Marks v. Gates

2 Alaska 519
CourtDistrict Court, D. Alaska
DecidedSeptember 4, 1905
DocketNo. 338
StatusPublished
Cited by8 cases

This text of 2 Alaska 519 (Marks v. Gates) 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
Marks v. Gates, 2 Alaska 519 (D. Alaska 1905).

Opinion

WICKERSHAM, District Judge.

The complaint is yet indefinite in its statement of the consideration for the contract. Whether it is intended to allege that in consideration of the acknowledgment by the plaintiff of the payment to him of the past indebtedness of $11,225 due to him from the defendant, and the present payment to defendant by plaintiff of the sum of $1,000, the defendant made the contract sued on, is not plainly stated; but conceding that such was the intention of the pleader (and apparently no more can be claimed for the pleading), is the plaintiff entitled to the relief demanded?

This is an action to compel the specific performance of a contract and for an accounting. The sufficiency of the complaint must be measured by those rules which prevail in courts of equity. Since the basis of the action is the written contract, it will be necessary to a correct application of those rules to-[523]*523examine it, and to determine its character, what it is, and what it is not.

1. It does not create a general partnership between the parties. There is no agreement to carry on business together, in Alaska or elsewhere, and to divide the profits or losses of a joint venture. True, the complaint prays for an accounting, but it is such an accounting only as a trustee is required to make. There is nothing in the contract providing for the joint use or working of property acquired by the defendant in Alaska, and no agreement or promise on the part of the plaintiff to advance money, property, or credit to a partnership, or to do any other act or thing in aid of a common or joint interest.

2. It does not create a mining partnership. It does not mention mining property or a mining venture, other than as the word “location” used in connection with acquiring property in Alaska may be thought to do so. A mining partnership exists when two or more persons, who own or acquire a mining claim for the purpose of working it and extracting the mineral therefrom, actually engage in working the same. Skillman v. Lachman, 23 Cal. 203, 83 Am. Dec. 96; Kahn v. Smelting Co., 102 U. S. 641, 26 L. Ed. 266; Prince v. Lamb, 128 Cal. 120, 60 Pac. 689. There is no allegation that the plaintiff and defendant actually engaged in working any of the mines mentioned in the complaint, but the fair construction of the complaint is that they did not do so.

3. It is strenuously urged by counsel for plaintiff that the agreement is a grubstake contract. A grubstake contract is an agreement between two or more persons to thereafter locate mines upon the public domain by their joint aid, effort, labor, or expense, whereby each is to acquire, by virtue of the act of location, such an interest in the mine as is agreed on in the contract. The title accrues to each as an original locator, though the location be made in the name of one or more of [524]*524the parties only. Each party to the grubstake contract not named in the location notice becomes, nevertheless, an equitable owner and tenant in common with those named. Such a contract, when clearly established, will be enforced in equity. Cascaden v. Dunbar, 2 Alaska, 408, for authorities.

The complaint alleges the forgiveness of the antecedent debt due to plaintiff and the payment to Gates of the sum of $1,000, and then alleges :

“And that by means of which consideration, and under the terms and conditions of and in pursuance to the said agreement, the defendant W. O. Gates was enabled to come to Alaska, and there to acquire, by location, purchase, and otherwise, various properties.”

—And then describes seven valuable placer mines as being thus acquired. This allegation, however, does not even attempt to change, add to, or modify the contract. Its only effect is to allege that with the money thus obtained from plaintiff Gates “was enabled to come to Alaska, and there to acquire” various properties. The contract and pleading combined amount to no more than this: (1) Gates agreed to convey to plaintiff a 20 per cent, interest in any and all property which he should thereafter acquire, either by location, purchase, or otherwise, in Alaska; (2) that by the forgiveness of the antecedent debt and the payment of the alleged true consideration of $1,000, Gates “was enabled to come to Alaska, and there to acquire” the properties sued for. But there is no allegation that Gates agreed to do anything in addition to those stated in his contract, and for which the $1,000 consideration was so paid to him. The contract does not provide that Gates should ever go to Alaska, or that he would use the $1,000, or any part of it, for that purpose, or for the purpose of acquiring mines or other property there, or even that he would acquire property there, or do any other act or thing, individually or jointly with plaintiff, in Alaska or elsewhere. The contract does not provide that Gates shall locate or acquire mines or other property in Alaska. He [525]*525did not agree to locate or acquire jointly with plaintiff nor for plaintiff. There is nothing on the face of the contract or pleading which shows that it was the intention of either party that plaintiff was to have or acquire any title in mines in order property in Alaska except by purchase and conveyance from Gates. Á grubstake contractor, whether named in the notice of location or not, acquires title as an original locator by virtue of his individual interest in the original location, and without conveyance. Plaintiff’s purchase of a 20 per cent, interest gave him no status as a locator, but only as a purchaser. He is not connected as an original locator with the act of location, but is a mere purchaser from or under the original locator. There is no agreement that any mine shall be located in Alaska, nor any allegation that such location was made by Gates; it follows that the contract cannot be considered a grubstake contract.

4. It is a contract of present purchase of a specified quantity of interest in property to be thereafter acquired by the defendant in Alaska. It is an executed contract on the part of the' plaintiff. He has paid the agreed'consideration, and has no' other duty to perform. He alleges the acquisition of property by defendant in Alaska, and appeals to equity to specifically enforce performance of the contract to convey his moiety, and for an accounting for profits therefrom.

Admitting the contract and the receipt of the consideration,, the defendant says, by demurrer, that equity ought not to enforce specific performance, because (1) to do so would be unjust and inequitable, and (2) because the contract is too uncertain and indefinite to be specifically enforced.

The rule in this class of cases is announced by the Supreme Court of the United States in the case of McCabe v. Matthews, 155 U. S. 550, 15 Sup. Ct. 190, 39 L. Ed. 253, as follows:

“A decree for the specific performance of a contract for the sale of' real estate does not go, as a matter of course, but is granted or [526]*526withheld according as equity and justice seem to demand in view of all the circumstances of the case. Pratt v. Carroll, 8 Cranch, 471, 3 L. Ed. 627; Holt v. Rogers, 8 Pet. 420, 8 L. Ed. 995; Willard v. Tayloe, 8 Wall. 557, 19 L. Ed. 501; Hennessey v. Woolworth, 128 U. S. 438, 9 Sup. Ct 109, 32 L. Ed. 500.”

And in Willard v.

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Bluebook (online)
2 Alaska 519, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marks-v-gates-akd-1905.