McConnell v. Denver
McConnell v. Denver
Opinion of the Court
We think the evidence insufficient to justify the third finding, to the effect that the defendants executed the note upon which the action is brought, by their agent, Denver, and that said Denver had full power and authority to make and execute said note, by virtue of his being a partner in and agent for the company.
There is no conflict in the evidence as to the material facts in the case, and it shows, that the defendants constituted one of the ordinary unincorporated ditch companies so common in the mining regions, owning a ditch which conveyed water from a certain stream to a distant mine, for sale to the miners for mining purposes'. The interests were held by the owners in different proportions, in shares, represented by certificates of stock, which were bought and sold at the pleasure of the owners, without consulting their có-owners. The ordinary relations of the stockholders in these associations, like those in the usual mining companies, organized and conducted upon similar principles, and sometimes called mining partnerships, are not those of strict commercial partnerships, but are more in the nature of tenancies in common. (Bradley v. Harkness, 26 Cal. 77; Skillman v. Lachman, 23 Cal. 201; Duryea v. Burt, 28 Cal. 587; Abel v. Love, 17 Cal. 237; Set
So, in the present case, there was not only no evidence to show that Denver had express authority to execute the note, but, it was affirmatively shown that he had not, and it was
Hpon the findings, the judgment should have been against Latham, as well as the other defendants. The note purports to be the note of the company, and the third finding is, that Denver had authority to make and execute the note. The sixth finding is entirely consistent with the third, and finds that Latham was a member of this company at the time of the execution of the note sued on. If he was a member when the contract sued on was made, and the contract was. executed by a party duly authorized, he must, of course, be bound by it, as well as the other members.
The judgment and order denying a new trial must be reversed and a new trial had, and it is so ordered.
Mr. Justice Sanderson, being disqualified, did not participate in the decision.
Reference
- Full Case Name
- THOMAS McCONNELL v. A. St. CLAIR DENVER, S. W. SANDERSON, PETER DONAHUE, S. B. WELLER, and J. H. LATHAM
- Cited By
- 8 cases
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- Published
- Syllabus
- Ditch Companies for Sale of Water.—Unincorporated ditch companies, organized for the sale of water to miners and others, the stock in which is bought and sold at the pleasure of the owners, without consulting the co-owners, differ from ordinary commercial partnerships. Some of the incidents of a partnership pertain to such companies, and some of mere tenancies in common likewise pertain to them. Power of Member of Ditch Company.—A member of such a company has no general authority by virtue of such membership to bind the company by his contracts. Power of Superintendent of Ditch Company.—The superintendent or managing agent of such company has no authority to bind the company by a promissory note, given for materials used by the company, unless the authority to give such note is expressly conferred upon him by the company, or such authority may be implied from his acts recognized by the company, with full knowledge of the acts at the time of the recognition. Note of Ditch Company.—If an unincorporated ditch company duly authorizes its superintendent to give the company note for materials before then purchased by the company, all the members are bound by the note, whether they were such members when the materials were purchased or not. Contract of a Company.—If lumber is furnished a ditch company under the agreement that it is to be paid out of the proceeds of the ditch of the company, and the proceeds have all been faithfully applied in payment, according to the agreement, the person who furnishes it is not entitled to recover the deficiency against the members of the company.