Thompson v. Gibb

1 Cal. Unrep. 173
CourtCalifornia Supreme Court
DecidedJanuary 21, 1865
DocketNo. 3675
StatusPublished
Cited by3 cases

This text of 1 Cal. Unrep. 173 (Thompson v. Gibb) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thompson v. Gibb, 1 Cal. Unrep. 173 (Cal. 1865).

Opinion

A rehearing was granted June 5, 1865, but there is no record of any decision -or opinion on rehearing.

CURRY, J.

The New Idria Mining Company by deed executed on the 28th of January, 1858, granted and leased to Daniel Gibb a tract of land in Fresno county in this state known as the New Idria Mine, containing therein a quicksilver mine, and also the appurtenances to the same belonging, for the term of ten years. Under this grant the lessee and his heirs and assigns were granted the privilege of working the mine and extracting therefrom quicksilver. On the 25th of August following Daniel Gibb and the plaintiff entered into an agreement in writing under seal by which the former assigned and conveyed to the latter one-third part or interest of the lease and the estate and property granted by the New Idria Mining Company to said Gibb. This assignment and conveyance was made upon certain terms and conditions therein, expressed, as well as for a money consideration specified, and also contained therein certain reservations. It was provided that the plaintiff should be liable and responsible to Daniel Gibb for one-third of all the expenditures made by him before that date and which should be thereafter incurred in and incidental to the working of the mine, and also one-third of all expenditures and outlays made or to be made by Daniel Gibb as lessee of the mine and property, provided the same should be limited to fifty thousand dollars above the receipts and products arising from working the mine, unless the plaintiff consented in writing to a greater amount. It was also provided that Daniel Gibb should be, until the termination of the leasehold, the sole agent and attorney irrevocably of the plaintiff, and of the interest assigned and conveyed to him, in all matters and things in any way appertaining to or concerning the lease and the interest assigned and conveyed to the plaintiff, and that as su#h agent and attorney he should continue to work the mine an.d to manage the concerns thereof [175]*175and of the leasehold in the manner as to him might seem most to advance the interest of the parties concerned, but as such agent and attorney he should have no power to sell the interest so assigned and conveyed to the plaintiff. It was also provided that as such agent and attorney he should sell and dispose of the products of the mines and property leased, in this state or elsewhere, as he might deem proper, and should manage the affairs and business of the parties, charging and receiving therefor, over and above all the expenses of the management of the business, five per cent commissions on all sales of the products of the mine, and also five per cent commissions on all moneys disbursed in the working of the mine or in conducting the business of the same, and should also be allowed and paid, on all cash advances or outlays made by him on account of the business of the enterprise over and above the proceeds of sales, interest at the rate of two per cent per month payable half yearly, and for the due payment of the plaintiff’s portion of all these outlays and expenditures made and liabilities incurred and which ihould be incurred and for the due payment of the commissions and interest specified, it was stipulated that said Gibb should have and hold a lien on. the portion and interest assigned and conveyed to the plaintiff. It was also further provided that Gibb should keep all necessary and proper books and accounts of the transactions connected with the lease, or rendered necessary by the contract between the parties, and should, on demand, render to the plaintiff an account current or balance sheet of such transactions on the 31st of December and 30th of June of each year or as soon thereafter as the accounts could with reasonable diligence be prepared, during the term, «when settlements should be made between the parties.

The parties to the contract entered into on the 25th of August, 1858, intended, that it should have a retrospective operation so as to comprehend the prosecution of the mining enterprise from the time of Daniel Gibb’s connection with it as lessee. This is apparent from the contents of the article of agreement entered into between them and also from their conduct in relation to the business subsequent to the date of this agreement. When this written assignment and transfer was executed Daniel Gibb was prosecuting the work of mining for quicksilver upon the leased premises, and thence onward until [176]*176July, 1861, continued the work, expending in the successful conduct of the business large sums of money, and during the same period extracted from the mine large quantities of quicksilver, which he disposed of in. various markets of the world, receiving therefor large sums of money. During a part of the time the plaintiff was at the mine acting in the capacity of superintendent under and by the appointment of Daniel Gibb. As the enterprise developed and the product of quicksilver increased it became necessary to seek for markets where it could be disposed of for the benefit of those concerned, and to that end it was necessary to establish agencies abroad. In July, 1861, Daniel Gibb, who was a resident of this state, left here for Europe professedly for the purpose of establishing business connections or agencies there through which he might make sales of the products of the mine. Previous to this a short time a difference had arisen between the plaintiff and Daniel Gibb respecting their mining interests, and accounts connected therewith, and immediately before Gibb’s departure for Europe the plaintiff by his attorneys addressed and delivered to him a letter protesting against his leaving the state while he remained agent of the mine and while his accounts remained unsettled, warning him that if he persisted in going abroad, it would compel the plaintiff to stop all mining operations until his rights might be determined. At this time the plaintiff claimed that there was over thirty thousand dollars due him on account of his interest in the proceeds of the mine, while on the part of Gibb it was claimed that the plaintiff was indebted to him on the mining enterprise account in a large sum, and in answer to the letter protesting against his leaving the state, he denied that plaintiff had any right to make any such objection, and then stated that the plaintiff had already been informed that one chief object which he had in visiting Europe was to arrange foreign agencies for the sale of the quicksilver product of the New Idria Mines, as well as to attend to other necessary business of such mines and the lease thereof, and advising him that he desired an early settlement with him, and had granted to his brother ample powers for the purpose, and further stating that he had made every necessary arrangement for the efficient conducting of the business of the mine in California during his absence attending to its more pressing and important interests. When the lease was [177]*177executed by the New Idria Mining Company to Daniel Gibb he was, with others, engaged in a large mercantile business in the city of San Francisco. The style of his firm was Daniel Gibb & Co. In the spring of 1861 this firm was dissolved, and a new firm formed, consisting of Daniel Gibb, Alexander Forbes and William Gibb. In the formation of this partnership it was contemplated to continue the house of Daniel Gibb & Co. at the city of San Francisco, under its former name and style and also to establish another house at Glasgow, in Scotland under the name and style of Forbes, Gibb & Co.

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Cite This Page — Counsel Stack

Bluebook (online)
1 Cal. Unrep. 173, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thompson-v-gibb-cal-1865.