Jackson v. Allen

4 Colo. 263
CourtSupreme Court of Colorado
DecidedOctober 15, 1878
StatusPublished
Cited by13 cases

This text of 4 Colo. 263 (Jackson v. Allen) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jackson v. Allen, 4 Colo. 263 (Colo. 1878).

Opinion

Thatcher, O. J.

The bill in this case, which was dismissed in the court below, seeks to restrain the negotiation and prays for the cancellation of two certain promissory notes made by the complainants to the defendant. The chief grounds relied upon are the alleged want of consideration, and that their execution was procured by fraud and duress practiced by the defendant. There is no evidence tending to show, [264]*264however remotely, that Cora E. Jackson was coerced into the signing of the notes. At the request of her husband, she voluntarily joined in their execution. Mr. Jackson comes into a court of equity with unclean hands, convicted by-his own evidence of a deliberate attempt to defraud the appellee. For the good name of Colorado it is to be earnestly hoped that an attempt to justify fraudulent practices by pleading the custom of the country will never receive the sanction of any of our judicial tribunals.

The appellee, and one George Allen, during a visit to Boulder in July, 1875, examined “Victoria Lode No. 2,” and were well pleased with it. In an interview with Frank P. Jackson he proposed to the appellee and George Allen that they three should purchase the mine jointly. This proposition was acceded to. Upon the representation of Jackson that he could more advantageously negotiate the purchase of the mine, he was authorized to buy for their joint benefit at any sum not exceeding $4,500 in all, and not requiring a cash payment at the time of purchase exceeding $4,000. Jackson, for a purpose which subsequent events make plain, took two bonds for deeds from the owners of the mine, “ one of said bonds (to follow the allegations of the bill) being for the sum of fifteen hundred dollars ($1,500) cash, and four thousand dollars to be paid out of the net proceeds of the mine, and the other calling for four thousand doilars ($4,000) cash, and four thousand dollars in the net proceeds of the mine.” The last-mentioned bond was shown to George Allen secretly, and without the knowledge of either George Allen or appellee as to the price paid, the purchase had been made by Jackson on the basis named in the first bond, viz. : $1,500 cash in hand, and $4,000 additional to be paid out of net proceeds. Jackson drew a check for $4,000 on First National Bank of Denver, payable to the order of J. W. Corser (one of the mine owners) and to be charged to the account of Harrison Allen. This check was indorsed both by Corser and Jackson, and dated July 22, 1875. On presentation [265]*265the check was cashed by the bank out of the funds of appellee, and $1,500 of the amount were paid by Jackson to the owners of the mine, being the only cash payment required. Jackson had the deed of the entire mine made to himself, and he conveyed two-thirds thereof to the two Allens. Jackson concealed from appellee the fact that he had made a cash payment of only $1,500, and represented that-he had no money with which to pay one-third of the total alleged consideration which appellee had advanced for his benefit, but that he expected to receive the money in a few days from Pittsburgh, Pa. He then gave his note to appellee payable in seven days for $1,333.33. August 2, 1875, Jackson made a payment on this note of $1,200, stating at the same time that he would pay the balance as soon as possible.

It is fairly deducible from the evidence that this payment was made out of his ill-gotten gains. Here was an evident attempt to defraud appellee out of $2,500. But Jackson alleges in his bill, and testifies at the hearing, that to enable him to consummate the purchase of the mine, it was necessary to call in one J. B. Shaw, a mining broker, to aid in the negotiations, and that he paid Shaw $500 for his services, for which he, Jackson, claims a credit. Shaw was not put upon the stand. If $500 were in fact paid him for his services in aiding to concoct, carry out, and conceal a perfidious scheme, the ultimate purpose of which was to defraud the appellee, we are aware of no principle of equity that will require the defrauded Allen to re-imburse Jackson the amount he paid out to his partner in guilt. If, as counsel for appellant contends, it be conceded that the employment of Shaw by Jackson was for a legitimate purpose, it does not appear that appellee had authorized such employment or the paying out of commissions, nor was the employment subsequently ratified. Indeed the evidence conclusively shows that the fact of such alleged employment was for about fiye months carefully concealed from appellee.

[266]*266At the time the mine was bought the former owners agreed to sink the shaft twenty feet deeper than it then was, and to timber it, Jackson to furnish the lumber, and they further agreed to run a tunnel one hundred feet on the lode. For their work they were to receive $1,400. "When the work was completed, Jackson paid the former owners of the mine $1,400, as per contract. Of this sum, on account of the development of the mine, and before Jackson’s fraud was discovered, appellee paid by draft Aug. 26, 1875, $100, and by draft Sept. 29,1875, $625.

Jackson claims a credit on account of services as superintendent of the minó. The evidence we think does not justify the claim. Appellee’s testimony is to the effect that for his services as superintendent he was to receive $4 per day, payable out of the ore on the dump. Jackson testifies that he was to be paid for his services without regard to the value of the ore. McPherson testifies that he (Jackson) never superintended the work on the mine, “ but was out prospecting and looking after a contract he had let on Standard lode.” The evidence convincingly shows that Jackson hauled away and appropriated quantities of the best ore, of which he made no account or return.

Jackson alleges in his sworn bill, and testifies at the hearing, that for his one-third interest in the mine, he gave appellee his note for $1,200. He swears that nothing was said about the balance, $133.38, by appellee, and further, that he paid the whole amount due on the note about a week afterward.

Appellee’s testimony is in direct conflict with Jackson’s testimony on this point. Not only does appellee testify that the note was for $1,333.33, that but $1,200 had been paid on it and indorsed as a credit, but by the production of the note itself, the evidence of appellee is corroborated. That the court below did not give full cledence to the evidence of Jackson, some parts of which were intrinsically improbable, and other parts of which were proved to be absoluteiy, and we think, willfully false, is no ground of [267]*267error. To believe the evidence of Jackson upon any point, unless corroborated, is a tax upon human credulity. It ■ appears from his own testimony that both, by language and conduct, he uttered and acted falsehoods in all his transactions with appellee. In addition to this, as we have before seen, the falsity of some of his testimony on material points at the hearing, was established by indubitable proof.

Appellee, having learned, Dec. 18,1875, of one of the former owners of the mine, that but $1,500 cash had been paid therefor, confronted Jackson in his office at Denver two days later, and demanded an explanation. Jackson confessed the fraud, but attempted to excuse himself by saying : “ That’s the way we do business here.” He further said he thought the mine would pay from the grass roots; that he aimed to get his interest free of cost; that he was hard up; that he wished first to get the $2,500 in his own hands, and that when the mine would pay, he would return it. After being detected he offered to make reparation as far as possible.

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Bluebook (online)
4 Colo. 263, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jackson-v-allen-colo-1878.