Horan v. Consolidated St. Gothard Gold Mining Co.

182 P. 813, 41 Cal. App. 333, 1919 Cal. App. LEXIS 387
California Court of Appeal·Decided May 29, 1919·No. Civ. No. 1994.·Published·Cited by 4 cases

Opinion

*335 HART, J.

In December, 1911, plaintiffs and one Murphy contracted to build a flume in Nevada County for the defendant to furnish water to its mine, for which they were to receive twenty-six thousand dollars. The contractors failed in their undertaking, after having drawn nearly half the contract price on account, leaving creditors to the extent of $6,213.72, with less than one-third of the flume completed. On the eighteenth day of November, 1912, a new agreement was entered into between the parties hereto, under which defendant agreed to complete the flume, applying so much of the unpaid balance of the contract price as was necessary for the purpose, the remainder, if any, to be applied, first, to the payment of the debts incurred by the contractors, the balance, if any, to be paid to the contractors, the defendant to use in such completion all tools, machinery, supplies, and lumber on hand provided or used by the contractors in connection with said contract. The flume was completed in September, 1913, at an expense of over twenty thousand dollars, leaving nothing for the creditors or the contractors.

In June, 1914, plaintiffs brought this action, alleging a number of defaults and violations of the supplemental contract on the part of defendant, praying for an accounting; for judgment for any credits that may be found due plaintiffs on such accounting; “for such other and further relief in the premises as may seem meet and agreeable to equity”; and for costs.

The trial of the ease began on June 12, 1917, before the court without a jury, and, on March 25, 1918, the court made the following findings: That, by virtue of said supplemental agreement of November 18, 1912, plaintiffs assigned to their creditors all rights to any money or damages that might thereafter accrue in their favor from or against defendant to the extent of $6,213.72; that plaintiffs were not entitled to recover against defendant any sum unless the amount of damage accruing in favor of plaintiffs under said contract should be found to be in excess of said sum; that no sum amounting to $6,213.72 is shown to have accrued in favor of plaintiffs; that, in accordance with the terms and conditions of said contract, “defendant received from plaintiffs two horses, harness, and wagon to be used *336 by defendant in connection with the construction and completion of said flume, which said horses and wagon were to be returned to plaintiffs after such completion; that defendant failed to return the same or any part thereof and subsequently converted the same to its own use to plaintiffs’ damage in the sum of five hundred dollars.’.’ It was then found that under said contract defendant received from plaintiffs a sawmill and equipments which, after defendant had completed the manufacture of lumber thereat, plaintiffs were at liberty to have taken possession of. 1

Judgment was entered against defendant for the sum of five • hundred dollars and for costs, amounting to $263.30. The appeal is by defendant from said judgment. "

It is first contended by appellant that, as the action was solely one for an. accounting and there was no allegation in the complaint of conversion, there should have been rendered no judgment for conversion.

In its answer defendant denied “that it received from the plaintiff two horses, harness, and wagon”; denied “tliat defendant has or does now retain the said horses, harness, and wagon”; denied “that the plaintiffs are damaged thereby in the sum of five hundred dollars or in any sum or at all.”

1. No question is here raised as to the propriety of the remedy by bill for an accounting between the parties hereto. While by the supplemental contract a sort of novation was invoked, yet under said agreement the plaintiffs were still interested in the contract and the results thereof, and a trust or confidential relation was thereby created between them.

[1] While courts of law and equity are possessed of concurrent jurisdiction in matters of account and accounting, this is, concededly, a suit - in equity for an accounting, and it is the settled rule that “when a court of equity once acquires jurisdiction upon equitable grounds it will proceed to do complete justice and administer full relief to this end, will order an accounting, and will settle the whole controversy, even to the extent of adjudicating matters of purely legal cognizance.” (Ency. of Law & Pr., p. 418; see, also, Pomeroy’s Equity Jurisprudence, see. 255; Smith v. 49 & 56 Quartz M. Co., 14 Cal. 242, 248; California Raisin Growers’ Assn. v. Abbott et al., 160 Cal. 601, 607, *337 [117 Pac. 767].) The obvious object of the rule as it is so stated is to prevent a multiplicity of suits in those eases where, as to the same parties or parties united in interest by a common tie (although one may sue on behalf of himself and others), there are several different actions, even though different in nature, depending upon similar facts and circumstances, and involving the same legal questions, so that the decision of one would virtually be a decision of all the others. (1 Pomeroy’s Equity Jurisprudence, secs. 254, 255.)

Free access — add to your briefcase to read the full text and ask questions with AI

Horan v. Consolidated St. Gothard Gold Mining Co., 182 P. 813, 41 Cal. App. 333, 1919 Cal. App. LEXIS 387 (Cal. Ct. App. 1919).

182 P. 813 (Horan v. Consolidated St. Gothard Gold Mining Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Heber v. Yaeger
251 Cal. App. 2d 258 (California Court of Appeal, 1967)
Smith v. Greenfield State Bank
222 Cal. App. 2d 869 (California Court of Appeal, 1963)
Wyoming Pacific Oil Co. v. Preston
341 P.2d 732 (California Court of Appeal, 1959)
Kittle v. Lang
237 P.2d 673 (California Court of Appeal, 1951)