Wasatch Mining Co. v. Jennings

5 Utah 243
CourtUtah Supreme Court
DecidedJune 15, 1887
StatusPublished
Cited by4 cases

This text of 5 Utah 243 (Wasatch Mining Co. v. Jennings) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wasatch Mining Co. v. Jennings, 5 Utah 243 (Utah 1887).

Opinion

Zane, C. J.:

This is an appeal from the third district court of Utah. The plaintiff, a mining corporation, alleged in its complaint that on the second day of January, 1877, it was the owner in fee, and was in possession of, the Walker & Walker extension and the Buckey mines, and also of a portion of the Pinyon mine, described therein; and that these mines were of the value of $300,000; that on the second day of January, 1877, Gust. Norquist, Swan Ole-son, and John Danielson obtained judgments against plaintiff aggregating $781.81; that executions were issued, in pursuance of which the mines were sold to the plaintiffs in those actions for the amount of such judgments [248]*248and costs; that William Jennings, a stockholder and president o£ the corporation, and John Clark, also a stockholder, at a meeting of the stockholders agreed with the company to redeem the property from the sale, and to advance the moneys therefor; that it was agreed that such advance should be treated as a preferred debt; that as security for this advance the said Jennings and Clark should buy the certificates of sale, and should take the marshal’s deed in their own names, and should hold the title until their advances, and interest thereon, should be refunded; that, in pursuance of such agreement, Jennings and Clark purchased the certificates, and took the marshal’s deed in their own names; that on the fifth day of September, 1879, Clark conveyed his interest to Joseph A. Jennings, son of William Jennings, who at the time of the conveyance was informed of the facts; that William Jennings took possession of tlie mines, and,- during the years 1878 and 1879, either alone or in concert with one or both of the other defendants, received rents and profits therefrom more than sufficient to reimburse the amount paid for such certificates, and the interest thereon, and since the last-named date has worked the mines, and converted to his or their own use large sums of money, amounting to $125,000; that William Jennings executed to his son, Isaac Jennings, one of the defendants herein, a deed purporting to convey 459-500 of William’s half interest in the Buckey mine; that this conveyance was without consideration, and was made with notice of all the facts affecting the title; that in 1880, and since that time, William and Joseph Jennings were requested, on behalf of the corporation, to account for the rents received and ores taken from the mines, and, after deducting the amounts due them for advances in buying in said property, to pay the residue, and convey the title acquired by the marshal’s deed. This they refused to do. And plaintiff also alleges a readiness at all times to pay the amount due for such advances; and, if such payments had not been made out of the rents and profits, an offer to pay is alleged. The plaintiff prayed that defendants be required to account for all moneys received for rent and for ores, and to pay the same to plaintiff, less advances [249]*249and proper charges, and that they be decreed to convey and release to plaintiff all their right and title through the marshal’s deed, and surrender possession of the mines; and plaintiffs prayed for such other relief as might be equitable.

The defendants answered, admitting that plaintiff was the owner of the mines prior to the sale, but denying the other allegations of the complaint. Defendants alleged, in their answer, that the stockholders, at the meeting mentioned in the complaint, refused to be assessed to raise the amount necessary to redeem the property from the sale mentioned, and that William Jennings then offered to advance the necessary sum, if Clark would join with him, and to make the redemption, if the corporation would agree to refund the same within three months,'* but the company refused to make such agreement; that no other meeting was held, and the stockholders wholly abandoned and forfeited its property and corporate franchise. The statute of limitations is also set up as a defense. Defendants also allege, in their answer, that, during the period they owned and were in possession of the mines and mining property, they expended large sums of money in the development and improvement thereof, which amount was largely in excess of all the receipts from the ore extracted from said mines, and disposed of by them, or any of them; that, as defendants were informed and believed, and alleged the facts to be, such expenditure exceeded the receipts by a sum of not less than $40,000; that the expenditures were made in good faith by defendants as the owners of the property, and thereby the same was greatly improved and benefited, and its value enhanced; that the work upon and improvement of the property, and expenditure thereon, was made with the full knowledge of each and all of the stockholders and officers of the company; that neither the stockholders nor officers, notwithstanding their knowledge, had ever objected to the said work, development, or improvement of the property, or to such expenditure thereon, but at all times had acquiesced therein. Defendants further alleged that they had held the title and possession of the property in their owii right, and still so hold it.

[250]*250On tbe trial the defendants objected to the admission of any evidence, on the grounds that the complaint stated no cause of action. The court overruled the objection. The defendants excepted, and assign such ruling as error.

It was alleged in the complaint that the summonses issued in the cases that resulted in the judgments and sales under which defendants claim title to the property were served on Samuel W. Niter, and that he was not a proper person upon whom to make service. If defendants’ right depended upon such a service alone, the complaint would present no equitable cause of action. But it further appears, from the allegations of the complaint, that after the sale, and before the time of redemption had expired, the plaintiff agreed that, if Jennings and Clark would redeem the property, and protect the interest of the company, and advance the money necessary therefor, such advance should beheld by them and treated by the company as a preferred debt; that, as security for the money advanced, Jennings and Clark should buy the certificates of sale and take the marshal’s deed in their own names, and should hold the title so derived until their advances had been refunded to them. The complaint contained the further allegations (with others) that Jennings and Clark made the advance to protect the rights of the company, and took the marshal’s deed in their own names as security. In view of such allegations, it cannot be said that the defendants had no equitable claim on the property until their advances were paid, unless the transaction is within the statute of frauds. And the allegation of payment in rents and profits rendered a statement of an account necessary.

A further objection was made to the introduction of evidence on the ground that the statute of frauds rendered oral evidence inadmissible. That objection was also overruled, and exception taken. That ruling is assigned here as error.

The defendants claim that, because of the statute of frauds, the'evidence offered was inadmissible to show that the marshal’s deed, absolute in form, should be regarded as an equitable mortgage, or that it was subject to a trust in favor of plaintiff. It does not appear from the com[251]*251plaint tbat an instrument of writing was subscribed by tbe parties, and tbe agreement set up in tbe complaint is denied in tbe answer. Section 1010, Comp.

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Bluebook (online)
5 Utah 243, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wasatch-mining-co-v-jennings-utah-1887.