Longmont Supply Ditch Co. v. Coffman

• Decision Date: 26 October 1888
• Citation: 11 Colo. 551,19 P. 508
• Parties: LONGMONT SUPPLY DITCH CO. v. COFFMAN.
• Court: Colorado Supreme Court

19 P. 508

11 Colo. 551

LONGMONT SUPPLY DITCH CO. v. COFFMAN.

Supreme Court of Colorado

October 26, 1888

Commissioners' decision. Error to district court, Boulder county.

This was an action by the Longmont Supply Ditch Company against Enoch J. Coffman to recover the value of stock, and a sum of money alleged to have been fraudulently appropriated by defendant while acting as plaintiff's secretary and treasurer. There was a verdict and judgment for defendant and plaintiff brings error.

Dolloff & Rittenhouse, for plaintiff in error.

J T. Kime, for defendant in error.

DE FRANCE, C.

The plaintiff in error, a corporation, was plaintiff below, and brought this action in the county court of Boulder county against the defendant, Coffman, where judgment was rendered against the defendant. The case was appealed by him to the district court of said county, where a trial to a jury was had, and a verdict returned, and judgment rendered for defendant. The case is brought here by writ of error.

The defendant was secretary and treasurer of the plaintiff from March, 1881, until April, 1884, and was also one of its directors. The corporation had but three directors. Prior to the period above named it had adopted certain by-laws, which were in force during such period, and among which were the following sections: 'Section 3. The secretary shall keep a record of all meetings of the company, and of the directors. He shall collect all moneys due the company by assessment or otherwise, and pay the same into the treasury. He shall be the custodian of the books and papers of the company, and shall countersign all orders and certificates of stock. Sec. 4. The treasurer shall receive all moneys of the company, keep a correct account of the same, and pay them out only upon orders of the president, countersigned by the secretary.' 'Sec. 7. No officer of the company shall receive any compensation for services, except for time and labor actually spent for the benefit of the company, and then not to exceed two dollars per day, and to be audited and allowed by the board of directors.' The complaint charges the defendant with having wrongfully and fraudulently appropriated certain stock and money of the plaintiff to his own use while such secretary and treasurer, and seeks by the action to recover the value of such stock, and the amount of the money so appropriated. The wrong complained of consisted as is alleged, in the defendant's crediting himself on the books of the plaintiff with certain claims of his own against it, and in applying such stock and money in payment thereof, without such claims being regularly audited and allowed by the corporation. By his answer the defendant denied all wrong in the premises, and averred the justice of these several claims, and also averred that the same had been audited and allowed according to the usual practice of the directors in such cases. The evidence shows...