107 F. 597 | 8th Cir. | 1901
after stating the case as above, delivered the opinion of the court.
The land department of the United States is a quasi judicial tribunal, invested with authority to hear and determine claims to the public lands subject to its disposition, and its decisions' of the issues presented at such hearings are impervious to collateral attack, and presumptively right. A patent to land of the disposition of which the department has jurisdiction is both the judgment of that tribunal and a conveyance of the legal title to the land. 9 Stat. 395, c. 198, § 3; Rev. St. §§ Ml, 453; U. S. v. Winona & St. P. R. Co., 67 Fed. 948, 955, 15 C. C. A. 96, 193, 32 U. S. App. 272, -283. But the judgment and conveyance of the department do not conclude the rights of the claimants to the land. They rest on established principles of law and fixed rules of procedure, which condition their initiation and prosecution, the application of which to the facts of each case determines its right decision; and, if the officers of the land department are induced to issue a patent to the wrong party by an erroneous view of the law, or by a gross or fraudulent mistake of the facts, the rightful claimant is not remediless. He may avoid this decision, and charge the legal title derived from the patent which they issue with his equitable right to it on either of two grounds: (1) That upon the facts found, conceded, or established without dispute at the hearing before the department its officers fell into an error in the construction of the law applicable to the case which caused them to refuse to issue the patent to him, and to give it to another (Bogan v. Mortgage Co., 63 Fed. 192, 195, 11 C. C. A. 128, 139, 27 U. S. App. 346, 359; U. S. v. Winona & St. P. R. Co., 67 Fed. 948, 9.58, 15 C. C. A 96, 196, 32 U. S. App. 272, 288; U. S. v. Northern Pac. R, Co., 95 Fed, 864, 879, 37 C. C. A. 299, 296; Cunningham v. Ashley, 14 How. 377, 14 L. Ed. 462; Barnard’s Heirs v. Ashley’s Heirs, 18 How. 43, 15 L. Ed. 285; Garland v. Wynn, 29 How. 6,15 L. Ed. 891; Lytle v. Arkansas, 22 How. 193, 16 L. Ed. 396; Lindsey v. Hawes, 2 Black, 554, 562, 17 L. Ed. 265; Johnson v. Towsley, 13 Wall. 72, 85, 29 L. Ed. 485; Moore v. Robbins, 96 U. S. 539, 538, 24 L. Ed. 848; Bernier v. Bernier, 147 U. S. 242, 13 Sup. Ct. 244, 37 L. Ed. 152); or (2) that through fraud or gross mistake they fell into a misapprehension of the facts proved before them, which had the like effect (Gonzales v. French, 164 U. S. 338, 342,17 Sup. Ct.
“This disposes of all the claims to the land, so far as disclosed by the record before me, and leaves the land in question open to disposal under the public land laws of the United States applicable thereto, and such Is the judgment of this department. The papers in the case are herewith returned.”
Turning now to the question at issue, the following propositions will be found to he established beyond controversy: The entry of the land by Strain with his half-breed scrip, whether valid or void, segregated it from the public domain, and appropriated it to private use, so that no legal entry of it could he made by James, or by any other applicant, before the local land officers received notice of the decision of the secretary, and canceled it on their books and plats. Hartman v. Warren, 76 Fed. 157, 160, 22 C. C. A. 30, 33, 40 U. S. App. 245, 250; Wilcox v. Jackson, 13 Pet. 498, 513, 10 L. Ed. 264; Witherspoon v. Duncan, 4 Wall. 210, 218, 18 L. Ed. 839; Carroll v. Salford, 3 How. 441, 11 L. Ed. 671; Railway Co. v. Dunmever, 113 U. S. 629, 5 Sup. Ct. 566, 28 L. Ed. 1122; Railroad Co. v. Whitney, 132 U. S. 357, 10 Sup. Ct. 112, 33 L. Ed. 363; McIntyre v. Roeschlaub (C. C.) 37 Fed. 556; Railroad Co v. Forseth, 3 Land Dec. Dep. Int. 446, 447; Railroad Co. v. Leech, Id. 506; Hollants v. Sullivan, 5 Land Dec. Dep. Int. 115, 118; In re Milne, 14 Land Dec. Dep. Int. 242. There was a rule, a practice, and a long line of decisions of the department in force in 1889 to the effect that the register and receiver of the local land office could neither allow an entry, receive an application, nor do any other act affecting the disposition of land after an entry of it had been allowed, and while a contest over it was pending and undecided. Smith v. Oakes, 1 Land Dec. Dep. Int. 181; Hawker v. Fowlks, 2 Land Dec. Dep. Int. 53; Hoyt v. Sullivan, Id. 283; In re Fritzsche, 3 Land Dec, Dep. Int. 208; Keith v. Townsite of Grand Junction, Id. 431; Gilbert v. Spearing, 4 Land Dec. Dep. Int. 463; Grove v. Crooks, 7 Land Dec. Dep. Int. 140; In re Peterson, 8 Land Dec. Dep. Int. 121. Counsel for the appellants admit the soundness and force of these po
The principles and rules to which reference has already been made and the following rules and decisions of the land department condition the determination of this issue. On December 1, 1875, the commissioner of the general land office, in a circular to the registers and receivers of the United States land offices, wrote concerning investigations of the rights of contesting claimants to land that "the observance of certain fixed general rales will tend to promote uniformity and dispatch in proceedings, and will materially aid registers and receivers in the performance of this delicate and highly important duty,” and announced that the following rule regarding contested eases had been adopted by the department:
“Having carefully taken and examined the evidence, the register and receiver will render thereon their joint report and opinion, with full and specific reference- to the posting and annotations upon their records, subject to the appeal hereinafter provided in these regulations, and will forward the entire record to the general land office, with a brief letter of transmittal, describing the case by its title, the nature of the contest, and the tract Involved, and thereafter take no further action affecting the disposal of the land until instructed by the commissioner.”
2 Copp, Landowner, pp. 154, 155.
On January 8, 1878, the commissioner of the general land office issued a circular to the registers and receivers, which contains these words:
“Gentlemen: By direction of the honorable secretary of the interior, dated the 22d ultimo, your ai.ten.tion is called to the practice prevailing at many district offices of admitting entries and filings upon papers prepared and left in the hands of registers and receivers, and of attorneys practicing before them, prior to the cancellation of an invalid entry under a pending contest or relinquishment, by which practice parties hope and expect to secure a priority of right by having the entry allowed immediately upon the receipt of notice of cancellation. The receipt of such applications and declaratory statements is not authorized by law or by your instructions, and must be discontinued. In the general circular of May 18, 1876, page 6, paragraph 19, respecting the presentation of applications after contest, it is provided that the contestant ‘must, if he desires the land, by proper diligence ascertain when notice of cancellation is received by the register and receiver, and then make formal written application for the tract; the land, after reception by said officers of notice of cancellation, being always open to the first legal applicant, unless withdrawn from entry by competent authority.’ This instruction will he found also on page 7 of the revised circular of December 1, 1877. Its purport is plain to the effect that an application, to be valid, must be made at a time when the land is free from appropriation, and legally subject to entry, and no other should he considered.”
4 Copp, Landowner, p. 167.
On October 9, 1878, the commissioner issued another circular to the local land officers, in which he announced that the revised rales of
“Rule 51. Upon the termination of a contest the register and receiver will render a joint report and opinion in the case, making full and specific reference to the postings and annotations upon their records.
“Rule 52. The registbr and receiver will promptly forward their report, together with the testimony and all the papers in the case, to the commissioner of the general land office, with a brief letter of transmittal, describing the case by its title, the nature of the contest, and the tract involved.
“Rule 53. The local officers will thereafter take no further action affecting the disposal of the land in contest until instructed by the commissioner.”
In Crystal v. Dahl, Copp, Pub. Land Laws (1869-1875) 316, and Eno v. McDonald, Id. 317, the secretary of the interior decided that no rights to land could be initiated between the date of a decision of the commissioner holding a prior entry void and the receipt of notice of it by the local land officers. In the latter case the decision that the prior entry was void was rendered on October 16, 1872. It was received at the local office on October 29, 1872. One McDonald alleged settlement on October 26, 1872. The secretary said:
“The cancellation of the prior homestead entry took effect when notice of such cancellation was received at the local office, and then, and not till then, was the land subject to entry and settlement. Crystal v. Dahl, Secretary’s Decision April 13, 1872. 2 Op. Asst. Attys. Gen. p. 5.”
The rule announced in this case in 1874 was recognized as the established practice of the department in 1880 in Jayne v. Gowdy, 7 Copp, Landowner, 137; in 1883 in Pomeroy v. Wright, 2 Land Dec. Dep. Int. 164; and in 1888 in Perkins v. Robson, 6 Land. Dec. Dep. Int. 828.
Counsel for the appellants rely upon the decisions in the following cases to support their proposition that this rule and the practice disclosed by the decisions in Crystal v. Dahl and Eno v. McDonald are inapplicable to the case in hand, and that they were abrogated prior to 1889; Pomeroy v. Wright, 2 Land Dec. Dep. Int. 164; Ryan v. Conley, 4 Land Dec. Dep. Int. 246, 248; In re Reed, 6 Land Dec. Dep. Int. 563; Barclay v. California, Id. 699; Anderson v. Railroad Co., 7 Land Dec. Dep. Int. 163. Bearing in mind that the rule was that, after sending forward their reports in a contested case, the register and receiver should “take no further action affecting the disposal of the land in contest until instructed by the commissioner,” and that the issue here involves its application not to claims of parties to the contest, but to those of strangers to it, let us see if there is anything in these decisions which repealed or modified this rule or the practice which had certainly grown up. in conformity with it.
Pomeroy v. Wright, 2 Land Dec. Dep. Int. 164, which was decided in 1883, involved the rights of the parties to the original contest, not the right of strangers to such a contest. It involved the time when the right of the defeated entryman to purchase the land under the act of June 15, 1880, expired, and the right of the successful contestant
“Nor is there any conflict between the rule laid down here and the established rule of the land department, referred to by counsel for Wrig'ht and in your decision aforesaid, that cancellation takes effect by a formal act at the local office. That rule is made for a different purpose, and is founded on another law, or construction of law, which reserved all land covered by an entry, and declares it not to be ‘public land.’ When the entry is canceled in fact, the reservation is removed, and the land is restored to the public domain.”
It would he difficult to conceive of more conclusive proof of the rule and practice found by the court below than these remarks of the secretary, and the fact that the commissioner in his decision which the secretary was reviewing cited and followed it. And it is interesting to note, although the fact has no relevancy to the issues in this case, that, after numerous conflicting decisions, the department has finally practically applied the provisions of rule 53 to the rights of claimants under the ads of June 15 and Mav 14, 1880. Stewart v. Peterson, 28 Land Dec. Dep. Int. 515, 519.
Ryan v. Conley, 4 Land Dec. Dep. Int. 246, 248, decided in 1885, was a case in which the decision forfeiting the prior entry was made by the local officers themselves, so that it was within their knowledge and in their office ever after it was rendered, but they failed for some time to note upon their records the cancellation which they had adjudged. The secretary simply held that their failure to perform the clerical act of noting the cancellation on the plats and records did not withhold the land from entry. No provision of rule 53 was violated or affected by this ruling, because the contest had never been sent to (lie commissioner, and (he rule had no application to the case.
In the case of In re Reed, 6 Land Dec. Dep. Int. 563, decided in 1888, there is an obiter dictum of the secretary in accord with the contention of counsel for the appellants. .He there says that a decision of the commissioner on'December 27, 1884, canceling the entry of George G. Reed, was a Anal judgment which opened the land to subsequent entrymen, and that, consequently, the application of John H. Reed to enter the land on January 23,1885, should have been allowed. But the decision of the commissioner of December 27, 1884, had been received by the local land officers, and they had canceled the prior entry of George G. Reed on January 5, 1885, 18 days before John H. Reed applied to make his entry, so that there was no question of the right to enter the land after the decision and before its official communication involved in the case. The truth is that the secretary was not considering or discussing this question, but was arguing and deciding the issue whether or not an entry could be permitted after a
“In such cases the "proper practice would be to receive the application subject to the right of appeal, but not to allow the entry to be made of record until the rights of the former entryman have been finally determined, either by the expiration of the time allowed for appeal or by the judgment of the appellate tribunal.”
The opinion in Barclay v. California, 6 Land Dec. Dep. Int. 699, filed in 1888, merely holds, on the authority of the Beed Case, that a deficiency used as the basis of a selection of school-indemnity lands is freed from the date of a decision canceling the selection so that it may be used as the basis of another selection, although the time to appeal from that decision has not expired. The case did not involve the power of local land officers to receive applications, and violate rule 53, nor was that question discussed or referred to in any way.
• In Anderson v. Railroad Co., 7 Land Dec. Dep. Int. 163, decided in 1888, the secretary held, on the authority of the obiter dictum in the Reed Case, without discussing the question, or referring to rule 53, or the practice under it, that the decision of the commissioner canceling an entry took effect from its date, and before the cancellation was entered in the local land office, so that the filing of the line of definite location of the St. Paul & Pacific Railroad meanwhile vested .the right to the land in the railroad company. Even this decision, however, in no way violates or modifies rule 53, because the map of definite location was not filed with the local land officers, but in the office at Washington; and the local officers neither took, nor were they asked to take, any action affecting the disposal of the land before they received the decision.
This completes the recital of the rules and decisions which condition the determination of the question before us, and we are now ready to enter upon its decision. It is earnestly contended that there is a marked distinction between the cases in which a cancellation of an entry is adjudged by the secretary or commissioner and those in which the decision is that the entry shall be held for cancellation, that in the former class the register and receiver are empowered to receive applications before they are officially notified of the decision, while in the latter class they may not. But this is a distinction without reason and without a difference, born of the zeal and ingenuity of counsel, and first found in the books in the erroneous decision of the secretary in this case on December 21, 1894. The rule forbade any action by the local officers affecting the disposal of the land until instructed by the commissioner, and under it they were as peremptorily prohibited from acting after a judgment of cancellation above, and before the commissioner informed them of and instructed them concerning it, as they were from acting under a decision holding an entry for cancellation before they were informed of it.' The mischief to be remedied and the purpose of the rule were the game in the one case as in the other, and the rule itself was without exception, and alike applicable to both.
The appellee relied upon the record of the decision of the secretary of December 21, 1894, to establish the fact that Hartmann was the first applicant to enter the land on February 23, 1889. The court below held that the secretary so found, that his finding estopped the appellants from again litigating that question, and with that view it disregarded evidence outside of that record which the appellants offered to prove that Wheeler was the first and Hartmann was the second applicant on that morning. These rulings are challenged as error, and, while counsel for appellants concede that the secretary did find in his decision of December 21,1894, that Hartmann was the first and Wheeler was the second applicant to enter the land on February 23, 1889, they insist that his finding did not render that issue res' adjudicata between the appellants and Hartmann, and did not estop them from again litigating that question, (1) because that finding was not made in litigation concerning the land here in issue; (2) because James was not a party to that issue, and that question was not material to the decision of the contest between him and Hartmann; (3) because the appellants now claim under a new and independent title, —the entry of Craig; and (4) because the appellants are neither parties nor in privity with the parties to the litigation before the commissioner, but are bona fide purchasers without notice of that litigation or of the equitable title of Hartmann. The first- questions presented by these positions are, what were the issues determined by the secretary in the contest over this land which resulted in his decision in 1894, who were the parties to those issues, and what did the secretary decide? In an action whiqh results in a judgment in a court, the pleadings, 'orders, opinions, and judgment may be examined to discover the true answer to these questions, and in this contest before the land department the official reports of the registers and receivers thereon, the notices of appeals, the decisions of the commissioner and of the secretary, the entire record of the proceeding exclusive of the testimony, constitute competent evidence from which to ascertain what issues were raised, litigated, and decided in the contest. By the official reports of the registers and receivers made pursuant to" rules 67 and 68 of the department, by the notices of appeal, and by the decisions of the commissioner and of the secretary in that
Counsel for appellants persuasively argue that the issue of the priority of Hartmann over Wheeler was immaterial to the contest between James and Hartmann, and that because the secretary first expressed his view of the prior right of James in writing his decision he never decided the question whether or not Hartmann was the first applicant on February 23, 1889, in that contest. But when the register and receiver allowed Hartmann’s entry of both 40’s, and made the finding, which all the subsequent decisions confirmed, that his applications and scrip for both 40’s were handed to the local officers in one package, while those of Wheeler were handed to them in another, the issues concerning the priority of their applications for these two tracts of land were inextricably fastened together, so that a decision that one was prior in right upon either 40 was a judgment that hie was so upon the other. Hence the decision of the secretary that Hartmann was the first applicant on February 23, 1889, for the Wheeler 40 was á finding that he was so-for the Hartmann 40 here in issue. It was not material that the secretary’s finding upon this issue of fact appeared, in his opinion, subsequent to his decision of the question of law raised by James’ application. All the findings and conclusions in the decision were undoubtedly made by the secretary before he commenced to write any of them, and the order in which a judicial officer writes down his findings or conclusions in Ms opinion is no indication of the order in which he reached tliem. Was the question whether or not Hartmann was the first applicant on February 23, 1889, a material or necessary issue in Ms contest with James, and was the latter a party to its litigation and decision? When Hartmann had entered the two 40’s under the decision of the register and receiver, James had appealed from that decision as to one, and Wheeler as to both, and the commissioner had ordered a consolidation of the contests involving the two tracts, and a single trial and hearing, in which James and Wheeler should be the plaintiffs and Hartmann the defendant. Under his appeal, James, as well as Wheeler, had the undoubted right to try the issue whether or not Hartmann was the first applicant on February 23, 1889, to prove, if he could, that another was first on that morning, and to defeat and cancel the entry of Hartmann upon that ground. James’ appeal challenged Hartmann’s right to enter the land, and, while it raised the question of law whether or not James’ prior application was valid, it as clearly presented the issue of the priority of Hartmann’s application on February 23, 1889. A finding of the latter issue against Hartmann would have been as fatal to his entry as the decision of the question of law against him. Hot only this, but the question of law did not and could not arise in the contest between Hartmann and James until the secretary had first found that Hartmann was the first applicant on the morning of February 23, 1889. If he had decided that Hartmann was not first on that day, that finding would have.rendered the decision of the question involving James’ applica
There is another reason why that decision renders the issue whether Hartmann or Wheeler was the first applicant for this land res adjudicata between the appellees and the appellants in this case. 'Che record discloses these facts: Charles P. Wheeler had no beneficial title or interest in the application which he made for, or the rights which he acquired in, the 40 acres here in controversy. In making that application and in securing and holding his claim to this land he was the agent and trustee of the Chicago & Minnesota Ore Company, a corporation. That company' furnished the scrip and the lawyers to make the application and to conduct the contest in his name.- Warren H. Draper was the attorney at law who, made the application. In 1891 the Minnesota Iron Company, another corporation, purchased the stock of the Chicago & Minnesota Ore Company, and thereby acquired its interest in the Wheeler claim to this land. Joseph H. Chandler was, and still is, its general counsel. Warren X. Draper was its local attorney at Duluth, and they conducted the contest of Wheeler for the land here in question in behalf of this corporation from that" time forth. The decision of the secretary of December 21, 1894, rendered the question of fact whether Hartmann or Wheeler was the first applicant for this land res adjudicata between Hartmann and Wheeler. It went further. It made that issue res adjudicata between Hartmann and his grantees and the Minnesota Iron Company and its agents and Trustees, and made the decision of that question by the secretary competent and conclusive evidence of the fact that Hartmann was first in any subsequent litigation between these parties over the same subject-matter. One who institutes and. conducts a litigation in another’s name is estopped by the decision or judgment therein from again contesting the same issues with his adversary, or those in privity with him, as completely as the party in whose name he carries on the controversy. Lovejoy v. Murray, 3 Wall. 1, 18, 18 L, Ed. 129; Tootle v. Coleman (C. C. A.) 107 Fed. 41. Warren H. Draper, the local attorney, and Joseph H. Chandler, the general counsel, knew the interest of their client, the iron company, in this land, the decision of the secretary, and the right of the iron company to attack that decision in the courts, and to obtain the title to
Nor could the appellants escape from the estoppel of this decision if we were in error in our last deduction, and they were purchasers of the title and the lease they hold for themselves. When Hartmann filed his application and scrip for this land, he placed upon the record a notice that lie claimed to be the equitable owner of it, and to charge the title to it in the government with a trust in his favor. From that time forth, if he was the first applicant on February 23, 1889, the United States held the naked legal title in trust for his exclusive benefit. When the decision of the secretary found that issue of priority in his favor, James, Wheeler, and the Minnesota Iron Company, and those claiming title under them, were thereby estopped from again litigating that issue in any suit to establish title to this land between them and Hartmann and his grantees. There have been no purchasers without notice of these facts in this case. Hillard, who was the vice president of the iron company for the last three years of its contest in the land department, must have known them; Draper and Chandler, the attorneys who
For the reasons which have now been stated the conclusion of this court is that in the contest before him the secretary decided on December 21, 1894, that Hartmann was the first applicant to enter this laud on the 23d day of February, 188!); that that question was a material and necessary issue between Hartmann and James, and also between Hartmann and Wheeler in that contest; that this suit involves the same cause of action, — the equitable title to the same land there in question between James and Hartmann; that it is between privies in estate with the parties to that contest claiming the title in the same rights, respectively, which were there litigated; that the decision of the secretary rendered the issue of fact whether Hartmann or Wheeler was the first applicant res adjndicata between the parties to this suit, and was competent and conclusive evidence thereof in this litigation. In an action between the same parties, or those in privity with them, upon the same claim or demand, a decision upon the merits is conclusive not only as to every matter offered, but as to every admissible matter which might have been offered, to sustain or defeat the claim or demand. But in a case in which the second litigation is upon a different claim or demand, the prior judgment is an estoppel as to those matters in issue or points in controversy which were actually litigated and decided, and upon which the finding or judgment was based. Cromwell v. County of Sac, 94 U. S. 351, 352, 24 L. Ed. 195; Board v. Platt, 79 Fed. 567, 571, 25 C. C. A. 87, 91, 49 U. S. App. 216, 223; Same v. Sutliff, 97 Fed. 270, 273, 274, 38 C. C. A. 167, 170.
The testimony offered by the appellants dehors the record in the contest before the secretary to show that Wheeler was the first and Hartmann the second applicant was properly disregarded by the court below, because they did not plead or offer to prove that the secretary’s decision of this question of fact was induced by fraud or mistake, and, in the absence of such pleading and proof, his finding was conclusive. U. S. v. Northern Pac. R. Co., 95 Fed. 864, 870, 882, 37 C. C. A. 290, 296, 308.
Finally, it is said that the Porterfield scrip with which Hartmann applied to enter the land had been exhausted by its use to purchase other land many years before. In 1868, Charles A. Gilman was the owner of this scrip, and he applied to the register of the land office at St. Cloud, Minn., to purchase for cash a certain 40 acres of land, and delivered this scrip to the register in payment for it. The register allowed and reported the entry of the land as a cash-entry, and the scrip was sent to the United States treasury in payment for it. The land so entered was not open to private purchase for cash, but was open to the location of this scrip. On the other hand, a cash entry could not be paid for with land warrants. The result was that the scrip was returned to Gilman, and the land was patented on the cash entry in 1868. About 37 years later, a deficit
All the questions of moment presented by counsel for the appellants in these suits have now been considered and decided,- and, conceding the proposition with which they opened their argument,— that it was incumbent upon the appellee to prove by competent evidence the facts necessary to entitle it to the title to the land in question under the rules of law applicable to the case, — the conclusion of the whole matter is that it has done so, that there was no prejudicial error in the rulings or decrees of the circuit court, and that they must be affirmed. It is so ordered.