State Bank of Sevier v. American Cement & Plaster Co.

10 P.2d 1065, 10 P.2d 1069, 80 Utah 250, 1932 Utah LEXIS 20
CourtUtah Supreme Court
DecidedMay 9, 1932
DocketNo. 5175.
StatusPublished
Cited by10 cases

This text of 10 P.2d 1065 (State Bank of Sevier v. American Cement & Plaster 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
State Bank of Sevier v. American Cement & Plaster Co., 10 P.2d 1065, 10 P.2d 1069, 80 Utah 250, 1932 Utah LEXIS 20 (Utah 1932).

Opinion

FOLLAND, J.

Plaintiff, as the owner of the fee-simple title, and in possession of the property, 'brought this suit to quiet title to-a certain cement mill, the land on which it is located, and a group of unpatented mining claims, all in Sevier county, Utah.

The State Bank of Sevier, as owner, made a contract June 2, 1928, with Amos Epperson and C. R. Jones, as trustees for the American Keene Cement Company, a corporation to be thereafter organized, wherein the vendor agreed to sell and the vendees agreed to buy the cement plant and property in question for $21,000, payment to be made in eight installments over a period of 4% years. The purchasers went into possession and operated the plant until January 11, 1930. Installments of principal amounting to $6,000 were paid. : ; '

The appellant, American Cement & Plaster Company, had for some time prior to June 2, 1928, been in possession and had operated the cement properties under a contract to purchase from the State Bank of Sevier, but for failure to make payments when due the contract was rescinded and possession of the property taken by the bank. Then followed the contract of June 2, 1928, wherein the bank became the vendor and Jones and Epperson trustees for the American Keene Cement Company, the vendees. The American Keene Cement Company was thereafter organized, and took *253 possession and operated the property. All payments made to the bank on this contract were made by Jones, Epperson, or the American Keene Cement Company.

In June of 1929 the American Cement & Plaster Company, its individual directors, and some of the stockholders commenced an action in the district court of Salt Lake county against Epperson, Jones, and the American Keene Cement Company, in which suit, after trial, the court found that the contract of June 2, 1928, while made ostensibly with Epperson and Jones, as trustees for the American Keene Cement Company, was in fact made with Jones and Epper-son, as trustees for the American Cement & Plaster company. The court entered judgment December 30, 1929, wherein the American Cement & Plaster Company was adjudged and decreed to be the owner of the contract of June 2, 1928, and entitled to all rights and benefits thereunder including the right of possession of the premises.

The bank was not a party to this suit. When, on January 1, 1930, no payment of the $3,000 installment was made to the bank as required by the contract, it made demand on the vendees for payment of principal and interest, and the general taxes for 1929 which had not been paid and had become delinquent. No further payments were made or demanded, and on January 8th the bank served its written notice of rescission and forfeiture upon Epperson, Jones, and the American Keene Cement Company, but did not make any demand on the American Cement & Plaster Company, nor give it notice of the termination of the contract. Jones, Epperson, and the American Keene Cement Company, who were in possession of the property, peaceably gave up possession to the bank January 11, 1930, pursuant to the demands of the written notice.

May 14, 1930, the bank commenced this suit to quiet its title to the cement properties in question. The defendants may be referred to in three groups: First, Jones, Epperson, and the American Keene Cement Company, hereafter re *254 ferred to as Epperson et al., the vendees in the contract of June 2, 1930; second, the American Cement & Plaster Company and individual directors, hereinafter referred to as the cement company; and, third, J. V. Jarrett and other stockholders of the American Cement & Plaster Company, and the Columbia Trust Company. We need be concerned only with the bank as plaintiff, Epperson et al., and the cement company as defendants. The other defendants either disclaimed any interest or claimed an interest identified with that of the cement company.

The complaint is in the usual form, alleging that plaintiff is the owner and entitled to the immediate possession of the property, which is particularly described, alleging that the defendants each and severally claim some right, title, and interest in and to the property adverse to plaintiff, all of which claims are wholly without right, and praying that its title be quieted as against all claims of defendants and each of them. The defendants Amos Epperson, C. R. Jones, and the American Keene Cement Company filed no answer to plaintiff’s complaint, and their default was duly entered.

The cement company filed an answer and counterclaim to plaintiff’s complaint and a cross-complaint against the defendants Epperson et al., wherein it was alleged that the bank was the owner of the premises subject to the contract of June 2, 1928, and that after the last-mentioned date the right of possession was vested in Epperson et al. who, pursuant to the contract, took possession, occupied, enjoyed, and operated it continuously thereafter until on or about January 8, 1930.

It was further alleged that, although the contract was ostensibly with Epperson and Jones, as trustees for the American Keene Cement Company, it was in truth and in fact with them as trustees for the use and benefit of the cement company, and all the rights and benefits acquired by them in and to and, under the contract were at all times the rights and benefits of the cement company, all of which *255 was known to the plaintiff, and all of which had been judicially established and determined on the 30th of December, 1929, by decree of the district court of Salt Lake county in case No. 43992. A copy of the findings of fact, conclusions of law, and such decree was attached and made part thereof. It further alleged that the plaintiff bank and defendants Epperson et al., well knowing that the rights of Ep-person et al. were impressed with a trust for the use and benefit of the defendant cement company, connived, conspired, confederated, and conceitedly acted wrongfully and fraudulently to evade and defeat the trust so established, and so acting together terminated and forfeited the contract of June 2d, and all rights of the defendants thereunder, and that plaintiff, with notice and knowledge of its interest, failed to demand of the cement company payment of the installment due in January, 1930, and failed to give it any notice of intention to forfeit the installments paid on the contract.

It was also alleged that, since the organization of the cement company in 1922, the bank, in successive written agreements with it, repeatedly and many times waived payments of installments strictly when due according to the terms of said contracts, and also waived the right to forfeit and rescind the several successive contracts, and thereby induced defendant to believe that plaintiff would not require strict compliance with the contract in controversy, and by reason thereof the plaintiff ought to be, and in equity and good conscience it is, estopped from enforcing, invoking, or claiming any forfeiture for failure to pay promptly the amount due January 1, 1930.

It was further alleged that plaintiff well knew that Ep-person et al had, ever since the initiation of cause No.

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Bluebook (online)
10 P.2d 1065, 10 P.2d 1069, 80 Utah 250, 1932 Utah LEXIS 20, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-bank-of-sevier-v-american-cement-plaster-co-utah-1932.