Garrett v. Pilgrim Mines Co.

• Decision Date: 06 May 1929
• Docket Number: 5138
• Citation: 277 P. 567,47 Idaho 595
• Parties: JOHN F. GARRETT, Respondent, v. PILGRIM MINES COMPANY, a Corporation, and the UNKNOWN OWNERS AND UNKNOWN CLAIMANTS OF THE BATTLING JACK No. 1, TOPSY AND MAGGIE (Unpatented), and the PILGRIM LODE MINING CLAIMS (Patented), in Sawtooth Mining District, County of Blaine, State of Idaho, Defendants, and JOHN T. ENGLISH, C. F. KOELSCH and P. H. QUIRK, Trustees of the PILGRIM MINES COMPANY and the Stockholders of Members Thereof, Appellants
• Court: Idaho Supreme Court

277 P. 567

47 Idaho 595

JOHN F. GARRETT, Respondent, v. PILGRIM MINES COMPANY, a Corporation, and the UNKNOWN OWNERS AND UNKNOWN CLAIMANTS OF THE BATTLING JACK No. 1, TOPSY AND MAGGIE (Unpatented), and the PILGRIM LODE MINING CLAIMS (Patented), in Sawtooth Mining District, County of Blaine, State of Idaho, Defendants, and JOHN T. ENGLISH, C. F. KOELSCH and P. H. QUIRK, Trustees of the PILGRIM MINES COMPANY and the Stockholders of Members Thereof, Appellants

No. 5138

Supreme Court of Idaho

May 6, 1929

MINES AND MINERALS-FORFEITURE OF MINING CORPORATION CHARTER-JUDGMENT SUBSEQUENT TO.

1. Where charter of mining corporation was duly forfeited for delinquency in payment of license tax under C. S., secs 4780, 4781, 4782, 4784, 4785, 4786 and 4790, probate court was without jurisdiction in subsequent suit against corporation in which summons was attempted to be served on it after date of forfeiture, and judgment and sheriff's deed to property sold under execution upon judgment were void.

2. Mining corporation owning nonproductive mines, which failed to file annual statement, under C. S., sec. 4780, in order to secure exemption from payment of annual license tax under sections 4781, 4782, held subject to forfeiture of its corporate charter, where it likewise failed to pay the annual license tax under sections 4784, 4785, 4786 and 4790.

3. In action to quiet title to mining claims acquired by virtue of sheriff's deed under previous judgment against corporation, in which defense was that at that time corporation's charter had been forfeited for nonpayment of license taxes under C. S., secs. 4780, 4781, 4782, 4784, 4785, 4786 and 4790, stipulation that charter was declared forfeited on that ground in view of admitted date of declaration as November 30th, the date of the Governor's proclamation, amounted to admission that charter was actually forfeited, and not to statement that Governor merely declared charter would be forfeited.

4. In order to sustain service of summons on corporation by service on county auditor, it should be established under C. S., sec 6676, that officers of corporation are outside of the state.

5. In action to quiet title to mining claims acquired by virtue of sheriff's deed under former judgment against corporation trustees of corporation could assert defense that at the time of the attempted service of summons the corporation was nonexistent by virtue of forfeiture of its charter for nonpayment of license taxes under C. S., secs. 4780, 4781, 4782, 4784, 4785, 4786, 4790, since such circumstances rendered judgment void.

APPEAL from the District Court of the Fourth Judicial District, for Blaine County. Hon. H. F. Ensign, Judge.

Action to quiet title to real property. Judgment for plaintiff. Reversed and remanded.

Reversed and remanded, with instructions. Costs to appellants.

Sullivan, Sullivan & Van Winkle, for Appellants, cite no authorities on points decided.

George Donart, for Respondent.

The charter of a corporation does not ipso facto become forfeited by failure to pay the annual license tax or to claim exemption therefrom. The forfeiture of the charter is not completed until there has been a full compliance with C. S., secs. 4784 and 4785 and a publication of the proclamation declaring the charter forfeited in one issue of two newspapers to be selected by the Secretary of State. (C. S., secs. 4784, 4785; Ferguson Fruit & Land Co. v. Goodding, 44 Idaho 76, 258 P. 557; Alaska Salmon Co. v. Standard Box Co., 158 Cal. 567, 112 P. 454.)

In a collateral attack upon a judgment, under our law, the only evidence that is admissible in support of such attack is the judgment-roll, and if an examination of the judgment-roll shows the judgment regular on its face, it cannot be set aside in a collateral attack. (O'Neill v. Potvin, 13 Idaho 721, 93 P. 20; Weil v. Defenbach, 36 Idaho 37, 208 P. 1025.)

The rule relative to collateral attack upon judgments applies with equal force to the judgments of courts of general and courts of limited jurisdiction. (34 C. J., secs. 543, 553-555, 559.)

BUDGE, C. J. Givens, Wm. E. Lee and Varian, JJ., and Baker D. J., concur.

OPINION

BUDGE, C. J.

Respondent filed a complaint in the probate court of Blaine county naming Pilgrim Mines Company defendant, alleging the defendant then was and at all times "hereinafter mentioned has been a corporation duly organized and existing under and by virtue of the laws of the State of Idaho." A money judgment against defendant was prayed for on account of certain work alleged to have been done by respondent at the special instance and request of defendant and for provisions claimed to have been furnished, for which, it was alleged, respondent had not been paid. It appears that summons in the action was forwarded to the sheriff of Ada county, who served the same by leaving a copy thereof, together with a copy of the complaint, with the auditor of Ada county. No appearance was made for or on behalf of the defendant, and judgment was entered in the cause in favor of respondent. Attachment having been issued against the property of defendant, the same was levied upon, sold to respondent under execution and in satisfaction of his judgment and sheriff's deed issued therefor, the property covered thereby being described as "The Pilgrim Lode Mining Claim, patented, in the Sawtooth Mining District."

By second amended complaint filed in the district court for Blaine county, respondent sought to have his title quieted to certain described mining claims, among which was the Pilgrim Lode Mining Claim acquired by him by virtue of the sheriff's deed above referred to. Appellants, as trustees of the Pilgrim Mines Company and the stockholders or members thereof, having petitioned the district court to be made parties defendant to the action, and leave being granted in such respect, filed an answer and cross-complaint, wherein it was alleged that the charter of the Pilgrim Mines Company as a corporation had been, on November 30, 1923, declared to be and was forfeited under the provisions of C. S., chap. 188; that at the time of said forfeiture, and for a long time prior thereto, appellants were the directors of said corporation and since the forfeiture they were, ever since have been and now are, the trustees of the Pilgrim Mines Company and the stockholders or members thereof. The proceedings initiated by respondent in the probate court whereby he acquired sheriff's deed to the Pilgrim Lode Mining Claim were set forth in appellants' pleading, and it was alleged that the same were void, that the probate court acquired no jurisdiction thereunder to enter said judgment or to issue execution, and that by virtue of said execution and sale no title passed to the purchaser, respondent.

Respondent's action in the probate court was commenced (the complaint sworn to) June 7, 1924, and appellants claimed the charter of the corporation had been forfeited November 30, 1923. It was alleged by appellants that, notwithstanding they were at all times mentioned actual residents within the state of Idaho, they were not made parties to nor served with process in the action instituted by respondent in the probate court.

From further recitals in the pleadings, what the record shows upon the submission of the cause to the district court, including a stipulation of the parties as to the facts, the paramount question for decision by the trial court was the effect of the so-called forfeiture by the Pilgrim Mines Company of its corporate charter. If the charter was duly forfeited the probate court of Blaine county was without jurisdiction to enter judgment against the Pilgrim Mines Company by reason of the proceedings therein having been instituted and brought to a close after the date of the forfeiture, and respondent would not be entitled to place any reliance upon the sheriff's deed by virtue of which he claimed title to the property. The district court found that the charter of the Pilgrim Mines Company was not legally forfeited, and judgment was entered decreeing respondent to be the owner of and entitled to the possession of the property in dispute as against the claims of appellants.

It was stipulated by the parties on the trial of the cause in the district court:

"That on November 30, 1923, prior to the time of the commencement of said action in said probate court the charter of said Pilgrim Mines Company, organized under the laws of the state of Idaho, was declared forfeited under the provisions of Chapter 188 of the Idaho Compiled Statutes for failure to pay annual license tax or to file annual statement and make claim for exemption from said tax, as provided in said Chapter 188 aforesaid.

"That since the said declaration of forfeiture of the charter of said Pilgrim Mines Company, said corporation has never been reinstated."

By C S., chap. 188, secs. 4780, 4781, 4782, every corporation organized or formed under, by or pursuant to the laws of this state is required annually to file a statement with the Secretary of State setting forth certain information; to obtain a license from the state in order to do or attempt to do business by virtue of its charter and to pay an annual license fee therefor, excepting, among others, "all mining corporations which do not own productive mines." Other sections of the chapter provide for the forfeiture of the charters of corporations which have become delinquent in the payment of the license tax, manner of reinstatement, penalties for violation of chapter, and (sec. 4790) in all cases of forfeiture the directors, managers or any other person or persons who may be appointed by any court of competent jurisdiction to perform that duty are deemed to be trustees of the corporation, with full power to settle the affairs...