Lost Burros Gold Mining Co. v. Inyo County Bank

TYLER, P. J.

Action to quiet title. The property involved ' consists of a group of quartz mining locations in Inyo County, this state, together with a milling and reduction plant situate thereon. The sole question at issue in the court below was whether the mine and mill were the corporate assets and property of plaintiff Lost Burros Gold Mining Company, or whether the same belonged to the Montana-Tonopah Mines Company, at the time defendant acquired the property under an execution sale. The trial court found in effect that the property was vested in the Montana Company, and it is here claimed that the findings are not supported by the evidence.

[681]

The record is somewhat voluminous. Briefly summarized, it shows that the Montana Company negotiated with one Frank Campbell of Inyo County for the purchase of an autotruck to be used in handling supplies for the Lost Burros mill at an agreed price. The sale was completed and Campbell drew two bills of exchange on the Montana Company for the purchase price, payable to the Inyo County Bank. On December 30, 1916, the Montana Company indorsed its acceptance on the bills, payable ninety days from date. The Inyo Bank discounted the paper. Subsequently the Montana Company refused to pay. Suit was thereupon brought against it in Inyo County. A writ of attachment was served on the Lost Burros property on the theory that it was owned by the Montana Company. Judgment went in favor of plaintiff Bank. Execution issued and the attached property was sold to the Bank, and a sheriff’s deed issued to it. Thereupon Lost Burros Mining Company, claiming to be the sole owner of the property, brought this present action against the Bank to quiet title to the same. The question presented on appeal is whether the findings of the trial court to the effect that the Montana Company was the owner, are supported by the evidence. There is evidence to show that the Lost Burros Gold Mining Company was incorporated by one W. D. Blackmer and others under the laws of the state of California in May, 1914. The amount of its authorized capital stock was $50,000 and the number of shares into which it was divided was $50,000, of the par value of one dollar each. In July, 1916, the outstanding stock of the company consisted of 40,000 shares, which were owned by one Blackmer and others. One Badgett began negotiations with Blackmer and the other stockholders for options to purchase their holdings in the company. The rights acquired by Badgett and his associates were assigned to the Montana-Tonopah Mines Company, it being the intention of the latter company to acquire the property in dispute herein, either through the purchase of stock or by purchase of lands, and it entered into certain contractual relations with both of these ends in view. It succeeded in acquiring all of the stock in the Lost Burros Company, and the company executed a deed conveying its real estate to a Mr. Knox, who was president of the Montana Company, pre