Copper River Mining Co. v. McClellan

2 Alaska 134
CourtDistrict Court, D. Alaska
DecidedNovember 28, 1903
DocketNo. 1
StatusPublished
Cited by2 cases

This text of 2 Alaska 134 (Copper River Mining Co. v. McClellan) is published on Counsel Stack Legal Research, covering District Court, D. Alaska primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Copper River Mining Co. v. McClellan, 2 Alaska 134 (D. Alaska 1903).

Opinion

WICKERSPIAM, District Judge

(after stating the foregoing admitted facts in narrative form). This suit is brought upon the theory that the defendants who located the Bonanza group of copper mines were at that time the agents of the plaintiff, and that their locations became, were, and now are, the property of the plaintiff. Some testimony is offered by the plaintiff to prove that defendants locating used food supplies and horses belonging to the plaintiff in making the discoveries and locations, but this evidence is offered as additional proof of the direct contract of agency, and it is not sought thereby to establish a mere grubstake interest with the defendants in the property by implication. In his argument before the court the leading counsel for the plaintiff declared that the controversy was “a simple question of contract,” and the pleadings [143]*143and evidence come to that point. The position of the plaintiff is this:

“The locators were our agents, employed, supported, and paid by us, under a specific contract to locate mines in this particular neighborhood for us. They did locate these mines for us under that agreement. We paid them, and they have no interest in the property, but hold it as mere naked trustees for us.”

The defendants deny the contract of agency, and allege that the mines were located for the McClellan prospecting party by Warner and Smith under their prior contract with the members thereof.

Mining claims on public lands are “property” in the fullest sense of the word, which may be sold, transferred, mortgaged, and inherited without infringing the title of the United States. Forbes v. Gracey, 94 U. S. 762, 24 L. Ed. 313. A mining-claim perfected under the law is “property” in the highest sense of that term, which may be bought, sold, and conveyed, and will pass by descent. Belk v. Meagher, 104 U. S. 279, 26 L. Ed. 735. The character of the title acquired by the defendants in the Bonanza group upon the locations made by Warner and Smith is even more particularly described in another case, where the Supreme Court says:

“They were the discoverers of the claim. They marked its boundaries by stakes, so that they could be readily traced. They posted the required notice, which was duly recorded in compliance with the regulations of the district. They had thus done all that was necessary under the law for the acquisition of an exclusive right to the possession and enjoyment of the ground. The claim was thenceforth their property. They needed only a patent of the United States to render their title perfect, and that they could obtain at any time upon proof of what they had done in locating the claim, and of subsequent expenditures to a specified amount in developing it. Until the patent issued, the government held the title in trust for the locators or their vendees.” Noyes v. Mantle, 127 U. S. 348, 8 Sup. Ct. 1132, 32 L. Ed. 168.

It is upon this class of real property that plaintiff seeks to fasten a trust arising out of an oral contract of agency.

[144]*144If an agent locates land for himself which he ought to locate for his principal, he is in equity a trustee for his principal. Massie v. Watts, 6 Cranch, 148, 3 L. Ed. 181; affirmed in Kerr v. Watts, 6 Wheat. 550, 5 L. Ed. 328; Irvine v. Marshall, 61 U. S. 558, 15 L. Ed. 994; Felix v. Patrick, 145 U. S. 317, 12 Sup. Ct. 862, 36 L. Ed. 719; Lakin v. Sierra Buttes Min. Co. (C. C.) 25 Fed. 337; Hunt v. Patchin (C. C.) 35 Fed. 816; Book v. Justice Min. Co. (C. C.) 58 Fed. 106; Moore v. Moore, 121 Fed. 737, 58 C. C. A. 19; Lockhart v. Rollins (Idaho) 21 Pac. 413. In the case of Book v. Justice the court (Hawley, Judge) said:

“An oral agreement to locate a mining claim for the benefit of another need not be in writing. If a party in pursuance of such an understanding, at the expense of another, locates the claim in his own name, he holds the legal title to the ground in trust for the benefit of the party for whom the location was made; and such party could, upon making the necessary proofs, compel the locator of the mining claim to convey the title thereof to him, although the agreement so to do was not in writing. This familiar principle has been often applied in cases where a party has entered into an oral agreement to locate mining ground for the joint benefit of himself and others, and makes a location in his own name. It has always been held that such oral agreements are not within the statute of frauds. 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.”

The burden of proof is upon one who seeks to establish a trust in a mining claim against both the record and the quiet possession of the locator. The court will refuse to move until the trust is clearly established in favor of the party alleging it. To establish the existence of a trust, the onus probandi lies on the party who alleges it. Prevost v. Gratz, 6 Wheat. 482, 5 L. Ed. 311; Dalton v. Dalton, 14 Nev. 419.

The Bonanza group was located by the defendants in July and August, 1900. This suit was begun August 11, 1902. The defendants remained in quiet and peaceable possession of the property for two years, under a clear, unclouded, complete, [145]*145and unchallenged record title. Plaintiff now seeks by this action to have that title and possession taken from the defendants by a decree of this court and transferred to it. Such a decree is an exercise of the highest civil jurisdiction of a court; it is the extreme limit of its power over property, and ought not to-be entered in doubtful cases.

The bottom rule in such cases was so clearly stated in an early case in the English chancery courts that it has since been quoted and followed by the American courts:

“In the great case of Cook v. Fountain, 2 Swanston, 591, it is well said that ‘there is one good, general, and infallible rule that goes to both of these kinds of trusts — express and implied.’ It is such a general rule as never deceives; a general rule to which there is no exception, and that is this: The law never implies, the court never presumes, a trust, but in case of absolute necessity. The reason of this rule is sacred, for if the chancery do once take the liberty to construe a trust by implication of law, or to presume a trust unnecessarily, a way is open to the lord chancellor to construe orpresum'e any man in England out of his estate; and so at last every case in court will become casus pro amico.” Dalton v. Dalton, 14 Nev. 419.

Nor will a court of equity adjudge the locator of a mining claim, who is in peaceable possession under a clear record title, to be a trustee of that title and possession for another, upon an alleged prior oral contract to locate it for the other, unless the case is established 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. 481, 5 L. Ed. 311; Slocum v. Marshall, 2 Wash. C. C.

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