German Mexican Co. v. Mexican Pacific Co.

1 P.2d 296, 163 Wash. 282, 1931 Wash. LEXIS 757
CourtWashington Supreme Court
DecidedJune 30, 1931
DocketNo. 23154. Department One.
StatusPublished
Cited by3 cases

This text of 1 P.2d 296 (German Mexican Co. v. Mexican Pacific Co.) 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
German Mexican Co. v. Mexican Pacific Co., 1 P.2d 296, 163 Wash. 282, 1931 Wash. LEXIS 757 (Wash. 1931).

Opinion

Mitchell, J.

The German Mexican Company, a corporation, brought this action against defendants Mexican Pacific Company, a corporation, Moritz Thom-sen, Chas. M. Thomsen, George Milburn, E. S. McCord, and Moritz Thomsen Investment Company, a corporation, to recover damages for the loss of profits alleged to have been sustained because of the failure of the defendants to carry out an alleged contract with the plaintiff for the sale by them to it of certain real and personal property (the legal title of record to which stood in the name of the Mexican Pacific Company, a corporation), situate in the republic of Mexico, which was to be paid for by the plaintiff on the installment plan, and which contract further provided that the plaintiff, as agent, should have the right to subdivide the lands and to sell and convey them, applying the proceeds on its obligation to the defendants. The written contract, which, it was alleged, had been broken, was set out and made a part of the complaint.

General demurrers, separately filed by the defendants to the complaint, were sustained. Plaintiff filed an amended complaint, to which the defendants separately filed motions to strike the amended complaint as being inconsistent with the original complaint, and also filed demurrers to the amended complaint. Upon the hearing of the motions and demurrers, affidavits of the respective parties were filed and considered therewith, whereupon the court made findings, one of which was

“ . . . a further finding that the amended complaint is wholly different from and inconsistent with *284 the original complaint, and from a consideration of the pleadings, motions, affidavits, statements and admissions that a further amendment would be futile, and finding that there should be a determination of the litigation and exercising discretion, ’ ’

and it was ordered that the demurrers be sustained, and that the motions to strike the amended complaint, on the ground that it was wholly different from and inconsistent with the original complaint, be granted, and it was further ordered that the action be dismissed. At the same time, and as a part of the same hearing, another order was entered denying the plaintiff’s motion for leave to file a second amended complaint, for the same reasons and objections as those given in the order against the first amended complaint, reciting in the order

“ . . . that the proposed second amended complaint affirmatively shows that the contract therein alleged is not a written contract executed by the defendants, except Mexican Pacific Company, and that the second amended complaint sets up a contract inconsistent with and different in form and substance from the contract alleged in the original complaint, and attached as Exhibit ‘A’ thereto, and fails to show a compliance with the conditions precedent contained in the contract attached as Exhibit ‘A’.”

The plaintiff has appealed from the final order dismissing the action.

There is no argument or contention on the appeal that the original complaint stated a cause of action. The assignments of error are: (1) That the court erred in granting the motions to strike the amended complaint; (2) that the court erred in sustaining demurrers to the amended complaint; (3) that the court erred in denying the motion for leave to file a second amended complaint; and (4) that the court erred in *285 denying appellant’s motion to dismiss its action without prejudice.

The original complaint, together with the written contract, a copy of which was attached to and made a part of the complaint, are entirely too voluminous to be set out herein or referred to, except in a general way. It appears that the Mexican Pacific Company was the holder of the legal title to three tracts of land containing approximately 322,500 acres situate in Mexico, together with certain concessions or grants by that Republic for the construction and operation of three railroads and a wharf, and that the other defendants were at least part owners of the beneficial interest in and to the property. It appears that the Mexican Pacific Company was in a bad way financially, to remedy which the plan suggested by the written agreement involved in this action was attempted.

The agreement was made and entered into under date of August 20, 1929,

. . . . between Mexican Pacific Company, a Washington corporation, the party of the first part, German Mexican Company, a Washington corporation, the party of the second part, the persons, individuals and corporations who were bondholders and creditors of the Mexican Pacific Company on the. 5th day of November, 1918, and who execute this agreement, the parties of the third part, and the stockholders of the Mexican Pacific Company, who execute this agreement, the parties of the fourth part.”

Among other things, it says that the Mexican Pacific Company holds the naked legal title to the properties in trust for the benefit of the beneficial owners, namely, the parties of the third part. Also, by its terms the parties of the third part were to assign and convey to the Mexican Pacific Company all of their beneficial interest in the properties upon the payment by the German Mexican Company to the Mexican Pacific Com *286 pany, in trust for the benefit of the parties of the third part, the sum of one million dollars, which was to be distributed to those entitled thereto according to a schedule set out in the contract, first, to cover certain expenses and, thereafter, to certain' bond holders, creditors and parties beneficially interested.

Another provision of the contract was as follows:

“It is agreed between the parties hereto that this instrument shall become binding upon the parties upon the delivery to the Pacific National Bank of Seattle of at least fifty-one per cent of the capital stock of the Mexican Pacific Company represented by certificates properly endorsed in blank and when approved by the parties of the third part but all stockholders of the Mexican Pacific Company signing this instrument agree to endorse in blank all certificates of stock owned by them and to cause the same to be deposited in the Pacific National Bank of Seattle to be held and disposed of as provided in this instrument.’’

Then follows a provision for the sale of parcels of the real estate by the German Mexican Company as agent for the Mexican Pacific Company, if such sales could be made without jeopardizing the title to the property so far as the Mexican government was concerned. Under the terms of the contract, the German Mexican Company agrees to supply funds necessary to pay the one million dollars on or before five years according to a schedule given, a portion of which amount was to be paid each year. There are a great many provisions in the contract, not all of which are important for the purposes of this case. The contract was signed by only the German Mexican Company and the Mexican Pacific Company.

The original complaint alleged that the defendants, other than the Mexican Pacific Company, were creditors of that corporation, that they owned more than fifty-one per cent of its bonds, more than fifty-one per *287

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Bluebook (online)
1 P.2d 296, 163 Wash. 282, 1931 Wash. LEXIS 757, Counsel Stack Legal Research, https://law.counselstack.com/opinion/german-mexican-co-v-mexican-pacific-co-wash-1931.