Hanley v. Sweeny

109 F. 712, 48 C.C.A. 612, 1901 U.S. App. LEXIS 4242
CourtCourt of Appeals for the Ninth Circuit
DecidedMay 6, 1901
DocketNo. 615
StatusPublished
Cited by5 cases

This text of 109 F. 712 (Hanley v. Sweeny) 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
Hanley v. Sweeny, 109 F. 712, 48 C.C.A. 612, 1901 U.S. App. LEXIS 4242 (9th Cir. 1901).

Opinion

ROSS, Circuit Judge.

This was a suit in equity, brought by the appellant, as complainant, to obtain a decree annulling two certain deeds made to the defendants Charles Sweeny and F. Lewis Clark, —one by the administrator of the estate of one David McKelvey, deceased, under an order made in a proceeding in mandamus, for an undivided one-third interest in the Skookum mine, situated in Shoshone county, Idaho; and the other by the complainant himself to the defendants Sweeny and Clark for an undivided one-eighth interest in the same mine. The complainant also, by his bill, asked for a.n accounting of the profits derived by the defendants from working the mine, and also sought an order appointing a receiver to take possession of and operate the property pending the litigation. The claims of the complainant in respect to the two interests rest upon distinct and independent grounds. The one-third interest belonged to David McKelvey during his life. The record before ns shows that that interest was first appraised in the proceedings had in respect to the estate of McKelvey at $3,000, and that the complainant, Hanley, and the defendants Sweeny and Clark all wanted to get it. The Chemung Mining Company is also a factor in the case. That company was incorporated under the laws of the state of Washington by the defendants Clark and Sweeny and one W. E. Goodspeed, who, it appears from the evidence in this case, was a clerk in their office at Spokane; its articles of incorporation hearing date August 5, 1896, and its capital stock being declared to be $2,500,000, divided into 500,000 shares of the par value of $5 each. On the 11th day of August, 1896, an agreement in writing was entered into- between the complainant, Hanley, as party of the first part, and the defendants Clark and Sweeny, as parties of the second part, and witnessed by W. E. Goodspeed, by which Hanley, in consideration of the sum of $5,000, paid and to be paid in certain specified amounts and at certain specified times, undertook to sell to Clark and Sweeny an undivided one-fourth interest in those certain mining claims described as follows, to wit: “The Jersey Fraction Mining Claim, the Lily May Mining Claim, the Carriboo Mining Claim, the Good Luck Mining Claim, and the Butte Mining Claim, all situate at Wardner, Yreka mining district, Shoshone county, Idaho, and west of the Last Chance Mining Claim;” the agreement proceeding to provide as follows:

“The party of the first part also agrees that all of the titles to these properties shall be cleaned up by him, and that said properties shall then he deeded to the Chemung Mining Company, of Spokane, Washington, the [714]*714owners of which shall be as follows: Chas. Sweeny, one-half interest of said company; F. Lewis Clark, one-fourth interest of said company; and Kennedy J. Hanley, one-fourth interest of said company. The parties hereto agree to set aside one-fifth of their holdings of the stock of said company, respectively, to be used for treasury purposes. The money to clean up the title of the said properties, not to exceed the sum of five thousand dollars, to be furnished by the parties of the second part in sums as required under the direction of Chas. Sweeny.”

The undisputed evidence in the present case is that of the 500,000 shares of the stock of the Chemung Mining Company Hanley owned 100,000 shares, Clark and Sweeny 300,000 shares, and that 100,000 shares were held as treasury stock of the company. The Skookum was a neighboring mining claim, the interest of the McKelvey estate in which, the evidence leaves no room to doubt, Hanley, Clark, and Sweeny wanted to acquire, and wanted to get for as near nothing as possible. This is shown not only by the testimony of each of them, but by documentary and other evidence that we And in the record, a part of which will be mentioned. The order of the probate court under which the McKelvey interest in the Skookum mine was undertaken to be sqld and conveyed by the administrator of the estate is -referred to in the brief of appellant’s counsel, and in parts of the record, as having been made December 5, 1896, although the order itself appearing in the record purports to have been made November 30, 1896. Clark and Sweeny were the principal officers of the defendant Empire State-Idaho Mining & Developing Company, of which one W. Clayton Miller was resident manager and consulting engineer. A. G. Kerns was the attorney of the Chemung Mining Company. On the 14th day of December, 1896 (hut a few days after the making of the order by the probate court of Shoshone county for the sale of the McKelvey interest in the Skookum mine), Clark wrote to Miller as follows:

“I bave tried for three days to get you by telephone, but have failed. After full consultation with Mr. Hanley, it seems to me, if he can buy Mc-Kelvey’s claim on the Jersey for about the sum net to us, viz. $100, that he expects to get it for, it better be done now on general principles, and to get through with it; and if at the same time he can, by paying $100 or so, obtain an option on one-third of the Skookum at about $700, so much the better. It does not seem to me, however, that we better put off too long in getting the Jersey interest cleaned up. I should not want to enter into an agreement to buy the Skookum, but would be willing to pay one hundred dollars or so to get an option on the interest. If you and Mr. Hanley think best, however, to postpone the Jersey matter, I shall be satisfied to rest upon your .-judgment.”

Following this letter in the record, but without date, is the following:

“My Dear Kerns: Mr. Clark appears to have changed his mind, and I think now the best you can do is to put Kennedy [Hanley] onto the best and quickest way for. him to close for the interest at his bid. He should, at the proper time, put it in as writing. As to Skookum, find out, and let me know; but do nothing now. Miller.”

Immediately following is this telephone message from Clark to Hanley:

“Mr. Miller telephoned, requesting that you immediately telegraph or telephone Cunningham [who was the administrator of the McKelvey estate] [715]*715■withdrawing your bid on tlio Jersey tract. By so doing Miller says _we can get a reappraisement to better advantage. Please comply. Just withdraw your bid, and give no reasons. You can telephone me at my house, 255, after 6:30 p. m.”

At the time of the making of the order hy the prohate court of Hhoshone county authorizing the administrator of the McKelvey estate to sell its interest in the Skookum mine, that interest stood appraised at the sum of $8,000. Hanley had bid therefor the sum of $700. The statute of Idaho provided that no bid should he accepted which was less than 90 per cent, of the appraised value of the property. X'o other bid appearing to have been made, the McKelvey interest in the Skookum mine was again appraised in February, 1897, and that time at $760. The administrator of the estate again published and posted notice that he would sell the interest on May 1, 1897, and invited bids therefor. In his return to the probate court: of the sale made by him, the administrator, after setting out the notices that he caused to be published and posted, stated:

“That on the 1st day oí June, 1S97, this administrator received an offer or bid of seven hundred dollars for the undivided one-tliird interest in the Skookum lode mining, situated in Yreka district, Shoshone county, state of Idaho, from the Chemung Mining Company. That being the only bid filed with me, and that being the highest and only bid for the same.

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Related

Hurt v. New York Life Ins. Co.
51 F.2d 936 (Tenth Circuit, 1931)
Chemung Mining Co. v. Hanley
81 P. 619 (Idaho Supreme Court, 1905)
Sweeney v. Hanley
126 F. 97 (Ninth Circuit, 1903)
Hanley v. Beatty
117 F. 59 (Ninth Circuit, 1902)

Cite This Page — Counsel Stack

Bluebook (online)
109 F. 712, 48 C.C.A. 612, 1901 U.S. App. LEXIS 4242, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hanley-v-sweeny-ca9-1901.