Fish & Hunter Co. v. New England Homestake Mining Co.
Fish & Hunter Co. v. New England Homestake Mining Co.
Opinion of the Court
This case is before us on rehearing. It will be found reported in 27 S. D. 221, 130 N. W. 841. A careful reexamination of the case satisfies us that our former decision is correct. One matter referred to in the petition for rehearing, however, was not fully reviewed in the opinion of the court. A consideration of this c[uestion does not render necessary a restatement of the facts, which are full)'- set forth in the former opinion.
The statutes of the United States authorize the Interior Department to make rules arid regulations for obtaining title to mineral lands. Under these rules and regulations, it is required that an application be made to the United States Surveyor General for survey of mining claims for an official survey of the property, together with an estimate of the amount required to defray the expenses of platting and other work required, in the Surveyor General’s office, that the applicant may make a proper deposit thereof in the office, and that “thereupon you will cause the survey to be made by [naming- the surveyor], United States deputy mineral surveyor.” Upon the completion of the survey, the applicant is required to present to the register and receiver of the United
The rule contemplates that the business of the department shall not be hindered or delayed by his withholding the report and field notes pending settlement of differences which may have arisen. Neither are the relations of the claimant and the surveyor in the slightest degree changed or affected by the fact that the surveyor may have filed his field notes and claimant may have received the benefit of the survey. It is clear that the same agreement which was originally made as to payment remains in force after the notes are filed and the claimant has received the benefit thereof, and no new or implied contract arises because the claimant has received such benefit. It is undisputed that Godfrey entered into a contract with McHugh for the sale of the mining claims to him, and that the consideration for the contract was the promise and agreement of McHugh to furnish all money and perform all services necessary to secure patents to the claims. Under this contract, McHugh did not bind himself to take the property. It was left optional with him, hut the contract conclusively bound him to furnish the money and perform the services necessary to patent the claims. This benefit the claim owners were entitled to receive under the contract, without cost to them, even though McHugh declined to accept the property or complete the sale. The obligation of McHugh to pay these expenses was absolutely under the contract, and the fact that this proceeding must be taken in Godfrey’s name in no manner changed his obligation. It was thé duty and right of McHugh, under the contract with Godfrey, to employ and pay any surveyor he might select as well as to pay all other expenses incidental to the proceeding. It stands undisputed .that the New England Homestake Mining Company became the assignee of and accepted all the duties and obligations assumed by McHugh under this contract. It is undisputed that Russell as the agent had full authority to represent the mining company. It is undisputed that Russell did employ Peck and contracted with him as to terms of payment, which were satisfactory to him, to make this survey. It is undisputed that the
We are satisfied our decision was correct upon alt questions presented on the appeal, and the judgment and order of the trial court are reversed, and a new trial granted.
Dissenting Opinion
(dissenting). I am unable to concur with the maj ority opinion for the following reasons: It appears from the record that the defendant Godfrey, together with a number of other parties, were the owners of a number of not proved up on mining claims; that, in order to make final proof on these mining claims, all the several owners thereof conveyed their interest by contract to Godfrey, who was to make final proof and secure patent in his name. It was a necessary part of the making of final' proof and procuring the patent to said mining claims to have the same surveyed. Patent could not be secured without the survey. Now, it also appears that at about the time these mining claims were so conveyed to Godfrey the owners thereof had a purchaser for the same in view in one McHugh, who was acting for the New England Homestake Company, and that Godfrey on behalf of all said owners entered into a contract with McHugh, whereby Godfrey agreed to sell, and McHugh agreed to purchase, said mining claims, and also pay the expenses of surveying and procuring the patents. The contracts between Godfrey and these other owners of the claims contained the provision that Godfrey
There are no theories, however finely spun and enchanting the same may be, that will lead me from the conclusion, morally and legally, that defendant is liable and should pay Peck the balance due for said surveying. To go back to the contract between Godfrey and his co-claim owners, whereby “it was further agreed that Godfrey is to be bound for costs of patenting only in the event the property is purchased by McHugh, and that, in the event McHugh shall fail to purchase, the patent expenses will have to be borne proportionately by those interested in the property.” The only possible reasonable construction of this clause is ■that, in case McPIugh failed to purchase, the claim owners would contribute to Godfrey the proportionate share of the expense of procuring patent. This was a provision of the contract solely for the protection of Mr. Godfrey in case he had to pay the expense of procuring the patents. This is the construction placed on this contract by Mr. Russell, mutual attorney for the parties. There is no question but what McHugh failed to purchase because Godfrey reconveyed to the original owners after this suit was. instituted. The contract between Godfrey and his co-owners was that he
There is another very significant matter shown by the record in this case, and that is that all the co-owners of Godfrey have
The findings and judgment of the circuit court are right and should not be molested by this court.'
Reference
- Full Case Name
- FISH & HUNTER CO. v. NEW ENGLAND HOMESTAKE MINING CO.
- Status
- Published