Rocky Mountain Oil Co. v. Phillips
Rocky Mountain Oil Co. v. Phillips
Opinion of the Court
delivered the opinion of the court.
This action was brought by L. D. Phillips, appellee, to recover from The Rocky Mountain Oil Company the sum of $6,356.23 for services rendered by him as its assistant secretary and treasurer and assistant general manager from June 15, 1894, to June 1, 1897. There were two counts in the complaint: the first declared upon an express, the second on an implied, contract. The answer denied the implied, but admitted the express, contract and pleaded payment in full. Judgment was in plaintiff’s favor for the full amount claimed, and therefrom defendant has appealed. Toa clear understanding of the controversy a brief statement of the facts becomes necessary.
The Rocky Mountain Oil Company was indebted to certain of its stockholders and officers in a large sum of money, and it arranged with some of them for a loan of a further sum. To secure these debts the company executed a deed of conveyance of a large quantity of its personal property in trust to Henry I. Higgins, as trustee, conferring upon him full power to manage, sell and dispose of the same, and with the proceeds of the sale to pay the beneficiaries. Mr. Higgins accepted the trust and entered upon the discharge of his duties about the first of April, 1894. He was a man ©f extensive business
The principal stockholders and directors of the oil company lived at Cleveland, Ohio, and from that point, it would appear, its management was directed. Mr. Claflin was its principal representative in Colorado and held the offices of assistant secretary and treasurer and assistant general manager. About the 15th of June, 1894, he was called by his superior officers to Cleveland, and before leaving this state appointed the plaintiff assistant secretary, assistant treasurer and assistant general manager, and such action was afterwards ratified by the board of directors. No compensation for such services was fixed at the time of the appointment and not till about the month of August, 1896, although frequent and urgent requests were made by Mr. Phillips to the officers of the company to fix his compensation before their action allowing him $2,500 a year was had. The oil company continued its business as before the declaration of trust, and this business consisted of producing crude oil from its wells in Fremont county and selling the same to the Western Oil Company for refining.
Possibly some evidence, both in behalf of plaintiff and defendant, was offered and admitted which was immaterial, but notwithstanding this fact, as already indicated, we are clearly of opinion that defendant was not prejudiced by it, and, to say the least, it ivas as much responsible as the plaintiff for these irregularities.
Defendant now insists, as would seem from the testimony of its treasurer, that it knew of plaintiff’s hiring by Higgins at $200 a month and supposed when it engaged him to represent the company this compensation was to cover both employments, and that the naming of plaintiff’s salary in August, 1896, at $2,500 per year was merely an increase by $100 of that theretofore fixed; and the principal error relied upon for reversal is that the jury failed to give proper credit for payments, receipt of which the plaintiff, it is said, admitted, and that if this had been done there
It appears from the accounts brought up in the record that the plaintiff has received from the defendant company and the trustee a larger amount of money than the total amount of the salary here claimed; and if there were no sufficient explanation of this fact, possibly it would be our duty to reverse the judgment. Yet we are satisfied ¡that such explanation is furnished, as exemplified in the methods employed by the plaintiff with the sanction of the parties concerned, in conducting these two kinds of business under the two distinct employments. The trustee realized from the trust property between $55,000 and $60,000. Under the terms of the trust, it became his duty to turn this over to the beneficiaries. But it seems that soon after he entered upon the discharge of the duties of the trust it was agreed between the oil company and the trustee and the beneficiaries that such proceeds might be used to pay current expenses of the oil company and to discharge its indebtedness, and the crude oil which the company produced from time to time was mingled with the large quantity of oil which was transferred by the trust deed to Mr. Higgins, and the accounts of the trustee and the accounts of the company were likewise naturally commingled, and this with the knowledge and consent—certainly without' any objection— upon the part of all parties concerned. There was but one set of books for the two enterprises, though a separate cash book for the company was used.
In the statements which, from time to time, were made by plaintiff to his superior officers in Cleveland, it was expressly stated that he paid himself the salary of $200 a month, as agent of the trustee, out
The defendant invokes the familiar rule that where a debtor owes the same creditor two or more distinct debts and makes a payment on them he has the right to apply the money to such debt or debts as he selects. Such is the general rule, but we do not see how it applies in this case, though defendant seems to have convinced the trial court that it does. Defendant’s position is that it owed the plaintiff one debt, not two, and that one was for a salary at the rate of $2,500 a year, which it had paid. According to its contention, it had nothing to do with the salary of $200 a month which he claimed for services to the trustee.
But if, because of the apparent construction of the parties themselves that plaintiff’s entire service was in reality for the company, though under two distinct
Undoubtedly, in the absence of authority, express or implied, for him to do otherwise, this contention would be good, though not, correctly speaking, under the particular rule mentioned, unless we hold that the company owed both debts. But it clearly appears that in making statements to the company of his disbursements of its funds for which its drafts were forwarded and cashed by him, plaintiff specified his salary of $200 a month, not as owing by the company under his employment by it, but salary which was due him as agent of the trustee. The company acquiesed in this application of payments that were made from time to time, and üp to the date when the amount of his compensation from the company
Complaint is further made by appellant that the
To sum up, we say that the course of business adopted by the trustee and by the oil company, and sanctioned by the beneficiaries was such that plaintiff was entitled not only to the compensation of $200 a month from the trustee but also to a compensation at the rate of $2,500 a year from the oil company, and that there was such a commingling of funds of the trustee with those of the corporation with the consent of all concerned, that the plaintiff, as the manager of both branches of what really was the same general business, had the right to pay himself both salaries out of this common fund. To say the least, since the burden of proof was upon the defendant to show that it had made full payment of the compensation which it admitted was originally due, it has failed to discharge that burden by a preponderance of the evidence. The jury were the sole judges of the weight and sufficiency of the testimony, and we are not disposed to interfere with their verdict. They passed upon defendant’s claim that a full payment of this indebtedness had been made, under appropriate instructions of the court, and held that the defense was not made out; and, with all the evidence before them, found that there was a balance due, for which they gave a verdict.
Some other errors have been discussed, but we do not consider them important or deserving of consideration. While some irregularities occurred and some rulings were made which were not altogether justifiable, nevertheless we are satisfied that no prejudice resulted to defendant, and as we think that justice was done and a fair trial had the judgment should be affirmed and it is so ordered.
Afirmed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.