Halloran-Judge Trust Co. v. Heath

258 P. 342, 70 Utah 124, 64 A.L.R. 368, 1927 Utah LEXIS 23
CourtUtah Supreme Court
DecidedJuly 9, 1927
DocketNo. 4531.
StatusPublished
Cited by14 cases

This text of 258 P. 342 (Halloran-Judge Trust Co. v. Heath) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Halloran-Judge Trust Co. v. Heath, 258 P. 342, 70 Utah 124, 64 A.L.R. 368, 1927 Utah LEXIS 23 (Utah 1927).

Opinion

THURMAN, C. J.

This is an action for an accounting and for injunctive relief. The complaint in substance alleges that plaintiff is a corporation; that defendants are the executors of the es-state of Virtue Clift; that on the-day of August, 1920, Virtue Clift was the owner of certain property in Salt Lake City, describing it by metes and bounds; that on said day, during her lifetime, being desirous of borrowing $150,000 to protect herself against liens and expensive litigation in connection with the completion of the building thereon, and having no security to offer except a second mortgage on said property, she employed the plaintiff, in writing, to float a bond issue secured by a second mortgage on said property, and in consideration of the services to be rendered by plaintiff in securing said loan and for the further security and protection of buyers of said bonds, said Virtue Clift agreed that plaintiff should have full control and management of said property, including the writing of insurance thereon, for a period of ten years; that during said ten-year period plaintiff agreed to collect all the rents and income from said property and apply the same in the liquidation of all accounts and claims which threatened to become liens against said property in order that the security for *127 said mortgage should not in any way be decreased in value, and finally to pay said bonds and obligations of said Virtue Clift; that in consideration of said agreement the said Virtue Clift agreed to pay to plaintiff 5*4 per cent, of the gross income from said property for a period of ten years from September 10, 1920; that it was agreed that plaintiff should have a fixed, settled interest in said estate to the extent of 5 % per cent, of the gross income therefrom during said period of time; that on April 27, 1926, without regard to plaintiff’s rights, defendants served notice upon the tenants of the building on said property that the authority of plaintiff to manage and control said property and to collect rentals therefrom was terminated and revoked by the death of Mrs. Clift, and that thereafter all rentals would be payable to and would be collected by the aforesaid executors of her estate. It was further stated in the notice that all matters pertaining to leases and management of the property would in the future be handled directly by said executors.

It is further alleged, in substance, that as a result of such notice a large number of the tenants in said building did not pay rent to the plaintiff, but paid the same to the defendants, and plaintiff was advised that defendants had collected the sum of $2,212.50 upon which there was owing to plaintiffs $121.68, or 5% per cent, of said amount, and that defendants refused, on demand, to pay said sum to the plaintiff. Plaintiff also alleged that defendants had collected other sums of money and were assuming the management of said Clift building and refused to inform plaintiff as to the amount so collected, and were in all respects attempting to impair, abrogate, and nullify the contract of employment entered into between the said Virtue Clift and plaintiff, and that unless restrained by order of court defendants would abrogate and nullify the aforesaid contract.

Plaintiff further alleged that defendant, Lawrence Heath, in his individual capacity, claimed some interest in the contract with plaintiff.

*128 For a second cause of action plaintiff alleged, substantially, the same matters alleged in its first cause of action, and in addition thereto alleged that on the-day of August, 1920, the said Virtue Clift assigned, sold, and set over unto the plaintiff 5% per cent, of the gross income of said Clift building for a period of ten years.

Plaintiff prays: (1) For a judgment against defendants for the sum of $121.68; (2) that defendants be required to account to plaintiff for money collected from said tenants and pay the same to the plaintiff; and(8) that defendants be restrained from in any manner interfering with the plaintiff in exercising its control and management in the collection of rent from the tenants of said building or in any manner interfering with plaintiff in fully complying with the terms of said contract. The same prayer is made as to each cause of action.

Defendants answering the first cause of action alleged in the complaint admit the corporate capacity of plaintiff and the capacity of defendants, as alleged, and admit that Virtue Clift was at the time alleged in the complaint the owner of the real property therein described; admit that they served notice on the tenants of said property, as alleged in the complaint; and deny the remaining allegations of said first cause of action. Answering the second cause of action defendants make the same admissions respecting the capacity of plaintiff and defendants and the ownership of the property by Virtue Clift, but deny that she ever at any time assigned, sold, or set over unto the plaintiff any part of the income of said Clift building, or any other property, for a period of ten years, or any other period whatsoever.

Defendants admit that plaintiff procured the said loan of $150,000 upon the security of a second mortgage on the property; they admit that they collected from the tenants in said building the sum of $2,212.68, and that they are proceeding to collect other money from said tenants, as alleged in the complaint; they deny each and every other allegation in the said second cause of action. Further answering said *129 complaint, and as an affirmative defense, defendants in substance allege that at all times therein stated Virtue Clift was the owner of the property described in the complaint upon which there was, and now is, an office building known and described as the Clift buildingthat on or about September 10, 1920, the plaintiff and A. Roy Heath and Virtue Clift entered into an agreement in writing, which for convenience will be referred to herein as Exhibit A. The agreement in words and figures is as follows:

“This agreement, between Virtue Clift and Halloran-Judge Trust Company, a corporation, witnesseth:
“The said Virtue Clift is the owner of what is popularly known as the Clift corner, situate at the northwest intersection of Main and Third South streets in the city and county of Salt Lake, Utah, and she is desirous of raising money by a second mortgage on said property, the same not to exceed the sum of $150,000 and the details of said mortgage or trust deed are fully set forth in a certain indenture of trust and mortgage between the parties hereto dated September 7, 1920, and which is hereby referred to and made a part hereof. And in consideration of the premises, Virtue Clift hereby sells the bonds secured by said mortgage, to wit, $150,000, at par, to said company and said company hereby agrees to purchase at par said bonds for the total purchase price of $150,000. The said Virtue Clift, however, will not be requested by said company to sell more of said bonds than may be necessary to sell in the judgment of said company for the purpose of discharging all of the debts, liabilities and obligations of the said Virtue Clift. Virtue Clift, by a separate instrument in writing of even date herewith and which is hereby referred to and hereby made a part hereof, has appointed said company and A.

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Bluebook (online)
258 P. 342, 70 Utah 124, 64 A.L.R. 368, 1927 Utah LEXIS 23, Counsel Stack Legal Research, https://law.counselstack.com/opinion/halloran-judge-trust-co-v-heath-utah-1927.