Merrill v. Milliken

63 A. 299, 101 Me. 50, 1905 Me. LEXIS 110
CourtSupreme Judicial Court of Maine
DecidedDecember 27, 1905
StatusPublished
Cited by1 cases

This text of 63 A. 299 (Merrill v. Milliken) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Merrill v. Milliken, 63 A. 299, 101 Me. 50, 1905 Me. LEXIS 110 (Me. 1905).

Opinion

Whitehouse, J.

November 20, 1897, ten individuals, viz. I. C. Libby, A. F. Gerald, G. O. Moses, A. IL Shaw, J. M. Robbins, G. G. Totman, S. A. Nye, E. J. Lawrence, H. B. Goodenough and the defendant Elias Milliken, subscribed to the following agreement, to wit:

1. “They hereby form a syndicate to accpiire the franchises and property of the Lewiston & Auburn Horse Railroad Company, the Brunswick Electric Railroad Company, the Bath "Street Railway Company, and such extensions as may be agreed to later.

2. “Negotiable paper not to exceed $350,000 at any one time is to be signed and so outstanding at any one time. All notes are to be taken up on or before January 1, 1899.

3. “M. G. Shaw, Elias Milliken and J. M. Robbins, are agreed upon as Trustees hereunder to issue all notes to be negotiated by 1. C. Libby hereby agreed to as Treasurer. They shall hold all bonds, securities and valuable papers connected with the purpose hereof.

4. “ Said Moses, Gerald and Libby hereby agree to sell and deliver all of the stock of the Brunswick Electric Railroad Company to the syndicate, free of debt, to be equally divided, for the' actual cost thereof, not to exceed $35,000. All of the parties hereto shall then be elected Directors of said Brunswick Electric Railroad Company.

5. “ Under the direction of said Directors said Brunswick Electric Railroad Company is to extend its road to a connection with the Bath Street Railway Company, and with the Lewiston and Auburn Horse Railroad Company, and the funds hereby raised devoted to that purpose.

[52]*526. “The outstanding second mortgage bonds of the Lewiston and Auburn Horse Railroad Company are to be bought from the proceeds of said notes and delivered to the Trustees to be held as before agreed. The proceeds shall also be used in purchasing the power plant used by the said company to be deeded to said Trustees in trust herefor. It is further agreed, however, that said Trustees may acquire said second mortgage bonds by exchange for new bonds, if the holders thereof so require.

7. “Said Gerald, Libby and Moses hereby transfer to the syndicate their present right to acquire the stock of the Bath Street Railway Company at four per cent rental thereon, or in cash $66,667, the option to be exercised within nine months herefrom.

8. “ The parties have this day signed and delivered to the Trustees, ten notes.of $5,000 each and ten notes of $10,000 dated in blank, the payee blank, the time blank, and when negotiated; the Trustees as our agents are authorized to fill in said blanks, or the Treasurer, with written directions from the Trustees, may so fill in said blanks.”

Two days later on the 22nd day of November, 1897, I. C. Libby, C. E. Libby and C. H. Merrill entered into an agreement with the defendant as follows:

“We hereby agree to pay Elias Milliken Five Thousand Dollars and 30 shares of stock for subscribing one tenth in the Lewiston, Brunswick & Bath deal. We are to protect him against loss and he is to give us all incomes or interests this one tenth gives him in the stock of these companies or of any new road or extension that the syndicate formed at Lewiston, Nov. 20th for the purpose of purchasing the three roads, the Lewiston & Auburn, the Brunswick Road and the Bath Road and their extensions, may construct or acquire except one share given him as a director, meaning to stand in his place as far as liability goes and we are to have all benefits accruing from same.”

The case at bar was an action of assumpsit to enforce the latter contract against the defendant Milliken and recover one tenth of the income and profit alleged to have been realized by him as a member of the syndicate by virtue of the agreement of November 20 signed [53]*53by him. I. C. Libby, one of the parties to the agreement in suit, having deceased, the action was brought by C. H. Merrill and C. E. Libby the surviving joint contractors of the first part as parties plaintiff, and Milliken having deceased after the commencement of the suit, the administrators on his estate now appear as parties defendant.

It is alleged in the declaration that the enterprise thus inaugurated by the syndicate formed Nov. 20, to acquire and extend certain street railway properties in Lewiston, Brunswick and Bath, was carried to a successful termination, and that profits to the amount of $325,000 accrued therefrom to be shared equally among the ten members of the syndicate ; that the plaintiffs in the performance of the agreement on their part, duly protected Milliken against any loss by reason of his becoming a member of the syndicate, delivered to him twenty shares of the stock mentioned in the agreement and had always been ready and willing to deliver to him the remaining ten shares of stock and the $5,000 therein specified. They accordingly seek to recover in this action $32,500, being one tenth part of the $325,000 alleged to have been realized by the syndicate as the profits of the enterprise.

These averments in the declaration thus obviously involve the direct implication that Milliken fully performed his part of the contract of November 20, and continued a member of the syndicate then organized, until the enterprise was completed. The plaintiffs’ claim necessarily rests upon the assumption that Milliken had substantially observed all of the obligations imposed upon him by the terms of the syndicate agreement, so as to become entitled to receive one tenth of the profits alleged to have been realized from the construction of the “Lewiston, Brunswick and Bath Street Railway.” But it appears from the testimony of one of the plaintiffs’ witnesses and is not controverted, that for reasons which will hereafter more fully appear, Milliken never attended any meeting of the syndicate after that of Nov. 20, when it was formed, but refused to participate in any of its subsequent transactions.

It appears, however, that at sometime between Nov. 20, 1897, and May 7, 1898, the Bruns wick Electric Railroad Company changed its name to the “Lewiston, Brunswick and Bath Street Railway,” [54]*54and on this latter date a “construction contract” was entered into between the Lewiston, Brunswick and Bath Street Railway, by A. H. Shaw, President, and I. C. Libby, Treasurer, and the Lewis-ton, Brunswick & Bath Street Railway Syndicate, by I. C. Libby, Trustee.” As no other syndicate appears to have been formed in connection with the enterprise it is not in controversy that this designation of it had reference to the syndicate formed November 20 under the agreement signed by the defendant Milliken. No evidence was offered to show that Milliken at any time assented to any modification of the original syndicate agreement signed by him or that he or the syndicate ever .agreed that I. C. Libby should act as trustee in place of M. G. Shaw, Elias Milliken and J. M. Robbins named as trustees in the syndicate agreement. There was no, evidence that I. C. Libby was ever legally authorized to act as trustee for the syndicate-for the purpose of entering into this construction contract in question-; yet by the terms of this contract with the Lewiston, Brunswick & Bath Street Railway, he assumed to make the syndicate agree to deliver to the Railway Corporation $265,000 of the mortgage bonds of the Lewiston &

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

Related

Towle v. Aube
310 A.2d 259 (Supreme Judicial Court of Maine, 1973)

Cite This Page — Counsel Stack

Bluebook (online)
63 A. 299, 101 Me. 50, 1905 Me. LEXIS 110, Counsel Stack Legal Research, https://law.counselstack.com/opinion/merrill-v-milliken-me-1905.