Malcolm v. Hanmer

127 P.2d 331, 64 Idaho 66, 1942 Ida. LEXIS 1
Idaho Supreme Court·Decided May 13, 1942·No. No. 6968.·Published·Cited by 10 cases

Opinions

*69 HOLDEN, J.

E. M. Christensen lived in Lemhi county from 1896 to the day of his death. He was a hard rock miner. Respondents C. W. Pope and E. J. Page (a lawyer and member of the law firm of Page & Lay) were residents of the State of New York.

September 14, 1921, Pope wrote Christensen the following letter:

“I have your favor of September 8th in which you refer to a letter in answer to mine enclosing a copy of Mr. Casterlin’s letter to me; I have not received this letter of yours.
“However, after giving the matter thought, I have decided to ask you if you are willing to do the following things:
“1st. Take over the handling of the property from me with the understanding that I am to put no more money into it. That you will finance it from sales of property on grounds, or what you may be able to collect from Mr. Merritt or anyone else owning the company’s money (owing the company money?).
“2nd. That you will adjust all matters in Idaho in connection with the death of the watchman under the laws of Idaho which provide that an employee must start action within sixty dyas, and that if he lets it run longer, it is at his risk.
“If you will do the above, I will agree to give you a one-half interest of my interest in the entire property which, really amounts to the ownership in view of the fact that, the MANDARIN MINES is heavily indebted to me from, money advanced. In fact, the YELLOW JACKET and the MANDARIN MINES owe me something over $30,000. for cash advanced.
“If this appeals to you, please advise me at once and I will write you, authorizing you to handle the whole thing as *70 your best judgment dictates, both as to handling the property in the future and to realizing on the present assets and claims that are due the company.
“(Signed) C. W. Pope.”

Shortly after the receipt of that letter, to-wit, in October 1921, and pursuant thereto, Christensen took possession of the property therein mentioned. Thereafter, the record does not disclose just when, Pope assigned his claims against “Mandarin Mines” (covering the indebtedness referred to in the above quoted letter) to one Lancaster. Lancaster then prosecuted such claims to judgment in the State of New York, after which he prosecuted an action on the New York judgment in the District Court for Lemhi County, and recovered therein a judgment against “Mandarin Mines”. An execution was issued on the Idaho judgment and the property mentioned in the letter, located in that county, was sold at sheriff’s sale, whereupon a certificate of sale was issued to Lancaster, who then assigned the certificate to Page. Upon the expiration of the period of redemption, a sheriff’s deed issued to Page.

In March, 1925, Christensen entered into a “bond and lease” with Charles Peters and W. F. Hayden. Peters and Hayden operated the mining property and constructed valuable improvements thereon in the name of the New York-Idaho Exploration Company. The operation and development covered a period of a little more than a year, but no actual transfer of the property was consummated under that instrument.

July 7, 1928, respondent Page, joined by his wife, executed and delivered a trust deed, covering the property involved in the case at bar, to E. W. Whitcomb.

August 28, 1928, Christensen executed a release to Page which recites a consideration “of the sum of one dollar ($1.00) and other good and valuable consideration,” the pertinent provisions of which are:

“* * * and in particular from any and all claim or claims which I have or may have on account of any matter or thing connected with, arising out of or in any way related to the Mandarin Mines or Yellow Jacket Mining properties so-called because of or on account of any act or omission of said E. J. Page in connection with said mines, mining claims or his ownership thereof.”

*71 February 7, 1935, Whitcomb, as trustee, entered into a "Title Bond and Lease of Mining Properties” with H. B. Rigby and Royal Gam for the sale of the property in question, for the sum of $80,000, which contract was thereafter assigned by Rigby and Garn to respondent Buck Horn Gold Corporation (after such assignment the contract was modified by providing the unpaid balance of the purchase price, to-wit, $78,527.39, might be paid in certain stated instalments), which corporation thereafter assigned and transferred the contract to respondent Treasure Gold Mining-Company and that company then assigned the contract to respondent Condor Gold Mining Company.

March 25, 1937, trustee Whitcomb quitclaimed the mining property to respondent Page. September 1,1937, respondent Page, joined by his wife, executed and delivered a second trust deed to Whitcomb covering the same property, but omitted from that deed the provisions (hereinafter quoted) incorporated in the first trust deed which recognized, acknowledged and declared Christensen’s interest in the mining property.

This suit was later commenced by Christensen to obtain a decree adjudging him to be the equitable owner of an undivided half interest in the property and the proceeds of the sale thereof. Upon a trial of the cause the court made and entered Findings of Fact and Conclusions of Law against plaintiff Christensen, arid in favor of the respondents, and final judgment was entered thereon from which Christensen appealed. Thereafter Christensen died and his administrator, Charles H. Malcolm, was substituted as appellant.

In limine it may be stated that a discussion of the very numerous contentions made by the respective parties would result in extending this opinion far beyond reasonable limits and would, furthermore, serve no useful purpose. And, while the record presents the question as to whether the trial court erred in striking plaintiff’s exhibits “E”, “F”, ”J”, “K” and “L”, which will later be discussed, still and nevertheless, whether the judgment appealed from should be reversed or affirmed depends upon the determination of these questions:

(1) Is Pope, in truth and in fact, the owner of the property in controversy?

*72 (2) Did he contract to give Christensen a half interest in such property?

(3) Did Page take title to the property in trust for Pope and Christensen?

Considerable correspondence followed Pope’s letter to Christensen dated September 14th, 1921 (hereinbefore set forth). That deemed pertinent to the discussion of those questions follow:

Letter from C. W. Pope to E. M. Christensen dated September 29th, 1921:

“I have your favor of the 20th and in reply beg to advise you that there are no claims against the MANDARIN MINES CORPORATION other than taxes which are running and which will not be due, I believe, for about two years; I have paid them in my own name about one and one-half years ago some $900., so that this matter will I think, show a clean slate should it become necessary to clean up the mess.

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Malcolm v. Hanmer, 127 P.2d 331, 64 Idaho 66, 1942 Ida. LEXIS 1 (Idaho 1942).

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