Hamilton v. Ertl

360 P.2d 660, 146 Colo. 80, 1961 Colo. LEXIS 573
CourtSupreme Court of Colorado
DecidedMarch 20, 1961
Docket18574
StatusPublished
Cited by3 cases

This text of 360 P.2d 660 (Hamilton v. Ertl) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hamilton v. Ertl, 360 P.2d 660, 146 Colo. 80, 1961 Colo. LEXIS 573 (Colo. 1961).

Opinions

Mr. Chief Justice Hall

delivered the opinion of the Court.

This action was instituted by Ertl under Rule 105, R.C.P. Colo., to determine interests in sixty-seven unpatented placer mining claims located in Rio Blanco County, Colorado. The claims were known as the Pueblo Group, Cedar Group, Nancy Group and Helen Agnes Group.

Trial was to the court and judgment entered December 2, 1957, quieting title in Ertl to all claims. The defendants who appeared in the trial court are here by writ of error seeking reversal.

Several parties named as defendants in the trial court did not appear there — among others, Cathedral Bluffs Realty Trust, herein referred to as Realty Trust, and Cathedral Bluffs Oil Shale and Refining Company, referred to as Refining Company.

[82]*82The parties at a pretrial conference agreed that one Chris C. Dere, by deed duly executed September 29, 1920, and recorded in Rio Blanco County, Colorado, on October 4, 1920, became the sole owner of the claims involved.

Ertl claims ownership of a one-twelfth interest in the claims by virtue of a quitclaim deed executed by one Frank Sefcik in which Ertl is named as grantee. He claims ownership of the other eleven-twelfths interest on the ground that he, being a co-owner of the claims by virtue of the aforesaid quitclaim deed, performed the annual labor and made the annual improvements on the claims for the year July 1, 1952, to July 1, 1953, and had acquired the title of his co-owners through forfeiture proceedings conducted pursuant to and in compliance with Title 30, Section 28, U.S.C.A., which among other things provides:

“* * * Upon the failure of any one of several co-owners to contribute his proportion of the expenditures required hereby, the co-owners who have performed the labor or made the improvements may, at the expiration of the year, give such delinquent co-owner personal notice in writing or notice by publication in the newspaper published nearest the claim, for at least once a week for ninety days, and if at the expiration of ninety days after such notice in writing or by publication such delinquent should fail or refuse to contribute his proportion on the expenditure required by this section, his interest in the claim shall become the property of his co-owners who have made the required expenditures. * *

Hamilton claims title to all of the claims, with the exception of a one-half interest in the Pueblo Group, through two quitclaim deeds executed by one G. C. Wiles (named as defendant in the complaint but did not appear), both of which deeds were dated November 22, 1934, and recorded May 17, 1935, and June 19, 1935, respectively.

[83]*83Plaintiffs in error, other than Hamilton, are the heirs of Chris C. Dere. They claim ownership of all of the claims, contending that Dere at the time of his death was the sole owner of all of the claims.

From the record before us one must conclude that for a period of over thirty years no one manifested any appreciable interest in the claims which now appear to have substantial potential value. There is nothing in the record to indicate that any assessment work was done on the claims for over thirty years.

On December 1, 1920, Chris C. Dere, then sole owner of all of the claims, and one G. C. Wiles, designating themselves as “Subscribers,” executed an instrument labeled:

“Express Trust and ‘Hulbert Plan’ Voluntary Association of Trustees by Contract under the Common Law.”

In this instrument they adopted the trade name: “Cathedral Bluffs Realty Trust: Main Office, Chicago, 111.” and they, as “subscribers,” purported to convey to said Realty Trust all of the claims herein involved (except twelve claims of the Pueblo Group), title thereto to be held as a trust estate by five trustees: Dere and Wiles, together with Henry Hulbert, L. A. Wiles and F. G. Hulbert. This instrument was recorded in Chicago, Illinois, on December 14, 1920. It has never been recorded in Rio Blanco County. It was signed by Chris C. Dere and G. C. Wiles, described as subscribers, by the five persons, including Dere and Wiles as trustees, and by:

“Cathedral Bluffs Realty Trust G. C. Wiles, President L. A. Wiles, Secretary.”

Among other things, the instrument provides that the trustees shall issue 50,000 beneficial shares, each with a par value of $100.00 ($5,000,000.00), and directs that the trustees forthwith “issue or allot” said shares in “equal ratio” to Dere and Wiles in exchange for their services and the properties conveyed.

Simultaneous with the purported creation of this [84]*84Realty Trust an almost identical instrument was drawn providing for “The Cathedral Bluffs Oil Shale and Refining Company.” This instrument bears the same date, the subscribers and trustees are the same and the purposes of the trusts, if any, are the same or similar. However, it dealt with the twelve Pueblo Group claims not conveyed to the Realty Trust and provided for the issuance and forthwith delivery to Dere and Wiles of 2,000,000 beneficial shares of the par value of $1.00 per share ($2,000,000.00).

The record shows that shortly after creation of these so-called “Hulbert Plan” trusts (Dere having by separate deeds conveyed to each trust the claims described therein), eleven persons met with Dere and Wiles in the Chicago office of one Frank Sefcik. At this meeting each of the eleven persons paid to Dere and Wiles $2,000.00 and in return therefore each received identical agreements signed by: “Chris C. Dere and G. C. Wiles, Subscribers of all of the assets and owners of all of the beneficial shares of Cathedral Bluffs Realty Trust * * * parties of the first part,” wherein, among other things, it is provided that they in consideration of $2,000.00 in hand paid: “do hereby sell, assign, convey and deliver * * * an undivided one-twelfth (1/12) interest in all * * * mining claims [inserted is a legal description of all of the claims deeded to the Realty Trust].”

Said agreement further provides:

“It is further understood and agreed by and between the parties hereto that unless mutually agreed upon at some future date, that there will be no beneificial shares offered for sale in the said CATHEDRAL BLUFFS OIL SHALE & REFINING COMPANY and that the said party of the second part is an owner and shall hold a one-twelfth (1/12) interest in said CATHEDRAL BLUFFS OIL SHALE & REFINING COMPANY(Emphasis supplied.)

Uncontradicted testimony of Sefcik shows that within a year or two after the execution of the eleven agree[85]*85ments each of the eleven made one or more payments to Dere and Wiles of $400.00 or $500.00 to take care of the assessment work to be done on the claims.

There is nothing in the record to indicate that any trustee ever qualified, that any beneficial shares were ever issued, that any assessment work was ever done, that the trustees ever met, functioned as a group or made any accounting to anyone. From the record before us one might well conclude that the trusts existed on paper only.

On October 16, 1952, Sefcik by quitclaim deed conveyed to Ertl all of his title to all sixty-seven claims.

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Related

Hickel v. Oil Shale Corp.
400 U.S. 48 (Supreme Court, 1970)
Oil Shale Corporation v. Udall
261 F. Supp. 954 (D. Colorado, 1966)
Hamilton v. Ertl
360 P.2d 660 (Supreme Court of Colorado, 1961)

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Bluebook (online)
360 P.2d 660, 146 Colo. 80, 1961 Colo. LEXIS 573, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hamilton-v-ertl-colo-1961.