Slater v. Gribbel
Slater v. Gribbel
Opinion of the Court
Appellant Slater brought this action in equity, asking the court to adjudge him a four-tenths interest in certain lands, in King county. After issues were made upon the pleadings, and after a trial on the merits, the court, without making any findings of fact, entered a decree adjudging that appellant Slater was entitled to a four-tenths interest in the lauds in question, on condition that within four months from the date of the decree he would repay to respondents the sum of $27,500 borrowed from them, and the further sum of $21,100, being four-tenths of the purchase price of the land paid by respondents, making a total of $48,600. Prom that decree Slater has appealed.
There is some dispute of the facts upon the record, but after carefully reading the same, we find the following to be the substance of the facts in the case: Prior to July, 1902, the heirs of John McHenry, deceased, were the owners of about one- thousand, one hundred and seventeen acres of land, in sections 26, 30, 32, and 36, in township 21, north, of ranges 6 and 7, in King county, which lands are supposed to contain deposits of coal. J. B. Metcalfe was attorney in fact for the heirs of John McHenry, deceased. In May and June of 1902, appellant Slater, who is a resident of Washington, D. O., accompanied by respondent W. S. Bowen, went to the office of John Gribbel in Philadelphia, Pennsylvania, and there represented to Mr. Gribbel that they had an option to purchase the lands above mentioned; that they wanted to take up the option and acquire the title to said lands and
They then came to Seattle, whereupon appellant Slater employed one D. B. May to call upon J. B. Metcalfe for the purpose of purchasing the land above referred to. Mr. May did so, and on July 21, 1902, entered into a contract with Mr. Metcalfe by the terms of which contract Mr. Metcalfe, for the heirs of John McHenry, deceased, agreed to sell and convey said lands to said May for the sum of $35,000, Mr. May agreeing to assume and pay the back taxes which were then due and delinquent in a large amount. Slater furnished May $100, which was paid down on the contract. The balance was to be paid as soon as the title .in fee, subject to' the taxes, could be conveyed to Mr. May. Mr. May thereupon, on the same day, to wit, July 21, 1902, at Slater’s request, entered into a contract with Slater, by which contract Slater agreed to pay to Mr. May the sum of $100,000 for the prop
With this contract in their possession, Slater and Bowen returned to Pennsylvania, where they began to solicit funds which they stated were for the purpose of meeting the $25,000 payment due on September 1. They represented, that said D. B. May was the owner of the land; that Slater held a contract for the purchase thereof from May for $100,000; that $15,000 of this sum had been paid, and that the lands were valuable for deposits of coal contained therein; that they intended to form a corporation as hereinbefore stated, and that they had arranged with a New York trust company to float the bonds for $300,000 as soon as a good title was obtained to the lands. Upon the strength of these representations, they succeeded in borrowing about $36,000 from the respondents, in addition to the $20,000 hereinbefore referred to, issuing individual contracts promising to repay each person contributing money the amount he contributed as soon as the $300,000 in bonds were realized upon, and also promising to deliver to each person a stated number of shares of stock of the Green Biver Coal Company when the same should be incorporated. The whole of the money realized in this way was turned over to the appellant B. Y. Slater. Ho payments were made upon the contract between Slater and May, and no further payment was made upon the contract between May and Metcalfe.
In October, 1902, King county, in which the lands were located, instituted proceedings to foreclose its lien for taxes upon the lands. Thereupon Mr. Metcalfe demanded of Mr. May that he pay the taxes against the lands. Mr. May, in turn, demanded money.of Slater for that purpose. Slater refused or neglected to advance any money for this purpose,
Appellant Slater, upon this appeal, argues that he is an equitable owner of the lands>, because (1) the title of respondents was acquired from Mr. May, with whom he had a contract for the purchase thereof, which contract was known to respondents, and also because he had paid $40,000 thereton; (2) because he had not abandoned the contract; and (3) because respondents took title direct from May before the last payment upon Slater’s contract became due, and were therefore estopped by their own deeds from contending that
It is sufficient answer to all these positions to say that Slater’s fraud, which is clearly shown upon, the record, gives him no standing in a court of equity. His acts from the beginning clearly show his fraudulent intention. He represented to respondent Gribbel in June, 1902, that he had an option on the land. This representation was absolutely false. He had no option of any kind at that time. He probably knew that he could acquire a title at that time, but he had none then. On July 21, 1902, he could have purchased the property for $35,000. He did not do so. Instead of that, he employed D. B. May, who knew nothing of the property and who had no money, to go to Mi\ J. B. Metcalfe and purchase the property. May entered into, a contract with Metcalfe for the purchase of the property for $35,000, paid $100 down with money furnished by appellant Slater, and then, at appellant’s request, entered into a contract with appellant to sell the property to him for $100,000. This was a fraud upon the face of it. The contract recited that $15,000 was paid thereon. This was false. With this contract as a basis, appellant collected $36,000 more money from respondents, upon false and fraudulent representations. He made no payments upon the contract, except the sum of $100. He received and converted to his own use more than $50,000 by these fraudulent representations, and now, when the fraud is discovered by the persons defrauded, and they turn away from him and seek to protect themselves by purchasing the land for about onerhalf the sum he had agreed to pay for it, he asks a court of equity to adjudge him a four-tenths owner by reason of an alleged $40,000 payment which he never made, and to make which respondents furnished $40,000. But for the timely interference of respondents, the whole property would have been lost to them through foreclosure of delinquent taxes, and their only recourse would have been against Slater personally.
The judgment appealed from is affirmed, with costs against appellant Slater.
Dunbab, Root, Rudkin, Eullebton, Hadley and Cbow, JT., concur.
Reference
- Full Case Name
- Robert Y. Slater v. John Gribbel
- Status
- Published
- Syllabus
- Equity — Claim to Equitable Interest In Purchase oe Land— Fraud oe Plaintiee — Reliee in Equity. No standing in a court of equity is shown by one who fraudulently misrepresents that he is the owner of coal lands, and after securing an option for $100 for the purchase of the property at $35,000, further fraudulently represents that he has entered into a contract for its purchase at $100,000, upon which $15,000 had been paid, and thereby and by agreeing to organize a corporation and float bonds to reimburse investors for advances, secures advances to the extent of $50,000 which he converts to his own use, and refuses to either purchase the property or pay the taxes; and the persons whom he has defrauded may, to protect themselves, purchase the property independently and for their exclusive benefit, even before the time for his option has expired.