Great Falls Nat. Bank v. McClure

161 F. 56, 88 C.C.A. 220, 1908 U.S. App. LEXIS 4310
CourtCourt of Appeals for the Ninth Circuit
DecidedApril 7, 1908
DocketNo. 1,496
StatusPublished
Cited by1 cases

This text of 161 F. 56 (Great Falls Nat. Bank v. McClure) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Great Falls Nat. Bank v. McClure, 161 F. 56, 88 C.C.A. 220, 1908 U.S. App. LEXIS 4310 (9th Cir. 1908).

Opinion

ROSS, Circuit Judge.

The sufficiency of the bill of complaint is the sole question for consideration on this appeal. It was filed February 25, 1907, and alleges, among other things, that on the 14th of December, 1901, the defendant Charles D. McClure commenced an action in the court below against the Diamond R Mining Company to recover certain money theretofore advanced by him to the company, in which action a writ of attachment was issued, directed and delivered to the defendant Merrificld as marshal, in pursuance of which writ the marshal levied upon certain real estate in Cascade county, Mont., belonging to the mining company, and also upon certain of its personal property there situated, placing in charge of the latter a keeper, a description of all of which property is contained in the bill, and constituting, according to the averments of the bill, all of the property owned by tile company. The bill alleges-that summons in that action was served upon the president of the mining company, L- S. McClure, a brother of Charles D. McClure, and that on the 1 (5th day of January, 1902, a judgment by default was entered in the action against the company and in favor of the plaintiff therein for the sum of $8(5,180 and $53.30 costs. It is alleged that the plaintiff therein did not cause a writ of execution to be issued upon the judgment until January 10, 1907, and “that the said defendant lias by his laches and unreasonable delay waived, abandoned, and lost whatever lieu he may have had or claimed upon said property.” The bill alleges that on the 17th day of December, 1907, the complainant commenced an action in the district courL of the Eighth judicial district of the state of Montana, in and, for the county of Cascade, against the same mining company, in which action it procured a writ of attachment to be issued, directed to the sheriff of the county of Cascade, which the sheriff undertook to levy upon the same property theretofore attached and held by the marshal in the suit of Charles D. McClure against the mining company; the personal property, however, remaining in the possession of the keeper appointed by the marshal. The bill alleges that, after due service of summons in the action so brought in the state court, judgment was duly entered therein against the defendant company, and in favor of the plaintiff in that action, for the sum of $25,304.84 and $27.70 costs, which judgment was thereupon duly docketed in the office of the clerk of the state court, no part of which has been paid. The bill shows that the action brought by the Great Falls National Bank in the state court was, aside from two claims assigned to it amounting in the aggregate to $3,2(51.37, based upon certain promissory notes, executed by the mining company in [58]*58consideration of money loaned to it by the bank, and it also shows that the preceding action brought by Charles D. McClure against ,the mining company in the court below was for money by him theretofore loaned to the company. The prayer of the bill is for a—

“decree that complainant has a first and prior lien upon all of said property, and that the attachment or pretended attachment made in said cause of Charles D. McClure, plaintiff, against Diamond R Mining Company, defendant, hereinbefore mentioned, is null and void and of no effect, or in any event has become lost and abandoned; that the judgment entered therein is void as to this complainant, or in any event has become satisfied; that the writ of execution therein be withheld; that the defendants herein, their officers, agents, and servants, be restrained and enjoined from selling or disposing of, in any manner whatsoever, under the said writ of execution issued in the above-mentioned action, any of the property herein described and set forth; and for such other and further relief as to the court may seem meet-and equitable.”

As the sole basis for such relief the bill alleges, in addition to the matters above stated, that Charles D. McClure and T. S. McClure are brothers, and during all of the times mentioned in the hill owned and controlled, and still own and control, a majority of the capital' stock of the mining company; that L,. S. McClure was a director and the general manager of the mining company, and since the 12th day of June, 1900, has also been its president, and was also during the times mentioned in the bill the agent and representative of his brother, Charles D. McClure, who was also a director of the company until October 9, 1900; that the moneys borrowed from the complainant were requested by the mining company for the purpose of meeting its urgent current expenses in building a concentrator at its mine in the town of Neihart, Cascade county, Mont., and that the complainant refused to loan the company any money except upon the understanding that Charles D. McClure—

“would immediately repay the same in preference to any other indebtedness of the said Diamond R Mining Company, and before any of said moneys were so advanced, and as a part of the- consideration therefor, it was so understood and agreed that the said Charles D. McClure would repay the same to the complainant as aforesaid, and fully protect the complainant against any loss or damage as the result of said loans to the said defendant company; that some time subsequent to the advancement of said sums, aggregating $20,000, the petitioner demanded payment thereof from the said Charles D. McClure, and he promised to pay the same, but notwithstanding the aforesaid facts and circumstances, whereby the complainant was led to believe and did believe that it would not be obliged to bring suit by attachment or otherwise to enforce the payment of said indebtedness, the complainant knowing at all times that the said Charles D. McClure was the only other large creditor of the defendant company, the said Charles D. McClure did nevertheless institute the aforesaid action, and, as hereinbefore set forth, levied upon and attached all the property of any kind and character belonging to the said defendant Diamond R Mining Company; that the said attachment by the defendant herein, Charles D. McClure, as plaintiff in said action, was not sought or made in good faith, as stated in his affidavit therefor, but was made, and the said action prosecuted and judgment therefor taken, for the express purpose of hindering, delaying, and defrauding this complainant and other creditors out of their claims and demands, and the said proceedings will have the effect so intended unless set aside by this court.”

It is further alleged in the bill that in the year 1900 a concentrator with a daily capacity of 100 tons had been completed by the mining [59]*59company for the purpose of concentrating its ores, which was working successfully, when the McClures—

“controlling the affairs of the company as aforesaid, proceeded to enlarge said concentrator so as to make the same of a capacity of 300 tons of ore daily, and it was done at an additional cost and expense of about $100,000 (most of which was advanced by said Charles I). McClure, one of ihe defendants herein, and embraces the moneys sued for in the aforementioned action); that the company voted to enlarge said concentrator and to borrow said money under the promise and agreement of said Charles I). McClure that he would consolidate the Broadwater group of mines, then owned by him, with the mines of said company, but which promise and agreement he 1ms never kept, and there has thereby been a failure of consideration for the notes sued on by said Charles D.

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Related

Great Falls Nat. Bank v. McClure
176 F. 208 (Ninth Circuit, 1910)

Cite This Page — Counsel Stack

Bluebook (online)
161 F. 56, 88 C.C.A. 220, 1908 U.S. App. LEXIS 4310, Counsel Stack Legal Research, https://law.counselstack.com/opinion/great-falls-nat-bank-v-mcclure-ca9-1908.