and concluded in harmony with the report and recommendations of the receiver and settled the rights and interests of each in the decree.

The creditor claims of appellant Tefft for alleged personal services were denied by the findings and decree, no unit interest was found for him, and personal judgment was entered against him for $1,677.89 for *589 trust money had and received by him. He was also adjudged to hold the legal record title to the seven-eighths (7-8) interest of the trust estate in the mining claims in British Columbia, in trust, and he was ordered to deed and convey the same to the unit owners, or upon their direction, on demand. The claim of appellant Allison for alleged personal services was also denied, except $417.89, adjudged to him for balance on salary account and personal money used for the benefit of the. trust.

It is provided that the holders of the units in the Victoria Silver-Lead Syndicate be allowed until November 1, 1925, to complete an organization and take over the title of the mining property upon paying the amounts adjudged as liens against the same as set forth in the decree. Certain other sinus were adjudged against certain others of the trustees who were plaintiffs, and allowances were made for attorneys’ fees to attorneys for the plaintiffs and to Mr. Grant as receiver and referee against the trust estate.

The injunction against appellants was made permanent against the transfer of any trust estate assets save to the unit holders or on their order in pursuance of the decree. After the decree was entered a corporation was organized under the laws of Washington which qualified under the laws of British Columbia and took over the mining properties.

The voluminous pleadings herein comprise 111 pages of the transcript. There is no statement of facts or bill of exceptions brought here and appellants complain of a denial by the trial court of an application by them for an extension of time to prepare, serve and file, a statement of facts. Doubtless the trial court denied the same upon the showing attempted to be made and we are unable to say that he abused his discretion therein.

*590 The case therefore stands here on the transcript which includes findings of fact, conclusions of law and the decree, of the court itself. The present attorney for appellants was not the attorney who represented appellants in the court below.

Appellants now contend that Mr. Grant had no authority as referee and that his acting as such was wholly void and is not a valid and proper basis for any findings, conclusions and decree by the trial court.

There being no statement of facts or bill of exceptions here we are unable to say what may have been presented to the court below before the findings of fact, conclusions of law and decree of the court were entered. At all events, Grant was the receiver. He qualified as such by giving the bond required by the court and entered upon the performance of the duties required by the order appointing him. Apparently all the parties were satisfied with him and proceeded to present their evidence as to their rights and claims as if he were a referee.

• It is contended, also, that, although Grant gave the bond as receiver required of him, by the court, he did not take the oath required by statute and that therefore the proceedings before him are void. The record is silent as to whether Grant took the statutory oath, either as receiver, or as referee, but that is a mere irregularity and the presumption is that he took the oath prescribed by law since all officers are presumed to do their duty. Moreover, such mere irregularity is waived by the parties proceeding to trial without objection on that ground. 23 R. C. L., p. 298, § 11.

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Cite This Page — Counsel Stack

Bluebook (online)
250 P. 346, 140 Wash. 586, 1926 Wash. LEXIS 756, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elsom-v-tefft-wash-1926.