State ex rel. Seattle & Lake Washington Waterway Co. v. Superior Court

86 Wash. 657
CourtWashington Supreme Court
DecidedAugust 14, 1915
DocketNo. 12217
StatusPublished
Cited by2 cases

This text of 86 Wash. 657 (State ex rel. Seattle & Lake Washington Waterway Co. v. Superior Court) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. Seattle & Lake Washington Waterway Co. v. Superior Court, 86 Wash. 657 (Wash. 1915).

Opinion

Per Curiam.

This is a proceeding in review of an order of the superior court of King county granting a change of venue.

The facts are these: Pursuant to the act of the legislature of the state of Washington, approved March 9, 1893 (Laws 1893, p. 241; Rem. & Bal. Code, § 8100 et seq.), the commissioner of public lands entered into a contract with [658]*658one Eugene Semple for the excavation of certain waterways and for the filling in and raising above high tide of certain tide lands belonging to the state, agreeing, also pursuant to the statute, to issue certificates as the work progressed, showing the actual cost of the work with fifteen per cent added, which certificates, when recorded, should be liens upon the lands so filled. Semple assigned his interest in the contract to the Seattle & Lake Washington Waterway Company, a corporation organized under the laws of the state of Washington and having its office and place of business at Seattle, who undertook the performance of the contract.

To float the certificates when earned and issued, the waterway company entered into a contract with the Spokane & Eastern Trust Company, a corporation organized as a banking and trust company under the laws of the state of Washington, having its banking house and place of business in the city of Spokane. The contract was in writing, and, after reciting that the waterway company had a contract with the state for the excavation of waterways and the filling in of certain tide lands, and would receive certificates for the cost of making such improvements, and that the trust company was desirous of underwriting and taking from the waterway company, upon certain enumerated conditions, such certificates, contained, among others, the following stipulations:

“Now Therefore, it is hereby understood and agreed by and between the parties hereto as follows:
“First: That said party of the first part [The Waterway Company] will proceed with all reasonable diligence and dispatch to fill and raise above high tide under its contract with the State of Washington, Blocks 395, 396 and 398, Seattle Tide Lands, King County, Washington, and will obtain from the Commissioner of Public Lands certificates thereon, in such order and of such denominations as may be found to be most desirable by said party of the first part, and upon receipt of such certificates duly executed, it will cause the same to be recorded in the manner provided by law, and as soon as such record is completed and such certificates [659]*659are returned to it, it will deliver the same, together with an assignment thereof in due and regular form, properly executed, to the said party of the second part [The Trust Company], or to such other party or parties as the second party may in writing direct. And the party of the second part agrees that upon receipt of such certificates and assignment, and each thereof, it will immediately pay to said party of the first part, or its order, for such certificates, at the rate of ninety-five cents on the dollar, par value thereof, together with accrued interest thereon from the date thereof until the date of the payment therefor.
“Fourth: It is hereby further understood and agreed that the said party of the first part shall, if so requested by second party, at its own cost and expense, procure the certificates hereinbefore referred to, and cause the same to be recorded and delivered as aforesaid, and keep a complete record thereof, and send out notices, make collections thereon and remit the proceeds thereof to the said party of the second part. And further, that should default occur in making payments when due upon said certificates, the party of the first part shall, upon written notice from the party of the second part, immediately proceed to collect the same by suit or otherwise, all at the cost and expense of the said party of the first part.
“Fifth: It is further understood and agreed that the said party of the first part shall be governed entirely by the written instructions of the said party of the second part in the matter of receiving and accepting payments in advance of maturity upon any of said certificates.
“Sixth: It is further understood and agreed that the said party of the first part shall and will, at its own cost and expense, do what ever is necessary or desirable for the protection of the liens of said certificates upon the lands for the improvement of which such certificates are issued.”

Subsequent to the execution of the last named contract, the waterway company received from the state, for excavating waterways and filling tide lands, certificates of a value in excess of one million dollars, all of which were purchased by the trust company pursuant to the contract, and by the trust company floated among its clients desiring that form [660]*660of investment. After the execution of the contract between the state and Semple, the tide lands affected thereby passed from the state into private ownership, and as the certificates matured were taken up for the larger part by the private owners. Certain of these, however, were not redeemed, and were assigned in trust by the investors purchasing them from the trust company to J. P. M. Richards, the president of the trust company, who brought suit in the superior court of King county to foreclose the liens represented thereby. Pending the foreclosure suit, certain of the certificates were redeemed by the owners of the property. A decree of foreclosure was taken by Richards on the others, and the tide land lots sold thereunder. At this sale, certain of the lots were purchased for cash, and the remainder by Richards, as trustee, in satisfaction of the decree.

On April 6, 1914, the waterway company began an action in the superior court of King county against the trust company and J. P. M. Richards, in his individual capacity and in his capacity as trustee, averring that it had interest in the money received from the foreclosure proceedings and in the tide land lots purchased by Richards thereunder by reason (as it is alleged),

“. . . that ‘when the first installment of principal payable on said certificates and the first annual amount of interest accruing thereon fell due in the months of September and October, 1908, neither the owners of the tidelands covered by said certificates, nor any person interested with said owners paid the said sums then falling due or any part thereof. Thereupon by mutual consent and agreement between the plaintiff and the defendants Richards and Spokane & Eastern Trust Company, the then owner of all said certificates, it was agreed that plaintiff should advance the several amounts then delinquent, on the understanding and agreement that the plaintiff should by making such payment acquire an interest in all of said certificates in such proportion as the amount paid by the plaintiff then bore to the full face value of the principal and interest of said certificates, and [661]

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Cite This Page — Counsel Stack

Bluebook (online)
86 Wash. 657, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-seattle-lake-washington-waterway-co-v-superior-court-wash-1915.