Moar v. Pioneer-Lucky Strike Gold Mining Co.

120 P.2d 48, 48 Cal. App. 2d 528
CourtCalifornia Court of Appeal
DecidedDecember 17, 1941
DocketCiv. No. 6650
StatusPublished
Cited by2 cases

This text of 120 P.2d 48 (Moar v. Pioneer-Lucky Strike Gold Mining Co.) 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
Moar v. Pioneer-Lucky Strike Gold Mining Co., 120 P.2d 48, 48 Cal. App. 2d 528 (Cal. Ct. App. 1941).

Opinion

ROSS, J. pro tem.

The Pioneer-Lucky Strike Gold Mining Company, a corporation, is referred to herein as “Pioneer” and Anozira Mining Company, a corporation, as “Anozira.”

In the trial court three actions were consolidated. The first case was that of Rudolf Moar, Richard Moar, Nick Moar, and A. L. Pierovich, as executor of the estate of Frank Shatter, deceased, against Pioneer and Anozira. This was a quiet title action, and the defendant Anozira cross-complained and brought in other cross-defendants, mainly, James Douglas and James McKenna. The second action is for conversion of personal property, brought by Anozira against the Moars, Pierovich, Douglas and McKenna, and the third action is for forcible entry and detainer, also brought by Anozira against the same persons. In this opinion “the plaintiffs” means the plaintiffs in the first action. The decision as to the second and third actions depends greatly on the suit to quiet title and the main questions herein are connected with the first action.

On July 5, 1932, Shatter, now deceased, and the Moars, made an agreement with T. H. Rosenberger for sale of certain mining claims in Amador County, California. The option price was $55,000, of which $2500 was paid down. $12,000 was to be paid on or before July 5, 1933, $12,000 on or before January 5, 1934, $12,000 on or before July 5, 1934, and $16,500 on or before January 5, 1935. Also it was agreed that 20% royalty on the net smelter or mint proceeds would be paid to plaintiffs each month, with a guarantee of $1000 [530]*530minimum per month. Later this agreement was assigned by Rosenberger to Pioneer, through one Horowitz. A supplemental agreement in August, 1932, provided, among other things, that notice by registered mail should be given by the sellers to the buyers of any alleged breach of covenant and that buyers should then have thirty days within which to rectify said breach.

Operations by Pioneer started early in December, 1932. The first month’s royalty became due January 10, 1933. In the meantime it had appeared that there was some litigation pending, a suit by R. I. Irons against the Moars and Shafter, based on a former contract of sale made between them for purchase by Irons of the mining claims. It was claimed that Irons had defaulted in his payments, and also his interest in the claims had been sold under execution for labor claims against him and had been bought in by the plaintiffs herein. The Irons contract, however, was recorded in the county recorder’s office of Amador County. There was also on record a contract between plaintiffs herein and Jack Darnell covering an agreed sale of the same claims. The Irons contract was dated July 12, 1930, and the Darnell contract February 26, 1931.

In the first part of January, 1933, because of the Irons litigation, there were negotiations between Pioneer and the plaintiffs which led to the impounding by the American Smelting and Refining Company of the 20% royalty due the plaintiffs on the concentrates shipped by Pioneer to said company. This impounding continued, although there were requests by plaintiffs that Bank of Amador County should be the depositary.

In the meantime the Irons case was tried in February, 1933, and judgment adverse to Irons was rendered on May 31, 1933. On March 1, 1933, Irons filed a second suit, including Pioneer as a defendant. Demurrers in that suit were filed but never were determined. In August, 1933, Irons filed a third suit which was tried in January, 1934, in which another judgment was given against him. However, a motion for new trial was granted (later vacated as to Pioneer, Irons v. Superior Court, 10 Cal. App. (2d) 523 [52 Pac. 553]), and the case was tried again late in 1935 and judgment was again rendered against Irons. In October, 1933, a quitclaim deed from Darnell to the plaintiffs had been recorded, ending litigation against him by plaintiffs.

[531]*531In January, 1934, a notice o£ default was given by plaintiffs to Pioneer. In February, 1934, Pioneer assigned all its rights to Anozira. Soon after this plaintiffs filed suit for possession against Pioneer and Anozira. This is referred to in the record herein and in this opinion as the ejectment suit. Later the American Smelting and Refining Company interpleaded in this action claiming $37,670.66, the total amount in its hands. It had been requested by plaintiffs when this action was commenced to impound, not only the 20% royalty, but all proceeds from concentrate sales to it by Pioneer or Anozira. The mine was closed down in March, 1934, by Anozira because it depended on the proceeds from the smelter to operate.

In 1933, plaintiffs made an agreement with Douglas and McKenna, by which the latter financed all litigation with the understanding that they would get a lease or option from the plaintiffs on these mining claims when the claims of Pioneer, Anozira and Irons had been disposed of.

The suit between plaintiffs and Anozira and Pioneer was tried before a jury in July and August, 1935, as to the issue of possession, and the verdict was rendered in favor of defendants. The court then tried the issue as to disposition of the interpleaded money and in January, 1936, rendered judgment giving plaintiffs $27,674.03 and Anozira $9996.63 of this money. The clerk later paid the respective parties these amounts.

However, in January, 1935, another notice of default had been given by plaintiffs to Anozira and Pioneer for alleged failure to make any payments and alleged failure to work the mine properly, etc. At that time no payment had been made except the initial $2500, but the $37,000 had been paid into court by the operators of the smelter, in the first suit, which was still undetermined. Thirty days was given Anozira and Pioneer to correct their alleged breaches of covenant.

In May, 1935, a lease was given on the mining claims by plaintiffs to Douglas and McKenna, and in June, 1935, plaintiffs and Douglas and McKenna entered the premises, dispossessed Anozira’s watchman, took over all the tools and machinery and operated the mine for a time. This is the basis of the conversion and forcible entry actions herein.

[532]*532On receiving the notice of default in January, 1935, Anozira wrote plaintiffs that it “does hereby tender the entire unpaid purchase price referred to. . . . Will you please advise when and where the cash may be delivered to you, at which time, of course, we will want to receive an instrument of conveyance.” This was ignored.

After the judgment in the ejectment suit, which was in January, 1936, the instant quiet title action was commenced on March 9, 1936. On March 30, 1936, Anozira notified the plaintiffs that it would personally tender the unpaid purchase price to them at the Bank of Amador County, in Jackson, California, on April 13, 1936, at 11 a. m. At that time a representative of Anozira appeared there with $22,-500 and tendered it, but was refused.

To turn back briefly, plaintiffs had made an agreement with one Bedford to pay him 10% of the purchase price received by them on this deal, of which they had paid only $500. On the total purchase price of $55,000 Bedford would still have $5000 due him. He had later assigned this claim to Anozira, which apparently considered that this should be deducted from the amount still due from it to plaintiffs. No point was made on this in the refusal of the tender of April 13, 1936.

The three instant cases were tried twice as consolidated cases.

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Related

Rosenaur v. Pacelli
345 P.2d 102 (California Court of Appeal, 1959)
Fowler v. Case
200 P.2d 130 (California Court of Appeal, 1948)

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Bluebook (online)
120 P.2d 48, 48 Cal. App. 2d 528, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moar-v-pioneer-lucky-strike-gold-mining-co-calctapp-1941.