Roper v. Crosier

167 P. 808, 50 Utah 262, 1917 Utah LEXIS 70
CourtUtah Supreme Court
DecidedJune 28, 1917
DocketNo. 2889
StatusPublished

This text of 167 P. 808 (Roper v. Crosier) 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
Roper v. Crosier, 167 P. 808, 50 Utah 262, 1917 Utah LEXIS 70 (Utah 1917).

Opinion

CORFMAN, J.

This was an action instituted in the district court of Salt Lake County by the plaintiff to recover from the defendants $2,500 alleged to have been paid by the plaintiff to apply on orchard land contracts with a corporation organized by the defendants. A change of venue was had to the district court of Sevier County, where a trial to the court, without a jury, resulted in a judgment in plaintiff’s favor against all of the defendants. The defendants, other than J. H. Nelson, appeal from the judgment.

The amended complaint in substance alleges:

' ‘ That the defendants, on or about the 22d day of August, 3910, entered into an alleged agreement-to form and organize a corporation to be known as the Salina Orchard & Loan Company, and filed their articles of agreement with the secretary of state of the state of Utah on the 19th day of September, 1910, and on the same day the secretary of state issued a certificate of incorporation to the said Salina Orchard & Loan Company under the laws of the state of Utah. That the pretended business of the alleged corporation, according to the articles of agreement, was, among other things, to purchase, improve, and sell real estate. The articles further provided that the limit of the capital stock agreed upon was $1,000, consisting of 100 shares, of the par value of $10 per share, and that defendants subscribed for the whole thereof. In the articles A. J. Crosier was named as president, Carl Forshee as vice president, and J. IT. Nelson as secretary and treasurer of said alleged corporation. That attached to and made a part of said alleged agreement are the affidavits of A. J. Crosier, Maggie Crosier, and Carl Forshee that not less than 10 per cent, of the capital stock of the corporation had been [264]*264paid. That the right of said corporation to do business in the state of Utah was annulled and its charter revoked by the Governor of the state of Utah on the first Monday of April, 1913, under the provisions of the act of the Legislature of the state of Utah (chapter 106 of the Laws of Utah of 1909). That the company was not incorporated in good faith by the defendants, that no directors’ meetings as such were ever held, and the corporation was merely a dummy, to shield the collusive, fraudulent, and deceitful transactions of the defendants, as hereinafter alleged, who were the promoters, stockholders, and directors of said alleged corporation. That the corporation never was solvent, never owned any property of any kind, and never had any legitimate resources. That at various times prior to the 15th day of February, 1911, at Salt Lake City, Utah, the defendants, pretending to act as such directors and officers of said alleged corporation, fraudulently, with the intent to induce the plaintiff to purchase purported orchard land from said alleged corporation at a high price, did falsely and fraudulently publish, advertise, aver, and represent to the public at large, and to this plaintiff, that the corporation owned and controlled a large tract of land, and that the corporation was solvent, whereas, in truth and in fact, the said alleged corporation did not then and never owned or controlled any orchard land, or any other land of any class, kind, or description, all of which the defendants well knew, and that said representations were made by the defendants for the purpose of deceiving the public and this plaintiff. That on or about the-day of February, 1911, plaintiff, relying on, confiding in, and believing said representations so made by the defendants, went to the county of Sevier to inspect said orchard lands, and was by the defendants shown some orchard land that the defendants falsely and fraudulently represented to this plaintiff that the alleged corporation owned and controlled the same. That the defendants then and there well knew that said corporation did not own or control the same, or any part thereof. That the plaintiff, confiding in and believing said representations to be true, agreed to purchase ten acres of said alleged orchard land [265]*265from said corporation through its officers, defendants herein, and thereafter on the 15th day of February, 1911, was induced to and did enter into ten alleged contracts, numbered 30 to 39, both inclusive, for the purchase of ten acres of orchard land in tracts of one acre each, including water, at the rate of $550 per acre, payable in monthly installments of $6 per month, without interest or taxes, all of said contracts being in the same language, tenor, and effect. That the said contracts in behalf of said alleged corporation were signed, executed, and delivered by the said A. J. Crosier as president and the said J. H. Nelson as secretary, and the defendants in each of said alleged contracts represented as follows: ‘Second. ' (a) That the said acre of orchard is a unit of a large tract of land owned and controlled by the within company, (b) That the said acre shall be planted in the season of 1911 to commercial apples, and shall be cared for by the company for a period of five years from the date of planting, (c) That all trees dying within five years from the date of planting shall be replaced at the expense of the company. * # * Fourth. That the deed for the acre of land purchased by the holder of this contract shall be placed in escrow with the Mt. Pleasant Commercial & Savings Bank, at Mt. Pleasant, Utah.’ That said representations, conditions, and promises so made in each of said contracts were false, fraudulent, all of which the defendants well knew, and were made for the purpose of cheating and defrauding this plaintiff. That the company did not then, or at any other time, own any orchard or other land, and that by reason thereof the conditions in said contract could not be complied with by said company. That the plaintiff, confiding in and relying on said representations so made by the defendants, was induced to accept said contracts and agreed to pay for said alleged land, believing she was buying orchard land from said corporation. That plaintiff paid to said defendants the initial payment of $6 on each contract according to the terms thereof, amounting to the sum of $60, and did enter into a further agreement with the defendants, who were pretending to act as such officers of said corporation on the 20th day of February, 1911, by the terms of which the plaintiff [266]*266was to and did convey to the defendant J. H. Nelson by a good and sufficient deed of conveyance, as she was informed and believed, for the use and benefit of the corporation, the following described real estate and premises, to wit: Lots 2 and 3 in L. H. Rockwell’s First addition, a subdivision of lot 14, block 16, five-acre plat A, Big Field survey, in the city and county of Salt Lake, state of Utah, commonly known as No. 1399 McClelland avenue, for the agreed value of $2,500, for which amount said J. H. Nelson, as secretary and treasurer, acknowledged receipt, and for which amount the plaintiff was to have a credit on said alleged contracts with said alleged corporation, but which was appropriated to defendant’s use.

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Cite This Page — Counsel Stack

Bluebook (online)
167 P. 808, 50 Utah 262, 1917 Utah LEXIS 70, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roper-v-crosier-utah-1917.