96 Wash. 439 | Wash. | 1917
— This is an appeal from parts of a judgment and decree in an action brought by appellant against the Republic Mines Corporation and the other respondents and defendants claiming under it, to establish the ownership of appellant in and to the Quilp Lode Mining Claim, government survey No. 675, in and to all lodes, veins, ores, minerals, ore bodies and deposits of ore lying within the surface boundaries of the Quilp Lode Mining claim, extended vertically downward, and to declare that respondents and defendants have no right, title, estate, interest, claim or right of possession therein, ,and to enjoin and restrain them from asserting
The pleadings and issues in the case are very multifarious and intricate, some of them being immaterial or of only incidental importance as the case comes here and in view of our disposition of the case. Upon the trial of the action, the court entered a decree in favor of the appellant generally, but containing certain exceptions and provisions, from which appellant prosecutes this appeal.
Appellant produced proofs to sustain substantially the following facts: For many years prior to the month of October, 1912, appellant had been, and ever since has been, the owner of the Quilp Lode Mining claim, survey No. 375, in Ferry county, Washington, and during such time the Republic Mines Corporation and its successors in interest have been the owners of the Lone Pine, Last Chance, and of the Surprise Lode Mining claim, survey No. 363, a prior location and claim in that county. The Quilp and Surprise claims overlap in their surveys. The relative situation of the two claims is shown by the following map or diagram, to which reference is made.
This diagram shows the courses and distances of the end and side lines of each claim, the location of the comers thereof, and the amount of the two claims that are in conflict. The area in conflict as to location on the surface is the equilateral figure A, B, C, 3 on the diagram, which area was conveyed by patent from the government to the Surprise Lode Mining claim and was specially excepted from the grant in the patent
In the summer of 1912, appellant was informed that the Republic Mines Corporation had drifted into, and was taking out and removing ores at, the 600-foot level of the Quilp, which ores were taken from within the vertical boundaries of the Quilp Lode Mining claim. Believing that it was the owner of this ore body which was being removed by the Republic Mines Corporation, appellant directed the prqsecution of an action to restrain and enjoin the Republic Mines Corporation from mining or extracting ores from within the surface lines of the Quilp Lode Mining claim extending vertically downwards. This suit, which was subsequently brought, was referred to in the trial of the action as the apex suit. The Republic Mines Corporation, at this time, and the Imperator Company, when being operated, were both under the management of J. L. Harper.
While these various actions, except the present one, were pending, and on May 2,1913, a contract was entered into between the Republic Mines Corporation, the Imperator Company,- and the appellant, which is the contract upon which appellant bases this action. In this contract, after reciting the ownership of the Quilp and Surprise claims and their location with reference to each other, and the existence of the three several controversies and pendency of the three several suits, and the desire of each and all to settle all controversies, the parties agreed: (1) That the Imperator Company would pay the Quilp Company certain sums of money on or before January 1, 1914, with other deferred payments, and that, upon such payment, the Quilp Company would execute and deliver to the Imperator Company a good and sufficient deed of conveyance of the Quilp Lode Mining claim, with all the dips, spurs, angles, etc., together with certain personal property; (2) that, if the Imperator Company should fail to make any payment within a time specified, then the contract should become forfeited, and all payments made by the Imperator Company prior to such forfeiture should be forfeited to the Quilp Company as liquidated damages; (3) that the Imperator Company might, so long as it complied with the contract, enter upon the Quilp claim and mine and work the claim and extract ores, provided that, if it so did, it should pay plaintiff, Quilp Company, as royalty, twenty per cent of all net mill or smelter returns and fifty cents per ton flat rate upon said ore extracted from said Quilp claim; (4) that the Imperator Company should cause the smelter or mill treating said ores to send royalties to
By the 20th paragraph, is was agreed that all the suits and actions theretofore mentioned then pending between the various parties should be dismissed with prejudice and without costs to any of them, and that the injunction then existing against the Republic Mines Corporation in the suit of the Quilp Company against it should be dissolved, and the Quilp Company and its bondsmen exonerated and released from all claims for damages. By the 21st paragraph, it was agreed that every clause, covenant and condition in the agreement should extend to, and be binding upon, the successors and assigns of the respective parties.
Upon the execution of this contract, stipulations for the dismissal with prejudice of the suits pending were executed, and judgments of dismissal with prejudice and without costs were entered. The Imperator Company entered into possession of the Quilp claim generally, and the Republic Mines Corporation began to mine ore from that portion of the Quilp claim described in paragraph 7 of the contract and which is referred to by the parties and in the brief as the disputed territory. On February IS, 1912, the Republic Mines Corporation, then owing to its miners some $14,000 unpaid labor bills, had entered into an agreement with the miners by which its property was being operated by a trustee under a contract to disburse the money derived from the mining operations in certain specified ways. The royalties on the ores extracted from the Quilp claim, both in and outside the disputed territory, were regularly paid the Quilp Company, but no payment other than the royalties was ever made to the Quilp Company.
On August 15, 191S, the Republic Mines Corporation and the Imperator Company made a mining bond to J. L. Harper, under which their interest under the contract of May
By their answers, the defendants made i several defenses: (1) They denied that the Republic Mines Corporation executed the contract because of a want of ratification or authorization thereof by the stockholders. (2) They averred that the contract was fraudulently entered into and was a fraud on the rights of the Republic Mines Corporation and its successors in interest; that (3) the contract was so unconscionable, harsh,' and unjust that the appellant should be denied relief or specific performance under it; that (4) the contract was without consideration because, in truth, the ledge from which the ore was being extracted had its apex within the surface lines of thé Surprise claim. These defenses were met by denials and by plea of ratification and estoppel by con
Upon the trial of the cause, the court, with ample evidentiary support, upheld the execution of the contract, its honesty and the absence of fraud, its fairness and enforcibility, the adequacy of the consideration therefor, and the default of the defendants thereunder, and granted appellant generally the relief demanded, and decreed that the respondents convey to appellant the body of ore within the disputed territory lying within the Quilp claim north of a line 142 feet north of the south end of the Surprise claim and parallel with the southern line projected. The court, however, in the decree, found that the vein containing the ore body to be conveyed to appellant dips towards the east and will in all likelihood, on its dip and in its downward course, be found to pass through and beyond indefinitely the vertical plane extending through the easterly side line of the Quilp claim; and thereupon entered a decree which cuts the ledge in question into three segments, the first being from the apex of the ledge to the line B C extended vertically downward (see diagram), which segment is awarded to respondents, and which is undoubtedly correct; the second being from the line B C to the line from corner No. 4 of the Surprise claim to corner No. 2 of the Quilp claim, extended vertically downward, which was awarded to appellant; and the third being from the last mentioned line easterly to the utmost depth of the ledge, which was awarded to the respondents. The disputed territory as to surface area is, therefore, that south of the projected line from a point 142 feet north of the south end line of the Surprise claim, parallel therewith and extended vertically downward and east of a line from point B to corner 2 of the Quilp claim. The court further decreed that the Quilp claim is subject to an easement in favor of the respondents of a right of way across the Quilp claim to the territory lying easterly of the Quilp claim, with the right of ingress, egress,
Starting from the proposition that it was found and determined that the Republic Mines Corporation had not complied with the contract of May 2, 1913, that the contract was enforcible and not founded in fraud or unconscionable, and that the corporation had forfeited its rights under the contract, which adjudications respondents have not attacked, we observe by paragraph 9 of the contract that, upon such forfeiture, the Republic Mines Corporation was required to give a good and sufficient deed, executed by it, conveying to the Quilp Company all ore bodies of every description lying east of the west line of the Quilp Mining Claim extended down vertically, and lying south of the north end line of the Quilp Mining claim extended down vertically, and which may apex within the lines of the Surprise Lode Mining claim. The only question to determine, then, is what is the- true construction and meaning of the foregoing italicized description. It is conceded that there is an ore body extending below the Quilp Mining claim the apex of which is within the lines of the Surprise Mining claim some distance northerly of corner 3 of what was originally the Quilp Mining claim. The dip of that lode from its apex seems to have been southerly and easterly, and to have struck the easterly line of the Surprise claim about 142 feet in distance north of point B or corner 4 of the Surprise claim.
In dealing with this question we must keep in view that we are dealing with contractual rights of the parties, and also
The trial court took the view, as shown by his notes to the decree in this case, that the Surprise and Quilp claims have but one common identical side line and boundary, namely, the line B C described on the diagram, which line B C is in part
We thus construe the contract as providing most comprehensively in paragraph 9 that all ore bodies of every description lying east (or easterly) of the west (or westerly) line of the Quilp claim extended down vertically, and south (or southerly) of the north end line of the Quilp claim extended down vertically, include all ore bodies within the Quilp claim
It is evident that some of the litigation pending at the time of the execution of the contract here involved presented the question of where the right of the Republic Mines Corporation as the owner of the Surprise claim, and of the vein which has its apex therein, terminated. It is contended here, and no doubt was in the other litigation which was ended by the contract, that the east side line of the Surprise claim was the side and not the end line with reference to its vein, and that it had the right to pursue the vein and all its dips, spurs, and angles indefinitely so far as it might extend, although it might pass under the entire length of the Quilp claim. A glance at the diagram showing the- apex and trend of the Surprise vein shows that it would be indeed difficult to determine whether the east side line of the Surprise claim was in fact a side line or the end line, for the vein strikes the east side line in its trend from the north at a sharp or acute angle. Under the federal statute under which mining claims are located, there is no command that the side lines shall be parallel, but it is required, and it has been determined by the supreme court of the United States, that the requisition that the end lines shall be parallel was for the purpose of bounding the underground extra-lateral rights which the owner of the location may exercise. As was said in the Del Monte case, supra:
“He may pursue the vein downwards outside the side lines of his location, but the limits of his right are not to extend on the course of the vein beyond the end lines projected downward through the earth. His rights on the surface are bounded by the several lines of his location, and the end lines*454 must be parallel in order that going downwards he shall acquire no further length of the vein than the planes of those lines extended downward enclose. If the end lines are not parallel, then, following their planes downward his rights will be either converging and diminishing or diverging and increasing the farther he descends into the earth. In view of this purpose and effect of the parallel end lines it matters not to the prior locator where the end lines of the junior location are laid. No matter where they may be, they do not disturb in the slightest his surface or underground rights.”
And it was further said in that case that, if the apex of a vein crosses one end line and one side line of a lode mining claim as located thereon, there is the right to follow the vein on its dip beyond the side line; citing other cases.
Respondents quote from the above case as follows:
“Every vein whose apex is within the vertical limits of his surface lines passes to him by virtue of his location. He is not limited to only those veins which extend from one end line to another, or from one side line to another, or from one line of any kind to another, but he is entitled to every vein whose top or apex lies within his surface lines. Not only is he entitled to all veins whose apexes are within such limits, but he is entitled to them throughout their entire depth, ‘although such veins, lodes or ledges may so far depart from a perpendicular in their course downward as to extend outside the vertical side lines of such surface locations.’ In other words, given a vein whose apex is within his surface limits he can pursue that vein as far as he pleases in its downward course outside the vertical side lines.”
But respondents do not quote the next paragraph of that decision as follows:
“But he can pursue the vein in its depth only outside the vertical side lines of his location, for the statute provides that the ‘right of possession to such outside parts of such veins or ledges shall be confined to such portions thereof as lie between vertical planes drawn downward as above described, through the end lines of their locations, so continued in their own direction that such planes will intersect such exterior parts of such veins or ledges.’ ”
“This places a limit on the length of the vein beyond which he may not go, but it does not say that he shall not go outside the vertical side lines unless the vein in its course reaches the vertical planes of the end lines. Nowhere is it said that he must have a vein which either on or below the surface extends from end line to end line in order to pursue that vein in its dip outside the vertical side lines. . . . The locator is given a right to pursue any vein, whose apex is within his surface limits, on its dip outside the vertical side lines, but may not in such pursuit go beyond the vertical end lines. And this is all the statute provides. Suppose a vein enters at an end line, but terminates half way across the length of the location, his right to follow that vein on its dip beyond the vertical side lines is as plainly given by the statute as though in its course it had extended to the farther end line.”
It was further held in that case that the only exception to the rule, that the end lines of the location as the locator placed them established the limits beyond which he may not go in appropriation of a vein along its course or strike, is where it is developed that in fact the location has been placed not along, but across the course of the vein. In such case, the law declares that those the locator calls his side lines are his end lines, and those which he calls the end lines are in fact side lines, and this upon the proposition that it was the intent of Congress to give to the locator only so many feet of the length of the vein, that length to be bounded by the lines which the locator has established as his location.
Now it must be apparent that there was considerable dispute and controversy as to whether the Republic Mines Corporation, the owner of the Surprise claim, was entitled to follow the vein which apexed within its claim any further than the located east side line of the claim, or might follow it and work it in its trend downward and to the south, to the south end line as located on the Surprise claim extended westerly. This situation was evidently the cause of the orig
With this construction of the contract, it is evident that the court erred in decreeing that the appellant was entitled to a conveyance of all ore bodies only lying east of the line B C of the Quilp Mining claim.
The court seems to have granted and decreed to the Republic Mines Corporation and its successors the right of ingress and egress across that part of the Quilp claim to and from the ore body included within the disputed territory, because of granting the right to that territory to the respondents. Respondents, not being entitled to the ore bodies lying within that territory or beyond it easterly and southerly, are not entitled to any right of way for ingress and egress to and from the same.
The judgment or decree is reversed, with instructions to enter a decree in favor of appellant, granting to it all the right, title, interest and estate, claim and right of possession to all the ore bodies the apex of which lies within the Surprise claim, lying south of the north end line of the Quilp Mining claim extended vertically down, and east of the west line extended vertically down, determined to be the line from the point where the north end line of the Quilp Mining claim
Appellant will recover costs below and of appeal.
Ellis, C. J., Fullerton, Mount, and Parker, JJ., concur.