Montrozona Gold Mining Co. v. Thatcher

19 Colo. App. 371
CourtColorado Court of Appeals
DecidedJanuary 15, 1904
DocketNo. 2740
StatusPublished

This text of 19 Colo. App. 371 (Montrozona Gold Mining Co. v. Thatcher) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Montrozona Gold Mining Co. v. Thatcher, 19 Colo. App. 371 (Colo. Ct. App. 1904).

Opinion

Maxwell, J.

Appellee, owner of an undivided 1-16th of the Midnight lode mining claim, Highland mining district, Pitkin county, joined with the owners of the undivided 31-32nds interest in the property, in granting a mining lease to McGregor and Shields, dated —— November, 1899, for a term of two years from January 1, 1900, upon the following covenants, inter alia:

“To sink the shaft upon said premises, known as the Midnight shaft, from its present depth (now 425 feet), at least two hundred (200) feet, during the term of this lease. The first one hundred (100) feet of said sinking to be completed on or before the 1st day of January, 1901. Said lessees furthermore agree that in ease they fail to commence work on said premises as aforesaid # # * or to sink said shaft as above required, or in any respect keep and fulfill any or all agreements herein expressed or implied, then and in that case it shall be lawful for the parties of the first part * * * to declare this lease void and of no effect, and thereafter, and without process of law, to enter upon and take possession of said premises.”

By assignment October 4, 1900, the lease was transferred to appellants, who entered into possession of the property and prosecuted work under the lease.

January 4, 1901, appellee caused to be served upon appellant a written notice of forfeiture, for the [373]*373alleged failure upon the part of the original lessees and appellants to sink the shaft 100 feet by January 1, 1901, to properly timber the shaft, and to pay royalty as required by the terms of the lease. Coupled with the notice of forfeiture was a demand for possession. This written notice of forfeiture and demand for possession purported to be signed by the owners of 7-16ths of the property, including appellee.

July 1, 1901, appellee commenced this action in the court below, to recover possession of her undivided l-16th interest in the property, for an injunction to restrain further working of the property by appellants, for $5,000 damages for its detention, and for an accounting of the proceeds of the ore mined, shipped and sold from the property by appellants. The other owners who signed the notice of forfeiture were not parties to this suit.

The complaint alleged the making of the lease, set forth its covenants, the breaches thereof by appellants, service of notice of forfeiture, and other matters immaterial to a determination of this case.

The answer denied the breaches alleged, except the failure to sink the shaft 100 feet by January 1, 1901, which breach was confessed, alleged a substantial compliance with this covenant, and averred matters in avoidance. A jury trial resulted in a verdict in favor of appellee, that she was the owner in fee of l-16th of the property and entitled to the occupation and possession thereof.

December 14, 1901, judgment was entered on the verdict in favor of appellee, and an order was made for an accounting before the court, which accounting resulted in a judgment in favor of appellee for $1,146.02.

It will be unnecessary to discuss in detail the seventy-one errors assigned by appellants, as most [374]*374of them have been abandoned, and this opinion will be confined to a presentation and decision of such matters only as appear to he decisive of this appeal.

Appellants contend, that time was hot of the essence .of the covenant to sink the shaft 100 feet by January 1, 1901; and even if it was, that there was a substantial compliance with this covenant upon their part, and that appellee waived a strict performance of this covenant.

The jury, upon conflicting testimony, in answer to an interrogatory submitted, found that there had been no waiver; and as there was no error in the instructions upon this point, the finding of the jury precludes investigation of this question.

The testimony shows, that appellants’ assignors commenced to sink the shaft the latter part of September, 1900; that sinking the shaft was diligently prosecuted until January 10, 1901, when the 100 feet was completed; that running ground was encountered which necessitated a drift around the shaft to catch up and hold this running ground; that on account of this had and running ground, the bottom of the shaft was lost two or three times; that every possible effort was made by appellant to complete the shaft within the time required by the lease, without avail; and it is conceded that January 1, 1901, the shaft had not been sunk 100 feet, as required by the lease,.although it appears from the testimony that the 100 feet was completed on January 10, 1901.

The language of the lease does not, in express terms, make time of the essence of the contract; hut it would be difficult to conceive of language which would more clearly imply that such was the intention of the parties, in the contract under consideration. To hold otherwise would he to make a contract for the parties, which they have not made for themselves, which the courts will never do. The lease [375]*375provides, that in case lessees fail to sink the shaft in the time required, or fail in any respect to keep and fulfill any or all agreements therein expressed or implied, it shall be lawful for the lessor to declare' the lease void and of no effect.

It would seem that the parties to this lease could not have used language more pertinent than the above, to express their intention to make time of the essence of the contract.

“It is now thoroughly established that the intention of the parties must govern; and if the intention clearly and unequivocally appears, from the contract, by means of some express stipulation, that time shall be essential, the time of completion or of performance or of complying with the terms will be Regarded as essential in equity as much as at law. No particular form of stipulation is necessary, but any clause will have the effect which clearly and absolutely provides that the contract is to be void if the fulfillment is not within the prescribed time. ’ ’ ■ — -Pomeroy on Specific Performance, 462.

The' authorities cited by appellants, in support of the contention that neither time nor the manner of performance of covenants is construed as the essence of a contract, unless made so by the terms of the instrument or clearly implied, upon examination, are found to be cases in which specific performance of contracts for the conveyance of land, was sought to be enforced, or cases involving oil leases, the facts of which cases make them clearly and easily distinguishable from the case under consideration.

Appellants do not contend that they could purposely or negligently fail to comply with the terms of the lease, but assert that the equitable principle is well established, that when' there is an excusable failure to perform, and when the status of the parties is not changed by such failure, then a court of equity [376]*376will relieve the party in default from a forfeiture, and appellants insist that the facts in this case bring them within this equitable principle.

The undisputed facts are, that sinking the shaft was not commenced until the latter part of September, 1900; that under ordinary circumstances and conditions ninety days would afford ample time to complete the 100 feet, and that running ground prevented the completion of the 100 feet within the time limited by the lease.

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19 Colo. App. 371, Counsel Stack Legal Research, https://law.counselstack.com/opinion/montrozona-gold-mining-co-v-thatcher-coloctapp-1904.