Arizona republican., 1912-06-24
s50,oO0 SUIT
 REACHES END
Decision Last. Week by the Supreme Court of Old and Important and Five Year Litigation From Cochise County


 decided by the supreme court last | week, one involving more than $5O,O00 1 was that of Madison F. Larkin. ap- pellant, against w. c. Hagan B. i James. Hagan Mercantile Company and the Gibson Abstract company, | trustee, appellees, from Cochise cOun- | ty. This litigation had been before 1 the courts of the territory and state for the last five years.
 The action was brought in 1908 by the appelees to quiet their title to thirteen mining claims in the Cali fOrnia district in COChiSe county and in which they attacked the title of the COchise Consolidated Copper com pany, and it was set forth in their complaint that they had in 1908 Ob- tained four judgments against the copper company, on open accounts and notes for merchandise furnished and cash advanced the copper com pany, aggregating more than $29,000. In each case, on the day of institu tiOn attachments were issued and levied upon the claims and these at tachment liens were fOreclosed at the time of taking judgment. The prop erty was afterWard sold to the Gib- son Abstract company as trustee for the judgment creditors The sher- ifs deed was executed and deliV cred to the abstract company in April, 1909, and this suit was insti- tuted by the appellees in the follow ing September.
 The appellant Larkin answered, de- nying the allegations of the complaint and by cross complaint asserted his title to the thirteen mining claims The history of his title showed that in March, 1907, he advanced the cop per company $21, 300 and took it's note for that amount secured by a trust deed on the mining claims. After the note fell due he began suit and took judgment by default and he obtained a decree fOreclosing his trust deed against the mining claims. This was in August of that year, 1907. A month later the appelleeS, that is, | Hagan and James beside ten other persons described as stockholders, filed motion in the district court of Cochise county to set aside the ap- pellants judgment and asked permis-
 sion to intervene and file an answer.
 Tn this motion for intervention James ! appeared as director, secretary and : stockholder in the copper company,
 and Hagan. as director, stOckholder ! and creditor. On these allegations
 Judge Doan. of the district court.
 vacated the order of August and then
 the appellees filed their answer to the 1 foreclosure proceedings. It was stat ed among other things that Hagan who was one of the principal cred itOrs of the copper company had agreed to furnish $20.000, if necessary, for the making of the final payment
 on the purchase price of property
 but it was stated that the officers of
 the company and directors saw fit
 to deal with Larkin. The answer also
 contains allegations of collision and
 conspiracy between Larllir and the directors and officers of the com
 pany for the purpose of getting title
 to the property by means of trust
 deed and the rcOrganiZing of the company so as to render worthless
 the stock of the defendants an1 inter venors. It was disclosed Dy the lDleadngs hat the company had been
 organized by Hagan James and
 others.
 It was admitted in the answer that a special meeting of the board of directors had authorized the trust
 deed to Larkin but it was denied that the meeting was legally called. The
 intervenors said that they had had no notice of the business of the meeting,
 or the contents of the trust deed or
 of the tendency of the proceedings until within the last three weeks be- fore filing answer.
 The onpaIIaaC further Obiqcte6 to ] the trust deed on various technical grounds. one was that the deed did { not bear the corporate seal of the { company; that it was not acknoW- { ledged in such a manner as to entitlt it to record, that it was not asknoW ledged as the free act and deed of the { corporation; that there was an omis- ! sion of the words, for the purpose and consideration therein expressed }l At the conclusion of the case the court stated that the deed will be ! admitted subject to objection" anC > thereafter the court entered Judgment ! ouieting title of the appellees to th' { mining claims in controversy.
 {l Judge w. H. StilWell, of this city { who was the attorney for Larkin S appealed, making eleven assignment N O1 error WHICH, III HIS OpIlliCIi' AN ! Versing the lower court, Justice RoS ! condensed into three, sustaining ever! { contention of the appellant. In thu ( first place it was held that the cour - had erred in not sustaining the ap ~ pellant's plea of res adjudicata by tn {I order of July 6, 1908, no appeal O writ of error having been taken. S That the court erred in rendering ! judgment for the appellees who hat ! full knowledge of the execution O ! the trust deed the necessity, pur $ pose and consideration and as stoc q holders had received their propor S tionate benefit from that transaction It was also held that the trust dee' < was good in form and substance. ! was held also that the foreclosur suit of Larkin against the company ] the judgment of the court was fina { and determnative of all the right : of the parties thereto and that judg = ment having foreclosed the lien an
 made it superior to all other lien: NJ the liens of Hagan and Jacobs wer ' concluded thereby. Hagan and Jame
 l even though they had not been par