Anderson v. Luther Mining Co.

72 N.W. 820, 70 Minn. 23, 1897 Minn. LEXIS 6
CourtSupreme Court of Minnesota
DecidedNovember 9, 1897
DocketNos. 10,624-(9)
StatusPublished
Cited by4 cases

This text of 72 N.W. 820 (Anderson v. Luther Mining Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anderson v. Luther Mining Co., 72 N.W. 820, 70 Minn. 23, 1897 Minn. LEXIS 6 (Mich. 1897).

Opinion

COLLINS, J.

A full statement of certain facts covered by the findings herein, and in our opinion supported by the evidence adduced upon the [29]*29trial, seems essential, and upon this statement we have no hesitation in affirming the order appealed from, which denied plaintiffs’ motion for a new trial.

June 20,1893, one Luther, who had been the owner of the 80 acres in question for some time, executed a mining lease thereof, in which one Hibbing and one Trimble were named as lessees; a royalty of 30 cents per ton on a minimum annual output of ten thousand tons of ore being agreed upon. This lease extended for twenty years, and was assignable. It was executed under the terms of an option for a lease previously executed and delivered by Luther to Hibbing and Trimble, and, as a matter of fact, the latter had, while the option was held by them, assigned a two-thirds interest therein to these plaintiffs and another person, the defendant Brandin. The instrument contained the usual conditions of a mining lease, the lessees, Hibbing and Trimble, agreeing to commence explorations within thirty days from date, and to “work continuously during the existence of this lease.” Proceeding, the instrument recited that said lessees “shall work the mine to its fullest capacity at all times,” and that “the failure thereof shall become a forfeiture of this lease.” It further provided that the lessees were to pay the royalty fixed by the lease quarterly, namely, April 15, July 15, October 15, and January 15, each year; the minimum quarterly payment being $750, whether ore was or was not mined. The lessees were also to pay all taxes assessed or levied on the 80 acres within thirty days after such taxes fell due and payable. Provision was made for the termination of the lease by the lessees in so far as they were obliged to pay royalty or taxes, by giving thirty days’ notice to the lessor, whereupon the lease ended; all arrearages of royalty or taxes to be forthwith paid.

This lease was never recorded. The contract whereby the lessees had assigned a two-thirds interest in the option for a lease to these plaintiffs and Brandin bore date January 20, 1893, and made provision for the work of exploration. It expired July 1, 1893. Immediately upon its execution, plaintiffs and Brandin entered upon the 80, for the purpose of exploring for ore, and continued their explorations and search until about October, 1893, when they ceased work, and removed all tools and machinery therefrom. No work [30]*30was thereafter done or performed by either of said persons in the work of exploration or otherwise, or by the lessees, but all work upon the land was then and there abandoned. No mine was developed, and no ore discovered, by any of these parties. August 17, 1893, Luther sold and conveyed the land to defendant Luther Mining Company.

About December 17, 1894, — more than fourteen months after Hibbing, Trimble, and defendant Hall and his associates had abandoned all work upon the premises, — all of the parties just named' joined in the execution and delivery to defendant Marble, who was a stockholder in defendant corporation, of a written instrument, whereby, after reciting the existence of the lease, and that a demand had been made that they surrender the same because they had abandoned all work upon the premises, they returned and surrendered to Luther all of their right, title, and interest in the lease and in the real property covered thereby. On the same day, but as of date January 1, 1895, plaintiffs Hall, Carlson, and Anderson and said Brandin executed and delivered their notes, payable to Luther, each for $500, and due in 30, 60, and 90 days, respectively, a total of $1,500, — much less than was due as royalty under the surrendered lease. Marble also drew another mining lease, wherein the mining company was the lessor and the four persons just named were lessees, covering the 80 acres here involved and other lands. This was also a 20-years lease, with conditions similar to those of the lease just canceled. It had other and further conditions, among them one to the effect that cessation of work upon explorations for twenty days at any one time before ore was found and exposed should, at the option of the lessor, work a forfeiture of the lease. Twenty thousand tons was the minimum number of tons the lessees were to mine annually, and they were to pay for this number at the rate of 25 cents per ton, the total payment to be not less than $5,000 annually, payable in instalments of $1,250 every three months, commencing April 20. It was also stipulated that, if the lessees should keep men steadily at work exploring and developing the lands, the royalty, sometimes called “ground rent,” should be reduced to $3,000 per year until July 1, 1896. This lease was signed by the four lessees at Duluth on December 2Ó, 1894.

[31]*31It is to be noticed that when this lease was drawn not one cent had been paid on the first lease as royalty or ground rent, that an amount largely in excess of $1,500 was actually due, that the lessees were in default in the payment of taxes and otherwise, and that they had wholly failed to observe the conditions of the lease which required that they should continue at the work of exploring and developing an iron mine upon the premises. They had absolutely abandoned the work, and had long before removed all tools and machinery. This was conclusively established by the proofs, found as facts by the court, and stood confessed in the written release and surrender. This was also stated in the new agreement, and it was further stated that the new lease was to be accepted in lieu of the old. The officers of the lessor company resided in the state of Illinois, and to them Marble, in whose office at Duluth these instruments were executed by the two lessees named in the old and by the four lessees named in the new lease, immediately forwarded the instrument of release and cancellation, the three notes, and the last-mentioned lease, which, as will be noticed, had not then met the approval of, nor had it been executed by, the officers of the lessor company.

These documents were all forwarded to the officers of the company for acceptance or rejection. Marble did not pretend to act for the company, but rather as a friend of the plaintiffs and Brandin. January 2, 1895, the defendant company by its officers executed the lease, and forwarded it to Marble for delivery to the lessees upon the conditions that they should enter upon the land by February 1, and continuously carry on the work of exploration for iron ore, should pay up the accrued taxes on the 80 acres, and should pay the notes for $1,500, all to mature within 90 days. The notes were also sent to Marble. The officers of the company expressly advised Marble that the lease was not to be delivered or become operative until these conditions were complied with.

The lease was never delivered. Neither of the lessees ever entered upon the land, ever carried on the work of exploration, ever paid the taxes, ever paid any part of the notes, ever paid one cent of the royalty or ground rent provided for in either lease, were unable to do any or either of these things, and in July, 1895, advised [32]*32the mining company of their inability to proceed, and that they abandoned the premises and the transaction. They had before this actually abandoned the enterprise, having no means with which to continue work.

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Bluebook (online)
72 N.W. 820, 70 Minn. 23, 1897 Minn. LEXIS 6, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anderson-v-luther-mining-co-minn-1897.