Hudepohl v. Liberty Hill Consolidated Mining & Water Co.

Citations

• 80 Cal. 553
• 22 P. 339
• 1889 Cal. LEXIS 957

Syllabus

<p>Landlord and Tenant—Lease — Employment upon Shares. —An agreement by a mining company, in the form of a lease for one year, giving to the lessee one half of the gross proceeds of the mine as a return for working the same in an energetic manner, and bearing all expenses, except necessary improvements, which are to be furnished by the lessor, does not create the relation of landlord and tenant, but is an agreement for working the mine on shares, and the parties become tenants in common of the products of the mine when taken out.</p> <p>Id.—Corporation—Act of 1880 — Ratification of Lease by Stockholders— Note of Corporation. — Such an agreement is not within the prohibition of the act of 1880 forbidding the directors of a corporation to make a lease of the corporate property, unless ratified by two thirds of the stockholders; and a note given by the corporation to the party working the mine for his share of the proceeds is valid, and may be enforced against the corporation.</p> <p>Note of Corporation — Vote of Director—Surrender of Private Note to Director — Rinding. —A finding outside of any issue made in the pleadings, that a note from a director of the corporation defendant to the plaintiff was subsequently surrendered to him without consideration by the plaintiff, after the director had voted for the note in suit, does not establish that the transaction was connected with his action as such director.</p>