Russell v. Miller

26 Mich. 1, 1872 Mich. LEXIS 145
CourtMichigan Supreme Court
DecidedOctober 22, 1872
StatusPublished
Cited by11 cases

This text of 26 Mich. 1 (Russell v. Miller) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Russell v. Miller, 26 Mich. 1, 1872 Mich. LEXIS 145 (Mich. 1872).

Opinion

Campbell, J.

Complainant has brought this suit to establish his right [2]*2to an undivided two-thirds interest in certain tax-title purchases in Portsmouth, Bay county, which he alleges were made by defendant, Albert Miller, on behalf of the firm of Bussell, Miller & Co. (in which complainant and Lyman Crowl were his partners), but which, it is claimed, Miller took in his own name, in fraud of his partners, and has since so disposed -of that the other defendant, his wife, who now holds the title, is bound by the original equities.

The case relied upon by the bill, is one of fraud and implied trust, and it sets up the following facts: That in the year ,18-19, complainant and said Miller and Crowl entered into partnership to carry on the lumbering business, embracing the manufacture and sale of lumber, and the purchase of real estate in connection therewith. The business was" to be conducted on equal terms, Miller and Crowl residing at Portsmouth and attending to business there, and Bussell residing in Cleveland. That the articles of partnership were not reduced to writing, but the business was conducted on verbal terms; and logs and real estate were purchased to a large amount, for the purpose of carrying on the business.

The bill proceeds to aver, that in the summer of 1850, learning that certain real estate in Portsmouth had been bid in by the state for delinquent taxes, and that the state titles could be obtained for principal, interest and costs, an agreement was entered into between the three partners, that the firm should buy the titles, to be paid for by and conveyed to the firm, as partnership property.

That on September 26th, 1850, in accordance with said agreement, Miller drew on Bussell for three hundred dollars, to purchase and pay taxes on these lands, to be charged to partnership account, and Bussell paid said draft.

That on September 28th, 1850, Miller, in accordance with the agreement, paid to the state seventy dollars and [3]*3seventy-four cents, and received a certificate of purchase for eighty-one blocks described in the bill, sold for laxes of 1846.

That on the 28th of September, 1851, for twenty-nine ■dollars and thirty-four cents, he purchased, in pursuance of •said agreement, state bids on the taxes of 1847, for forty-five blocks, all but five of which were included in the previous year’s purchase.

That in May, 1851, Miller informed Eussell, that in order to make the previous purchase good, it would bo necessary to pay ninety-nine dollars for delinquent taxes of 1845, on which lands had been bid in by the state, and Bussell paid the same to the auditor general, for forty-seven blocks included in the first purchase and described.

That Eussell, when he made this last payment, did not know that Miller had taken the earlier certificates in his own name, but supposed they were in the joint names. That on June 30, 1851, the auditor general deeded to Miller the titles for 1845, which conveyance is not recorded.

That in the spring of 1852, the partnership was dissolved by mutual consent, ’ being largely indebted, and Eussell agreed to pay, and has paid the debts, in consideration that he should have all the assets. That Miller was to retain his undivided one-third in the lands purchased of the state, except as to blocks nineteen and twenty, which he conveyed to Eussell. That in pursuance and part performance of this agreement, Miller assigned his interest in the personalty to Eussell in writing.

That at the dissolution, complainant did not know Miller had taken the certificates in his own name, but supposed them to be in the firm or joint name.

That Growl, May 15, 1852, by written instrument, conveyed to complainant, all his “interest in and to the real [4]*4estate, both legal and equitable, of the said firm of Russell, Miller & Co.”

That on December 18, 1852, the auditor general conveyed by deed to Miller, the titles for 1846 and 1841', the former of which was recorded in February, 1856, and the latter in April, 1858, and that this was contrary to the agreement for joint conveyance, and without complainant’s knowledge or consent. That complainant did not know or suppose these deeds were so drawn, until about January 1, 1855, and did not know or suppose the deed for taxes of 1845 was so drawn, until February 6, 1865. That the transaction was fraudulent, and Miller refuses to convey to Russell his two-thirds interest.

The bill then sets forth a conveyance by Miller to Wm. Daglish, September 10, 1855, by him to John T. Daglish, March 13, 1858, the execution by John T. Daglish to Miller of a power of attorney to convey; a conveyance under it to Wm. Daglish, March 26, 1860, and on the same day from Wm. Daglish to Mrs. Miller, all of which are alleged to be without consideration and fraudulent, and that Miller has always been in possession, and the property is now worth five hundred thousand dollars.

To avoid confusion of issues, it is to be observed on this statement, that the bill puts the case upon two main facts: first, the agreement in the summer of 1850, to purchase these lands for the firm; and second, the purchase and conveyance for Miller’s behoof instead of for the firm, in fraud of that agreement. The ignorance of complainant is set up to explain his inaction.

The answers deny the agreement set up in the bill, and aver previous interests of Miller, to protect which he purchased the tax-titles which it is claimed are invalid, and that the company never owned or claimed any lands at [5]*5Portsmouth, except the lot on which their first mill was built and blocks nineteen and twenty; that Crowl made no conveyance to Eussell covering any other interests in Portsmouth; admit there were negotiations, and talk about an arrangement for other lands in the plat, but that no bargain was completed, and that Eussell never set up, any claim until recently, and paid no taxes, and did no other act indicating ownership until the time of bringing this suit. Eeference is also had to certain outstanding titles and transactions which, so far as may be necessary, will be referred to in connection with the facts.

Although the record is very long, and a great deal of testimony has been taken, the' portions of it essential to the merits do not disclose very numerous facts; and much obscurity has been caused by the needless prolixity of the examinations and cross-examinations of witnesses. There is a great mass of repetitions and redundancies which could have been omitted without leaving out any fact bearing upon the controversy. The very exhaustive arguments of counsel have pointed out every thing essential, and it will not be necessary, in giving our views, to give more than an outline of the facts on which we base our conclusions. To understand them it will be desirable to explain the condition of things when the partnership was formed.

In 1836, Albert Miller, the defendant, owned so much of the lands afterwards platted into the village of Portsmouth as would include the property now in controversy. He sold several undivided interests, taking back mortgages, which he claims, and complainant denies, remained unpaid and belonging to him. He and the other owners finally conveyed to trustees for a joint stock company, called the Portsmouth Company. The village appears to have been a mere paper town, and the company seems to have [6]

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Bluebook (online)
26 Mich. 1, 1872 Mich. LEXIS 145, Counsel Stack Legal Research, https://law.counselstack.com/opinion/russell-v-miller-mich-1872.