Rose v. Richmond Mining Co.
Rose v. Richmond Mining Co.
Opinion of the Court
Opinion by
On the sixteenth day of March, 1882, the judgment of the
Subsequently the mandate of the supreme court was obeyed, by the district court, and the judgment thereupon became final.
The defendant, the Bichmond Mining Company of Nevada, being desirous of taking the cause to the supreme court of the United States, by writ of error which shall operate as a supersedeas and stay execution, makes application to me as chief justice for a citation and for the approval of such security as is required by law, upon the issuance, of the same.
By reason of the extreme views entertained by counsel for the respective parties, in relation to the amount of security that ought to be required, in order to render' it “good and sufficient,” five witnesses were examined upon each side, and from the testimony it becomes my duty to fix the amount of security that must be given.
The statute (1 U. S. Stat. at Large, 85; Desty’s Fed. Procedure, sec. 1000) provides that “ every justice or judge signing a citation on any writ of error shall, except in cases brought up by the United States, or by direction of any department of the government, take good and sufficient security that the plaintiff in error, or the appellant, shall prosecute his writ or appeal to effect, and, if he fail to make his plea good, shall answer all damages and costs, where the writ is a supersedeas and stays execution, or all costs only where it is not a supersedeas as aforesaid.” The statute also provides that writs of error from the supreme court to a state court, in cases authorized by law, shall be issued in the same manner and under the same regulations, and shall have the same
I must be controlled by the foregoing statutes and rule, and further on shall have occasion to ascertain their meaning when applied to a case like the one in hand.
The court below found, and such were the facts, that each party was in actual possession of portions of the lode in dispute; that is to say, to the extent of the underground workings of each, and that, in addition, plaintiffs had such possession of the entire ground as is given by the doing of all work required by law to hold mining claims. The court also found that, at the time of the trial, the Albion Consolidated Mining-Company was the owner of. the Uncle Sam claim, the ground in dispute, and that this action was prosecuted for its benefit by consent of the plaintiffs.
Under the judgment entered, the Albion company is entitled to the possession, in law and fact, to all the ground in dispute. It is entitled to all the benefits and privileges which an absolute ownership and right of possession give. Its rights are to work the ground unmolested as it may wish, and to appropriate the proceeds of its labor and expenditure. If the entire possession is refused by the defendant, it is entitled to such process as will enable it to enjoy the fruits of its judg
Until such rights are enjoyed, the judgment is not executed, and if a supersedeas is obtained, their enjoyment will be postponed until there shall be a final decision of the, supreme court of the United States. Conceding that the Albion company has the actual possession of a part of the ground in dispute, still the right of possession as to any part is denied by a prosecution of the writ of error, and if defendant’s claim of error is correct, the Albion company, in law, is a trespasser to the extent of its possession. Whether, under such circumstances, that company could legally -work upon any part of the ground in dispute, after supersedeas, if no injury should be done thereto, I shall not stop to inquire; but that it would not be permitted to do permanent injury to the property, I have no doubt. Should it develop new ground and open new ore bodies, it could not appropriate the ores. The object of.the supersedeas is to keep the property substantially as it is, until judgment of the supreme court. For all practical purposes then the effect of the supersedeas will be the same as to all parts of the disputed ground. If the Richmond company had actual possession of the whole claim, a supersedeas would undoubtedly enable it to retain the same. It will enable that company to retain all possession it now has, and, as before stated, the Albion company will not be permitted to do permanent injury to the estate.
Under such circumstances, the Richmond company cannot complain if the Albion company ceases work, even though it may continue, where no injury can result in case the present judgment should be reversed or modified. Surely, I cannot presume the Albion company will make any developments during the pendency of the writ of error, since it is not in law bound to do so; and if any should be made, the work would be done at the risk of a total loss if there are good grounds for the writ. At any rate, should the Albion company expend money upon the disputed ground in case of
There is nothing shown to me whereby I can conclude that the circumstances of the case will change, pending the writ of error. That is to say, that developments will be made and other ore bodies disclosed, if they exist. But, on the contrary, there is much to'convince me that work will be discontinued in the disputed ground in case of supersedeas. I must assume,, then, that as the security is now fixed, so it will remain.
The next question that requires consideration is, whether I can and should take into account merely the ores actually in sight, or, in addition, may and should include, as a part of the basis of my calculations, reasonable and fair probabilities of the existence of ore deposits-, other than those now known in fixing the amount of “good and sufficient security” for damages and costs. In my opinion, to do justice, I must include the element of reasonable probability, and that, in law, such is my duty, I recognize the fact, in the outset, that this conclusion brings- difficulties with it, and that the proper sum to be set down as “ good and sufficient security,” in this regard, will at last be somewhat uncertain. But these circumstances do not alter the case.
As to the ore in sight, a reasonable discretion must be exer
If other ore bodies exist, although their present whereabouts ■are now unknown, which, but for the supersedeas, the Albion -company might and would develop and utilize, the damage will be just as great as it would be if they were in sight. The bare possibility of finding ore in undeveloped ground, without •evidence of a reasonable probability of its existence, would not justify me in requiring security to cover such possibility. But, on the other hand, I can find no justification in refusing to require security sufficient to cover reasonable probabilities.
If by some test now unknown, it were possible to ascertain with reasonable, but not infallible certainty, as to the existence or non-existence of ore bodies in the ground in dispute, would it be denied that, in this proceeding, evidence showing the result of such test should be received and considered ? If science or experience shows, as a general rule, that in a certain locality one result follows certain conditions, why should not ■evidence of the existence or non-existence of such conditions be admitted and acted upon with other facts in ascertaining whether or’ not, in the case in hand, it is reasonably certain that the result will accord with the general rule ?
Suppose the property in dispute in this case was timber land; that it would be very valuablé if a certain railroad should be built, but otherwise of little value ; can it be
If the object of this pi'oceeding was to establish a definite amount which the Richmond company should actually pay the Albion company as damages for delay, in case of affirmance, it might and should be urged that evidence of the probable ■existence of other ore bodies in the ground in question, ought to be considered with great caution; but even in that case it would, in my opinion, be admissible, and in arriving at a proper result it should be given weight according to the facts and circumstances proven.
But in fixing the amount of security on appeal or in error it was not expected or intended that it should be established with the accuracy of a verdict or judgment. It should be ample to protect the respondent in error against all damages which it is reasonable to believe will result from the writ.
In Catlett v. Brodie, 9 Wheat., the court said: “The word ‘ damages’ is here used not as descriptive of the nature of the claim upon which the original judgment is founded, but as descriptive of the indemnity which the defendant is entitled to, if judgment is affirmed. Whatever losses he may sustain by the judgments not being satisfied and paid, after the affirmance, these are the damages which he has sustained, and
Under the statute and the rule of the supreme court above quoted, as well as the decided cases, I have no doubt that the amount of security in this case, if the writ is to operate as a supersedeas, is left to my legal discretion.
In Jerome v. McCarter, supra., it is said : “ This is a suit on a mortgage, and therefore, under this rule (29) , a case in which the judge who signs the citation is called upon to determine what amount of security will be sufficient to secure the amount to be recovered for the use and detention of the property, and the costs of the suit, and just damages for the delay and costs, and interest on the appeal. All this, by the rule, is left to his discretion. In Black v. Zacharie, 3 How. 495, it was held that in such a case the justice taking the security was the sole and exclusive judge of what it should be. Since then, in Rubber Company v. Goodyear, 6 Wall. 156, and French v. Shoemaker, 12 Wall. 94, remarks have been made by judges announcing the opinion of the court which, if considered by themselves, would seem to indicate that this discretion could be controlled here upon an appropriate motion. The precise point involved in this case was not, however, before the court for consideration in either of those, and we think was not decided. We all agree that if, after the security has been accepted, the circumstances of the case, or of the parties, or of the sureties upon the bond, have changed, so that security which, at the time it was taken, was ‘ good and sufficient,’ does not continue so, this court maj»-, upon a proper application, so adjudge and order as justice may require. But upon facts existing at the time the security was accepted, the action of the justice, within the statute, and within the rules of practice adopted for his guidance, is final. And we will presume that when he acted every fact was presented that could have been. So, while we agree that, in a proper case, after an appeal or writ of error taken here, this court may interfere and require additional security upon a supersedeas,
In .cases like this, where the property follows the event of the suit, “ indemnity is only required in an amount sufficient to-secure the sum recovered for the use and detention of the property, and the -costs of the suit, and just damages for delay, and costs and interest on appeal.”
In this case, in ascertaining the amount of indemnity that ought to be required, the value of the ore in the disputed ground is not to be included, because, upon affirmance, the property will follow the event of the suit; but, inasmuch as under the judgment entered, the Albion company has a present right of possession of all the ground, together with all other rights that follow complete ownership, the value of the ores contained therein, which, but for the supersedeas, could, and naturally would, be worked during the pendency of the writ of error, must be taken into consideration in providing good and sufficient security for just damages on account of delay.
I desire to be corrected if I am wrong in concluding that my duty requires me to fix the amount of security so as to cover damages for delay in working all ores in the disputed ground, including not only those which are in sight, but also such as, in my best judgment, from the evidence before me, although uncovered, with reasonable probability and certainty do exist therein. And to the end that all rights may be protected, I shall separate the different items that will malee up the aggregate security required, in order that the writ may operate as a supersedeas.
1. As to the ore in sight. Upon this point thd testimony is voluminous, and, as before stated, extremely conflicting as to amount and value. I cannot undertake the task of giving it in detail or even in substance. The ore exposed includes what is represented upon “ Exhibit A,” as ore body £iB,” Albion cave, and ore N. W. of the line A C (the dividing line between
For this, estimating the amount of ore at five thousand tons, of the gross value of seventy-three dollars per ton, exclusive of lead, I shall require security in the sum of fifty-five thousand dollars.
2. For deterioration of property, necessary expenses in preserving it, etc., Mr. E. N. Robinson, the superintendent of the Albion company, testified upon this item, and his estimate was about thirty-six thousand three hundred and sixty dollars a year. He was positive that the company’s loss would amount to that sum. There is no evidence against his. He gave the items that made up the aggregate sum, and I am unable to say his statement is incorrect. He estimated four years’ delay. I shall adopt three years and a half, making a total, for this item, of one hundred and twenty-seven thousand two hundred and sixty dollars.
3. Security is requested on account of capital expended by the Albion company up to the present time — that is to say, interest on that sum. I do not think this should be required in addition to that stated in-items 1 and 4.
4. Damages for delay in working the ground in dispute, outside of ores in sight, and realizing the probable profits therefrom.
In the court below it was found as a fact, and is the testimony before me that this mining ground is situated on Ruby Hill, in the Eureka mining district; that along and through the hill for a distance slightly exceeding a mile, and extending in a northwesterly and southeasterly direction, is a zone of limestone, in which, at different places throughout its length mineral is. found; that underlying this zone, on the southerly side, is a well-defined, unbroken foot wall of quartzite, which has a general dip to the northeast; that on the northerly side of this zone of limestone is a hanging wall of shale, and that this zone of limestone is a vein or lode of rock in place, bearing gold, silver, lead and other valuable minerals.
It is shown to my satisfaction, and, in fact, it is hardly disputed, that this zone northwest of the line A C is of the same
The ore bodies southeast of A C are irregular in form, in width and thickness — varying from one hundred and fifty feet to a few inches thick. As a general rule, Mr. Wescoatt says, they are connected by larger bodies of low-grade ore, sometimes by small seams. Immense ore bodies have been found and worked out southeast of A C, and they were traced continuously up to and beyond that line. Ore body “ B ” is northwest or on the Albion side of the line A C. The Albion cave is on the same side, and west of “B,” along the line A C, there is ore, evidently, for a distance of one hundred or one hundred and fifty feet. The witnesses for the Albion company all stated that at A 0 the ore bodies continued, and that there was no evidence of their giving out; that there were bowlders and waste there, and at “B,” as there had been in the Richmond and Eureka. One or more witnesses .testified that bowl
In view of all the facts, it will be strange indeed if future events shall show that, with the exception of the ore in sight, the extreme N W. limit of these ore bodies has been reached. It will be passing strange if that limit shall prove to be just on the line A C, with the exception of the ore bodies now exposed.
In conclusion, I will say that, although the power and responsibility of passing upon the questions here presented are vested in me alone, I have counseled with my associates upon the question as to whether probable damages on account of delay in working the undeveloped ground should be included,
Reference
- Full Case Name
- E. H. ROSE v. RICHMOND MINING COMPANY OF NEVADA
- Status
- Published