Cascaden v. Dunbar

2 Alaska 408
District Court, D. Alaska·Decided July 1, 1905·No. No. 165·Published·Cited by 6 cases

Opinion

WICKERSHAM, District Judge.

This is an action to enforce the specific performance of the Cascaden-Bennett contract of November 30, 1902, for the staking of the placer mines in controversy. It becomes necessary to determine the character of the contract. Plaintiff contends that it is ah ordinary grubstake contract, by which he acquired a half interest in the mines upon their location by him and the cross-relocation by defendant Dunbar, while the defendants maintain that, as stated and testified to by plaintiff, it is an oral contract to acquire an interest in real property, and void under the statute of frauds.

A perfected mining claim is real property in Alaska. Section 181, Civ. Code; Carter’s Ann. Alaska Codes, p. 388; Forbes v. Gracey, 94 U. S. 762, 24 L. Ed. 313; Belk v. Meagher, 104 [412] U. S. 279, 26 L. Ed. 735; Noyes v. Mantle, 127 U. S. 348, 8 Sup. Ct. 1132, 32 L. Ed. 168; St. Louis M. Co. v. Montana Lim., 171 U. S. 650, 19 Sup. Ct. 61, 43 L. Ed. 320; Moore v. Hamerstag, 109 Cal. 122, 41 Pac. 805; Goller v. Fett, 30 Cal. 481; Garthe v. Hart, 73 Cal. 541, 15 Pac. 93; Hopkins v. Noyes (Mont.) 2 Pac. 280; Lindley on Mines (2d Ed.) § 539. The locator holds by congressional grant in prsesenti, which can be defeated only by his failure to comply with the requirements of the statute under which he accepted it. Van Wyck v. Knevals, 106 U. S. 360, 1 Sup. Ct. 336, 27 L. Ed. 201. As a general rule, to which there are exceptions (Goller v. Fett, 30 Cal. 482; Patterson v. Keystone Co., 30 Cal. 360; Mining Co. v. Taylor, 100 U. S. 37, 25 L. Ed. 541), an oral agreement for its sale or of any interest therein, or to charge or incumber it, is void, and it can only be conveyed by deed (sections 1044, 1046, Code Civ. Proc.; Carter’s Ann. Alaska Codes, p. 354). The case at bar does not present one of the exceptions to the general rule, and plaintiff, must either acquire his title by a grubstake contract through the original location, or, if subsequently thereto, by deed.

A grubstake contract is an agreement between two or more persons to thereafter locate mines upon the public domain by their joint aid, effort, labor, or expense, whereby each is to acquire, by virtue of the act of location, such an interest in the mine as is'agreed on in the contract. Berry v. Woodburn, 107 Cal. 504, 512, 40 Pac. 802, 804; Hartney v. Gosling, 10 Wyo. 346, 68 Pac. 1118, 1123, 98 Am. St. Rep. 1005; Meylette v. Brennan, 20 Colo. 242, 38 Pac. 75. The title accrues to each as an original locator, though the location be made in the name of one or more of the parties only. Lindley on Mines (2d Ed.) § 331; Book v. Justice Min. Co. (C. C.) 58 Fed. 106. Each party to the grubstake contract not named in the location notice becomes, nevertheless, an equitable owner and tenant in common with those named. Murley v. Ennis, 2 Colo. 300. [413] A grubstake contract, though oral, is not within the statute of frauds. Book v. Justice Min. Co., supra; Gore v. McBrayer, 18 Cal. 582; Moritz v. Lavelle, 77 Cal. 10, 18 Pac. 803, 11 Am. St. Rep. 229; Hirbour v. Reeding, 3 Mont. 15; Welland v. Huber, 8 Nev. 203; Lindley on Mines (2d Ed.) § 858. Such a trust estate, when clearly established by the evidence, will be enforced in equity. Lakin v. Sierra Buttes Min. Co. (C. C.) 25 Fed. 337; Hunt v. Patchin (C. C.) 35 Fed. 816; Book v. Justice Min. Co., supra; Fockhart v. Johnson, 181 U. S. 516, 21 Sup. Ct. 665, 45 L. Ed. 979. The burden of proof is upon the one alleging the trust to prove it by full, clear, and satisfactory evidence. Hopkins v. Grimshaw, 165 U. S. 342, 17 Sup. Ct. 401, 41 L. Ed. 739, citing with approval Prevost v. Gratz, 19 U. S. (6 Wheat.) 481, 5 L. Ed. 311; Slocum v. Marshall, 2 Wash. (C. C.) 397, Fed. Cas. No. 12,953; Smith v. Burnham, 3 Sumn. 435, Fed. Cas. No. 13,019.

Is the contract sued upon in this case a grubstake contract ? The allegation in the complaint is that plaintiff, who was then preparing to and did start on a prospecting trip to locate mines for himself and at his own expense, agreed with Bennett to stake claims for him and his partners; also upon Bennett’s agreement to record such locations as were made for him and his partners, “and’give to the plaintiff a share and interest of one-half in all such locations so made by him for them.” In his testimony Cascaden states the contract substantially in the' words of his complaint, except that he adds “and together we would prospect and work the ground.” He went,out on the prospecting trip, and in addition to his own claims staked those for Bennett, Scott, and Dunbar, and immediately upon his return prepared the notices of location therefor and the deed from Bennett conveying to him a half interest in the claims staked' for Bennett, who signed the deed, and delivered it to Cascaden.

[414] It is apparent that many of the usual elements of a grubstake contract are missing from the original oral agreement sued upon in this case. There was no aid given to the venture by Bennett; no grub, nor tools, nor assistance, nor labor was advanced, nor expense nor obligation assumed by him. It was a naked promise by Cascaden, without consideration, and in no legal manner bound him to perform any service in prospecting or locating for Bennett. No fiduciary relation was created thereby which made nonaction on Cascaden’s part a fraud upon Bennett. If he had refused or failed to stake for Bennett, or had then staked the claims in dispute for another person, no action could have been maintained against him by Bennett for damages or breach of contract. If one gratuitously stakes a mining claim for and in the name of another, he cannot enforce specific performance of an oral promise made by the principal subsequent to the location, that he will convey an interest in the claim to him in consideration for his services in locating the mine, because such oral promise is within the statute of frauds and void. Moore v. Hamerstag, 109 Cal. 122, 41 Pac. 805.

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