Montana Mining Co. v. St. Louis Min. & Mill. Co.

168 F. 514, 93 C.C.A. 536, 1909 U.S. App. LEXIS 4460
CourtCourt of Appeals for the Ninth Circuit
DecidedMarch 1, 1909
DocketNo. 1,574
StatusPublished
Cited by2 cases

This text of 168 F. 514 (Montana Mining Co. v. St. Louis Min. & Mill. Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Montana Mining Co. v. St. Louis Min. & Mill. Co., 168 F. 514, 93 C.C.A. 536, 1909 U.S. App. LEXIS 4460 (9th Cir. 1909).

Opinion

MORROW, Circuit Judge.

A controversy arose in the year 1884 between the owners of the St. Louis lode claim and the Nine Hour lode claim, in the state of Montana, concerning a disputed boundary between the two claims. The controversy involved the possession and ownership of a strip of ground 30 feet wide, and including an area of about 12,844- square feet. At the time of applying for a patent the locators of the St. Louis claim included in their survey a portion of the ground claimed by the owners of the Nine Hour claim. The latter made an adverse claim, and brought an action to determine the rights of the parties thereto. Before the case was tried the suit was compromised, and a bond executed by the owner of the St. L,ouis claim to the owners of the Nine Hour claim, under which it was agreed that the owner of the St. Louis claim should include in the survey of that, claim the compromise ground, and, as soon as a patent issued to the St. Louis claim, the owner of that claim would then convey to the owners of the Nine Hour claim the strip of land embraced in the compromise.

The owner of the St. Louis claim, having obtained a patent, refused to make the conveyance. The Montana Mining Company having become the owner of the Nine Hour claim, and the St. Louis Mining & Milling Company the owner of the St. Louis claim, the former company brought suit against the latter company for the specific performance of the contract. A decree was rendered in favor of the Montana Company (Montana Mining Co. v. St. Louis Mining & Milling Co., 20 Mont. 394, 51 Pac. 824; St. Louis Mining & Milling Co. v. Montana Mining Co., 171 U. S. 650, 19 Sup. Ct. 61, 43 L. Ed. 320), and in pursuance of this decree a conveyance of the ground was executed by the St. Louis Company to the Montana Company.

There then arose a controversy as to the extralateral rights of the St. Louis Company in what has since been designated the “compromise ground.” The ground has been found to be very valuable, and the controversy respecting the rights of the parties thereto has been the subject of prolonged litigation. Montana Mining Co. v. St. Louis Mining & Milling Co., 102 Fed. 430, 42 C. C. A. 415; St. Louis Min[516]*516ing & Milling Co. v. Montana Mining Co., 104 Fed. 664, 44 C. C. A. 120, 56 L. R. A. 725; Montana Mining Co. v. St. Louis Mining Co., 204 U. S. 204, 27 Sup. Ct. 254, 51 L. Ed. 444. In the latter case the Supreme Court held that the bond of the owner of the St. Louis claim and the conveyance of the compromise ground by the St. Louis Company, “together with all the mineral therein contained,” and “all the dips, spurs, and angles,” did not merely locate a boundary between the two claims, leaving all surface rights to be determined by the ordinary rules recognized in mining districts of Montana and enforced by statutes of Congress, but as conveying all mineral below the surface, including that in a vein therein which apexed in the unconveyed land of the grantor. The court further said:

“To the suggestion tbat giving this construction to the bond and conveyance is in effect the granting of a section of a vein of mineral, the answer is that there is nothing impracticable or unnatural in such a conveyance. It does not operate to transfer the vein in toto, but simply carves out from the vein the section between the vertical side lines of the ground and transfers that to the grantee. The title to the balance of the vein remains undisturbed.
“To the further suggestion that the owner of the apex might be left with a body of ore on the descending vein beyond the further side line of the compromise ground which he could not reach, the answer is that this assumes as a fact that which may not be a fact. The owner of the apex may be the owner of other ground by which access can be obtained to the descending vein, and it also is a question worthy of consideration whether a section out from a descending vein does not imply a right reserved in the grantor to pass through the territory of the section conveyed in order to reach the further portion of the vein. Those are questions which need not now be determined. This secondary vein does not appear to have been known at the time of the compromise, and while, of course, there is always a possibility of such a vein being discovered, yet parties are more apt to contract and settle upon the basis of what they know than upon the possibilities of future discovery.”

It appears from the complaint in the present action that the suggestion made to the Supreme Court that the owner of the apex might be left with a body of ore on the descending vein beyond the further side line of the compromise ground was what would have been the situation had not the Montana Company prior to that time entered into and upon that portion of the vein underneath the surface of the Nine Hour claim and east of the east boundary line of the compromise ground, and extracted the quartz, rock, and ore therefrom, and removed and converted the same to its own use and benefit, and had thereafter continued to extract the quartz, rock, and ore, and remove and convert the same to its own use and benefit in the alleged value of $1,000,000. It appears further that on September 16, 1903, the St. Louis Company brought a suit at law against the Montana Company to recover damages in the sum of $200,000 for ores so extracted and removed by the latter company from this vein east of the eastern side line of the St. Louis claim and underneath the surface of the Nine Hour claim.

This complaint was thereafter amended to conform to the adjudication in the course of the litigation concerning the compromise ground and the work of the Montana Company in extracting and removing ore therefrom. The first amended and supplemental complaint was filed November 21, 1898, in which damages were alleged at $200,000 [517]*517as in the original complaint. The second amended and supplemental complaint was filed- June 36, 1B99, in which it was alleged that since the filing of the original complaint and up to the 36th day of June, 1899, the Montana Company had extracted ore from the premises and vein described amounting in value to $400,000, and a judgment was demanded for $600,000. The third amended and supplemental complaint was filed December 3, 1907, in which it was alleged that the damages sustained by the St. Louis Company by the operations of the Montana Company in the vein east of the easterly side line of the St. Louis claim had amounted to $1,000,000.

In the original complaint the action was on the part of the St. Louis Company to recover from the Montana Company damages for the extraction and removal of ore from any vein having its top or apex within the surface boundaries of the St. Louis claim. In the first amended and supplemental complaint, filed November 31, 1898, the St. Louis Company alleged its ownership of the ores in all veins apex-ing within the surface boundaries of the St. Louis claim, particularly describing such boundaries, and saving and excepting therefrom the surface of the compromise ground described in the amended and supplemental complaint. This was in accordance with the decision of the courts in the action brought by the Montana Company against the St. Louis Company for the specific performance of the agreement to convey the compromise ground to the Montana Company, in which action specific performance of the agreement by the St. Louis Company was decreed.

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Cite This Page — Counsel Stack

Bluebook (online)
168 F. 514, 93 C.C.A. 536, 1909 U.S. App. LEXIS 4460, Counsel Stack Legal Research, https://law.counselstack.com/opinion/montana-mining-co-v-st-louis-min-mill-co-ca9-1909.