GIVENS, J.
— Appellant sued respondent, his grantor, under the covenant of warranty of fee simple title
in the warranty deed of May 15, 1936, conveying, among other lands, Section 33, Township 14 South, Range 41 East Willamette Meridian, in Malheur County, Oregon, for a consideration of $2,000.
The controversy emanates from this historical setting, as appears from the stipulation and abstract of title: February 15, 1867, Congress (Vol. 14, U. S. Statutes at Large, p. 409, Ch. 77 of the 2d Session of the 39th Congress) granted to the state of Oregon for the Dalles Military Road from Dalles City, on the Columbia River, to a point on the Snake River opposite Fort Boise (quite evidently the fort established in 1834 at the mouth of Boise River and not the one established in 1863 at the present site of the city of Boise), alternate, staggered, opposed sections of public lands, designated by odd numbers, to the extent of three sections in width on each side of said road, with lieu sections within ten miles on each side, the lands to be disposed of by the legislature of the state and the proceeds used solely for the construction of said road,
title to the land so sold to pass upon certificate by the governor to the secretary of the interior of completion of each ten miles of continuous construction.
The legislature of Oregon, October 20, 1868 (Laws of Oregon, 1868, p. 3) accepted the grant,
and by said act transferred the granted lands to the Dalles Military
Road Company, which had filed its articles of incorporation March 9, 1868. June 23, 1869, the Honorable George L. Woods, then governor of the state of Oregon, made his certificate of completion of the road,
certifying to the
route thereof as shown on a map, certified by the general land office.
June 18,1874, Congress passed a statute providing for the method of transfer of title under such grants as the above (Vol. 18, U. S. Statutes at Large, p. 80, Ch. 305, of the 1st Session of the 43rd Congress, 43 U. S. C. A. sec. 862) ,
which evidently applied only partially herein, because prior to the date of the enactment of this statute the state of Oregon had by public act transferred its interest in said lands; in other words, by this
statute as to this grant, patents would issue from the general land office to such corporation instead of from the state of Oregon, thereby necessarily contemplating subsequent transfer by the company to the individual occupants, purchasers therefrom.
May 31,1878, the Dalles Military Road Company transferred all of the above granted lands to Edward Martin, who, together with his wife, in turn, by quitclaim deed, transferred the specific section in question, February 27, 1878, to John M. Marden, whence by mesne conveyances it was transferred to respondent, who, in turn, with his wife, gave the present deed, upon the covenants of which this suit was brought by appellant.
March 2, 1889, Congress, by chapter 277, page 850, Vol. 25 of the Statutes at Large, 2d Session of the 50th Congress,
empowered the attorney general of the United
States by suits in the name of the United States to test the legality of the conception and consummation of road land grants, expressly enumerating the one involved herein.
In 1889, following the passage of this statute, the attorney general instituted litigation
which ultimately determined that the grant as such was legal and valid, and, as to the lands generally included therein, was in praesenti, but did not for two reasons pass upon any particular piece of land: first, as applied to appellants and respondents this section had been transferred prior to the enactment of the statute under which such suits were brought and was evidently exempted therefrom; and, in the second place, the judicial determination applied only to the grant and not to any particular piece of land, it being elsewhere stated that such grant, until specific pieces of land are deeded thereunder, is a mere float.
(Eastern Oregon Land Co. v. Brosnan,
(Ore.) 147 Fed. 807;
Leavenworth etc. R. R. Co. v. United States,
23 L. Ed. 634. Also,
United States v. Southern Pacific Railroad Co.,
36 L. Ed. 1091, at 1097, 146 U. S. 570.) Hence, the decisions on this grant are not authority, so far as this
litigation is concerned, beyond the point that the grant as such was legal. Though at the time the grant was made, the road built, and the plat was made, with the certificate of the governor of Oregon attached thereto, no public survey had been made, at least, of all the lands, and in particular, of the section involved herein, it is conceded that this section as finally surveyed lay within the primary limits of the grant, that it was not mineral land, and therefore subject to and legitimately susceptible to initial transfer by the company to Martin and by Martin to Marden and thence through the subsequent chain of title.
Some time in 1917 the secretary of the interior upon application of the commissioner of the general land office closed this grant, requiring the Eastern Oregon Land Company, the successor in interest of the Dalles Military Road Company, to file its acquiescence in the final adjustment of the grant upon the basis that the grantee select the then determined deficiency of 36,066.55 acres. (Eastern Oregon Land Co., Successor to Dalles Military Road Co., 45 Land Dec. 613.) This section was never designated by the company as specifically coming within the grant and it was never clear-listed by the company, the state, or otherwise, and no patent issued therefor to anyone.
July 10, 1910, Charles E. Smith made homestead entry No. 01505, Vale, for the north half of this section, and on July 19, 1910, Brit W. Martin made homestead entry No. 01506, Vale, for the south half. November 15, 1911, John E. Marden filed a protest against the entries, alleging that the Dalles Military Road Company by deed dated February 23,1873, conveyed all of this section to him; and the general land office, acting on Marden’s protest, and in view of the fact that the land was situated within the primary limits of the Dalles Military Road Company, on November 30, 1912, canceled said entries Nos. 01505 and 01506.
The lands evidently had been on the tax rolls of Malheur County for some time prior and up until March, 1936, when, pursuant to directions of the acting assistant commissioner of the land office at Washington, D. C., asserting that the same constituted a part of the public
domain of the United States, the assessor of Malheur County withdrew the same from the assessment rolls of said county. Thereupon appellant applied to the general land office at Washington, D. C. for a patent from the United States to him of the above described lands, which application was denied April 19, 1938, whereupon an appeal was taken to the secretary of the, interior, who rendered his decision January 16, 1939, affirming the action of the commissioner and refusing patent, holding that though the grant was in praesenti, it was only general, and since these lands had never been specified or listed by the company with the land office, and that by the decision closing the grant in 1912, it having been determined that exclusive of these lands and crediting the selections made under that closing order of other lands, the total acreage of the grant had been selected, hence this section was without the terms of the grant and the secretary of the interior had no power or authority to issue a patent therefor or recognize the title thereof as being in appellant.
The present action was thereupon instituted to recover the costs and expenses incurred by appellant in prosecuting such application and appeal before the department of the interior, consisting of $250 attorneys’ fees in connection therewith, and $800 thereafter paid by appellant in purchasing the land under Section 5, of Chapter 376, Vol. 24, U. S. Statutes at Large, p. 556, Act of March 3, 1887, 43 U. S. C. A. sec. 898, as suggested and held essential by the land department for the securing of title by him, and $7.50 publication of notice to purchase said land, and $2 fee to the commissioner of the land office for proof thereon.
The trial court held that the land passed by the grant, and the refusal of the patent was a mere refusal to issue the evidence of title, the United States had not interfered with appellant’s possession except by placing this land within a Taylor grazing area, and an action could be maintained enjoining the administrators of that act from evicting or interfering with appellant, and there has been no such failure of title as would justify the imposi
tion of damages sought under the covenant in the warranty deed.
It must be clearly kept in mind that this is an action for damages for breach of covenant of warranty, not only of fee simple title at the time the conveyance was made by respondents to appellant, but to “warrant and forever defend.” Respondents urge that the warranty to defend applies only to lawful claims and that the claim of title by the secretary of the interior in the United States is not such, more of which anon.
The question before us therefore is whether in the record before us appellant has shown such a defeat of his title or the existence of an adverse title sufficient in point of conclusiveness to entitle him to relief under the warranty.
The situation in principle is exactly the same as that considered by this court in
Madden v. Caldwell Land Co.,
16 Idaho 59, at 67, 100 Pac. 358, 21 L. R. A. (N. S.) 332, 2 Sutherland on Damages, sec. 605, p. 2101, where the court stated:
“Here the vendor at the time of making the conveyance to respondent Madden [Martin to Marden] had a good, clear and fee simple title, and the deed of conveyance made and delivered to respondent was sufficient to transfer and convey the same title to the vendee. Every covenant, warranty and representation made in the deed was at the time true, and the deed contained no false or fraudulent representation so far as it referred to facts existing at the time of its delivery. The whole trouble arose from a subsequent act committed by the vendor. The vendee failed and neglected to record her deed of conveyance. This was no violation of the contract on her part nor of any provision of law. The deed as between the vendor and vendee was just as valid and binding against the vendor before recording as afterward. The vendor cannot excuse or justify himself for reconveying the land simply because a previous vendee has failed and neglected to record his deed. * * * *
“Appellant [the Dalles Military Road Company] had no right to execute any instrument that would in any way cloud or affect respondent’s title, and to do so was a
violation of appellant’s covenants contained in the deed.
(West Coast Mfg. & Inv. Co. v. West Coast Impr. Co.,
31 Wash. 610, 72 Pac. 455.) The breach complained of in this case consists in a violation of the covenant contained in the deed made by appellant to respondent, whereby it agreed to warrant and defend the ‘quiet and peaceable possession of the property in the vendee’ against all its own acts and the acts of its ‘successors and assigns.’ Instead of appellant living up to that covenant and agreement contained in its deed, it proceeded to violate it, and executed a deed of conveyance to Froman, and Froman placed his deed of record, and, being an innocent purchaser for value, took the title. Not satisfied with this alone, the appellant, as shown by the record, paid Froman’s attorney fees for prosecuting the action in ejectment against appellant’s prior grantee, the respondent herein. The nearest approach to the facts of this case we have found is that in the case of
Curtis v. Deering,
12 Me. 499. In that case the prior conveyance was a mortgage which, under the laws of that state, passed title, but it was not placed of record until after a subsequent deed was recorded. The court held that the measure of damages was the amount due on the mortgage.”
The breach herein comparable to the above consisted in the Dalles Military Road Company and its successors in interest failing, at the time of the settlement with the land office in 1917, to see that the transfers previously made were properly taken care of in regard to the total amount of land to which they were entitled.
Madden v. Caldwell Land Co., supra,
holds in line with universal authority that one may recover on such a warranty as contained in the deed in question the expenses connected with litigation
unsuccessfully
attempting to validate the title received, and the cost of extinguishing an adverse title.
“In a case like this we have no doubt but that the measure of damages to be applied is that of adequate compensation for the actual injury, or, as it is sometimes expressed, ‘damages for the loss of the bargain.’ The actual damages which the vendee has sustained by reason of the breach of the contract to warrant and defend the
title and peaceable possession in the vendee is the amount to be recovered in this case, [citing authorities.]”
Madden v. Caldwell Land Co.,
16 Ida. 59, at 69, supra.
See further cases cited and digested in 61 A. L. R. 154 and 100 A. L. R. 1203: compare, if the grantee is successful, 105 A. L. R. 734.
Appellants kept respondents advised at all times as to the proceedings undertaken by him to secure recognition of his title from the only party who could ultimately give good title, namely, the government of the United States. The authorities universally hold that where title is in the government or the state, a suit for damages on such warranty may be brought though there has been no actual eviction.
Harrington v. Clark,
56 Kans. 644, 44 Pac. 624;
Jennings v. Kiernan,
35 Ore. 349, 55 Pac. 443;
Whatcomb Timber Co. v. Wright,
102 Wash. 566, 173 Pac. 724;
Burr v. Greeley,
(Mo.) 52 Fed. 926;
Brown v. Allen,
10 N. Y. S. 714;
McGary v. Hastings,
39 Cal. 360;
Glenn v. Thistle,
23 Miss. 42;
Dillahunty v. Little Rock etc. Co.
59 Ark. 629, 27 S. W. 1002;
Pevey v. Jones,
71 Miss. 647, 16 So. 252;
Seldon v. Dudley E. Jones Co.,
74 Ark. 348, 85 S. W. 778;
Cover v. McAden,
183 N. C. 641, 112 S. E. 817;
Beecher v. Tinnin,
26 N. M. 59, 189 Pac. 44;
East Canyon etc. Co. v. Davis,
65 Utah 560, 238 Pac. 280;
Albright v. Schwabland,
98 Neb. 190, 152 N. W. 301;
Efta v. Swanson,
115 Minn. 373, 132 N. W. 335.
The rule is also recognized and has been repeatedly announced that a grantee under a warranty of this character, who advises the grantor of litigation pending and which results in a determination that the title conveyed is invalid as against other outstanding adverse title, immediately upon such determination has a cause of action, and the grantor who fails to aid in the previous litigation, after such notice, is conclusively bound by such determination.
“If a warrantor has no notice of the action against his grantee, and no opportunity of showing therein that he transferred a good title, he cannot, in any sense, be considered a party to the action, and therefore ought not to be bound by an adjudication of the question of title. But, if he has notice, he may become a party to the suit, and it
is his own fault if his title is not fully presented and investigated. He then has an opportunity of sustaining the title he has warranted and defeating a recovery by the plaintiff in ejectment. If he fails to do this successfully, he is concluded from afterward asserting the superiority of that title, and compelled to refund the purchase money, with interest. By giving the warrantor notice, the defendant in ejectment may relieve himself from the burden of afterward proving the validity of the title under which he is evicted. But, if he neglects to give the notice, he must come prepared to prove, on the trial of the action of covenant, that he was evicted by force of an adverse and superior title; in other words, he must show that the warrantor, by appearing and defending the action of ejectment, could not have prevented a recovery, [citing authorities.] ”
Council Imp. Co. v. Pacific & Idaho Co.,
29 Ida. 113, at 116-7, 157 Pac. 258.
See also
Bliss Townsite Co. v. Morris-Roberts Co.,
33 Ida. 110, 190 Pac. 1028;
Scoggin v. Hudgins,
78 Ark. 531, 94 S. W. 684, 115 Am. St. Rep. 60;
Collier v. Cowger,
52 Ark. 322, 12 S. W. 702, 6 L. R. A. 107;
Carpenter v. Carpenter,
88 Ark. 169, 113 S. W. 1032;
Fels v. Ezell,
183 Ark. 229, 35 S. W. (2d) 359;
Bollenbacher v. Lee,
75 Ind. A. 330, 121 N. E. 663;
Estep v. Bailey,
94 Ore. 59, 185 Pac. 227, at 230;
Washington Gaslight Co. v. Districtof Columbia,
40 L. Ed. 712;
Hammond v. Oregon & C. R. Co.,
117 Ore. 244, 243 Pac. 767; 15 C. J., p. 315, sec. 217; 21 C. J. S., p. 1004, sec. 132, note 34;
Kellar v. Lindley,
203 Iowa 57, 212 N. W. 360;
Caldwell v. Blodgett,
(N. D.) 256 Fed. 744;
Morgan v. Haley,
107 Va. 331, 58 S. E. 564, 13 L. R. A. (N. S.) 732
Lashley v. Lashley,
205 Ky. 601, 266 S. W. 247;
Burchett v. Blackburne,
198 Ky. 304, 248 S. W. 853;
Smith v. Nussbaum,
(Mo.) 71 S. W. (2d) 82;
Cover v. McAden,
183 N. C. 641, 112 S. E. 817;
Sherman v. Piner,
(Tex.) 91 S. W. (2d) 1185; see 34 A. L. R. 1429 and 1918B L. R. A. 52;
Council Imp. Co. v. Pacific & Idaho Co.,
29 Ida. 113, 157 Pac. 258;
Bliss Townsite Co. v. Morris-Roberts Co.,
33 Ida. 110, 190 Pac. 1028.
Madden v. Cald-Well Land Co.,
16 Ida. 59, 100 Pac. 358, by citing with approval the following cases adopted the law therein announced declaring such rule and more fully expounded
and applied in 29 Ida. at 116, ante:
Hamilton v. Cutts,
4 Mass. 349, 3 Am. Dec. 222;
Drew v. Towle,
30 N. H. 531, 64 Am. Dec. 309;
Merritt v. Morse,
108 Mass. 270;
Green v. Irving,
54 Miss. 450, 28 Am. Rep. 360; Rawle on Covenants, p. 289; 2 Sutherland on Damages, sec. 604, p. 2096.
The secretary of the interior has original, exclusive jurisdiction to pass upon questions concerning the title to public lands as passing from the United States.
Standard Oil Co. of California v. United States,
107 Fed. (2d) 402;
Knight v. United Land Association,
35 L. Ed. 974, 142 U. S. 160;
Johanson v. Washington,
190 U. S. 179, 23 S. Ct. 825, 47 L. Ed. 1008;
Pengra v. Munz,
29 Fed. 830;
U. S. v. Winona, etc., R. Co.,
67 Fed. 948, 15 C. C. A. 96, affirmed 165 U. S. 463, 17 S. Ct. 368, 41 L. Ed. 789;
U. S. v. Schlierholz,
133 Fed. 333;
Neff v. U. S.,
165 Fed. 273, 91 C. C. A. 241;
Neto Dunderberg Min. Co. v. Old,
79 Fed. 598;
King v. McAndrews,
111 Fed. 860, 50 C. C. A. 29;
Knight v. United Land Ass’n,
12 S. Ct. 258, 142 U. S. 161, 35 L. Ed. 974;
Orchard v. Alexander,
15 S. Ct. 635, 157 U. S. 372, 39 L. Ed. 737;
Hawley v. Diller,
20 S. Ct. 986, 178 U. S. 475, 44 L. Ed. 1157. His findings of fact are conclusive upon the courts.
Clear Lake Power etc. Co. v. Chriswell,
31 Ida. 339, 173 Pac. 326;
Hurst v. Idaho Iowa L. & R. Co.,
42 Ida. 436, 246 Pac. 23; 50 C. J. 1089, sec. 485. His rulings, however, on questions of law may be reviewed. 50 C. J. 1091, sec. 486;
Hawley v. Diller,
44 L. Ed. 1157, 178 U. S. 475.
Both reason and principle sustain the proposition that the decisions by the secretary of the interior on land matters are the equivalent of a judgment of a court; he has exclusive jurisdiction over public land matters, in the determination of which he may exercise discretion. His findings of fact are conclusive, his conclusions of law are not and may be reviewed in courts of competent jurisdiction and in appropriate actions. The decision of the secretary of the interior therefore, in this ease, is the equivalent of a judgment of a court
(Rogers v. DeCambra,
132 Cal. 502, 60 Pac. 863, at 864) and until set aside, reversed, or otherwise modified is a definite determination that the title passed by respondents to appellant was void,
which immediately brings into play the force and effect of the decisions above noted entitling appellant to damages.
King v. Merk,
6 Mont. 172, 9 Pac. 827.
Respondents contend appellant mistook his remedy and that it should have been a suit at law instead of a proceeding in the land department. Before the courts will assume jurisdiction the land department must have acted and the party exhausted his remedies there.
Litchfield v. Richards,
19 L. Ed. 681, 76 U. S. 575;
Kendall v. Long,
66 Wash. 62, 119 Pac. 9. The secretary of the interior had jurisdiction over the title herein as disposing of public land.
Logan v. Davis,
58 L. Ed. 1121, 233 U. S. 612;
Altschul v. Clark,
39 Ore. 315, 65 Pac. 991. If patent had issued, a different situation would obtain.
Eastern Oregon Land Co. v. Andrews,
45 Ore. 203, 77 Pac. 117.
The determination by the secretary stands as an absolute bar at the present time. It is urged that appellants should have tested such decision in courts of law, and until that has been done it is not final and conclusive. The complete answer to this is that the appellant as grantee by notifying respondent as grantor of these proceedings in the land department charged the grantor with the duty of either participating or being conclusively bound, and it was the duty of the grantor to take appropriate action if he desired to have the decision of the secretary of the interior changed.
Respondent urges the patent is of no importance and that appellant has title and the patent is mere evidence thereof. But the secretary of the interior went beyond denying patent; he held title is in the United States.
The bulk of respondent’s brief is devoted to demonstrating appellant had a good title. Such contention should have been presented to the secretary of the interior, since respondents had notice of such proceeding, or, if they so desired and cared to protect themselves, in appropriate court action challenging the secretary’s determination. Not having so appeared, they are not absolved from liability on their warranty and, by
Madden v. Caldwell Land Co.,
16 Ida. 59, and
Council Imp. Co. v.
Pacific & Idaho Co.,
29 Ida. 113, 157 Pac. 258, stand charged with making good the title they warranted.
The sole extent of our power is to determine whether or not the appellant sufficiently proved as a basis for his claim of damages that an adverse title had in a proper proceeding, of which the grantor had ample notice, which is admitted, defeated the title granted him. We recognize that the grantors, respondents herein, were originally without fault, and loss is thus thrust upon them for which they were not initially responsible and concerning which, as to whether they have a cause of action over against their grantors, we express no opinion. As between appellant and respondents, however, respondents were not without fault, because they transferred under a warranty a defective title, and the rule announced in
Madden v. Caldwell Land Co.,
16 Ida. 59, supra, as applied to a suit of this kind, thus announced, is applicable :
“The rule is quite general, we think, that where one of two persons must suffer loss, that the loss should properly fall upon the one most culpable and who could most easily have avoided its consequences, and on whom the greater duty to discover the cause and defect rested. It seems self-evident to us that in case of a breach of a covenant of warranty, or a covenant for quiet and peaceable possession, the greater duty must of necessity rest upon the vendor to have discovered the condition of his title.”
We must decide the issues between the parties before us and upon the record and the legal propositions thereby presented.
The judgment of the trial court is therefore reversed and the trial court instructed to enter judgment for the costs, expenses, purchase price, and interest, of the land necessarily incurred.
(Hammond v. Oregon & C. R. Co.,
98 Ore. 1, 193 Pac. 457;
Hammond v. Oregon & C. R. Co.,
117 Ore. 244, 243 Pac. 767), all being held in
Madden v. Caldwell Land Co.,
16 Ida. 59, supra, to be legitimate and proper elements of expense and damage in
an action of this kind, since less than the purchase price, within the limit allowed in
Council Imp. Co. v. Pacific & Idaho Co.,
29 Ida. 113, supra.
North v. Brittain,
154 Tenn. 661, 291 S. W. 1071, 61 A. L. R. 6 and annotation. Costs awarded to appellant.
Budge, C.J., Morgan, Holden, and Ailshie, JJ., concur.