Salt Lake Valley Loan & Trust Co. v. St. Joseph Land Co.

273 P. 507, 73 Utah 256, 1928 Utah LEXIS 109
CourtUtah Supreme Court
DecidedDecember 5, 1928
DocketNos. 4545, 4546.
StatusPublished
Cited by5 cases

This text of 273 P. 507 (Salt Lake Valley Loan & Trust Co. v. St. Joseph Land Co.) 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
Salt Lake Valley Loan & Trust Co. v. St. Joseph Land Co., 273 P. 507, 73 Utah 256, 1928 Utah LEXIS 109 (Utah 1928).

Opinion

HANSEN, J.

These two causes were argued and submitted together. In each proceeding the plaintiff seeks to foreclose a mortgage. In the main, the law questions are the same in both suits. There is no substantial conflict in the evidence as to the facts.

In the suit of the plaintiff against the defendant, St. Joseph Land Company, the facts are these:

*258 On March 24, 1910, Harold C. Krouskoff made, executed, and delivered to one William T. Cooper a promissory note and a real estate mortgage to secure the payment of such note. The note was for the principal sum of $4,500, payable $1,000 on or before July 15, 1910, $1,000 on or before October 15,1910, and $2,500 on or before January 15, 1911. The note bore interest at the rate of 6 per cent per annum. William T. Cooper assigned and transferred the note and mortgage to the plaintiff. The defendant purchased the mortgaged premises subject to the mortgage. On April 15, 1912, the sum of $2,500 was paid on the note and mortgage. No payment of either principal or interest was- made after that date. Suit was commenced by plaintiff against the defendant, St. Joseph Land Company, on November 24, Í924.

The suit of plaintiff against St. Joseph Water & Irrigation Company is based upon the following facts:

On October 18, 1910, the defendant, St. Joseph Water & Irrigation Company, made executed, and delivered to one Charles E. Pace four promissory notes, one for $500 payable on or before November 1, 1912, one for $500 payable on or before November 1, 1913, one for $500 payable on or before November 1, 1914, and one for $1,000 payable on or before November 1, 1915. The notes all bore interest at the rate of 6 per cent per annum. To secure the payment of the five notes defendant, St. Joseph Water & Irrigation Company, executed and delivered to Pace a real estate mortgage. The mortgage was executed on the same date as the notes. The notes and mortgage were transferred by Pace to the plaintiff herein. No payment whatsoever of either principal or interest has been made upon the notes, or any of them. Suit was brought to foreclose the mortgage securing the notes on November 24, 1924.

The plaintiff alleges in its complaint against the St. Joseph Land Company and also in its complaint against the St. Joseph Water & Irrigation Company “that within six years prior to the institution of this action the defendant *259 acknowledged in writing the said obligation and agreed to pay the same. Each of the defendants denied that it had acknowledged or agreed to pay the obligations sued upon within six years prior to the bringing of said action. Each of the defendants also alleged in their answers that the alleged causes of action brought against each was 'barred by the provisions of Comp. Laws Utah 1917, §§ 6466 and 6474.

The trial court found that neither defendant had acknowledged or promised to pay the obligations sued upon 'by the plaintiff within 6 years immediately preceding the commencement of plaintiff’s suits. Judgments were rendered and entered accordingly dismissing plaintiff’s suits against each defendant. The plaintiff prosecutes these appeals from the judgments so rendered.

Under the provisions of Comp. Laws Utah 1917, § 6466, it is provided that an action founded upon a written contract must be commenced within 6 years. It is clear that neither of the suits involved in these proceedings was commenced within the 6-year period provided by statute.

The plaintiff relies upon the provisions of Comp. Laws Utah 1917, § 6489, to avoid the defendants’ pleas that plaintiff’s claims are barred by the statute of limitations. The law so relied upon by the plaintiff reads thus:

“In any case founded on contract, when any part of the principal or interest shall have been paid, or an acknowledgment of an existing liability, debt, or claim, or any promise to pay the same shall have been made, an action may be brought in such case within the period prescribed for the same, after such payment, acknowledgment, or promise; but such acknowledgment or promise must be in writing, signed by the party to be charged thereby. When a right of action is barred by the provisions of any statute, it shall be unavailable either as a cause of action or ground of defense.”

The plaintiff contends that the defendants in each of the suits now under review acknowledged and promised to pay the obligations sued upon. Each of the defendants contends to the contrary. The sole question to be determined upon *260 these appeals is whether or not the trial court erred in its finding that each of the suits was barred by the statute of limitations.

The evidence in both cases is substantially the same and is as follows: Both of the defendant corporations were organized in July, 1910. The articles of incorporation of each defendant company provides that Harry S. Joseph shall be president, a director, and general manager. Julian M. Bamberger was made vice president and a director of each of the defendant corporations. Joseph and Bamberger qualified by taking oaths as officers of each of the defendant corporations. They both continued to act as such officers until these suits were begun. Julian M. Bamberger was also secretary of the defendant corporations during a part of the time between the organization of the defendant companies and the bringing of these suits. Julian M. Bamberger was a stockholder and for a few months prior to the time these suits were commenced was also an officer of the plaintiff corporation. The articles of each of the defendant corporations contain the following provision:

“The general manager shall be elected by the board of directors. * * * The general manager shall have power to direct, manage and carry on the business of the corporation subject to the control of the board of directors and to make and execute all contracts pertaining to the ordinary business of the corporation.”

Harry S. Joseph, as general manager, directed the farming operations of the defendant companies. He also rented the water rights belonging to the companies and collected rentals. Joseph purchased some farming machinery for one of the defendant companies. There is no evidence of any other acts which Joseph did as general manager of the defendant companies unless it be the writing of the letters hereinafter set out. Joseph wrote and mailed to the addresses indicated letters in words and figures as follows:

“Salt Lake City, Utah, Dec. 20, 1916.
“Mr. W. E. Jones, Secretary Salt Lake Valley Loan & Trust Company, City. Dear Sir:. I am today in receipt of your letter of De *261 cember 20th relating to mortgage of the St. Joseph Water & Irrigation Company for $2,500.00 which you acquired Oct. 18, 1910.
“I desire to state that, under the terms of the contract between the St. Joseph Water & Irrigation Company and the Salt Lake and Ogden Railroad Company, the latter company was to pay one-half of this amount, which represents part of the purchase price of the land. The other half is to be borne equally by Mamie Joseph and Julian M. Bamberger, who are equally interested in the St.

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Cite This Page — Counsel Stack

Bluebook (online)
273 P. 507, 73 Utah 256, 1928 Utah LEXIS 109, Counsel Stack Legal Research, https://law.counselstack.com/opinion/salt-lake-valley-loan-trust-co-v-st-joseph-land-co-utah-1928.