Hubbard v. Mulligan

13 Colo. App. 116
CourtColorado Court of Appeals
DecidedJanuary 15, 1899
DocketNo. 1551
StatusPublished
Cited by12 cases

This text of 13 Colo. App. 116 (Hubbard v. Mulligan) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hubbard v. Mulligan, 13 Colo. App. 116 (Colo. Ct. App. 1899).

Opinion

Bissell, J.

The matters involved and the propositions decided will more clearly appear by a brief statement of the issues presented by the pleadings. Hubbard filed a bill in equity to have an instrument in writing theretofore executed by the defendant, Mulligan, declared a lien and foreclosed. It substantially recited that Mulligan had filed in the United States land office an application to enter the northwest quarter section 21, township 2; the advancement by Hubbard to Mulligan of divers sums of money amounting to $2,000 for the improvement of the premises and the expenditure of the money in and about the improvements on the land. In consideration of these premises Mulligan for himself and his heirs, executors, and assigns, covenanted with Hubbard that [118]*118in case he should be permitted to enter the lands or procure title thereto directly or indirectly from the United States and not from the Platte Land Company from which he had theretofore purchased it, the $2,000 should be a first lien and charge on the premises with like effect as if secured by deed or mortgage, and that in case he was permitted to purchase the premises from the United States under his application to pre-empt or should obtain title thereto from the United States either directly or indirectly and not from the Platte Land Company, then he would within the date named cause the sum of $2,000 with interest to be repaid to Hubbard, his executors or assigns, and gave Hubbard authority to sell the premises with the appurtenances or so much thereof as should be necessary to pay the advancement. The instrument 'likewise provided sundry and divers conditions of sale which are unimportant since the power was not exercised. Hubbard simply filed a bill to declare it a mortgage and foreclose it.

The defendant answered by several pleas, the first of which was a denial of all the allegations of the complaint; the second, an averment that there was never any debt rvhich the defendant was obligated to pay, and that the instrument was made for Hubbard’s accommodation and without consideration. Third, he set up a partnership between himself and Hubbard which resulted in an indebtedness in his favor.; admitted the applications made by the plaintiff and the defendant for the two quarter sections, the northwest and the northeast, and alleged an indebtedness from Hubbard to him in a sum named and the procurement of his signature to the instrument for a special purpose incident to divorce proceedings pending between Hubbard and his wife, and averred that his signature was obtained by fraud. Fourth, he set up an association between himself and Hubbard, the carrying on of a stock business on that tract of land, the dissolution by consent and a’ release. Fifth, he stated a copartnership in the livery business, a resulting profit, and an agreement by Hubbard to pay, nonpayment, and a statement of the balance due thereunder.

[119]*119He prayed the cancellation of the instrument, the recovery of what should be shown to be due him on the partnership account from the sale of the stable, of the sum due from the running of the stock farm and a general prayer. These were the issues.

When it came to trial, the plaintiff produced the agreement, the certificate showing the entry by Mulligan, November 14, 1888, and rested. Thereupon the defendant offered his testimony. He was himself a witness, and he produced other testimony than his own to the proposition that the instrument was without consideration and given to permit Hubbard to show it in the divorce proceedings between himself and his wife. He. then offered testimony to the point that there were no improvements put on the land by Hubbard or advancements made for the purpose out of his own funds, but that whatever was done to improve the quarter was paid for out of funds resulting from their copartnership for stock-raising purposes and out of the proceeds of the livery business carried on by Hubbard and in which Mulligan claimed a half interest. He also offered testimony to the point that originally there was a contract between the Platte Land Company and himself, whereby that corporation had agreed to deed the north half of section 21 on the payment of a certain consideration specified in the written contract between the parties. This contract was dated the 8th of April, 1886. It was an agreement by the Platte Land Company to sell Mulligan the north half of section 21 on the basis of certain payments to be thereafter made at times therein designated. It stood in Mulligan’s name when he executed this mortgage. The security was delivered intermediate the execution of the contract by the Platte Land Company and Mulligan’s preemption. To make the situation plain it may be stated that when the Platte Land Company agreed to convey the land it was supposed to be a part of the lands granted to the Union Pacific Railroad Company. Subsequently the railroad’s title was disputed and all parties were doubtful about it. A further agreement between the Platte Land Company [120]*120and these parties need not be stated. It is enough to say that in the course of events the validity of the Platte Land Company's title was so seriously doubted, that parties commenced filing on much land which was originally supposed to be included in the government grant to the railroad, among which was this half section. Hubbard filed on the northeast quarter and Mulligan filed on the northwest quarter of section 21. There were divers filings on this northwest quarter by other parties which need not be specified. It is enough to state that the record shows that these adverse interests were obtained either by purchase or otherwise, and Mulligan’s entry received by the land office. .He thereby and within the limits of the pre-emption right became the owner of this northwest quarter. Mulligan attempted to prove, and there is evidence to that point given not only by the defendant but by others, and virtually assented to by Hubbard that it was Hubbard’s -intention to acquire title to the whole half of section 21. As to one quarter by his own entry, and as to the other quarter by the entry of Mulligan who was really to enter on behalf of Hubbard and in his interest, Hubbard advancing the necessary money and paying out what was essential to improve it in order to acquire the governmental title. On this point the case turns. Mulligan gave much testimony respecting the relations between himself and Hubbard in the stock business and in relation to the copartnership which he claimed existed between himself and Hubbard in the livery business. He also gave evidence that the security was not intended to be an absolute agreement, but was executed for ulterior purposes, that Hubbard -might use it in his divorce proceedings and was without consideration. His evidence as to the purpose for which the paper was given tended to impeach, vary and destroy its terms and show it to have been a paper without validity and established or attempted to establish by parol testimony that it was an agreement or contract other than that which it appeared to be by its terms. All this testimony was objected to but it was received subject to a determination on the final hearing.

[121]*121On the conclusion of the trial the court entered judgment. Prior to the announcement of the decision the court declared that it wanted no argument on matters of fact, but desired to hear from counsel only as to the validity of the instrument. The case was taken under advisement. The court finally dismissed the plaintiff’s complaint, the defendant’s cross-complaint, and held the instrument void in law, and ordered it to be delivered up for cancellation. Hubbard appealed.

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Bluebook (online)
13 Colo. App. 116, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hubbard-v-mulligan-coloctapp-1899.