Patrick v. Bowman

This was a bill in equity originally filed by Bowman in the circuit court of St. Louis, and subsequently removed to the circuit court of the United States, against William F. Patrick and James M. Patrick, to rescind a sale made October 19, 1882, by Bowman to William F. Patrick, his then partner, of a five forty-eighths

The facts of the case were substantially as follows: In February, 1882, Bowman, then a resident of St. Louis, Mo., and temporarily in Leadville on legal business, as attorney of William F. Patrick, was introduced by one William H. Wilson, a mining promoter, to one Stebbins, who, with others, owned two adjacent mining claims in Leadville, known as the 'Col. Sellers' and 'Accident' claims, upon which no shaft had then been sunk to mineral, and it was then unknown whether the property had any value. The owners were looking for some one who would sink a shaft for a share in the property. Bowman, at Stebbins' request, visited the property, was pleased with it and its surroundings, and soon afterwards asked Patrick to join him in sinking the shaft. The result was that on February 17, 1882, an agreement was entered into between Stebbins and the other owners of the mine upon one part, and Bowman and Patrick upon the other, by which the latter undertook, in consideration of an undivided one-half of the property, a deed of which was deposited in escrow, to sink a shaft on the property to limestone in place or bed rock, if pay mineral should not be sooner found, and to obtain patents from the United States to said property, and further agreed to commence work in sinking the shaft within 30 days from the date of the contract. It seems the mineral in that district lies in nearly horizontal bodies, at the contact between porphyry and limestone; the porphyry being the overlying rock, and of varying thickness. The shaft was to be sunk through the surface earth and gravel, known as 'wash,' and the porphyry. The indications are generally apparent in the shaft, if there be an ore body below, and it be near; the porphyry becoming iron stained, and sometimes small seams or stringers of mineral are found in the porphyry leading to the mineral body below.

Bowman and Patrick were, between themselves, to be equal partners in the venture, each paying half of the expenses. Patrick, living at Leadville, was to superintend the sinking of the shaft, and keep Bowman advised of all that should happen in the partnership venture. In March, 1892, and for some time afterwards, Patrick was indebted to Bowman for money advanced by him on account of certain legal business then in his charge. Bowman returned to St. Louis, and did not meet Patrick again until June 19th, when they had a settlement, at which Bowman exhibited a willingness to sell out his interest to Patrick. A correspondence, both by letter and telegram, began soon after that date, which is fully set forth in the opinion of the court, and which resulted in a deed by Bowman of his entire interest in the property.

Upon the hearing in the circuit court upon pleadings and proofs, a decree was entered setting aside the sale, and adjudging that William F. Patrick refund the sum of $57,099.69, the amount of profits received by him on Bowman's interest to March 19, 1889, the date of the final decree. 36 Fed. Rep. 138. From that decree, Patrick appealed to this court.

C. C. Parsons, for appellant.

E. McGinnis, for appellee.

Mr. Justice BROWN, after stating the facts in the foregoing language, delivered the opinion of the court.