McRae v. Feigh

173 N.W. 655, 143 Minn. 241, 1919 Minn. LEXIS 484
CourtSupreme Court of Minnesota
DecidedJuly 11, 1919
DocketNo. 21,286
StatusPublished
Cited by2 cases

This text of 173 N.W. 655 (McRae v. Feigh) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McRae v. Feigh, 173 N.W. 655, 143 Minn. 241, 1919 Minn. LEXIS 484 (Mich. 1919).

Opinion

Taylor, C.

In 1905, defendant Feigh became the owner of a tract of land in Crow Wing county on which an iron mine was subsequently developed. The land was purchased through defendant Hammel, and a claim made by Hammel to an interest in the property was determined in his favor in the case of Hammel v. Feigh, supra, page 115, 173 N. W. 570, in which the decision of this court was filed on June 20, 1919.

After it became known that the land contained deposits of iron ore, Feigh desired to find a purchaser for the ore who would take a lease of [243]*243the property and mine the ore on a royalty basis. It appears from the findings of fact that in 1901' Feigh promised to pay plaintiff $500 if plaintiff procured a purchaser who took an option for such a lease at a royalty of 25 cents per ton on certain prescribed conditions, and $5,000 if such purchaser exercised the option and actually took a lease; that under this agreement plaintiff opened negotiations with the representative of an iron company, but did not succeed in closing a contract, and later opened negotiations with another iron company which were progressing favorably, but were terminated because Feigh gave an option for a lease to another party; that thereafter plaintiff made a new. agreement with Feigh, by which instead of a cash commission he was to have whatever amount he secured as a royalty over and above 25 cents per ton; that acting under this agreement he induced 33. C. Hollidge to agree to take an option for a lease at 30 cents per ton; that after the contract had been drawn up and' had been approved as to form by the attorneys of both parties, Feigh refused to sign it because he was unwilling to allow plaintiff five cents per ton of the royalty; -that thereafter and on or about July 1, 1909, plaintiff made another agreement with Feigh by which he was given the exclusive right to lease the property and by which “said defendants agreed to give plaintiff all they got over and above thirty cents a ton in case plaintiff secured a lessee and that if defendants themselves leased the property without the aid of plaintiff they would give plaintiff everything they got over thirty cents a ton;” that acting under this agreement plaintiff again tried to find a party who would take an option for a lease; that on August 24, 1909, Feigh made a contract with the C. M. Hill Lumber Company, by which that company took an option for a lease at a royalty of 35 cents per ton payable quarterly on the twentieth day of each January, April, July and October while the lease remained in force; that after'doing some exploratory work this company exercised its option, and on May 24, 1910, took the lease of the property under and in accordance with the contract; that the mine has been developed and is still being operated under this lease as changed and modified by the parties; that Feigh has been paid 35 cents per ton for all ore taken from the property; that he received the first of these payments on July 20, 1910, and has received [244]*244a payment on every succeeding quarter day, and that he refused to pay to plaintiff any part of the amount so received.

On October 1, 1917, plaintiff commenced this action to recover one-seventh of each payment already received by Feigh under the lease, and to have a receiver appointed to collect the future royalties, or for such other equitable relief as would secure the payment to plaintiff of his share of such future royalties as they accrued.

Feigh interposed a separate answer, in which he admitted leasing the property to the C. M. Hill Lumber Company and the payment of royalties by that company as claimed by plaintiff, admitted that in 1908 he had agreed to pay plaintiff $5,000, if plaintiff effected a lease of the property at 30 cents per ton, admitted that he refused to sign the Hollidge lease because plaintiff claimed all of the royalty above 25 cents per ton, and denied the other claims of plaintiff.

Defendant Hammel interposed a separate answer in which he asserted ownership of a half interest in the mine, and admitted that Feigh, acting for both of them, had made the contract with plaintiff as alleged by plaintiff, and that plaintiff was-entitled to live cents per ton of the royalty received under the lease made by Feigh.

The action was tried as an action in equity, but the court submitted the following three questions to a jury:

(1) Did the defendants agree with plaintiff to give plaintiff an exclusive option to lease the property?

(2) Did the defendants agree with plaintiff to give plaintiff all they got over and above thirty cents a ton in case the plaintiff secured a lessee?

(3) Did the defendants agree with the plaintiff that if defendants themselves leased the property without the aid of plaintiff they would give plaintiff everything they got over and above thirty cents a ton?

To each of these questions the jury answered “yes.” The court made full findings of fact which accord with the findings of the jury and directed judgment in favor of plaintiff for plaintiff’s share of the royalties already received by Feigh, but made no provision for securing plaintiff’s share of royalties which may be paid in the future. Feigh moved to set aside the verdict, and to amend the findings and for a [245]*245judgment in his favor, or for a new trial. While these motions we're pending Feigh died and Daniel Mahoney, as special administrator of his estate, was substituted as defendant in his place and stead. These motions were denied and the special administrator appealed.

APPEAL OF DEFENDANT MAHONEY.

1. The court found as a fact -that plaintiff was not the .procuring cause of the lease made by Feigh with the C. M. Hill Lumber Company, and hence plaintiff’s claim to the amount by which the royalty exceeded 30 cents per ton rests upon the agreement found both by the jury and by the court that plaintiff should receive such excess even if the lease was made by Feigh himself without plaintiff’s assistance. Appellant attacks this finding as unsupported by the evidence. Plaintiff and Hammel testified to the effect that such was the agreement. Feigh denied it. Appellant urges various considerations as discrediting the testimony of plaintiff and Hammel, and justifying its rejection. The extent to which a witness is to be believed and the weight to be given to his. testimony are for the jury and the trial court to determine. If they had found that no such agreement had been made, the arguments advanced by appellant and the authorities cited by him would be in point to sustain such finding. But both the jury and the trial court found that such an agreement had, in fact, been made, and, as the evidence on the part of plaintiff, if believed, is sufficient to justify this finding, the finding must stand.

2. Appellant contends that there is a fatal variance between the allegations of the complaint and the proof. This contention seems to be based mainly on the fact that plaintiff failed to prove the allegation that he was the procuring cause of the lease to the Hill Company and the claim that the allegations of the complaint are not broad enough to permit plaintiff to prove an agreement to give him all of the royalty above 30 cents per ton in case defendants leased the property without his assistance. The complaint alleges:

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Cite This Page — Counsel Stack

Bluebook (online)
173 N.W. 655, 143 Minn. 241, 1919 Minn. LEXIS 484, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcrae-v-feigh-minn-1919.