St. Louis Smelting & Refining Co. v. Nix

1924 OK 225, 224 P. 982, 101 Okla. 197, 1924 Okla. LEXIS 61
CourtSupreme Court of Oklahoma
DecidedFebruary 19, 1924
Docket13695
StatusPublished
Cited by8 cases

This text of 1924 OK 225 (St. Louis Smelting & Refining Co. v. Nix) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
St. Louis Smelting & Refining Co. v. Nix, 1924 OK 225, 224 P. 982, 101 Okla. 197, 1924 Okla. LEXIS 61 (Okla. 1924).

Opinion

NICHOLSON, J.

This action was brought by E. D. Nix, as plaintiff, against St. Louis Smelting & Refining Company, as defendant, to recover the sum of $50,000, with interest thereon at the rate of 6 per .cent, per annum. from December 6, 1917.

The controversy grew out of a contract between Nix and St. Louis Smelting & Refining Company bearing date the 26th day of October, 1917, by which the company agreed to sell to Nix certain mining leases, contracts for mining leases, mineral rights, mills, concentrating plants, improvements, and all other rights or interest owned by it on approximately 1,400 acres of land in the lead and zinc field in Ottawa county, for a consideration of $1,525,000, payable as follows: $50,000 to be deposited to the credit of the company in the First. National Bank of Miami on or before 10 days from the date of the execution and delivery of the contract, the sum of $250,000 to be paid to the company within 60 days from the date of the execution and delivery of the contract, the remainder to be evidenced by notes maturing respectively in 3, 6, 9, and 12 months from the execution and delivery of the contract. Said contract contained the following stipulation:

“It is mutually understood and agreed between the two parties hereto that the party of the first part shall within ten days from the execution of this contract, or as soon thereafter as practicable, furnish to the narty of the second part, abstracts of title, certified to date, to the tracts of land covered by said leases and contracts for mining leases. Said abstracts of title shall be submitted to and approved or disapproved by Dick Rice, attorney for party of the second part, and party - of the second part shall have 30 days after the delivery to him of said abstracts, for this purpose. In the event of disapproval of the title to one or more of the tracts of land, party of the second part shall have the option to elect whether he shall accept said title or rescind this agreement. If this agreement is rescinded by reason of the disapproval of the title by the said Dick Rice, party of the first part shall return to the party of the second part his first payment of $50,000 hereinbefore referred to; the party of the second part shall notify the party of the first part of his election to accept said title or to rescind this agreement by notice in writing within ten days after the expiration of the thirty days, which notice shall be sent to party of the first part by United States registered mail, postage prepaid, addressed *198 to it at its offices in the city of St. Louis. Missouri.”

On November 24, 1917, Nix deposited the sum of $50,000 in the bank to the credit of the company. The abstracts were delivered to Mr. Rice for examination, and he disapproved the title to most, if not all, of the properties, his opinions to Nix being dated November 27, 1907. On December 6, 1917, Nix wrote the company as follows:

“St. Louis Smelting & Refining Company,
“International Life Building,
“St. Louis, Missouri.
“Gentlemen:
“Referring to my contract with you dated the 26th day of October, 1917, and to the extensions and modifications thereof, made by us subsequent to this date, I hereby notify! you that my attorney, Mr. Dick Rice, of Miami, Oklahoma, has examined and rejected and disapproved the abstracts of title submitted by you to me for his examination October 31, 1917.
“You are further notified that under the terms of said contract, I hereby elect to exercise my right and privilege of rescinding said contract and agreement, and you may treat this as a notice of my election to rescind, and you are hereby notified and required to return to- me the sum of fifty thousand dollars ($50,000.00) paid to you under the terms of said contract.
“Yours truly,
“E. D. Nix.
"P. S. I enclose opinions on abstracts. E. D. N.”

This letter was sent by registered mail. Upon refusal of the company to return the $50,000 paid, Nix brought this suit for the recovery thereof.

The company contended that within three days from the date of the opinions by Dick Rice, attorney for Nix, disapproving the titles to the property, and .before Nix notified it of his election to rescind the contract, Rice telegraphed the company that whatever objections he had to said title could be ironed out, and that the company upon receipt of copies of Rice’s opinions did, with due dispatch, proceed to overcome the objections made to said titles, and that such objections were overcome and Nix was given prompt notice thereof. It further contended that the election of Nix to rescind said contract was not made in good faith or because the titles were defective, but because he had been unable to arrange the subsequent payments called for in the contract, and that afterward Nix requested it to grant an additional extension of time within which to arrange for the payments called for by the contract, and that in compliance with said' request the company did grant said extension and afterward redelivered to Nix, at his request, the abstracts of title for re-examination by an attorney other than Mr. Rice; that Nix afterward notified the company that another attorney had rendered him an opinion showing the titles of the company to said properties to be good, but that Nix had failed to make any additional payment under said contract within the time allowed therefor, and forfeited all rights thereunder.

A trial to a jury resulted in a verdict in 'favor of Nix for the amount sued for, upon which judgment was rendered, and from which the company has appealed.

Plaintiff in error first contends that the contract was entered into between Nix and ,the company and that there was no provision therein to the effect that Nix was acting as agent for any one else; that he was the sole principal with whom the company dealt and all negotiations leading up to the conclusion of the contract were merged in the contract.

The contract sho“ws on its face that it was between the company and Nix, and there is nothing contained therein indicating that Nix was acting for others. Other parties were with Nix when he called at the office of the company to negotiate the contract and it might be inferred that they were interested in the transaction, but as to whether or not the officers of the company were advised that these parties were interested, or that Nix was acting as their agent, the evidence is in conflict. However, as we view the ease, it matters not whether he was acting for himself or for undisclosed principals. The contract was made with him and this action was brought by him, and he must'be treated as the sole party in interest. Whether or not he is entitled to prevail depends upon two questions: First: Was his election to rescind the contract on the ground of defective titles made in good faith? Second: Did he after notifying the company that he rescinded the contract request and obtain of the company an extension of time within, which to make the payments required *by the terms of the contract, and failing to make such payments within the time granted, forfeit all his rights under the contract?

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Cite This Page — Counsel Stack

Bluebook (online)
1924 OK 225, 224 P. 982, 101 Okla. 197, 1924 Okla. LEXIS 61, Counsel Stack Legal Research, https://law.counselstack.com/opinion/st-louis-smelting-refining-co-v-nix-okla-1924.