Huntley v. Newmont Mining Corp.

36 F. App'x 336
Court of Appeals for the Ninth Circuit·Decided June 7, 2002·No. Nos. 00-17420, 01-15061; D.C. No. CV-96-00369-HDM·Published·Cited by 1 cases

Opinion

MEMORANDUM **

Rex Huntley, Matthew Huntley, and Gregory Gintoff, individually and as a general partnership (collectively “Huntley”), appeal the district court’s grant of final judgment in favor of Newmont Mining Corp., Newmont Gold Co., and Newmont Exploration Ltd. (collectively “Newmont”). Specifically, Huntley appeals the district court’s decision that seven mining claims in the Carlin, Nevada area (collectively the “Bull Moose Claims”) were void under the Federal Land Policy and Management Act of 1976 (“FLPMA”), 43 U.S.C. § 1701 et seq. (1994), because the owner of the claims did not file a notice or affidavit of assessment with the county office for calendar year 1984 as required by subsection (1) of § 1744(a). Because resolution of this issue is dispositive, we need not reach the other issues raised by the parties on appeal.

I.

Between 1953 and 1963, William and Beverly Bleazard (the “Bleazards”) located and staked seven claims on federal public lands situated in Eureka County, Nevada, i.e., the Bull Moose Claims. On February 20,1989, the Bleazards entered into a mining lease with Huntley (the “Bleazard Lease”), whereby Huntley obtained the rights to explore, develop, and mine the Bull Moose Claims. In April 1989, Jim Stinson, a landman for Newmont, informed Rex Huntley that Newmont was interested in acquiring Huntley’s rights in the Bull Moose Claims. Following several communications between Stinson and Huntley, in January 1990, Rex Huntley and Stinson met and discussed the terms of a deal involving the transfer of rights under the Bleazard Lease.

Negotiations between the parties continued until mid-August 1990, when Stinson and Rex Huntley entered into a verbal agreement. According to the agreement, Newmont would conduct drilling on the property, assay the samples obtained from the drilling, and share all pertinent infor[338] mation concerning the property in exchange for Huntley providing Newmont with access to both the property and the confidential data obtained from the exploration. Huntley also granted Newmont the right of first refusal to its rights in the Bull Moose Claims. The agreement was memorialized in a letter dated August 17, 1990.

On August 20, 1990, under the direction of Gregory Gintoff, Newmont drilled two holes on the subject property. By letter dated September 26, 1990, Newmont informed Huntley of the results of the drilling, which showed only trace amounts of gold. Following this discovery, Stinson informed Huntley that Newmont no longer had an interest in pursuing the negotiations with Huntley for the acquisition of the Bull Moose Claims. Because of this representation, on November 4, 1991, Huntley surrendered its rights under the Bleazard Lease. Thereafter, Newmont acquired the Bull Moose Claims directly from the Bleazards and filed a notice of abandonment and relinquishment of the Bull Moose Claims effective September 1, 1992. Newmont then abandoned the Bull Moose Claims in favor of other claims it held covering the same property because it determined that the Bull Moose Claims were void ab initio, or at least void as of December 31, 1984.

In July 1995, Huntley learned from media reports that Newmont had purportedly discovered a sizeable gold deposit in the immediate area of the Bull Moose Claims. Thereafter, Huntley contends that it learned for the first time that Newmont’s exploratory drilling and assay reports were unreliable and improperly prepared. In June 1996, Huntley filed this suit against Newmont alleging fraudulent concealment, constructive fraud, breach of fiduciary duty, breach of contract, interference with contractual relations and prospective economic advantage, negligence, and unjust enrichment. Huntley also requested an accounting.

On November 19, 1998, Newmont filed a motion for summary judgment, raising various grounds for dismissal, including that the Bull Moose Claims were void long before Huntley acquired any leasehold interest in the claims because the Bleazards had failed to comply with the filing requirements of the FLPMA. In an order dated November 4, 1999, the district court agreed with Newmont that the Bull Moose Claims were void as of December 31, 1984, but nevertheless concluded that such a finding did not preclude Huntley from asserting a claim against Newmont.

On February 20, 2000, three days prior to the scheduled start of trial, the district court denied Huntley’s motion for reconsideration of its ruling that the Bull Moose Claims were void. Huntley then requested that the district court certify for interlocutory appeal its holding that the Bull Moose Claims were void and vacate the trial. The district court certified its order under 28 U.S.C. § 1292(b) and Huntley petitioned this court for an interlocutory appeal, which was denied as untimely. On November 3, 2000, the parties agreed to a stipulated judgment against Huntley and in favor of Newmont. On November 7, 2000, the district court entered a final judgment. Both parties appeal.

II.

Section 1744 of the FLPMA requires a claimant to file a notice of intent to hold claims or an affidavit of assessment work with both the Bureau of Land Management (“BLM”) and the county in which the claims are located “prior to December 31 of each year” beginning in 1979 for [339] claims staked prior to October 21, 1976.1 43 U.S.C. § 1744(a). Beginning in 1979, and continuing through 1991, the Blea-zards made the required BLM filings at some point in time during each calendar year. Further, with the exception of 1984, the Bleazards also made an appropriate filing with the Eureka County Recorder’s Office at some point in time during each calendar year. In 1984, however, the Bleazards submitted their county filing on October 3, 1983 — well within Nevada’s 1984 assessment year (September 1 — September 1), see Nev.Rev.Stat. § 517.230.4 (1971), but not within the 1984 calendar year. Huntley argues that the Bleazards’ October 1983 filing satisfies the FLPMA annual county filing requirement for 1984. The district court disagreed, however, and concluded that § 1744 contemplates calendar year filings, and because the Bleazards did not make a county filing at any time during calendar year 1984, the Bull Moose Claims were automatically abandoned as of December 31, 1984.2 The primary question presented by this appeal is whether a county filing, filed three months prior to the start of the calendar year, but within the state’s assessment year, satisfies subsection (1) of § 1744(a)’s annual filing requirement.

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Huntley v. Newmont Mining Corp., 36 F. App'x 336 (9th Cir. 2002).

36 F. App'x 336 (Huntley v. Newmont Mining Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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