809 F.3d 548
9th Cir.2015Background
- Guy Anderson owned sixteen mining claims in Arizona's Copper Mountain Mining District; upon his 1975 death, the six children held undivided one-sixth interests in each claim.
- Cuprite Mine Partners, LLC filed a partition action in district court seeking partition by sale or in kind; John H. Anderson opposed selling his shares.
- John executed quitclaims transferring portions of his interests to his four children, leaving himself with four claims; the transfers were non-contiguous to avoid contiguous ownership.
- Cuprite amended the complaint to add John’s children as defendants and sought partition by sale under Ariz. Rev. Stat. § 12-1218(B).
- District court granted summary judgment for Cuprite, appointing a commissioner to conduct a sale, with a 60-day window for better offers; only Freeport submitted an offer.
- Appellants argued improper joinder, misapplication of Arizona partition statutes, and that summary judgment foreclosed a trial; court affirmed the order.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| joinder of all defendants proper | Cuprite argues permissive joinder aided efficiency. | Defendants contend misjoinder would be prejudicial. | District court properly allowed joinder. |
| partition type appropriate | Cuprite seeks partition by sale under § 12-1218(B). | Defendants favor partition in kind or not partitioned at all. | Partition by sale appropriate under statute. |
| sale to a single buyer vs. auction | Sale to Freeport reflects best interests and uniform division of proceeds. | Auctioning individual tracts could yield higher proceeds. | Sale to Freeport upheld as consistent with statute and interests. |
| summary judgment vs trial in partition action | Rule 56 permits summary judgment where no material facts to dispute; state law governs substance. | Partition by sale may require trial under Arizona law. | Summary judgment appropriate; federal rules govern procedure; outcome same. |
Key Cases Cited
- Register v. Coleman, 633 P.2d 418 (Ariz. 1981) (survey of partition by sale on summary judgment)
- Gasperini v. Center for Humanities, Inc., 518 U.S. 415 (U.S. 1996) (Erie: outcome-determinative test for substantive vs. procedural law)
- Maroules v. Jumbo, Inc., 452 F.3d 639 (7th Cir. 2006) (federal summary judgment standards in diversity cases)
- Snead v. Metro. Prop. & Cas. Ins. Co., 237 F.3d 1080 (9th Cir. 2010) (use of heightened federal standard at summary judgment)
- Arnold v. Cesare, 668 P.2d 891 (Ariz. Ct. App. 1983) (partition by sale warranted where cooperation impossible)
- Bledsoe v. Hood, 36 P.2d 564 (Ariz. 1934) (precludes applying in-kind provisions when sale is appropriate)
- Manley v. Boone, 159 F.633 (9th Cir. 1908) (mining claims typically unsuitable for in-kind partition)
