McIntyre v. Ajax Mining Co.

60 P. 552, 20 Utah 323, 1899 Utah LEXIS 53
CourtUtah Supreme Court
DecidedOctober 16, 1899
StatusPublished
Cited by20 cases

This text of 60 P. 552 (McIntyre v. Ajax Mining Co.) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McIntyre v. Ajax Mining Co., 60 P. 552, 20 Utah 323, 1899 Utah LEXIS 53 (Utah 1899).

Opinion

Baskin, J.

The plaintiff who is the appellant, in his complaint alleges, as a second cause of action that “on February 1st, 1895, one Frank Salisbury sold and conveyed to defendant an undivided half interest in the Champlain No. 2, and Fraction Mining claims, for the sum of $17,000, which sum defendant agreed to pay Salisbury. That on [328]*328May 1st, 1895, for a valuable consideration, Salisbury sold and assigned his said claim for said amount to one H. M. Ryan; that on or about September 6th, 1895, Ryan, for a valuable consideration sold and transferred to plaintiff $6,010 of the said $17,000 claim, and defendant was immediately informed of the assignment and transfer, and accepted the same, and promised and agreed to pay it. ”

The answer “admits that Salisbury sold and attempted to convey the property mentioned, and promised to give a perfect title, but failed to carry out said agreement and to convey the property so agreed. Denies that the defendant agreed to pay Salisbury $17,000, or any amount, but admits that it promised to pay him, on condition that the title to said property was clear aid free from all incumb-rances ; that the title was perfect and that no suit or controversy affected it, and also that said amount nor any part of it should be paid until certain debts and obligations, aggregating a large amount, should be paid off and discharged, which said conditions, it alleges have not been complied with. Admits that Ryan sold and assigned $6,010 of the claim, but alleges that in the transaction McIntyre acted as the agent of the defendant and holds the said claim in behalf of the defendant.

The answer further alleges that certain misrepresentations were made by said Salisbury with reference to the property, upon which defendant relied. Also alleges that certain expenses incurred in attempting to perfect the title would have to be first deducted from the amount due. That plaintiff was fully aware of the outstanding claims prior to the purchase and knew that before any sum or amount could be paid, various sums, aggregating $60,000.00 would have to be first paid by the defendant. That these claims have not been paid, but a large portion of them is due and defendant is as yet unable to pay and dis[329]*329charge them. That there is a contract, which was known to the plaintiff, by the terms of which $5,000 of the said $17,000 was to be preferred over and above the remaining $12,000, and the said $5,000 was to bear interest at the rate of eight per cent. And the remaining $12,000, to be treated as security for the payment of the said $5,000, so preferred, together with interest. That the interest was to be deducted from the $12,000, and that before the claim of plaintiff should be paid it would be subject to the interest thus advanced paid upon the said $5,000, and would not be due in any event until the $5,000 was first paid and discharged.”

At the close of plaintiff’s testimony the defendant moved for a non-suit upon the following grounds:

‘ ‘ First: That the evidence shows that the claim was not to be paid until it was paid out of the proceeds from sales of ore from the Ajax Mining Company’s property; and it has not been shown that any profits have been derived whatsoever from sales of ore out of the Ajax Mining Company’s property.

Second: That the claim was not to be paid until other claims aggregating a large sum had been paid, and that it is not shown that these claims have been paid.

Third: That the claim was expressly made subject to the prior payment to Frank Salisbury of $5,000, and interest thereon at the rate of eight per cent, per annum, out of the first moneys that became due on the total claim of $17,000 as shown by the minutes of May 6th, 1895, and it is not shown that Salisbury has ever received his $5,000.

Fourth: It is shown by the evidence that this was a secondary claim provided for in a certain trust deed; that these claims had been protected by reason of assessment that the stockholders had been compelled to pay. A motion seconded by the plaintiff was carried, reciting [330]*330that tbe stockholders had been compelled to pay large sums for the purpose of protecting this claim and that the amount so paid by them pursuant to assessment so levied should be refunded before payments were made to the holders of said secondary claims; and that the trust deed states expressly that this was a secondary claim, and amongst the last group of claims that were to be recognized in said trust deed; and it is not shown that these assessments have been refunded. Mr. Mclntrye is bound absolutely by this resolution which he seconded himself, and which was the action of the corporation and of the directors, and in the faith of which the assessments were paid.” The motion, so far as it relates to the second cause of action, was sustained, and an order was entered dismissing the same. From this order the plaintiff appealed.

In support of the order the respondent insists that the allegations of the complaint, hereinbefore mentioned, “sets forth an express agreement to pay the sum sued for, and that the evidence conclusively establishes a conditional promise to pay when certain defined precedent conditions were fulfilled.”

The evidence shows that the said Frank Salisbury, and certain other parties, being desirous of forming a corporation for the purpose of working certain mining claims, among which was the said Champlain No. 2, on the 7th of June, 1894, entered into a contract in which it was agreed that a corporation should be formed for said purpose, and that the owners of said mining claims should share in the capital stock in certain proportions therein named, and that certain interests which the said Salisbury and Peter C. Burke, who were parties to said contract, had in the said Champlain No. 2, conveyed by them to one John T. Sullivan, in trust for the corporation when formed, should, immediately upon the creation of such\ [331]*331corporation, be conveyed to it by the said Sullivan, and that there should be paid to the said Salisbury and Burke $34,000, and to one W. I. Snyder, the amount which he should thereafter pay in certain litigation, including $2,-000, to W. H. Dickson, and $1,000 to an expert, said payments to be made pro rata out of the proceeds of ore sales, compromises or otherwise, and that “the sum of $5,000 shall be paid to Salisbury, or his assigns, first of all. All of which are to be paid out and made good before any general dividend shall be paid out, or any other money except for necessary operations.”

In pursuance of said agreement, the defendant corporation was formed, the said Sullivan conveyed the interest in the Champlain No. 2, held by him in trust, to the defendant. Plaintiff’s demand is for that portion of said sum of $34,000, assigned to him.

Whether the action is one of special assumpsit, or one of general assumpsit, in either case the claim of the plaintiff is subject to the terms and conditions of said contract, and in either case the evidence to sustain the plaintiff’s claim must be the same.

If, as claimed by the respondent, the action is on an express contract, then the evidence discloses a material variance which would have been fatal had the respondent made this variance a ground in the motion for a non-suit. This was not done. The substance of the several grounds of the motion is that the evidence conclusively shows that at the time the suit was brought, the conditions, precedent to the maturity of plaintiff’s claim, had not occurred.

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Bluebook (online)
60 P. 552, 20 Utah 323, 1899 Utah LEXIS 53, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcintyre-v-ajax-mining-co-utah-1899.