Miller v. Saccares

64 P.2d 1118, 19 Cal. App. 2d 72, 1937 Cal. App. LEXIS 373
CourtCalifornia Court of Appeal
DecidedFebruary 3, 1937
DocketCiv. No. S. C. 31
StatusPublished
Cited by1 cases

This text of 64 P.2d 1118 (Miller v. Saccares) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miller v. Saccares, 64 P.2d 1118, 19 Cal. App. 2d 72, 1937 Cal. App. LEXIS 373 (Cal. Ct. App. 1937).

Opinion

SHINN, J., pro tem.

Plaintiff, a builder, and defendant, a jeweler, residing at Long Beach, decided to engage in a mining enterprise. Their capital was small, but greater than their knowledge and their experience in such matters. Plaintiff procured an option to purchase eleven lode mining locations in Arizona for the sum of $1500. Plaintiff, defendant and one E. Kadletz, the seller, visited certain claims from which defendant took a sample of what appeared to be ore. He thereupon paid $600 on the purchase price and, with plaintiff as co-maker, gave a note for the sum of $900, payable at the rate of $225 per month, and took a deed to the property to himself, and, apparently in exchange therefor, a later deed to himself and plaintiff as grantees. Having acquired the property, the parties decided that they should reduce their agreement to writing. They disagreed in the choice of a lawyer, each preferring one of his own selection, and they compromised the matter by choosing a notary public instead, who, with their assistance, drafted an agreement which set forth, after a fashion, their respective interests in the venture. Having acquired the claims they then decided to seek the advice of a mining man concerning their value and their development, and, with such an adviser, they made another trip to Arizona. Upon this occasion they took to the property a Mr. Bradley of Ajo, a miner who had done assessment work on the claims, and by him they were informed that the property which they had inspected on their first trip (with the [74]*74exception of two claims) was not the property which they had purchased. This matter they appear to have treated lightly. Their mining adviser went into a surface working, which was thought to expose an ore body on one of the claims and came forth with a pailful of ore, which was all there was in sight. They learned from him, in the expressive parlance of miners, that the small quantity of ore which lay in a pocket had “pinched out”. Upon their return home defendant expressed some feeling of discouragement at the outlook, but at plaintiff’s request another trip was made to the property with their mining friend and samples were taken from a shaft some seventy feet in depth. These, unfortunately, when assayed, showed values considerably below the cost of extraction and treatment. In the meantime defendant had paid the note of $900 and had purchased and taken title to some miscellaneous mining equipment upon which he. paid $2,000, plaintiff failing and refusing to pay any part of these sums. By this time the parties had learned that the cost of equipment for the commencement of operations on the property would amount to approximately $6,000, which was more money than they had, and they learned also, that as far as could be foretold, the property could be operated only at a loss.

Defendant declined to place his equipment on the property or to pay any further expense. He could not see the use of taking out the first carload of ore at a heavy loss even if' a carload was to be had, which was doubtful. Plaintiff then brought this action for dissolution of partnership, claiming a one-half interest in the mining locations and the equipment as well. The court found that the mining claims and the equipment were the sole property of defendant and gave judgment accordingly, from which plaintiff appeals.

The written agreement between the parties read as follows: “The said Parties hereto have agreed to become, and by these presents do become Co-Partners in the working of the following Mining Claims: Sundown Nos. 4, 5, 7, 10, 11, 12, Wonder, Madoc, Liberty Bond No. 1, Liberty Bond No; 2, and Millsight containing approximately three hundred and forty (340) acres and all situated in the Meyers Mining District, Pima County, State of Arizona. In consideration of the Party of the First Part obtaining Option on the above described Mining Claims, Party of the Second Part agrees to [75]*75secure title to said Claims, and further agrees to furnish sufficient money and equipment to work said Mining Claims, until the first carload of Ore is shipped from the Mine, after which time the expense, gains and increase from the business shall be divided between them, share and share alike. Should either partner desire to sell his one-half interest in the above claims, it is agreed that the other partner shall have the first option to purchase same. This agreement shall be binding upon and inure to the benefit of the heirs, successors and assigns of the parties hereto. This agreement shall be in full force and effect until mutually dissolved.”

The trial judge interpreted the agreement as placing the ownership of the claims in defendant. From the provisions of the agreement that there should be a partnership in the “working” of the claims and that after the first carload of ore should have been shipped “the expense, gains and increase” should be divided between the parties, share and share alike, the court concluded that plaintiff was to have at most a share of the profits if, as and when the mine should be worked. This construction finds support in the testimony of defendant for, as he testified, he first obtained a deed to himself as grantee; but, upon the promise and upon the condition that plaintiff would pay one-half of the purchase price of the property, defendant consented to have plaintiff’s name “on the deed”, with the understanding that unless and until plaintiff paid his share he was to have no interest in the claims. Such payment was never made. Defendant’s act of joining in the execution of the note for $900 lends further support to this construction of the agreement. The finding was that plaintiff should have a one-half interest in the profits when the claim should be worked but no interest in the claims themselves or the equipment. The parties could, of course, as the court with good reason found that they did, make a lawful contract, so defining their respective interests.

The agreement was silent as to the ownership of the equipment and the notary public testified that when the agreement was drafted the parties requested the omission of all reference to the equipment to be purchased, stating that that would be the property of defendant. Plaintiff’s claims to an interest in the equipment would seem to be wholly without merit.

[76]*76The court found that plaintiff paid nothing for the option and that defendant paid all of the expenses of the venture. The claims were found to be worth not to exceed $1500, but while they seem to have been worth that much to B. Kadletz, a finding that they were valueless would have found abundant support in the evidence.

Under the one-sided construction of the agreement contended for by plaintiff, defendant would have been required to sell the property, including the equipment, and after paying outstanding debts, if any, pay over to plaintiff one-half of the remaining balance, without reimbursing himself for his advances, a most inequitable result. By the decree defendant was left in a position where he might retain the property he had paid for with his own funds or such salvage as a sale thereof might afford. The most that plaintiff could reasonably have laid claim to, had he established a partnership interest in the property, would have been a share of the proceeds remaining after defendant had been reimbursed for his advances, and this apparently would have been nil. In the determination of the ownership of the mining claims and the equipment, the decree is eminently just and in accordance with the evidence.

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Cite This Page — Counsel Stack

Bluebook (online)
64 P.2d 1118, 19 Cal. App. 2d 72, 1937 Cal. App. LEXIS 373, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-v-saccares-calctapp-1937.