Venner v. Denver Union Water Co.

15 Colo. App. 495
CourtColorado Court of Appeals
DecidedSeptember 15, 1900
DocketNo. 1755
StatusPublished

This text of 15 Colo. App. 495 (Venner v. Denver Union Water Co.) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Venner v. Denver Union Water Co., 15 Colo. App. 495 (Colo. Ct. App. 1900).

Opinion

Thomson, J.

On the 1st day of October, 1889, the Mountain Water Company executed forty bonds, by each of which it promised to pay the bearer, on the 1st day of July, 1909, the sum of $1,000, with interest from date, payable on the first days of January and July of each year until maturity; and, to secure the payment of the bonds and interest, executed to John L. McNeil and the acting sheriff of Arapahoe county, as trustees, a mortgage of all its real estate, and all its other property and rights, including its franchises. These bonds were duly issued and sold, and, in the year 1890, were the property of a firm called C. H. Yenner & Company. This firm was after-wards dissolved, and the bonds passed into the possession of a new firm of the same name; and, upon the dissolution of the latter firm in 1892, came into the hands of Clarence H. Yenner. On the 15th day of November, 1890, the Mountain Water Company conveyed all its property, real and personal, and all its franchises and rights, to the Denver City Water Works Company, which latter company, at the same time, received a conveyance of the property of the Denver Water Company, subject to a mortgage to the Farmers’ Loan & Trust Company to secure the payment of 2,009 bonds executed by it for $1,000 each. On the same day the Denver City Water Works Company executed its mortgage to the Central Trust Company of New York, as trustee, to secure the payment of its 7,000 bonds of $1,000 each, of which 1,288, were afterwards sold. On the 28th day of April, 1891, the Denver City Water Works Company sold and conveyed all of its property, including the property conveyed to it by the Mountain Water Company, to the American Water Works Company, a corporation organized under the laws of New Jersey. On the 15th day of January, 1892, default having been made by the Denver Water Company in the payment of the interest on its bonds, and certain other corporations, whose property had been acquired by the Denver Water Company being also in default in the payment of interest secured by mortgages [498]*498executed by them, separate proceedings for foreclosure were instituted against those corporations and the Denver Water Company, which suits were afterwards consolidated into one action numbered 16249; and the Denver City Water Works Company having also made default in the payment of the interest due on its bonds, suit for foreclosure was brought against it and its grantee, the American Water Works Company, which suit was numbered 17476. In the consolidated action numbered 16249, the trustees named in the several mortgages were parties plaintiff, and the Denver City Water Company, the Denver City Water & Irrigation Company, the Domestic Water Company, the Denver Water Company, the Denver City Water Works Company, the American Water Works Company, the Central Trust Company of New York, and certain individuals, were parties defendant; and in action numbered 17476, the Central Trust Company of New York was plaintiff, and the Denver City Water Works Company, and the American Water Works Company, were defendants. In case No. 16249, after the consolidation of which mention has been made, an amended complaint was filed, which was the starting point of the subsequent proceedings in the case. This complaint alleged the purchase by the Denver Water Company of the property and franchises of the Denver City Water Company, the Domestic Water Company, and the Denver City Irrigation & Water Company, and the assumption by it of the bonds issued by those companies; the acquisition by the Denver City Water Works Company of the title of the Denver Water Company in the several properties; the execution by the Denver Water Works Company of its mortgage to the Central Trust Company, and the transfer of all its property and rights to The American Water Works Company. The prayer of the amended complaint was that an account be taken of the outstanding and unpaid bonds and coupons of the Denver Water Company, the Domestic Water Company, the Denver City Water Company, and the Denver City Irrigation & Water Company, and that the property described in the several mortgages executed by [499]*499those companies be sold for the payment of the indebtedness. In this complaint there was no mention of, or allusion to, the bonds or mortgage executed by the Mountain Water Company or the property described in its mortgage, and neither that company nor either of its trustees, was a party to the suit. The defendants entered no appearance to the action, and judgment went against them by default. The decree, which was entered July 20, 1893, followed the prayer of the complaint, and concluded as follows: “ That any party to this proceeding may apply to the court for further orders and directions at the foot of this decree to correct any error or to supply any omission that may be discovered, and for any proper purpose necessary to protect the rights of each and all of the parties thereto, and that on the adjournment of the present term of this court, the said cause shall stand continued until the next term of this court, the court reserving full and complete jurisdiction over this cause until the sale of the property herein provided for and the approval and consummation of such sale by this court.” Afterwards, on the 29th day of March, 1894, on motion of the plaintiffs, an addition was made to the decree, providing for the sale of the property described in the mortgage executed by the Mountain Water Company. In action numbered 17476, the following was the return of service of summons:

“State oe Colorado 1
> ss.
County oe Arapahoe )
“ Samuel N. Mitchell, being first duly sworn, deposes and says: That he is over the age of eighteen years and that he is not a party to the within entitled action; that he personally served the within summons upon the defendants within named as follows: that is to say, by delivering a copy thereof to Clarence H. Venner, vice-president of the American Water Works Company, at Denver in the county aforesaid, on November 5, 1892, and by delivering a copy thereof to William P. Robinson, president of the Denver City Water [500]*500Works Company at Denver, as aforesaid, on this November 12, 1892, and that at the time of said service he also delivered to the said Clarence H. Venner and the said William P. Robinson, respectively, a copy of the complaint in the within entitled action, and further affiantsaith not.
(Signed) “Samuel N. Mitchell.”

There was no appearance to this suit by the defendants, or either of them, and judgment was taken against them by default. The decree provided for the sale of the property which had been transferred to the American Water Works Company, including the property described in the mortgage executed by the Mountain Water Company.

In pursuance of the two decrees, and in accordance with their terms, a sale was made of all the property which they described, and for the sale of which they provided, including the property embraced in the Mountain Water Company’s mortgage. The Denver Union Water Company, a corporation, claiming to be the owner of the property so sold, instituted this proceeding to obtain a cancelation of the mortgage executed by the Mountain Water Company to John L. McNeil, and the acting sheriff of Arapahoe county, trustees. Those trustees were joined with Clarence H. Venner as defendants.

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Bluebook (online)
15 Colo. App. 495, Counsel Stack Legal Research, https://law.counselstack.com/opinion/venner-v-denver-union-water-co-coloctapp-1900.