L.E. Broadhurst v. Chester L. Whitelock and Vitro Minerals Corporation, a Corporation

313 F.2d 130, 1962 U.S. App. LEXIS 3253
CourtCourt of Appeals for the Tenth Circuit
DecidedDecember 22, 1962
Docket7005
StatusPublished
Cited by1 cases

This text of 313 F.2d 130 (L.E. Broadhurst v. Chester L. Whitelock and Vitro Minerals Corporation, a Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
L.E. Broadhurst v. Chester L. Whitelock and Vitro Minerals Corporation, a Corporation, 313 F.2d 130, 1962 U.S. App. LEXIS 3253 (10th Cir. 1962).

Opinion

SETH, Circuit Judge.

This is a suit brought by an individual claimant and his corporate lessee to quiet title to a group of eighty-eight unpatented mining claims in Utah. The defendant claims an interest in the property under two agreements between himself and the individual plaintiff. The trial court found the issues for the plaintiffs, and defendant appeals.

The individual plaintiff-appellee Whitelock located all but six of the claims in question and these locations were financed by one Evan Roberts, who is not a party. The locations were made in February, March and May 1958. Whitelock and the appellant Broadhurst entered into an “Assignment Agreement” dated December 13, 1957, which referred to certain named claims not here involved sold by Whitelock to Broadhurst, and which recited the consideration for the sale and set the royalty. This agreement was not recorded, and being dated in December 1957 could not refer by name to the claims located by Whitelock which are involved in this suit. The agreement does however contain a paragraph with prospective language which has become an issue in this suit. This paragraph states:

“9. It is understood and agreed that the said Whitelock has staked other claims and will continue to acquire additional properties and leases in his name and for the benefit of the said Broadhurst, and the said Whitelock agrees to make appropriate assignments and transfers of these interests as acquired over and to the said Broadhurst; and in connection with all such property involving claims where halloysite is the principal ore mined from the said claims, the royalty provisions hereinabove set forth shall apply as to all such properties conveyed and delivered to the said Broadhurst.”

The appellant asserts that he has an interest in the claims in question by reason of Whitelock’s undertaking as to future acquisitions contained in this paragraph.

On April 10, 1958, the same two parties entered into a second agreement which was prepared at the request and expense of Evan Roberts by his attorney, David M. Zemer. This agreement was recorded and refers to certain named mining claims but does not refer by name to any of the claims involved in this action. When this agreement was submitted to Whitelock, he made certain interlineations and deletions. This was done in the office of appellant’s attorney, William J. Cayias, by Whitelock without the advice of an attorney of his own. Paragraph 6 of this agreement of April 10, 1958, reads as follows, including the interlineations:

“It is understood and agreed that the said Whitelock has staked other/ Halloysite CLW B.D.W. claims and will continue to acquire additional/ Halloysite CLW B.D.W. properties *132 and leases in his name for the benefit of the said Broadhurst, and the said Whitelock agrees to make appropriate assignments, conveyances, and transfers of these interests as acquired over and to the said Broadhurst. Any such Halloysite CLW B.D.W. /properties assigned, conveyed, and transferred by Whitelock to Broadhurst and which properties are accepted by Broadhurst in the future shall be subject to the terms and conditions of this agreement without any further writing or agreement between the parties; and Whitelock shall thereafter be entitled to receive the royalty described herein in accordance with the terms of this agreement with respect to such additional properties conveyed and assigned to Broadhurst.”

The recitals in this same agreement as changed by Whitelock read in part as follows:

“WHEREAS, * * * an assignment agreement was executed between the parties on the 13th day of December, 1957, * * *, and
“WHEREAS, other assignment agreements may have been executed in the past by the parties with respect to the assignment of properties from Whitelock to Broadhurst, and
“WHEREAS, it is the desire of the parties hereto to confirm and ratify prior assignments, sales and transfers of properties, leases, claims and options from Whitelock to Broadhurst; to nullify all prior assignment agreements executed by the parties/as to Halloysite properties CLW B.D.W. and to set forth in writing a controlling agreement between the parties with respect to properties previously assigned and conveyed from Whitelock to Broadhurst ¡covering Halloysite properties in Juab County, Utah and Lincoln County Nevada CLW B.D.W. as well as with respect te other claims a*d: leases la additional properties new held fey WMteleefe or to fee acquired fey Whüeleefe i» the fetarer CLW B.D. W.”

The agreement of April 10, 1958, as so altered by Whitelock was duly signed by him and was subsequently acknowledged by Broadhurst before Zerner.

The connection of Roberts and Zerner with this suit requires some explanation. Roberts and appellant had various joint ventures on mining properties and Zerner, who was Roberts’ attorney, also represented appellant in situations where Roberts was interested. Zerner testified that Roberts had an interest in the property, the subject of this suit, through such a joint venture agreement with appellant. Zerner also assisted in preparing appellant’s pleadings in this case. In the two agreements above referred to, provision is made that any notices to be sent to appellant shall be sent in care of Zerner.

In July 1958 Whitelock assigned the claims in question (and others) to Blue River Fluorspar Mining Company, reserving to himself a royalty. This company was wholly owned by Evan Roberts, and attorney Zerner was an officer and handled its legal matters. Some exploratory and development work was done on the properties so assigned, but the assessment work was done on only a few of the claims. In July 1959 Blue River assigned back the claims in question (and others) to Whitelock, who then did the assessment work, and on April 1, 1960, he leased the claims in question to appellee, Vitro Minerals Corporation. Appellant Broadhurst made no demand on Whitelock to convey the claims to him prior to this suit. The parties concede that the claims in issue are not halloysite claims.

The principal issue on appeal concerns the construction of the agreements of December 13, 1957, and April 10, 1958. The other issues are whether or not appellee Vitro had constructive notice of the contents of the agreements, and whether appellant is estopped from asserting his claim by his actions and those of his associates. The case is basically *133 one involving the substantial evidence rule.

The trial court found as a fact that the agreement of April 10, 1958, as executed, was intended to supplant and to nullify the agreement of December 13,

1957. The court also noted that neither of the agreements makes reference by name to any of the claims in question. The court concluded that the April 10,

1958, agreement does not “cover or apply” to the claims in issue. The court considered the acts of the parties and their associates with reference to the claims and found that such actions were inconsistent with the position taken by the appellant at the trial.

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Bluebook (online)
313 F.2d 130, 1962 U.S. App. LEXIS 3253, Counsel Stack Legal Research, https://law.counselstack.com/opinion/le-broadhurst-v-chester-l-whitelock-and-vitro-minerals-corporation-a-ca10-1962.