Mallory v. Globe-Boston Copper Mining Co.

94 P. 1116, 11 Ariz. 296, 1908 Ariz. LEXIS 60
CourtArizona Supreme Court
DecidedMarch 27, 1908
DocketCivil No. 1011
StatusPublished
Cited by3 cases

This text of 94 P. 1116 (Mallory v. Globe-Boston Copper Mining Co.) is published on Counsel Stack Legal Research, covering Arizona Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mallory v. Globe-Boston Copper Mining Co., 94 P. 1116, 11 Ariz. 296, 1908 Ariz. LEXIS 60 (Ark. 1908).

Opinion

KENT, C. J.

— In this ease the trial court sustained the general and special demurrers of the defendants to the complaint, and entered judgment dismissing the complaint, and rendered judgment in favor of the defendant the Globe-Boston Copper Mining Company against the plaintiffs on such defendant’s cross-complaint. ' This appeal brings up for review the question of the correctness of such action of the trial court.

The special demurrers sustained by the court were on the ground of the laches of the plaintiffs in bringing the suit. In the view we take of the action of the trial court with respect to the general demurrer interposed, we do not deem it necessary to pass upon the correctness of the trial court’s action with respect to the special demurrers. The complaint alleges that the plaintiffs in 1901 were the owners of certain mining claims in this territory; that in May of that year they entered into a bond and lease of such claims with the defendant the Globe-Boston Copper Mining Company (which we will hereafter designate as the “Boston Company”); that on the 27th of February, 1905, the Boston company having failed to carry out the provisions of the bond and lease, the plaintiffs and the Boston company entered into an agreement in writing for the sale of the mining claims. The agreement (which is set forth in full in the complaint) was executed by the plaintiffs and one Magly as trustee for the [300]*300Boston company, and recited that the bond and lease theretofore entered into between the parties was about to expire, and the parties were mutually desirous of entering into a new and separate agreement covering the sale and disposition of the mining claims, and provided that the plaintiffs should sell to the Boston company the mining claims, the consideration for the purchase being the execution by the company to the plaintiffs of the notes of the company for the sum of $30,000, payable in five years from date, secured by a mortgage on the mining claims and 75,000 shares of stock of the company; that the company was to have a year from date to commence active development and mining on the claims, and thereafter should prosecute work 'on the claims “as diligently and to such an extent as shall be consistent with good mining and within the resources ’ ’ of the company; that the company after the expiration of a year from date should take steps to secure patents to the claims, and should during the continuance of the agreement perform the necessary annual labor to hold the claims. The agreement further provided that it should remain in force and effect for ninety days, for the purpose of its being accepted and ratified by the Boston company, through its board of directors, “or such company as may be hereafter formed for such purpose”; that upon the acceptance and ratification of the agreement by the Boston company, or such other company to be formed for the purpose of working the claims, the plaintiffs were immediately to execute and deliver their deed to the property for the consideration specified. The agreement further provided that, in the event of the noncompliance of the company with any of the terms of the agreement, it should forfeit all machinery and appliances which might have been placed upon any of the claims, and that “said forfeitures shall be, and hereby is made, the penalty, and shall be in full liquidation of all claims and demands which now, or under any subsequent dealings between the parties hereto, arise or be enforced on account of any note or things to be done or performed by” the company. The agreement further provided as follows: “In event a new company shall be formed to operate said mining claims, or the capital stock of said Globe-Boston Copper Mining Company shall be increased or diminished, the parties of the first part, ’ according to their respective interests, shall be entitled to shares in said new company or in such capital stock in the proportion that 75,000 shares bears- to two million shares.” [301]*301The complaint then sets np that this agreement of sale was executed by the parties thereto (the plaintiffs and Magly as trustee), and that afterward, on the 27th of May, 1905, such agreement was by a further agreement in writing between the plaintiffs and the Boston company, through its agent, Stoneman, modified and amended in part by providing “that as an inducement and additional stipulation to be added to the terms of” the agreement of February 27th a payment of $1,375 in cash “is accepted . . . and the notes and mortgages given by said company according to said agreement are taken by them (the plaintiffs), and the deed to the mining claims mentioned in said agreement is executed by said "William Mallory and Nellie Mallory upon the understanding that the said company shall perform the following conditions”: First, that the company should furnish William Mallory continuous employment at the mines at the rate of $3.50 a day, commencing from the first day of June, 1905, and terminating whenever said contract should terminate, provided Mallory was able to perform the labor; second, that a certain cross-cut, known as the “Craneer cross-cut,” should be continued within the legal boundaries of the claims until lime was reached; third, that a cross-cut should be run from the main shaft to cut the first ledge south; fourth, to drift southeast with the sulphid streak in the Craneer cross-cut. The complaint alleges that these two agreements were intended to continue and be in force for'five years from May 27, 1905, and until final payment should be made on the notes and mortgages; that in consideration of the covenants and agreements contained in these contracts, “or other verbal promises and agreements made” by the Boston company, the plaintiffs were induced to execute and deliver to the Boston company their deed to the property, and thereupon the company made and delivered its notes and mortgages and stock, as in the agreement provided, and the deed and mortgages were recorded; and that these agreements were executed before the execution and delivery of the deed, and the receipt of the plaintiffs of the consideration therefor. The complaint then alleges that the Boston company, its. successors and assigns, have failed and refused to furnish the plaintiff William Mallory with work at the mines, have failed and refused to continue the Orancer crosscut as agreed, have refused to run -the cross-cut from the main shaft as agreed, and have refused to drift southeast with the sulphid streak as agreed.

[302]*302The complaint then sets np certain verbal representations of the Boston company as to the value of the stock “known to the company to be false,” on which the plaintiffs also relied as an inducement to deed their property; that the company knew the stock “was practically worthless, or be rendered practically worthless, by the fraudulent acts of said” company, and that the said company never intended to carry out or perform its said contracts and agreements, and that such acts and doings were in fraud of plaintiffs, and to cheat and defraud them out of their property, and that, by reason thereof, the consideration for the sale and transfer of the property has wholly failed, and the plaintiffs are entitled to a cancellation of the deed and a return of the property; that the company has wholly failed to do and perform the terms and conditions mentioned in the agreements according to the terms thereof, except that it paid the interest due on the notes and mortgage to July, 1906, and has made a part performance of the annual assessment work, and a partial securing of United States patents to some of the mining claims.

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Cite This Page — Counsel Stack

Bluebook (online)
94 P. 1116, 11 Ariz. 296, 1908 Ariz. LEXIS 60, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mallory-v-globe-boston-copper-mining-co-ariz-1908.