Leggat v. Leggat
Leggat v. Leggat
Opinion of the Court
Through this action plaintiff sought and obtained a decree annulling the sale, and canceling the conveyance, whereby defendant John A. Leggat acquired and held title to one-third interest in the Old Glory mining claim, situate near Butte City, in Silver Bow county, Montana, with provision for the restoration of said property to plaintiff, together with the rents and profits obtained therefrom by said defendant while he held the title thereto. The annulled sale and conveyance were made by defendant Roderick D. Leggat, acting as attorney in fact for plaintiff. The grounds for such relief, as alleged in the complaint, and affirmed by the decree,
Appellants assign in their brief, and urge in argument, two propositions, on which they insist the judgment is not supported by the evidence, and for which reasons it should be reversed: 1. Because the alleged fraud is not proved as charged in the complaint; 2. Because the proof shows that plaintiff acquiesced in, approved, and ratified said sale and purchase, and received the price paid with full knowledge of all the facts in relation to said property on which she now predicates fraud, and seeks to avoid the transaction. The pleadings and proof must therefore be reviewed from the standpoint of these assignments.
During the times mentioned in these proceedings, plaintiff resided in the state of Missouri, while defendants, her brothers-in-law, resided at Butte City, state of Montana, very near the location of the property in question. Plaintiff sets forth in her complaint that on the 5th of May, 1888, and for two years prior thereto, she was seised in fee and possessed of an undivided one-third interest in and to a certain quartz lode mining claim, known as “Old Glory mining location,” situate in said county, etc., giving particular description thereof. That on December 15, 1887, by power of attorney executed and delivered, she appointed and empowered defendant Roderick D. Leggat as her attorney in fact, to manage and sell certain of her real estate situate in Silver Bow county, Montana, and particularly her interest in said Old Glory mining claim, which power was accepted by Roderick D., and continued in force until revoked, in 1888. That such appointment was made because so advised by defendant John A., who, through his correspondence with plaintiff, had pretended to act as her friendly and confidential adviser in respect to her property and affairs in Montana, and particularly her interest in said lode claim, both before and after such appointment, whose state
Defendants made separate answers to the complaint^ but very similar in substance. There is no denial of the transfer of said property by Roderick D., acting as plaintiff’s attorney in fact, to John A., for $1,000 consideration; nor denial that plaintiff’s interest in said property was worth upwards of five
The trial ensued, whereat the respective parties introduced tlieir evidence, argued and submitted the case to the court without asking special findings, and with the understanding that the court, after due deliberation, would determine the case
Passing to an examination of the evidence, bearing in mind the assignments of appellants, it must be ascertained: 1. Whether the fraud was proved as alleged; and 2. Whether plaintiff acquiesced in and ratified the sale in question with full knowledge of the facts. '5
There appears to be no dispute that the conduct of Roderick D., as the attorney in fact for plaintiff, in reference to her interest in question, was a fraudulent betrayal of the trust reposed in him by plaintiff. But as to John A. it is contended there is no showing that he was in collusion with Roderick D., or guilty of any false representations or deceptions in reference to the subject of this action. We find ourselves, however, unable to place that interpretation upon his conduct or his representations in this matter. We find in the evidence, giving it as favorable interpretation towards John A. as it will bear, abundant support for the conclusion reached by the trial court. The attitude assumed by John A. towards plaintiff, as shown in his letters to her after the decease of her husband, Alexander J., seemed to have been calculated to lead plaintiff to place confidence in him, and to rely upon and'adopt his counsel in relation to her property in Montana. There is in these letters the appearance and expression of good faith, kindness, and earnest solicitude for the welfare of plaintiff, yet perfect independence and disinterestedness; even more, they exhibit a spirit of chivalrous generosity and magnanimity of one, strong, well informed, and experienced, towards the weak and dependent, mingled with occasional expressions of affection towards the widow and children of a deceased brother. In several voluminous letters written in that spirit to plaintiff, subsequent to her husband’s death, and during the year prior to his getting title to said interest in the Old Glory claim, John A. dwells at great length upon the condition of plaintiff’s property in Montana; advised the appointment of an attorney, with
= “I have some knowledge of every thing connected with all your property here, and will do, aid, help, and advise, to the uttermost of my power, to assist whoever you appoint, when requested or consulted in regard thereto, for your interests.” And again, speaking, evidently, of his own appointment as such attorney, in a letter of July, 1887, he said: “ I inclose you power of attorney to sign and acknowledge before a notary public; or, if you think of or desire any one else to act as such, do so at once, and I will help and advise, them all I can.” And again, in a letter of October, 1887, he observed: “ Mining property, especially, needs watchful care and promptness of action. I have suggested, time and time again, that you appoint some one with authority to act for you in matters out here. I have assumed it as far and as long as I could. Your property is being trespassed upon continuously, and no one to say stop.” Again, in the same letter, he said: “ Now, for the last time, I would suggest that, if you care about the property in this territory, give Rod., or some one, full power to act for you in these matters, or come yourself and look the situation over. Some thing should be done at once. You can rest fully assured that I will render all the help and do all I can to protect and assist your interests, no matter who you have to represent you.” Plaintiff appears to have adopted, relied upon, and carried out all these suggestions of defendant John A., to her ultimate disadvantage and loss, and, as it happened, with all his protestations of good faith, kind intentions, and his great solicitude for plaintiffs welfare, her loss was his gain. But his suggestions in reference to the appointment of an attorney, and the good offices he promised to volunteer.:for the aid and benefit of plaintiff, but never fulfilled, was not all of his conduct which tended to the disadvantage of plaintiff. He accompanied these suggestions “with a narration of facts and circumstances tending to depreciate, in plaintiff’s estimation, the value of her property*115 in Montana, and especially the Old Glory mining claim. rl hat claim seems to have been the central point of calamity, vexation, menace, and expense in the gloomy picture drawn by defendant John A. in his letters to plaintiff. In this regard he writes, in a letter of June, 1887: “I had a talk with Mr. Foster in regard to the purchase of your interest here in Silver Bow county in the properties. He did not want to buy, but has concluded, on my urging the matter, to do as I wish should be done. He owns interests in some of it, and as I have all the work, trouble, time, and expense to stand to maintain the title and possession, I feel that I am about weary of it; and I will sell what interest I have in the whole matter at what I can get, and let those that remain in táke the responsibilities and worry that I have so long borne without recompense, or hardly thought of thanks from my partners, whose interests I have maintained and protected so long.”
“ Mr. Foster declines to buy any of my interests, as he deems me a safeguard to his title. All the properties which are embraced in the deed which I inclose are more or less in litigation. The Old Glory especially had a heavy dose of trouble —an unpaid cost of suit in the supreme court, of over two years’ standing, and a pending suit against over one hundred people who have squatted on, and now occupy, the ground. None of the properties embraced in deed are producing any revenue, and will not, unless after the expenditure of considerable money to develop them.” ■ Again, in his letter of July 24, 1887, having drawn a very discouraging picture in reference to the property in which plaintiff was interested in Montana, and having said, “ None of this property is really of any value,” he continued: “The Old Glory claim, the title of which is not received from the government, is squatted on by over a hundred houses, on certain claimed titles thereto, which may involve possible bloodshed, or, at least, a long and troublesome lawsuit, to remove.” Again, he says, in a letter of October 25, 1887: “Some of the property is valuable, but no one that I know of can do a d-with it, and it will cost time, money, work, to settle difficulties which have already arisen in regard to much of it. Bod. will possibly tell you how easy it is to guard mining interests here from the encroachments of*116 designing and dishonest sharpers. Two instances m cases I will mention, which Hod. is cognizant of. The Old Glory has had two expensive lawsuits to maintain to defend its right. The last one, which went to the supreme court, I fought, I defended, and won, without the shadow of authority to do so from either you or Alex. Had this fact been discovered by the opposite parties’attorneys, the case would have been beaten. And now there is another lawsuit looming up, dark and ugly, as the whole claim has been squatted on and built over, there being upward of one hundred houses with families thereon. Suits of ejectment will have to be entered. Trouble, money, and maybe worse, will have to be expended, ere the end is reached.” His letters constantly reiterate such depressing and discouraging statements in reference to plaintiff’s interests in Montana in general, and as to the Old Glory claim in particular; and these statements are either wholly false, or gross exaggerations. It is true, there was some litigation in respect to said claim, but it does not appear to have been of a very formidable character. The main case, which he speaks of as having gone to the supreme court, was determined in 1885. (Leggat v. Stewart, 5 Mont. 107.) This case grew out of an adverse claim to the same property, under a location known as the “Haven lode location.” Such litigation in respect to mining claims of known or promised value is not uncommon. But the claimants of the Old Glory prevailed in said case in both the trial and appellate courts; and their title seems to have been regarded thereafter as so firmly established that of the one hundred occupants who had built residences thereon, it being in a populous mining district, more than two-thirds. of them made terms for ground rent without litigation. Some, however, were recalcitrant, and in 1888 one ejectment suit was instituted against some twenty-eight of them as defendants; but they made no appearance to dispute the right of the owners of the Old Glory claim to assert dominion over the ground they occupied for residences. It is admitted that no other litigation occurred in reference thereto.
The fact that the claim was so situated as to make its surface desirable for residence purposes greatly enhanced its worth to the owners; and the presence of these occupants, about
Was there collusion between John A. and Roderick D. in this affair? The facts admit of no other conclusion. The appointment of the latter as plaintiff’s attorney to manage and sell her property was suggested by John A. It is true, he was not the only person mentioned for' such appointment. Other names were mentioned, but accompanied with some suggestions of doubt as to their availability or willingness to act in that behalf. But the suggestion of the appointment of Roderick D. goes for very little in determining the question of collusion between defendants to mislead or defraud plaintiff, in the respect alleged. That determination proceeds upon the showing of alliance between them, and the co-operation of Roderick D. with John A., to the end that he acquired title to said interest of plaintiff for a grossly inadequate consideration. Acting against the interest of plaintiff, and contrary to his trust and duty as her agent, Roderick D. appears to have espoused the claim of John A., that he was the equitable owner of the interest held by plaintiff in said Old Glory mining claim, on his assertion that he had conveyed it to plaintiff’s husband to secure a loan of $200, according to John’s “information and bélief,” as he alleges in his answer, and therefore the legal title ought to be conveyed back to him, on payment of a mere fraction of its value, by way of redemption. Having thus subserviently allied himself with John A., and subscribed to his demands against plaintiff’s interest without even consul!
When Roderick D. wrote these false statements he knew that the title of the owners of the Old Glory claim was good and practically uncontested; that it was valuable, and salable in the market for a sum greatly exceeding $1,000; was yielding rents, so that plaintiff’s portion for one year would amount to about as much as the price for which the whole interest was sold to John A.; moreover, that practically, through the perfidy and collusion between himself and John A., the latter was paying the pretended purchase price with plaintiff’s own money, derived [from her interest in said property; and John A. knew the same while he was availing himself of the fraudulent conduct of Roderick D. to work out the evident design of John A. to get said property for an inadequate price. The conduct of each defendant operated harmoniously and directly with that of the other to accomplish the end ultimately achieved. The acts of each supplemented and combined with
“ I bought from Rod., your attorney in fact, your title to this Old Glory claim, paying $1,000 cash for your title of one-third interest therein. For the past four years this claim has been in lawsuits, and I am the only one of all interested that fought the fight. The other parties are useless and indifferent, and I had got my blood up to beat the attempted swindle, and carry the war on”; and, after saying more about lawsuits involving said claim, he observes: “The third interest I bought from you I deeded to Alex for a loan of $200, which I sorely needed.” Thereafter, Roderick.D. sent plaintiff $800, of said price paid, reserving $200 to pay expense in relation to some other interests of plaintiff in Montana. Plaintiff received said money, and did not then repudiate said sale, although she was in possession of the letters of John A. to Alexander J. and herself, which tended to show that John A. was not the equitable owner of said interest. From these facts it is argued that plaintiff was cognizant of all the facts which showed the fraud and imposition, if any was practiced on her, when she received, and retained for several months, the consideration for conveyance of said interest to John A. This conclusion is much broader than the facts disclosed by the record justify. With all the information and sources of information which plaintiff had in the letters of John A. and Roderick D., there was no showing that she had been imposed upon or defrauded. They had informed her to the contrary. And what difference did it make to her that John A., without just ground therefoi’, asserted that he was the equitable owner of said interest, if he had bought her interest, and paid plaintiff all it was worth, and more than any other one would pay? It was through subsequent investigation, outside of the information which plaintiff had when she received said purchase price, that she discovered the fraud and imposition which she had suffered.
The exceptions saved in the record as to the admission of certain evidence were not insisted on in the argument by appellants’ counsel. Our investigation of the record finds abundant support of the decree. It will therefore be affirmed.
Affirmed.
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