Barber v. Grand Summitt Mining Co.

118 P.2d 773, 11 Wash. 2d 114
CourtWashington Supreme Court
DecidedNovember 1, 1941
DocketNo. 28493.
StatusPublished
Cited by2 cases

This text of 118 P.2d 773 (Barber v. Grand Summitt Mining Co.) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barber v. Grand Summitt Mining Co., 118 P.2d 773, 11 Wash. 2d 114 (Wash. 1941).

Opinions

Beals, J.

F. C. Barber and L. S. Eastman, as joint plaintiffs, instituted this action against Grand Summitt Mining Company, Inc., and Winefred McMillan, Walter P. Tracey, and others, as defendants, setting forth in their amended complaint two causes of action, demanding upon the first cause of action thirty-five thousand dollars, and upon the second, one thousand dollars, each by way of damages for breach of contract.

In the first cause of action, plaintiffs alleged that September 30, 1938, they entered into an agreement with Grand Summitt Mining Company, Inc., hereinafter referred to as the company, whereby the company leased to them, for a period of five years, a group of mining claims in Okanogan county, Washington, one or more of which were held under patent from the United States, and others under location notices. Plaintiffs, as lessees, were to pay to the company as royalty ten per cent of the value of all ore removed from the claims, the sum of seven hundred fifty dollars to be paid forthwith as advance royalties.

Thereafter, by written contract dated October 31, 1938, plaintiffs and the company, as parties of the second and first part, respectively, together with certain other persons as parties of the third part, entered into a written contract which may be referred to as the supplemental agreement. The third parties to this agreement were lien claimants who had filed liens against the mining claims for labor performed or materials furnished to the company. Both the lease and the supplemental agreement were attached to plaintiffs’ complaint as exhibits A and B, respectively. These contracts will be hereinafter referred to by their *116 designation as exhibits. Exhibit B contained the following provisions:

“And Whereas, it is understood and agreed that the said second parties will deposit in the First National Bank of Okanogan, Washington, the sum of $750.00 on or before November 1, 1938, according to the escrow agreement placed in said bank by said party of the first part and said parties of the second part, which sum of $750.00 shall be retained by said bank until a decree quieting the title in said first party to all of the above described premises, subject only to the liens of the third parties, Federal and general taxes.
“Now, therefore, in consideration of the sum of One Dollar and other valuable considerations, it is hereby agreed by all the parties hereto that on the deposit of said decree quieting the title in said first party, that out of said $750.00 so deposited, the Federal and general taxes against said premises shall first be paid and the remainder shall be distributed pro rata among said lien holders in proportion to the amounts of their respective claims.
“It is further stipulated and agreed that whatever payments of royalty or monthly rental payments are made by said second parties on this said lease from said first party dated the 30th day of September, 1938, for the above described premises, that said payments and rentals shall also be distributed to said lien holders after the payment of all said taxes, pro rata according to the amounts of their respective claims. That in consideration of such payment or payments, the said liens shall be subrogated to and made inferior and second to said lease from said first party to said second parties now in escrow in said First National Bank of Okanogan, Washington, and said third parties hereby agree not to issue execution or order of sale to sell the peaceful and quiet possession of said parties of the second part under said lease.”

The escrow agreement referred to in the foregoing quotation from exhibit B was not made a part of the 'complaint, and does not appear in the record.

Plaintiffs alleged that November 30, 1938, they de *117 posited the sum of seven hundred fifty dollars in the designated bank, and that they performed all the conditions which by exhibit B they had agreed to perform. They then alleged that it was

“ . . . specifically understood and agreed by and between the plaintiffs and defendants that the defendants would promptly proceed to bring a suit to quiet title to the patented summitt lode mining claim set forth and described in said mining lease, and the only reason or object in entering into said supplemental agreement marked exhibit ‘B’ was that the plaintiffs would deposit the $750 in the First National Bank of Okanogan, Washington, upon condition and for the purpose of having the said Grand Summitt Valley Mining Company, Inc., quiet title to said summitt lode mining claim, patented, as set forth in the lease, and as set forth in said exhibit B.” (Italics ours.)

It should be noted that, while plaintiffs first alleged that the defendants would promptly proceed to quiet title to the designated mining claim, in the latter portion of the quotation it is alleged that the company, which, of course, was the owner of the claim, should quiet its title thereto.

Plaintiffs then alleged that, pursuant to exhibits A and B, they entered into possession of the mining claims, undertook to develop the same, and expended thirty-five hundred dollars in connection with their mining operations; that, during the development of the mining claims, they discovered valuable ores which would produce a net return of ten thousand dollars over and above the expenses of mining, smelting, etc.; and that they secured certain persons to consider entering into an agreement to operate the mining claims, which would have produced, for plaintiffs’ benefit, twenty thousand dollars by way of profits. Plaintiffs then alleged that, because no suit to quiet title to the mining claim was instituted by defendants, or either of them, the persons whom plaintiffs had interested in *118 the property refused to invest therein, to plaintiffs’ damage in the sum of twenty thousand dollars.

Plaintiffs then alleged that the defendant lien claimants, by exhibit B, agreed not to issue execution against the mining claims, or ask for any order of sale thereof, and

“. . . that plaintiffs are informed and believe that on February 24, 1940, in further violation of the said agreement by said defendants, the said lienholders caused an execution to issue and an execution sale to be made of said premises, and which said premises were sold by said lienholders, defendants on said date to W. H. Patterson, attorney for said lienholder-creditors for the sum of $4103.35.”

Plaintiffs then alleged:

“That the plaintiffs are informed and believe that in view of the said violations of their agreements by defendants as hereinbefore set forth that the defendants have failed and refused to prosecute any suit to quiet title, and have attempted to take possession of said mining premises wrongfully and unlawfully and oust the plaintiffs therefrom to plaintiffs further damage in the sum of $5,000.”

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Cite This Page — Counsel Stack

Bluebook (online)
118 P.2d 773, 11 Wash. 2d 114, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barber-v-grand-summitt-mining-co-wash-1941.