Polson Sheep Co. v. Owen, 7947.

• Docket Nº: No. 7947.
• Citation: 110 Mont. 601
• Case Date: September 18, 1940
• Court: United States State Supreme Court of Montana

110 Mont. 601

POLSON SHEEP CO.
v.
OWEN et al.

No. 7947.

Supreme Court of Montana.

Sept. 18, 1940.

Appeal from Fourth Judicial District Court, Lake County; Ralph L. Arnold, Judge.

Action by the Polson Sheep Company against Wilson Owen and others, to quiet title to realty. From a judgment in favor of the plaintiff, the named defendant appeals.

Judgment affirmed.

Lloyd I. Wallace and R. H. Wiedman, both of Polson, for appellant.

Donovan Worden, of Missoula, and A. J. Brower, of Polson (since deceased), for respondent.

ANGSTMAN, Justice.

Plaintiff brought this action to quiet title to several tracts of land situated in Lake county. Defendant Owen by his answer disclaimed any interest in part of the land, but claimed to be the owner of part and held a lease on the remaining portion, which he alleged was owned by the state. Decree went in favor of plaintiff, and defendant appealed. The facts as developed at the trial may be summarized by stating the substance of the court's findings which were as follows:

The plaintiff, a Washington corporation, was organized in 1931 as the C. D. Small Company pursuant to a contract between Yakima Investment Company, Desert Sheep Company, Inc., and C. D. Small. The assets of the three parties to the contract were transferred to the corporation, which thereupon entered into the business of raising sheep in Montana. C. D. Small was employed as field manager and acted as such until October, 1937. The corporation thereafter changed its name to that of Polson Sheep Company. Small, as field manager, without authority from plaintiff, purchased lands and entered into leases in his own name, paying for the lands and leases with funds belonging to plaintiff, but of which plaintiff had no knowledge until the fall of 1937. Thereafter Small gave to plaintiff his quitclaim deed which was duly recorded, conveying to plaintiff all real estate owned by or standing in his name in the counties of Lake and Sanders, but without describing any of the land. Small also assigned to plaintiff all leases held by him on property located in the state.

Title to one tract of land here involved, and particularly described in the findings, stood in the name of the Federal Land Bank of Spokane, but it had contracted to sell the same to C. D. Small; the contract was made for the benefit of plaintiff and payments thereon, together with taxes, were made by C. D. Small from plaintiff's funds, and plaintiff has used the land for the conduct of its business; defendant Owen made two payments of $60 each on this land without plaintiff's knowledge or consent. The court found that defendant is entitled to be reimbursed for these sums, and that upon compliance with the terms of the contract, and upon reimbursing defendant, plaintiff is entitled to a conveyance from the Federal Land Bank.

Another tract here involved was purchased by Small prior to the organization of plaintiff, from Jack Ray, and upon organization of plaintiff it was assigned to it, and payments on the contract were thereafter made by Small from plaintiff's funds. The court found that Small wrongfully and fraudulently took the deed in the name of Harry...