Schook v. Zimmerman

155 N.W. 526, 188 Mich. 617, 1915 Mich. LEXIS 1088
CourtMichigan Supreme Court
DecidedDecember 21, 1915
DocketDocket No. 21
StatusPublished
Cited by5 cases

This text of 155 N.W. 526 (Schook v. Zimmerman) 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
Schook v. Zimmerman, 155 N.W. 526, 188 Mich. 617, 1915 Mich. LEXIS 1088 (Mich. 1915).

Opinion

Steere, J.

The nature and purpose of complainant’s somewhat lengthy bill, stated in brief outline, is to obtain specific performance of an oral contract, alleged to have been made with him by defendants Clutts and Zimmerman, under which, through his efforts, they secured an option for a 30-year iron-mining lease upon certain described land in Iron county, Mich.; that after certain explorations, by which it was ascertained the location contained extensive deposits of valuable iron ore, Zimmerman and Clutts transferred the mining lease which they had obtained under said option to the defendant Spring Valley Iron Com-' pany, a corporation which they caused to be organized to take over and operate said property, and which, through its officers and stockholders, had full knowledge of complainant’s agreement with Zimmerman and Clutts and rights thereunder; that by such contract, which complainant has fully performed on his part, Zimmerman and Clutts agreed and promised they would give and set over to him “a just, fair, and proper share of such profits as should thereafter accrue to the said defendants Zimmerman and Clutts, or their assigns, from mining, removing, and disposing of the iron ore which would be taken from said lands under such mining lease,” which they have neglected and refused to do; that it is customary to pay. and receive for like service in the iron districts of Michigan and in Iron county 10 cents on each ton of ore mined and shipped under such a lease as they obtained through his efforts, and by their said agreement with [620]*620him complainant is justly entitled to such an amount as his share of the profits of such joint venture. Complainant therefore prays the court to decree specific performance of said contract and—

“determine the amount which this complainant is equitably entitled to receive upon each ton of iron ore heretofore mined and shipped, and upon each ton of iron ore which shall hereafter be mined and shipped from said lands by the said Spring Valley Iron Company, its successors or assigns, under said mining lease held by said company as aforesaid.”

But, if the court finds that the defendant mining company is not liable upon such contract, that it determine. and award to him a relative part of the capital stock of said company belonging to Zimmerman and Clutts, injunction being asked to restrain them from incumbering or disposing of their stock in the meantime. Defendants by their answer traverse and deny all material allegations of complainant’s bill.

Complainant had been a resident of Iron county for over 20 years, working at first as a barkeeper at Iron River, but most of the time engaged in the saloon business for himself at Crystal Falls, where he was running a saloon and livery stable when he first met defendants Zimmerman and Clutts, in November, 1906. From the miners and explorers who frequented his saloon he acquired a general knowledge of what was being done in their line, and was fairly conversant with the mineral discoveries and developments in that vicinity. Prior to the day when he claims the contract sued upon was entered into, between the 15th and 20th of November, 1906, he had never heard of Clutts and Zimmerman, nor they of him, so far as shown. As he relates this first meeting, they presented themselves at the bar of his saloon between 4 and 5 o’clock in the afternoon of that day and asked for “a drink of O. F. C. Taylor bottled in bond,” which he served [621]*621them, with the suggestion that it was a rather stormy day, in which view they concurred. Shortly following this, the contract for which specific performance is sought was entered into as follows:

“And they stood there a while and called for something, and they commenced to ask me — they asked me what kind of a town this was, and what kind of a country this was. I says: ‘This was a lumber town, but now it is a mining town. Principally mining.’ I says, ‘It is one of the best mining towns in the upper peninsula.’ So they started looking at one another and looked at me. They asked me if there was any properties here to be had. I says, T know of three properties to be had.’ We talked a little while, and I says, T know of three properties to be had, and they are good ones.’ ‘Well, can you get us a property?’ I says that I could. Then they stopped, and Mr. Zimmerman says to me, ‘We will stop here and introduce ourselves. This gentleman doesn’t know us, and we don’t know him. My name is Eugene Zimmerman, from Detroit, and this is Mr. J. C. Clutts, from Wells-ton, Ohio. This gentleman has furnaces, and I own railroads, and we are up here to get a mine. Can you get a mine for us? Can you get us a property?’ I said that I could. So he says: ‘If you can get us a property, we don’t want it for nothing. If you get us the property and it proves to be a mine, we will whack with you.’ Mr. Zimmerman and Mr. Clutts said that. But I am a little ahead of my story. There were some people came in that I did not want to talk in front of, and I gave Mr. Zimmerman a wink and also Mr. Clutts, and they kept still, and I waited on them and they went out.”

He further testified that they repeated this offer and promise to “whack” 5 or 10 times, and before they left the saloon said, in response to his suggestion, that when they got home they would send up an iron-mining man to see him; that they left that night, and complainant did riot see them again until April, 1907. This is the only agreement of which he testifies, and constitutes the contract upon which this suit is found-

[622]*622ed. His evidence as to subsequent events relates to their ratification and his performance of it. He sáys:

“I never had anything from these people than the agreement.”

Defendant Clutts, a resident of Wellston, Ohio, was extensively interested in blast furnaces and coal mining, while defendant Zimmerman, of Cincinnati, Ohio, was president of the Ann Arbor and Detroit, Toledo & Ironton Railroads, prominently connected with and interested in railroad and steamboat transportation, as well as Various mining, manufacturing, and other enterprises. His road was carrying coal from Ohio to Frankfort on Lake Michigan, shipping it across the lake, and he conceived the idea of securing iron ore for return freight to furnaces located upon the road in Ohio. In furtherance of that project he several times visited and interviewed officials of the Carpenter-Cook Company, of Menominee, a patron of his .railroad, which owned large tracts of land in Iron «county, and on the occasion in question had just come ’from Menominee, following such ah interview, accompanied by Clutts, who manufactured iron at Wellston on Zimmerman’s line. Being impressed by representations of officials of the Carpenter-Cook Company and offered an option upon some of its land near Crystal Falls, they visited that city with a view to further investigation and, as they relate, ran into a blizzard, on account of which, owing to the stormy weather and deep snow, they decided to and did take the train on the same evening for Chicago, and while waiting for the next train out were directed, in answer to their inquiry for a good place to get a drink, to complainant’s saloon, of which they availed themselves. They remained there some time, and fell into conversation with complainant, who waited upon them. In the conversation he learned that they were investigating the [623]*623Carpenter-Cook lands with a view to securing iron ore property.

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Cite This Page — Counsel Stack

Bluebook (online)
155 N.W. 526, 188 Mich. 617, 1915 Mich. LEXIS 1088, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schook-v-zimmerman-mich-1915.