Gorham v. Heiman

27 P. 289, 90 Cal. 346, 1891 Cal. LEXIS 938
CourtCalifornia Supreme Court
DecidedJuly 24, 1891
DocketNos. 12958, 13333
StatusPublished
Cited by39 cases

This text of 27 P. 289 (Gorham v. Heiman) 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
Gorham v. Heiman, 27 P. 289, 90 Cal. 346, 1891 Cal. LEXIS 938 (Cal. 1891).

Opinion

Beatty, C. J.

J.— This is a suit in equity arising out of a controversy between several opposing claimants to a sum of money in the hands of the London and San Francisco Bank. There are two appeals in the case, the first, No. 12958, being an appeal by plaintiffs from a part of the judgment in favor of the interveners, and the second, No. 13333, being an appeal by the defendants Heiman and Hamilton from the whole judgment, which was in favor of the plaintiffs and the interveners. The two appeals have been argued and submitted, and may be conveniently considered together.

The controversy arose upon the following state of facts: In January, 1886, and prior thereto, John Bathgeb and brother were owners of a valuable mine in Calaveras County, known as the Cordova mine, which they were willing to sell for one hundred and fifty thousand dollars, less ten per cent commission to any broker who might effect a sale for them at that figure. The plaintiffs Gorham and Bank, were partners in the business of selling mines and other real estate on commission, and had been in communication with the Bathgebs, endeavoring to secure written authority to make sale of their mine. The interveners, Snell and others, partners in the same business, had likewise been endeavoring to secure such authority from the Bathgebs, but neither had [351]*351succeeded. The matter being in this situation, plaintiffs and interveners, each without the knowledge of the other, brought the Cordova mine to the attention of the defendants Heiman and Hamilton, who also were engaged as partners in selling mines on commission, and who, by reason of certain business connections, had unusual facilities for disposing of such properties in the London market. The result was", that defendants Heiman and Hamilton, without the knowledge of the interveners, entered into an oral agreement with the plaintiffs, to the effect that they would unite with them in obtaining written authority from the Rathgebs to.make the sale; that they would co-operate in effecting it, and divide the commissions equally. At the same time, without the knowledge of the plaintiffs, the defendants entered into another oral agreement with the interveners, that they would unite with them in obtaining written authority from the Rathgebs, and in making the sale, the interveners to take the whole of the ten per cent commissions, and the defendants 'to have what they could get over and above one hundred and fifty thousand dollars, the price asked for the mine by the owner. In pursuance of these , agreements, the interveners furnished the defendants with the written report of an expert, and other valuable information they had concerning the mine, and gave the defendant Hamilton a letter of introduction to the owners, upon the understanding that he should visit them at the mine, for the purpose of procuring their written authority to sell. Shortly thereafter, Hamilton did visit the mine, but he went in company with the plaintiff Rank, by whom he was introduced to the owners, and assisted in making measurements of the workings, taking photographs, etc. He did not inform the Rathgebs of his connection with the interveners, nor, it would seem, did he make any use of their letter of introduction. The result of his and Rank’s visit to the mine was, that the owners concluded to confide the business of making the sale to [352]*352the plaintiffs and defendants Heiman and Hamilton, and to give them exclusive control of the property for a limited time. It seems to have been understood that Hamilton was to proceed to London, for the purpose of effecting the sale there; and for the purpose of facilitating his operations, and at the same time protecting the owners, it was decided to put the transaction in the form of a grant of the mine to Hamilton, the deed to be deposited in escrow with a San Francisco bank, under instructions to deliver it to him upon payment of thirty thousand pounds, less ten per cent. A written memorandum to this effect was made at the mine in January, 1886, and afterwards, in March, 1886, a deed granting the mine to Hamilton was deposited with instructions for its delivery in a bank at San Francisco. Meantime, Hamilton had proceeded to London, where he effected a sale of the property for forty thousand pounds, to be paid in installments extending over a period of eighteen months. For the purpose, apparently, of conforming to the terms of this sale, the Rathgebs executed another conveyance of the mine directly to the English purchaser, and deposited it with the London and San Francisco Bank, under written instructions for its delivery to the grantee upon the payment of thirty thousand pounds in certain installments, ten per cent of each installment, as paid, to be placed to the credit of the defendant Heiman. But although this -was the form by which written authority to make the sale was given, it was understood and intended by the Rathgebs, and by Hamilton and Rank — the four parties who participated in the negotiations preceding the agreement — that the direction to th& bank to pay the ten per cent of the thirty thousand pounds to Heiman was for the equal benefit of the plaintiffs and defendants; that is to say, Gorham and Rank, as copartners, were to have one half and Heiman and Hamilton the other half of said commissions. The defendants Heiman and Hamilton, however, seem to have deter[353]*353mined at this stage of the proceeding to repudiate the claim of the plaintiffs to any share in the commissions, as well as their agreement with the interveners that they should have the whole thereof; for they concealed the fact that a sale had been made, and even after Heiman had drawn and appropriated ten per cent of the first five thousand pounds, he responded to the inquiries of plaintiffs and interveners by a denial of the sale. Before the second installment of five thousand pounds was paid, the plaintiffs, having discovered the truth, commenced this action, making Heiman and Hamilton and the Rathgebs defendants. Afterwards, by order of the court, the bank was made a defendant, but having no interest in the controversy beyond that of a mere stake-holder, its pleadings need not be considered. The Rathgebs, also, are practically out of the case. The'plaintiffs allege against them certain acts of collusion with Heiman and Hamilton, which they deny, and their denial is sustained by the findings of the court. For the rest, it is sufficient to say that in their answers to the complaints of plaintiffs and of the interveners, the Rathgebs sustain the allegations of the plaintiffs, and deny those of the interveners, so far as they are brought in relation to the controversy. It will be understood, therefore, that in speaking of the defendants hereafter in this opinion, Heiman and Hamilton alone are intended.

The plaintiffs in their amended complaint allege that on or about the 18th of January, 1886, they and the defendants associated themselves together as copartners, under an oral agreement to deal in mining properties, and divide the profits equally; that in pursuance of said agreement they informed defendants about the Cordova mine, and that the owners had orally agreed to give them, and such others as they chose to associate with them, a written contract to pay a commission, provided they procured a purchaser for said mine at one hundred and fifty thousand dollars or more; that it was then [354]

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Bluebook (online)
27 P. 289, 90 Cal. 346, 1891 Cal. LEXIS 938, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gorham-v-heiman-cal-1891.