110 Wash. 403 | Wash. | 1920
In this action the respondent sought to recover from the appellants some four hundred shares of the capital stock of a corporation known as The Camp Lewis Amusement Company; or, in the case return of the stock could not be had, the value thereof. As the assignments of error are based to a large extent on the admission of evidence, a somewhat minute statement of the issues is necessary.
In his complaint, the appellant alleged that the corporation named was organized for the purpose of developing a part and portion of the army cantonment known as Camp Lewis, which was set aside by the duly constituted authorities as Greene Park, and that for that purpose the corporation had become and was the owner of a certain license, franchise, and privilege, granted by the commanding officer of the cantonment on October 22, 1917; that the capital stock of the corporation was one thousand shares, of the par value of one hundred dollars each; that, on the organization of the corporation, the respondent became and was the owner of six hundred shares of such stock, and that the defendants Neely and Smyly each became and was
It is further alleged that, for several years prior to June 11, 1918, the appellant Appleby was the cashier ■of the National Bank of Tacoma, at which bank the respondent had for several years done a general banking business; that, in the course of such business, he had become acquainted and friendly with the appellant,
It was further alleged that, at all times prior to June 11, 1918, the respondent was treasurer and vice-president of the corporation, in the active management thereof, and was receiving á salary of $350 per month; that, as soon as the appellants Appleby and Kelly got possession of the stock, all of the defendants met and removed the respondent from his official connection with the corporation, and assumed the management of the corporation themselves; that, since assuming such management, the appellants have grossly mismanaged the affairs of the corporation; that, because thereof, many of the concessions theretofore granted have not been fulfilled, and the commanding officer of Camp Lewis has notified the company to perform work which has not been performed, and that there is danger that the concession granted the corporation may be can-celled ;'that all of said work would have been performed had he not been defrauded of his stocks and removed from the active management of the company; and that, by reason thereof, his remaining stock has greatly decreased in value and in earnings and dividends, all to his loss in the sum of ten thousand dollars. The prayer of the complaint is (1) for the return of the shares of stock, or in case they cannot be returned, judgment for their value in the sum of forty thousand dollars; (2) for judgment in the sum of ten thousand dollars for damages and injuries sustained by the de
The appellants Smyly and Neely answered the complaint jointly, and the appellants Appleby and Kelly answered separately. Their answers were, in substance, the same, and were in effect a general denial of the traversable allegations of the complaint. No special affirmative defense was interposed by Neely, Smyly, or Appleby. Kelly set up affirmatively, by way of a separate answer, that, of the six hundred shares of stock issued to respondent on the formation of the corporation, two hundred shares thereof were held in trust by the respondent for him, and that, by the terms of the trust, he was entitled to receive from the respondent, at any time on demand, a transfer to him of the stock. A reply was filed to the affirmative answer of Kelly denying each and every allegation therein contained.
The action was tried by the court sitting with a jury. The jury found “for the plaintiff and against the defendants Stephen Appleby, Elliott Kelly, P. "W. Smyly and H. J. Neely, that the plaintiff is the owner of and entitled to the return of the four hundred shares of stock in controversy;” further finding the value of the stock to be $33,000.
The shares of stock were introduced as evidence during the course of the trial. Later on, a question arose as to the form of verdict the jury should return, the question being whether the jury should make a finding as to the value of the stock. The court finding, on inquiry, that all of the stock was in court, ordered the same to be “impounded and held subject to the finding of the jury;” ruling that no finding of value need be made. Later on, however, the court changed its ruling in this regard, and submitted the question of value to the jury.
“It Is Now Therefore in Accordance "With Said Verdict, and in Consideration of the Premises, Ordered, Adjudged and Decreed, that plaintiff is, and at all times has been the owner of, and is entitled to have returned and restored to him the certificates, or shares óf stock described and referred to in the complaint, to wit:
“Certificates No. 13, 11 and 32, for 100 shares.
“Certificate No. 4, for 100 shares.
“Certificate No. 6, for 100 shares.
“Certificate No. 3, for 100 shares.
“It Is Further Ordered, Adjudged and Decreed that said shares of stock were, on the 11th day of June, 1918, of the value of thirty-three thousand dollars.
“It Is Further Ordered, Adjudged and Decreed that, within ten (10) days from the date hereof, the clerk of this court return and deliver said shares of stock to plaintiff, and in the event that it is impossible so tó do, that thereupon judgment will, on application, be entered in favor of plaintiff,.and against defendants, and each of them, in the sum of thirty-three thousand dollars, the value of said shares of stock, together with interest from the 11th day of June, 1919, together with the costs of this action.”
This appeal is from the judgment so entered.
The respondent moves to dismiss the appeal, basing the motion upon the ground that the controversy has ceased. The motion has for its foundation the affidavit of the clerk of the court in which the judgment was entered, to the effect that one of the attorneys for the defendants, within a short time after the judgment was entered, instructed him to tender and deliver the shares of stock then in his possession to the plaintiff in the action. He further affirms that some days later,
We cannot conclude that the foregoing shows a cessation of the controversy. If we were to take the clerk’s version of the conversations at its face value, nothing-more is shown when the subsequent proceedings are considered than that- the defendants at one time concluded not to appeal, and afterwards reached a different conclusion. Manifestly this does not amount to a. cessation of the controversy. The right of appeal must rest upon the acts of the parties appellant, not upon their mental operations between the time of the judgment and the time the appeal is definitely determined upon. It may be that, had the clerk correctly gathered the purport of counsel’s advice, had communicated it to the plaintiff, and the plaintiff had acted thereon to his injury, this court would not entertain the appeal until the injury had been corrected, or the plaintiff been placed in statu quo; but there is nothing in the record to show this act of the attorney in any manner operated to the plaintiff’s injury, or that his interests were in any manner thereby affected.
To our minds, however, there is not even the foundation indicated upon which to base the motion. As we read the affidavits, there was nothing more than a misunderstanding on the part of the clerk of the purport of the conversation between himself and the attorney, a misunderstanding not material, and by which the rights of no one were adversely affected. This under no circumstances could justify the dismissal of an appeal.
Passing to the specific objections, the appellants first complain of the admission in evidence of a written contract entered into between the appellant Appleby and the Northern Pacific Bailway Company, by which Appleby contracted to purchase, and the railway company contracted to sell, certain specifically described tracts of land not connected with the property here involved, and in which the respondent subsequently purchased an interest. In relation thereto, the respondent testified in his case in chief that he had made the purchase, investing therein some four thousand dollars and had not received from Appleby any writing showing his interests, or even a receipt for the money
The second and third assignments are based on evidence concerning a tentative plan which the respondent Proctor and the appellants Neely and Smyly had
The advisory committee before mentioned held a number of meetings of which minutes were kept and recorded. These were somewhat elaborate, reciting not only the conclusions of the committee but much of the discussion between the different members concerning the matters which the committee had under advisement. They contain, also, recitals of applications for the main concession from parties other than
It is elementary, of course, that the declarations of a party to the record, or the declarations of one in interest with him, are, as against such party, admissible as evidence; and it is elementary, also, that the acts and conduct of a party when inconsistent with his present claims, may be shown against him; but we find nothing in these minutes that justify their admission on either of the grounds stated. The only reference to a newspaper interview is found in the minutes of the first meeting of the committee, at the time of its organization, before the granting of a concession and before any scheme or plan for the furtherance of the objects for which the committee were appointed
Assignments five to nine relate to testimony on the part of the respondent as to the amount of work he performed and the amount of work performed by his copartners in interest, after the concession was granted, in the promotion of its purposes; the amount of money the respondent expended from the time he began his endeavors to secure the concession and the time he was induced to part with his stock and the amount of money he had withdrawn from the corporation; the time he had devoted to the affairs of the corporation as compared with the time devoted by the other owners of its stock; and the financial condition of the appellant Smyly, and the fact that the respondent had loaned him money which had not been repaid. This requires no comment. It in no way tended to elucidate the real issues between the parties.
After the respondent had made the assignment of the shares of stock in question to Appleby and Kelly, he became suspicious, as he testifies, that the truth had not been told him, and attempted to interview per
Assignments twelve and thirteen relate to the introduction in evidence of a newspaper interview prepared by the secretary of the advisory committee before mentioned. The articles, among other things, stated that, “no person on the executive committee will have any financial interest, direct or indirect in the venture,” the venture being the establishment of the amusement zone for the soldiers stationed at Camp Lewis. The article was apparently admitted on the theory that it was an admission or declaration against interest on the part of Appleby and Kelly. But it did not appear that either of the appellants had a part in the preparation of the article, or were consulted with reference thereto; nor did it appear that they had knowledge of its contents prior to its publication. Nor does it appear that either of them at that time had or contemplated having any interest in the enterprise. The respondent of course testifies that they at no time had an interest. Neely and Smyly testify that, after the concession was granted and after the corporation was formed and the concession assigned to it, which was
The subject of assignments fourteen to seventeen is the admission of testimony from certain members of the advisory committee to the effect that neither Kelly nor Appleby had ever made known to them that they had or expected to have an interest in the concession proposed to be granted. This evidence, if we have correctly gathered its purport, was admitted for the purpose of showing a disclaimer on the part of Kelly and Appleby of any interest in the stock. It is the rule, no doubt, that, when a person is silent concerning a fact under circumstances which make it his duty to speak, and another, in ignorance of the fact, acts thereon in a manner he would not have done but for such silence, the first party will not thereafter be heard to assert the fact to the other party’s injury. But to make silence operate as an estoppel or as a disclaimer of interest, the' circumstances must have been such as to make it a legal duty to speak. In this instance, assuming that the record shows that the appellants named would have an interest or purposed acquiring an interest in the concession proposed to be granted, they owed no legal duty to declare the fact to their fellow members of the committee. Their failure so to do is not, therefore, competent evidence of a want of interest or as a disclaimer of interest.
Assignments eightéen to twenty relate to the admission in evidence of certain-instruments relating to
The court permitted evidence of the number of minor concessions installed in the zone subsequent to the time the respondent was ousted as an officer of the corporation; this, on the principle that it tended to show the comparative amount of work performed for the benefit of the corporation by the respondent and by its other officers. Since it was the duty of the several officers of the corporation to give their best endeavors to its management, it was immaterial to any issue presented by the pleadings whether one of them performed more work to that end than another. But the evidence was objectionable in other respects. It permitted of a comparison wholly misleading as to
It may be that this, and many other of the several matters we have said to be inadmissible as evidence, would not be prejudicial if standing alone. Its accumulated mass, however, we think the record shows was clearly so. There was no direct evidence tending to show a conspiracy on the part of the appellants to deprive the respondent of his stock, and the indirect evidence connecting the appellants Neely and Smyly therewith, if one existed on the part of the other appellants, was extremely remote. There was but little evidence supporting the finding of value made by the jury concerning the stock. It rested entirely upon the statements of the respondent, and these were so qualified as to entitle them seemingly to but little credence. Again, it was the respondent’s claim throughout the evidence that he was the procuring cause of the grant of the concession, that his connection with it was its sole. element of value, and that the interests of the others therein existed solely by his grace. That these statements may not appear as exaggerations, a few short extracts from the record is permissible. In the testimony of the respondent concerning the interest of Neely in the concession, the following appears (the questions are by his own counsel):
*422 “Q. What,'if anything, did yon say to Mr. Smyly as to the change of the plan in the way in which the thing could be handled without the necessity of raising the large sum of money? A. I explained the plan to him in detail. Q. As you have explained it to the jury? A. As I have explained it to the jury. Q. Did you have any conversation with him about the interest which Mr. Neely was to have in the proposition after Neely had failed to raise the sum of money? A. Yes, sir. Q. What was that conversation? A. He asked me, as near as I can remember, possibly on the Friday or the Monday the concession was awarded to us, what disposition I was going to make with Neely, and I said,- ‘Smyly, Neely has probably done his best. I have been a salesman myself and I know how hard it is sometimes to raise money; and I think, while he made a’ misrepresentation to me, I believe, when he told mé he was worth four hundred thousand dollars, nevertheless,-1 think he is an older man, a man with a lot of experience; I think he has good judgment; I think wé can use ’him, and let’s give him the same amount promised to him originally, namely, one-fifth interest, and let’s take him in.’ ”
This -will be better understood when it is • remembered that Neely was the sole grantee of the concession; that neither the witness nor Smyly were named or referred to therein; and that Neely at'this time had the grant in his possession.
Testifying in his direct examination to the value of the stock of which he was' deprived, he stated that it had a value “of sixty-five or seventy thousand dollars.” On crossrexamination, his attention was called to a suit he had instituted seeking the appointment of a receiver for the corporation, begun after, he had parted with the stock, in which he verified a complaint stating that the corporation had assets of no greater value than $2,500, and had outstanding debts and liabilities approximating $11,000, and was insolvent. He explained by saying:
*423 “These statements are true as far as Mr. Neely and Smyly being manager of this company. This stock in my estimation is positively worthless as long as they are managers. I could have sold this stock very easily with my being manager for sixty-five to seventy thousand dollars, . . . very, very easily with my management in connection with the proposition. ... I mean to honestly and truthfully tell the jury that, under my management out there, I could make that stock worth every cent of that, and it could be sold for sixty-five or seventy thousand dollars at the time I was removed; and I mean to tell the jury the stock was not worth twenty-five hundred dollars with Neely and Smyly as managers.”
The verdict of the jury indicates that they took the respondent’s valuation of his powers at its full face value. It hardly seems that they would have done so had the evidence been confined to the legitimate issues.
The remaining assignments require no special consideration. On a new trial, which must be awarded, they will not recur in the form now presented, and any discussion of them would be without purpose.
The judgment is reversed, and the cause remanded with instruction to grant a new trial.
Holcomb, C. J., Tolman, Bridges, and Mount, JJ., concur.