State ex rel. Boston & Montana Consolidated Copper & Silver Mining Co. v. District Court of the Second Judicial District

76 P. 206, 30 Mont. 206, 1904 Mont. LEXIS 68
Montana Supreme Court·Decided April 12, 1904·No. No. 2,042·Published·Cited by 1 cases

Opinion

MR. CHEEP JUSTICE BRANTLY,

after stating the ease, delivered the opinion of the court.

1. It is argued by counsel for the relator that the order is void for the reason that it was premature, in that it was made with reference to issues not involved in the cause until after the application for it was filed. Under this condition of the case, they say the proceeding should have been begun de novoy in other words, that, the pleadings having been amended and the issues changed pending the application, the court was without authority to act upon it. Their argument proceeds upon the assumption that, after the amended complaint was filed, the pleadings presented a case entirely different from that presented by the original pleadings, and hence that the order was the re-[213]*213suit of an application made when no action was in fact pending, within the rule laid down in State ex rel. B. & M. C. C. & S. M. Co. v. District Court, 27 Mont. 442, 71 Pac. 602, 94 Am. St. Rep. 831, and State ex rel. Mendenhall v. District Court, 29 Mont. 363, 74 Pac. 1078. This contention cannot be sustained. The purpose of the action is to have defendant declared a trustee, for the benefit of the plaintiff, of an interest in the Comanche, claim. Under the allegations in the original complaint, the right to recover depended upon the plaintiff’s ability to establish a fraudulent conspiracy by the defendant with Coram, Palmer and Allen, by means of which he was induced to part with his interest for an inadequate consideration. This is also the theory of the amended complaint. The interest involved is the same, the wrong complained of is the same, and the evidence necessary to determine the rights of the parties will be the same, except that the particulars of the negotiations and the resulting- agreements by which the plaintiff acquired rights in the property are in some respects different from those stated in the original complaint, and, so far as they are different, demand other evidence to establish them. On the main issue, however — that of fraud — the evidence required will be the same.

The defendant appeared and resisted the motion for the order upon its merits. No objection was then made that the required formalities of demand and notice had not been fully complied with. The action was pending; not only that, but all the issues had been fully made up. It is apparent from the affidavits on file what issues were tendered by the amended complaint, and what evidence relating to the cause of action stated therein was desired. It- appears from them, also, that the evidence sought was not in the possession of the plaintiff, but- in the control of the defendants, and that in fact it relates to the merits of the action. It further appears that- at the time the alleged fraudulent conspiracy was formed and carried out, and plaintiff was induced to part with his interest, the defendant was engaged in removing ore from the claim, and that, in order to determine [214]*214this fact, as well as the amount and value of it, 'an inspection of the underground workings in the claim was necessary.

So far as concerns the accounting, the granting of this portion of the order might well have been deferred until a. determination of the main issue in the case, for the right to an accounting will, in any event, depend upon plaintiff’s right to recover. Yet the fact that the defendant had removed and was engaged in removing ore at the time when the alleged fraud was perpetrated also relates to the main issue in the case, and will perhaps be competent, as supplying, in part, at least, proof of the motive underlying the alleged conspiracy.

The statute under which the application was made for the inspection of the writings (Code of Civil Procedure, Sec. 1810) provides that the court in which the action is pending, or the judge thereof, may, upon notice, order either party to give the other, within a. specified time, an inspection, etc. Inasmuch as the defendant appeared'and resisted the application upon its merits, without objection that the proper notice had not been given, it is not now in position to make the objection that the order was prematurely made. If it be conceded that the notice given prior to the actual filing of the amended pleading was insufficient to warrant the court’s proceeding to make the order, under the circumstances detailed, the defendant must be held ■ to have waived this informality. The validity of the order must therefore be determined by an examination of the merits of the showing made at the time it was granted, and in view of the issues then presented.

2. It is said that the order is void because the statements contained in the affidavits, in support of the motion and in the amended complaint are made upon information and belief. Under the statute, in order to' warrant compulsory inspection of papers, it must appear (1) that an action is pending, and that the mover is a" party; (2) that the evidence sought is in the possession Or control of the adverse party; and (3) that it' relates to the merits of the'action, if the mover is the plaintiff, or to the defense, if the mover is the defendant. The' evident [215]*215purpose of it is to enable tbe party applying to tbe court to obtain evidence relating to, or necessary to support liis side of, the controversy, and not a disclosure of the evidence upon -which his adversary relies.

The showing made by the moving papers in this case is upon information and belief of the plaintiff, both as to the existence of the letters and copies, and as to the possession of them and the other documents referred to in the motion. So, also, as to the removal of ore. The facts upon which the plaintiff’s information and belief are based are not stated. The defendant, by its agent, appeared at the hearing, however, and filed a. counter affidavit. This controverts none of the statements contained in tlie plaintiff’s affidavits, except that it states that the defendant has not in its possession within the state of Montana any of the records, letters, books or documents in question, and that such agent verily believes that none of them can be found. It further denies positively that the stope books, stope sheets and maps are in existence anywhere. The affidavit therefore virtually admits that, while the records, letters, books and documents are not in the possession of the defendant in the state of Montana, they are elsewhere. Under this condition of affairs, the district court was justified in assuming that the lease and option, and the letters, letterpress' copies, records and accounts of the Comanche Company are in the possession of the defendant, and that they contain evidence relating to the merits of the action. The court was also justified in drawing the inference that, at the time the plaintiff parted with his interest in the property, the defendant was engaged in removing ore from it. That the court acted upon this inference is clear from the fact that the order does not include an inspection of the stope sheets, maps, etc., which were embraced in the specific denial. In view of the silence of the defendant, under the circumstances, it was properly held to have admitted the allegations, of the plaintiff in support of his motion, though made upon information and belief. (Justice v. National Bank, 83 N. C. 8 ; McDonald v. Carson, 95 N. C. 377; Bundschu v. Simon, 23 [216]*216Civ. Proc. R. 80, 23 N. Y. Supp. 715; National Oleo Meter Co. v. Jackson, 54 N. Y. Super. Ct. 444.)

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State ex rel. Boston & Montana Consolidated Copper & Silver Mining Co. v. District Court of the Second Judicial District, 76 P. 206, 30 Mont. 206, 1904 Mont. LEXIS 68 (Mo. 1904).

76 P. 206 (State ex rel. Boston & Montana Consolidated Copper & Silver Mining Co. v. District Court of the Second Judicial District) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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