Boise Payette Lumber Co. v. Idaho Gold Dredging Corp.

58 P.2d 786, 56 Idaho 660, 1936 Ida. LEXIS 81
CourtIdaho Supreme Court
DecidedMay 4, 1936
DocketNo. 6247.
StatusPublished
Cited by14 cases

This text of 58 P.2d 786 (Boise Payette Lumber Co. v. Idaho Gold Dredging Corp.) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Boise Payette Lumber Co. v. Idaho Gold Dredging Corp., 58 P.2d 786, 56 Idaho 660, 1936 Ida. LEXIS 81 (Idaho 1936).

Opinion

*663 HOLDEN, J.

This suit was commenced February 15, 1935, for the purpose of perpetually enjoining the collection of a judgment theretofore recovered by the respondent against appellant for the sum of one hundred thousand dollars. It is alleged in the complaint that appellant (hereinafter called the Lumber Company), during the year 1920 and for each year thereafter until the forepart of the year 1926, was engaged in cutting timber on the public domain under contracts with the United States Forest Service, and on other lands situated in what is known as Boise Basin, Boise County, and on tributaries of Grimes Creek in said Boise Basin; that as a part of its logging operations, it trans *664 ported the logs so cut to the railroad landings by skidding the logs through chutes constructed for that purpose, and in places where the gradient was low, the Lumber Company reduced the friction by oiling and greasing the logging chutes. Some of the oil and grease, in the course of the logging operations, dropped from the chutes to the ground or would be otherwise wasted on the ground along the course of such chutes.

That from about the middle of April, 1926, to on or about the 13th day of April, 1928, the predecessor in interest of the Idaho Gold Dredging Corporation (respondent), hereinafter called the Mining Company, to wit, the Gold Dredging & Power Corporation, was engaged in dredging certain placer mining claims then owned by it and located in the valley of Grimes Creek and along the banks of the creek, and from about the 13th day of April, 1928, to the 4th day of June, 1929, the Mining Company, successor in interest of the Gold Dredging & Power Corporation, was engaged in dredging said mining claims, some of which were located below the mouth of the tributaries of Grimes Creek, on the water-sheds of which the Lumber Company was carrying on its operations.

That on June 25, 1929, the Mining Company commenced an action in the court below against the Lumber Company (Idaho Gold Dredging Corp. v. Boise Payette Lumber Co., 52 Ida. 766, 22 Pac. (2d) 147.), whereby the Mining Company sought to recover damages from the Lumber Company, alleged to have been sustained from the oil and grease used by the Lumber Company in its said logging operations. Such proceedings were had therein that on March 29, 1930, the Mining Company filed its third amended complaint, in and by which it alleged in substance that water from the rains and melting snows carried oil and grease from the Lumber Company’s logging operations into Grimes Creek and polluted the water of said creek, and that such polluted water collected on the dredge ponds of the Mining Company and was, by the dredging operations, conveyed to the gold-saving devices, and such polluted water and the oil and grease contained therein contaminated the mercury used by the Min *665 ing Company for amalgamating, collecting and saving the gold, and that the mercury, when so contaminated with oil and grease, would not amalgamate the gold, and that it was, therefore, impossible for the Mining Company to extract and save the gold in said mining property, and that only a small part of the gold contained in said property could be recovered or saved.

It is further alleged therein that the mining property so affected, and which could not be profitably mined for the reasons aforesaid, had an actual cash value, based on the gold contents therein on the 25th day of June, 1925, of $389,369.45, and that the presence of oil and grease on the waters of Grimes- Creek made it impossible for the Mining Company to recover such gold, and that the value of such property had been totally destroyed by the oil and grease from the Lumber Company’s operations.

It is also alleged that the Lumber Company filed an answer in said action to respondent’s third amended complaint, in which it denied generally each and every allegation therein contained, and further alleged that the right of the Mining Company to recover in said action was barred by the statute of limitations.

It is alleged that on the trial of that cause (Idaho Gold Dredging Corp. v. Boise Payette Lumber Co., supra), the Mining Company introduced evidence in support of its claim that the oil and grease, while floating in or commingled with the waters of Grimes Creek, could not be seen, observed or detected, and that it did no damage whatever to the mining property until the Mining Company trapped or collected such oil and grease on its dredge ponds in its dredging operations, and that the damage to the mining property was done by the Mining Company commingling and mixing, by its dredging operations, the polluted or contaminated water in its dredge pond with the gold-bearing gravels as the same were conveyed into and through the dredge in the dredging operations. And it is alleged in the complaint in this action that the Mining Company’s president and general manager, S. K. Atkinson, testified as to how the oil and grease damaged the mining property, substantially as follows:

*666 “I don’t know that it damaged our land any until we created a dredge pond and stopped it.....And the only way we found it out was when we dredged it. We didn’t know is was damaged until we started to dredge. We created a trap that catches that grease and oil that comes down in our dredging operations.....There is no oil mixed with the top soil of the mining claims that I know of, until we actually mix it in our dredging operations. Until we make our pond and get the oil in it the land is not damaged. ’ ’

That Atkinson further testified in behalf of the Mining Company that its mining operations, and those of its predecessor, the Gold Dredging & Power Corporation, were unprofitable, but were, nevertheless, carried- on for the full period of three years at a daily loss, during which said Mining Company did not recover actual operating expenses, it being claimed said losses were due wholly to the fact that the oil and grease contaminated the mercury and gold-saving devices on the dredge to such an extent that the gold could not be amalgamated, or saved, or extracted from the sand and gravel; that he further testified that neither the Mining Company, nor its predecessor in interest, ever notified the Lumber Company, or any of its officers or representatives, that there was any oil or grease interfering with mining operations, or that oil was causing any damage to the Mining Company, or its predecessor in interest, or that there was any oil or grease whatsoever on the water of Grimes Creek or its tributaries; that Atkinson also testified that the facts as to damage being sustained by the Mining Company and as to the presence of such oil and grease, were intentionally concealed from the Lumber Company.

It is further alleged that upon the trial of the action for damages (Idaho Gold Dredging Corp. v. Boise Payette Lumber Co., supra),

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Bluebook (online)
58 P.2d 786, 56 Idaho 660, 1936 Ida. LEXIS 81, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boise-payette-lumber-co-v-idaho-gold-dredging-corp-idaho-1936.