Asleson v. Allison

• Decision Date: 31 March 1933
• Docket Number: 28,975
• Citation: 247 N.W. 579,188 Minn. 496
• Parties: EMIL ASLESON AND OTHERS v. LAWRENCE R. ALLISON AND OTHERS
• Court: Minnesota Supreme Court

247 N.W. 579

188 Minn. 496

EMIL ASLESON AND OTHERS v. LAWRENCE R. ALLISON AND OTHERS

No. 28,975

Supreme Court of Minnesota

March 31, 1933

Defendant Lawrence R. Allison appealed from an order of the district court for Hennepin county, Mathias Baldwin, Judge denying his motion for a new trial. Reversed.

SYLLABUS

Receiver -- appointment -- action by creditors.

In an action by creditors to reach certain property in the possession of the appellant which was formerly owned by plaintiffs' debtors, for the appointment of a receiver, and to have appellant adjudged a trustee of the property for the benefit of the plaintiffs and others similarly situated, it is held that the evidence is insufficient to support a finding that the property was in reach of plaintiffs, or that appealant was trustee of the property, or to warrant the appointment of a receiver.

Carl A. Youngquist and Lawrence R. Allison, for appellant.

P. A. Wells, for respondents.

OPINION

WILSON, CHIEF JUSTICE.

Defendant Allison appealed from an order denying his motion for a new trial.

Charles Rank and Harry O. Dahl were partners for the development and operation of a fur farm. Each of the plaintiffs held a separate contract, all of the same substance, one of which is as follows:

"AGREEMENT

"This agreement entered into by and between O. A. Roedell, Minneapolis, Minnesota, and Minnesota Northern Fur Farms Company of Minneapolis, Minnesota, do hereby agree that in consideration of the sum of Five Hundred Dollars ($500.00), receipt of which is hereby acknowledged, O. A. Roedell is herewith entitled to not less than One Tenth (1/10) of One Third (1/3) of the total of all profits from the sale of PAIRS of muskrats by the Minnesota Northern Fur Farms Sales Company and also the same proportion of profit from the receipts of the Minnesota Northern Fur Farms Holding Company, said Holding Company to operate ranching farms to be owned and controlled by the same members of the Sales Company and said O. A. Roedell to have same interest in profits in either Company in same proportion as herein above first mentioned.

"Said Holding Company to have and to hold all land and equipment of ranching farm or farms and also Fifty Per Cent (50%) of litters of all rats so placed therein by the Sales Company.

"This Agreement can only be terminated by said O. A. Roedell, his heirs or assigns, and in case of his or their desire to sell his above interest, said O. A. Roedell hereby agrees to give the Minnesota Northern Fur Farms Company the first option on his interest.

"This agreement executed in duplicate this Tenth Day of March, 1927.

"(Signed) O. A. Roedell

"(Signed) H. O. Dahl

"Secretary and Treas.

"Minnesota Northern Fur Farms

Company, Minneapolis, Minn.

"WITNESSES:

"(Signed) Chas. E. Brooks

"(Signed) Frances H. Dahl"

From May to November, 1927, the partnership sold "pairs" of muskrats, realizing about $2,750, and these contracts provided for the rats to be kept on the fur farm and ranched by Rank and Dahl under arrangements as therein provided and which contemplated a profit to the owners of the rats and to the owners of the fur farm.

In April, 1927, a lease was obtained from C. J. Olson for 80 acres of land, and the consideration therefor was a contract similar to the one above set forth. In November, 1927, Rank and Dahl purchased 40 acres adjoining the Olson 80.

In January, 1928, Rank and Dahl dissolved the partnership, Rank assigning his interest therein to Dahl.

On May 1, 1928, Dahl assigned and transferred all the property which he then owned in this enterprise to appellant, an attorney, the consideration paid by Allison being about $1,400. Dahl was apparently not making a success of the business. He seems to have caused the $1,400 to be used mostly for the payment of certain debts. He also procured an agreement from Allison as a part of the transaction to acquire 160 acres of land to complete the farm, to complete the necessary fence for the operation of the farm, and to ranch the muskrats which had been so sold under contracts, which was apparently to carry out Dahl's duties under such contracts, and to give Dahl one-half the net profits realized from the performance of these particular kinds of contracts. It seems, however, that no provision was made for plaintiffs or others similarly situated.

Allison did more than to acquire the 160 acres. He acquired 200 acres. He completed the fence inclosing a lake and marshy land of about 240 acres of the 320 acres. He also completed a caretaker's cottage on the premises and claims to have expended about $5,000 in improvements upon the property. The exact amount is not shown. A portion of the money, perhaps $3,900 so expended, was raised by pledging the property to one Kirk.

Allison has refused to recognize any responsibility in relation to the contracts held by plaintiffs and others similarly situated, and claims he knew nothing as to the existence of these contracts until after he made his deal with Dahl. Both Rank and Dahl are now dead.

The trial court held that plaintiffs have an interest in this property proportionate to the amount invested by them, and that others similarly situated have similar rights. It also determined that Allison should be held to be a trustee for the benefit of those having such interest in the property and that the appointment of a receiver pending trial be made permanent. There is no finding by the trial court as to Allison's knowledge of the contents of the contracts held by plaintiffs and others similarly situated. Allison's denial of such knowledge of such...