Tabor v. Bush

4 Colo. L. Rep. 209
CourtDenver Superior Court
DecidedNovember 22, 1883
StatusPublished

This text of 4 Colo. L. Rep. 209 (Tabor v. Bush) is published on Counsel Stack Legal Research, covering Denver Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tabor v. Bush, 4 Colo. L. Rep. 209 (Colo. Super. Ct. 1883).

Opinion

Dawson, J.

The only grounds for new trial insisted on in argument, were:

First—Surprise and newly discovered evidence.

Second—That the Court erred in submitting to the jury the [210]*210question as to whether the transactions between plaintiff and Ortel & Co. were bona fide and valid, or gambling transactions and void.

Third—That the Court erred in instructing the jury to allow interest on the Ortel claim, if they found it valid, and the matter of interest generally.

The affidavit of defendant in support of the motion states, that since the trial he has discovered certain material evidence not known by him at the time of the trial, and was surprised at the evidence of plaintiff to the effect that the price paid by plaintiff for defendant’s interest in the Tam O’Shanter group of mines was $30,000, and not $30,000 net; i. e. $30,000 in addition to $12,500, for which plaintiff was carrying defendant on original purchase—the interest sold by defendant to plaintiff being one-sixteenth of the property, would, according to plaintiff’s testimony, make the purchase at the rate of $480,000 for the whole; that since the trial he has learned that he can prove by certain witnesses that plaintiff told them he had purchased the interest of defendant in said Tam O’Shan-ter property at the rate of $580,000 to $600,000 for the whole; and that he was misled by his counsel, who advised him that under the pleadings this proof was not necessary, and so he made no effort to procure it.

Affidavits of "William Parker and Eben Smith are filed, in which the former says plaintiff stated to him that he purchased the interest of defendant in said Tam O’Shanter at $580,000, to wit, at the rate of $480,000 over and above the $100,000 original purchase money; and the latter states that the plaintiff told him he had purchased the interest of defendant therein at the rate of about $600,000 for the entire mine, and offered to sell to affiant an interest at the rate of $600,000 for the whole. Admit all this to be true, does it furnish sufficient reason for setting aside the verdict? The rule may be briefly stated, thus: A new trial should not be granted for newly-discovered evidence unless it bears directly upon the matters at issue, and its effect, if it had been heard, ought necessarily to have resulted in a different verdict. The matters in litigation between the parties did not involve the Tam O’Shanter transaction. Both parties admitted that deal to be closed, and the [211]*211price paid for it was not in controversy in this suit. It came incidentally into the testimony, defendant claiming that the Breyton Ives claim sued on was settled and paid in that transaction, and plaintiff that it was not. So the question in litiga-gation here was whether the Breyton Ives claim was settled in that trade, and not the price at which the interest was bought. This was merely a collateral fact. Defendant does not pretend that he can prove by either of the witnesses named, or any one else, that plaintiff ever said the Breyton Ives claim was settled in that transaction.

Defendant cannot well claim that he was surprised at the testimony of plaintiff to the effect that the thiry thousand dollars paid for the interest in the Tam O’Shanter, were made up of sundry different items, consisting in part of notes and other matters of debt due by defendant to plaintiff', and the balance in cash; for defendant knew that to be true, as his testimony shows. He claims that it was made up in part of the Breyton, Ives & Co. claim, and it is difficult to see how he could have been surprised that plaintiff in his testimony denied this, for if plaintiff had intended to admit its settlement in that transaction he would hardly have sued for it in this action. So that, if proof touching the price at which plaintiff purchased the interest in the Tam O’Shanter be important, as tending to confirm the claim of defendant that the Breyton Ives debt was paid in that sale, I think defendant should have disregarded the advice of counsel and made some effort to produce it at the trial. Moreover, I cannot say that conclusive proof that plaintiff bought the interest of defendant in the Tam O’Shanter at $30,000 net, would establish the fact that the Breyton Ives claim was settled and paid in that deal, and therefore, that the verdict must have been different with that proof in.

I do not think the Court erred in submitting the validity of the Ortel transactions to the jury, at least not to the prejudice of the defendant. It does not seem to me clear that, as a matter of law, under the proof those transactions were illegal. They were the purchase and sale of grain and produce for future delivery. The testimony showed that both Ortel and Lester & Co., through whom the purchases and sales were [212]*212made, were members of the Board of Trade, or Stock Board, of Chicago, and that the transactions were had on ’Change, or through the medium of that Boardand further, that under the rules of that organization, contracts known as “puts” and “calls,” and all similiar deals held'to be gambling transactions, are prohibited. It further appeared in proof that Lester & Co., who made the purchases and sales, were able to deliver the articles bought and sold if a delivery became necessary under the contracts, as also that the plaintiff was able to pay for any articles bought by him if delivered, and to execute by actual delivery all articles sold for his account, if required; so that, while it is the conceded duty of the Courts to scrutinize these transactions closely, and as a matter of law hold to be void and against public policy all such contracts as clearly amount to mere wagers upon the fluctuations in the price of the commodities nominally dealt in; yet no Court has gone so far as to hold void a contract simply for the reason that, in case of a purchase or sale for future delivery, the parties so changed their position or purpose that no actual delivery was made. The question was left to the jury to determine, as a matter of fact, under the evidence, whether in those transactions there was any bona fide intention to deliver the property bought or sold, or whether the intention was simply to bet’ upon the fluctuations in the market, and settle by the difference between prices at the time of the purchase and time for delivery—with the instruction that if they found the latter to be the case they should disallow the claim as a gambling debt. As between the parties directly interested in the transactions, I think that would have been proper under the proof in this case. But as between plaintiff and defendant, under the facts in evidence, I am not sure but it was error to the prejudice of plaintiff. I strongly incline to the opinion, upon mature consideration, that an instruction asked on behalf of plaintiff' and refused, should have been given; which instruction was to the effect that if the jury believed from the evidence that defendant was indebted to Ortel & Co. and induced plaintiff to assume, cancel and pay that debt, by his promise to pay and reimburse the plaintiff, and that, in consideration of said promise, plaintiff paid the debt of defendant to Ortel & Co., they should find for plaintiff as to the sum so paid and settled.

[213]*213As I remember the testimony there was nothing tending to show that any debt which defendant might have owed Ortel <& Co. was vicious; and if the latter firm chose to waive the right to plead the illegality of the amount due plaintiff (if it was illegal,) and pay it by satisfying pro tanto

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5 Colo. 118 (Supreme Court of Colorado, 1879)

Cite This Page — Counsel Stack

Bluebook (online)
4 Colo. L. Rep. 209, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tabor-v-bush-cosuperctdenver-1883.