Meister v. Farrow

92 P.2d 753, 109 Mont. 1
CourtMontana Supreme Court
DecidedJuly 11, 1939
DocketNos. 7,893, 7,894.
StatusPublished
Cited by5 cases

This text of 92 P.2d 753 (Meister v. Farrow) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Meister v. Farrow, 92 P.2d 753, 109 Mont. 1 (Mo. 1939).

Opinion

MR. JUSTICE ERICKSON

delivered the opinion of the court.

This is an appeal from a judgment of the district court of Silver Bow county. The two actions involved, being identical with respect to practically all issues of law, were tried as one to the same jury; the appeals were consolidated and the two actions were presented to this court as one.

In the first action the plaintiff alleged that he performed work and services in the development of a certain mine known as the Minnie Jane Mine, and his suit was for wages allegedly owing to him. He is the assignee of claims of other persons in the same situation who allegedly have sums of money due and owing for services in and about the mining property. In the second of the two cases, the plaintiff is suing for the agreed price of certain tools and materials furnished for the development of the same mine.

*5 The defendant Joseph T. Farrow on February 14, 1936, took an assignment of a certain lease and bond on the Minnie Jane lode mining claim from one Harry Dyer. In the original lease and bond to Dyer it was provided that the lessee was to start pumping the water from the mining property within a certain time; that the mine was to be properly equipped with machinery and hoisting apparatus; that a sufficient force be employed to work the mine at capacity; that a map be kept of the mine, and that certain development and timbering work be done. The original lease and bond provided also that any change in the ownership of the lease and bond must be properly reported to the original lessee.

The assignment from Dyer to Farrow carries the provision: “Wherefore, the party of the second part agrees to carry out all of the conditions and to assume all of the responsibilities and liabilities as agreed to and assumed by the said Harry Dyer in said lease and option to purchase and all extensions thereof.”

From the record it appears that it was necessary for Farrow to raise considerable sums of money in order to finance the operations of the mine under the provisions of the original lease and bond and the assignment referred to above. The defendants, other than Farrow, are persons to whom Farrow sold an interest in his claim to the mining property, and it is upon the theory that they were co-partners of Farrow that they were joined as defendants, and it was upon this theory that the court below instructed the jury and upon which judgment was entered against them.

The amount of interest each one of the defendants received in the property was determined by the amount of contribution each made to the enterprise. Determination of the appeals rests almost entirely upon the relationship created by the agreement executed between Farrow and the other codefendants, by which an interest in the mining property was transferred to these various codefendants, and the working of the mine under that agreement. Except for the name of the purchaser, the amount *6 of his contribution, the date and the signature of the purchaser, all of these agreements were as follows:

“This agreement made and entered into this 21st day of February, 1936, by and between Joseph T. Farrow of Butte, Montana, the party of the first part and H. C. Packer of Hamilton, Montana, the party of the second part, witnesseth: “That, whereas the party of the first part is the owner of a certain lease and bond on what is known as the Minnie Jane Lode Mining Claim in Independence Mining District, Silver Bow County, Montana, Survey #946, said ownership being by virtue of assignment from Harry Dyer of Butte, Montana, to the said first party, dated February 14, 1936.

“That under the terms of said lease it is necessary that said first party begin immediately preparation to work said mine and that in order to do so it is necessary that he raise funds for such operations and said second party desires to acquire an interest in said lease and bond.

“Wherefore, in consideration of Two Hundred fifty and no/100 Dollars, paid by the said second party to the said first party, the receipt whereof is hereby acknowledged, the said first party hereby agrees to assign, and by these presents does assign, to the said second party an undivided three (3%) per cent interest in and to the above described lease and bond.

“It is further understood and agreed by and between the parties that within a period of six months from the date hereof, a corporation shall be formed under the laws of the State of Montana with a capital stock of at least $100,000 divided into shares of $1.00 each, and that upon issuance of a charter to said corporation, the parties hereto agree to sell and transfer all their right, title and interest in said lease to such corporation in the same proportion as their interest in such lease and bond bears to the total interest therein.

“And the said first party agrees to at once proceed with the opening of a mine and to comply strictly with the terms of said lease and bond and start the operation of mining ore therefrom and continue mining same in as large quantity as practicable. It is further agreed that any profits derived there *7 from prior to the incorporation shall be divided pro rata according to the respective interest of the' parties.

“In witness whereof, the parties have executed this agreement this 21st day of February, 1936.

“Jos. T. Farrow “H. C. Packer.”

After judgment was entered a cost bill was filed by the plaintiffs, and in the first action the cost bill included an attorney’s fee in the sum of $1,875. A motion was made to tax costs and this was granted in part, the lower court reducing the attorney’s fee to $1,230.

There are numerous assignments of error. The first three and the sixteenth specifications are based on the court’s denial of a motion for nonsuit, its refusal to instruct the jury to return a verdict in favor of the plaintiff in the second action, its denial of defendants’ motion for a new trial, and its denial of defendants’ motion to tax costs. Assignments Nos. 4, 5, 6, 7, 8, 9, 10, 11, 12, 14 and 15 all concern instructions dealing with the question of the existence or nonexistence of a mining partnership between Farrow and the other codefendants. Specification 13 alleges that the court erred in instructing the jury as to the statute providing for penalties for failure to pay wages on the fifth and twentieth day of each month. Specification 17 charges that the court erred in overruling defendants’ objection to the introduction of evidence in the first case.

. Practically all of the specifications of error revolve around the question of the existence of a mining partnership, but other points are raised. For convenience we shall discuss the points in the order raised by the appellants’ brief.' The deter-, mination of these questions as raised by appellants’ argument will dispose of all of the assignments.

The first point considered in the appellants’ brief is the matter of the existence or nonexistence of a mining partnership between Farrow and the individual appellants. The determination of this question necessitates an examination of our statutory provisions and of cases previously decided by this court *8 as a preliminary approach.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Clifton G. Valentine v. Sugar Rock, Inc. and Gerald D. and Teresa D. Hall
766 S.E.2d 785 (West Virginia Supreme Court, 2014)
Long Island Lighting Co. v. Bokum Resources Corp.
40 B.R. 274 (D. New Mexico, 1983)
State Ex Rel. Cashmore v. Anderson
Montana Supreme Court, 1972
Wilkinson v. Bell
168 P.2d 601 (Montana Supreme Court, 1946)
Rae v. Cameron
114 P.2d 1060 (Montana Supreme Court, 1941)

Cite This Page — Counsel Stack

Bluebook (online)
92 P.2d 753, 109 Mont. 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/meister-v-farrow-mont-1939.