Mason v. Sieglitz

22 Colo. 320
CourtSupreme Court of Colorado
DecidedJanuary 15, 1896
StatusPublished
Cited by10 cases

This text of 22 Colo. 320 (Mason v. Sieglitz) 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
Mason v. Sieglitz, 22 Colo. 320 (Colo. 1896).

Opinion

Mr. Justice Campbell

delivered the opinion of the court.

It will be seen that both defendants disclaim any interest an the fund which the plaintiff seeks to recover, although in their answers they aver that it belongs to the intervenors. The real controversy is between the plaintiff and the intervenors. The issue, as tried, and as all of the parties to this controversy consider it, was : Have the defendants and the intervenors, or any of them, fraudulently appropriated and converted to their own use money belonging to the plaintiff?

The claim of the plaintiff is that this fund constitutes a part of the commissions earned by him, Moorman and Mason, in carrying out their joint agreement in effecting the sale of the Brush-Heap mining property, which fund the defendants and the intervenors have converted to their own use.

[323]*323The claim of the defendants and the intervenors is that this fund is that portion of the commissions belonging to the intervenors — O’Neal having received his share — which was earned by O’Neal and intervenors in perfecting the sale of this same property, with which sale plaintiff had nothing to do, and in which fund he has no interest. There is some question as to the proper authentication of the bill of exceptions, and as to whether it contains all the evidence submitted to the jury; but as no seasonable objection has been interposed by appellee, and as both he and the appellants have made copious abstracts of the record and of this bill of exceptions, and filed their briefs and argued the case as though the b'ill of exceptions had been properly preserved and signed and that it contained all the evidence, we will proceed to dispose of this case upon its merits.

The record, including this bill, abounds with reasons for the affirmance of the judgment. The evidence in this' case, though contradictory upon nearly every point, tended to show that an agreement in writing was executed by the plaintiff, Mason and Moorman, providing that in case plaintiff secured control of the Brush-Heap mine for ninety daj^s, and a sale was effected by the parties to the contract, whatever was earned as commissions should be equally divided between them.

The plaintiff secured from Elliott and Forbes, the owners of the mines, an option for a certain time, and when that time expired without a sale, the owners consented to an extension, which continued until the mines were sold, the three parties to the contract from the date of its execution continuing their efforts in various ways to make the sale. Mason was intrusted with the details of the negotiations, and subsequently plaintiff purchased Moorman’s rights and interests under the contract.

After this joint agreement was executed, the intervenors Heames and Moore, or one of them, went to New Mexico to examine other properties, and while there, and through the instrumentality of Mason, they met O’Neal, and through [324]*324O’Neal and Mason this Brush-Heap property was brought to the attention of intervenors, and negotiations for a purchase then were entered upon, which subsequently ripened into a sale to them and their associates.

In making this sale, reports, assays, maps, and various other data calculated to facilitate the sale of mines, furnished and prepared by the plaintiff and at his expense, were used by O’Neal and Mason in effecting this sale. O’Neal seemed to be the active spirit in the matter, and some time in the month of May, 1890, intervenors, for themselves and associates, bought this property, and paid $160,000 therefor, of which $10,000 were for commissions to the brokers.

At first the intervenors intended to take this property for themselves alone, but the time given for the first payment upon the purchase price was so short they were obliged to admit into the purchasing syndicate some of their confiding friends in Detroit.

O’Neal, by his own admissions, occupied a double relation in the transaction, as an assumed agent of the vendors, and an undoubted agent of Heames and Moore, who were acting for themselves and ostensibly for their associates. In each of these capacities O’Neal demanded and received compensation for his services; from the purchasers he has received commissions amounting in value to nearly $10,000. Of the total commission of $10,000 allowed by the owners of the property to the brokers for their services, about $1,500 went for extras, the nature of all of which the evidence, for obvious reasons, does not disclose, and about $8,500 were left for the brokers, of which O’Neal has received his share, having, as he says, given as a gratuity some of it to Mason, although he protests that Mason was not of any particular value in the negotiations ; and one half is now the fund in the bank over which the present controversy is being waged, and which the intervenors claim as their own.

For prudential reasons the intervenors did not want their associates to know that they were receiving from the vendors commissions upon the salé of the property to themselves as [325]*325vendees; hence this fund was placed in the bank, as they and O’Neal say, to O’Neal’s credit, but really in trust for intervenors.

There are many other interesting bits of evidence in this case showing the peculiar nature of the transaction, but they are not material in the decision of the questions presented for determination. It should be said, generally, that there was sufficient evidence in this case for the jury to find that the sale of this property was made to the intervenors by Mason, and through his efforts, acting for himself and his associates under the contract set forth in the complaint; that defendant O’Neal and the intervenors well knew of the contract and of plaintiff’s rights, and knew Mason was acting for himself and his associates. O’Neal was unquestionably acting as the agent of the purchasers, and this plan of defendants and intervenors to claim from the vendors the commission for the sale to the exclusion of plaintiff was an afterthought. Through the fraudulent conduct of the defendants and the intervenors, they have attempted to convert, and have converted, this fund in controversy to their own use, and that such fund belongs to the plaintiff.

The defendants and intervenors submitted to the jury eleven special interrogatories as to various matters involved in the case, all of which were answered against them, and in favor of the plaintiff, and all of these answers have support in the evidence. In the light of the foregoing summary of the evidence, we proceed to consider such of the errors assigned as we think properly raised.

1. It is said that this action cannot be maintained for the reason that the complaint shows that there was a partnership between the parties to this agreement, and that one partner cannot sue another for a debt growing out of a partnership transaction, but that the proper action is one for a dissolution of the partnership, and for an accounting.

We do not find that this objection was properly taken by the appellants at either trial, and we might for this reason properly refuse to consider it here. But the agreement in [326]*326this case related to a single transaction. The parties to it evidently did not intend to form a partnership, and the profits of the transaction were in no sense to be applied to their joint account, but one third of whatever profit was obtained went to each one of the parties separately.

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Bluebook (online)
22 Colo. 320, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mason-v-sieglitz-colo-1896.