1 Cal. Unrep. 173 | Cal. | 1865
A rehearing was granted June 5, 1865, but there is no record of any decision -or opinion on rehearing.
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
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
By his last will and testament Daniel Gibb appointed the defendant William Gibb his executor, but before the will was offered to the court for probate, William Gibb was appointed the special administrator of the estate, and thereupon became qualified and entered upon the duties of his office. After this 'and in February, 1862, the plaintiff filed his verified bill of complaint in the district court of the twelfth judicial district against William Gibb, special administrator of the estate of Daniel Gibb, deceased, William Gibb in his own person, Alexander Forbes and William TI. Richards. In his complaint the plaintiff sets forth the facts contained in the article of agreement entered into between Daniel Gibb and the plaintiff on the 25th of August, 1858. The plaintiff alleged that Daniel Gibb worked the mine under the contract entered into between the parties thereto to the time of his departure for Europe, and obtained therefrom large and valuable products, and a
In support of these specific allegations, the plaintiff and a bookkeeper Avho had examined the books made affidavits, with which copies of the books were submitted, showing that the same contained entries made at intervals of about six months, of the aggregate quantity of quicksilver sold during the specified interval, and stating the net proceeds of such sales. The gross proceeds of the sales were not stated nor the particular dates Avhen sales were made, nor when payments were received thereon. The plaintiff also by his affidavit makes an exhibit of thirty-two shipments of quicksilver to foreign ports, con-
The plaintiff -deposed that from a careful examination of the books, and the accounts rendered him by Daniel Gibb, he could find no dates of amounts -of sales rendered by the consignees of quicksilver except as indicated in the thirty-two shipments mentioned; and he also deposed that Daniel Gibb had never rendered him any of the original account sales received from such consignees, nor copies of the same except in a single instance, and that therefore he had been unable to verify the accounts rendered in respect to the large items of interest dependent thereon, or in respect to the item of exchange growing out of the differences of foreign currencies in which the proceeds of sales were realized. He also deposed that many of the entries in the cash-book purporting to be for cash advanced by Daniel Gibb were made when he was in funds from the proceeds of the mine; and he charges that the same entries were fictitious, and made to enable said Gibb to obtain interest -on pretended advancements in fraud of the plaintiff’s right in the premises. The plaintiff further deposed that Daniel Gibb had, during nearly the whole period of their connection in business, obtained advances on the shipments made of the quicksilver of the mine to foreign ports, and that except as to three shipments, no entries whatever of advances were made in the books until sometime in May, 1862, when after repeated complaints of the plaintiff, Daniel Gibb, by entries in the book called the journal, gave credit for what he stated to be all such advances, amounting in the aggregate to about one hundred and ninety thousand dollars; that the
The affidavit of the bookkeeper is in corroboration of the plaintiffs' allegations of misconduct in the matters of account between the parties, and shows affirmatively, from the books and other data of transactions from which he derived his in
It is not necessary to particularize further as to the deficiencies and inaccuracies of these books and accounts. The plaintiff claims, and we think justly, that he was entitled, under the contract between himself and Daniel Gibb, to an account once in six months exhibiting truly the amount of sales of the product of the mine and when made, as well as the amount of moneys paid and disbursed by Daniel Gibb in carrying on the business of the enterprise in which they were mutually concerned. And that he might become informed of the condition of the affairs of the mining business, his associate Gibb was in duty bound to keep books and accounts which should exhibit the transactions of the mining business as they actually transpired, and from which the half yearly accounts to be rendered could be made up, so as to afford proper data upon which settlements between them could be made. He also maintains, and we think with equal justice, that Daniel Gibb had no right to appropriate to his own use the proceeds of sales of quicksilver after the same were received without giving to the plaintiff the immediate benefit of the share thereof belonging to him in extinguishment of the principal and interest due from him to his associate for advancements made on account of the mining business, and also that it was his duty to account for whatever gains might have been derived from the use thereof while the same remained in his hands; nor the right to charge commissions on interest, nor interest on commissions retained; nor the right to charge plaintiff with both interest and commissions on money advanced to him; nor to compound the interest upon the advances made by him on account of the mining business; nor to credit himself with having paid rents when in fact he had not paid the same.
The charges made by the plaintiff against Daniel Gibb and the defendants were sought to be met by the defendant Will
The matters charged in the complaint and affidavit of the plaintiff, taken as true, in our judgment authorized and demanded the interference of the court below by the injunction granted; and the right to this remedy to secure redress for the injuries and grievances which the plaintiff had sustained by the misconduct of his associate in business, as alleged in the most solemn and accredited mode, must be deemed as established for the purposes of the case as it now stands before us, unless it appear that the matters so alleged and sustained by other evidence in corroboration was reduced at least to a state of equipoise by the affidavits and proofs produced on the part of the defendants.
Regarding the affidavits of William Gibb as putting in issue the allegation of the plaintiff’s complaint and affidavit, is perhaps giving to them more importance than is their due; but so regai'ded, they fail to overcome the plaintiff’s proof derived from the books and other data obtained from Daniel
It is not our purpose to express an opinion as to all the questions submitted to us in this ease, as to do so we apprehend would not afford to the parties any more certain guide for the future than they now have, and if it would, we deem it inexpedient to do so, as the undertaking would involve a labor perhaps without precedent in this court, and would require an opinion of inexcusable length.
The record and argument of counsel exceed seven hundred printed pages, all of which we have examined and to the same have given a deliberate consideration.
By the instrument in writing entered into between the parties in August, 1858, Daniel Gibb was declared to be the agent, and it was agreed that he should continue to be, until the termination of the lease therein referred to, the sole agent and attorney irrevocable of the plaintiff, and of the interest conveyed to him, in all matters and things appertaining or in any way belonging to and concerning the lease and the interest in the lease conveyed to him by such instrument, and that said Gibb should continue to work the mine and manage the concerns thereof and of the lease in such manner as to him might seem most to the advantage and interests of those concerned therein.
The plaintiff’s counsel insist that the office of Daniel Gibb as the agent and manager of the mining business of the parties could be fulfilled only by his personal service, and that as a consequence he could not delegate to a substitute the performance of those services, and that by attempting to do so and leaving the state without the plaintiff’s consent, he abandoned the contract and thus by his own act rendered further per
It is argued on plaintiff’s behalf that as the contract between the parties was for the personal service of Daniel Gibb as the agent and manager of the business of the mine, including all necessary expenditures and all sales of its products, the agency created and the powers reserved or granted, as the case may be, ceased with his death; while on the part of the defendants it is maintained that the powers reserved by Daniel Gibb, and conceded by the plaintiff as manifested by their contract, Avere powers coupled Avith an interest in Daniel Gibb in the subject matter to Avhich the contract related; and this fact being assumed as true, it is argued that the agency, with all its incidents, survived the death of Daniel Gibb and of consequence passed to those who succeeded to his estate as his heirs, legatees or devisees or personal representatives. Daniel Gibb was not and could not be, in a strictly legal sense, the agent of his OAvn interest in the mine and the contemplated productions of it. When he granted to the plaintiff one-third of his interest and estate in the leasehold and property of the mine he reserved the right to manage and conduct the business of the enterprise. With the property acquired by the plaintiff by the grant, the agency reserved or derived was not united by any interest of Daniel Gibb therein; nor had he a property interest in the plaintiff’s share therein, except by way of mortgage or lien as security for the due payment of all outlays and expenditures made or liabilities incurred or to be incurred on account of Avorking the mine and managing the concerns thereof, and as security for the
Had Daniel Gibb' lived the power reserved would have remained irrevocable unless cause had been shown for the interposition of a court of equity and for the exercise of its equitable jurisdiction depriving him of it. But when he died the agency which he had exercised in the premises for the plaintiff no longer survived.
The plaintiff and Daniel Gibb, as to the leasehold estate, were, tenants in common, and as to the business of mining and the products of the mine and the moneys arising therefrom, they can only be considered as partners. By the contract between them the plaintiff granted to his partner the power to manage the business of the partnership, and by the same instrument certain rights were reserved to each of the parties, and certain duties and obligations were assumed by them respectively. Their relations to each other were analogous to those of the parties in Dunham and Dimon v. Jarvis and others, reported in 8 Barb. 88, which was a case where a ship was owned and employed by the parties to the suit. As to
It is argued by the defendants’ counsel, upon the authority of adjudged cases, that there can be no ouster between tenants in common in possession, and therefore if one takes more than his share of the profits, the only remedy is by account or by bill in equity: Searle v. Colt, 1 Younge & C. 42; Frink v. Mornwaring, 2 Beav. 119; Tyson v. Fairelough, 2 Sim. & S. 144; Street v. Anderton, 4 Bro. C. C. 414. The suit by the plaintiff is by bill in equity having for its object to obtain a judicial determination of his right in the premises as a surviving partner, and further to obtain an account from the representative of Daniel Gibb, and his agents in whose hands was a portion at least of the partnership assets.
By the death of Daniel Gibb not only did the agency which he before then exercised in respect to the plaintiff’s interest ill the mining business become extinct, but the partnership existing between them in working the mine became dissolved, and the rights which pertain to a surviving partner upon dissolution of the partnership by the death of one of the partners thereupon accrued to the plaintiff, and he then became clothed with authority to proceed and close up the business of the partnership: Ex parte Williams, 11 Ves. 5; Villiamy v. Noble, 3 Meriv. 614.
The agreement by which their partnership relations was established did not provide for its continuance after the death of Daniel Gibb. Even if the language of the instrument tended to support the theory of a continuance of the partnership after Gibb’s death, it would not be admissible to hold that it survived that event, so long as the question, might be involved in reasonable doubt, for in the absence of the clearest and most unambiguous language establishing that Daniel Gibb provided for the continuance of the partnership, it cannot be found that he designed that the estate which he might leave at his death should be embarked in an enterprise to be managed by his surviving partner or some other person: Story on Partnership, sec. 319a.
It is claimed on the part of the defendants that this injunction interferes with the interest of the estate of Daniel Gibb in the mine, and that by it his successors in interest, represented in the person of William Gibb, are prevented from the use and enjoyment of the portion of the premises which belongs to them. But is this true by the terms of the injunction? It was the plaintiff’s interests in the lands and mine and the quicksilver products, proceeds and profits thereof that the injunction operated to protect and nothing more. That he was entitled to protection as to these results from the rights which he then possessed as the owner of one undivided third of the property, real and personal, and as the survivor of the partnership. It may be true that the interest of the estate of Daniel Gibb, deceased, in the mine could not, while the injunction may be in force, be rendered of use and profit, because of its conditions as interbleuded with the interest of the plaintiff therein., but that is a predicament of its condition, and is unavoidable, unless the plaintiff’s interest is denied protection. If the party holding an undivided interest in property as a tenant in common with another, the usufruct
If Daniel Gibb had continued to live, it may be the working of the mine and his management and prosecution of the business of the enterprise could not have been, suspended by injunction, nor a receiver or manager appointed to take charge of it, provided adequate security was given on his part to account and pay to the plaintiff his share of the proceeds of the mine (Dunham v. Jarvis, 8 Barb. (N. Y.) 88; Street v. Anderton, 4 Bro. C. C. 414), but having died, new relations between the plaintiff and those succeeding to the property rights of the deceased arose. By this event the agency of Daniel Gibb for the plaintiff ceased, the partnership in working the mine became dissolved and the plaintiff succeeded to the rights of a surviving partner, and as such is in a position to require an accounting by the personal representatives of the deceased and the immediate agents whom he employed to dispose of the products of the mine.
This case has been ably and elaborately argued by the counsel engaged in its investigation, and many decisions of courts and works of elementary writers of high authority have been cited in support of the positions by them respectively assumed, which we have not passed by without examination, but we have omitted any special reference to many of them because of the great length to which our opinion would be extended were we so to do.
What may appear to be the ultimate rights of the several parties to this suit when the same comes to be tried and determined upon the merits, we can have no opinion. But if it
Order affirmed.