Nichols v. Ora Tahoma Mining Co.

151 P.2d 615, 62 Nev. 343, 1944 Nev. LEXIS 16
CourtNevada Supreme Court
DecidedAugust 30, 1944
Docket3390
StatusPublished
Cited by5 cases

This text of 151 P.2d 615 (Nichols v. Ora Tahoma Mining Co.) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nichols v. Ora Tahoma Mining Co., 151 P.2d 615, 62 Nev. 343, 1944 Nev. LEXIS 16 (Neb. 1944).

Opinion

OPINION

By the Court,

Taber, J.:

In August, 1922, Nichols, Mikesell and Dennison located the Albert and Albert No. 1 lode mining claims in the Oneota Mining District, Esmeralda County, Nevada. In September, 1923, in the same mining district and county, they located two additional lode mining claims, the Albert No. 2 and Albert No. 3. The interest of Dennison in said four claims was subsequently, and before November 27, 1934, acquired by Nichols and Mikesell who, on the last-mentioned date, granted a lease and option on all the claims to one Zent. By this instrument Zent was required to do certain work on the property, and the purchase price was fixed at $30,000, to be paid within three years. On June 3, 1935, Zent assigned said lease and option agreement to Ora Tahoma Mining Company.

In November, 1935, Fred G. Berto, then president of Ora Tahoma Mining Company, and Otto Hanson, a representative and vice president thereof, located the Berto, Bennett, Edith Hild and Otto Hanson lode mining claims in said mining- district and county. Indianeen Mines, Inc. has succeeded to all the rights of Berto and Hanson in these claims. For the purposes of the present litigation the respective rights and obligations of Indianeen Mines, Inc., and Ora Tahoma Mining Company are identical.

The company failed to comply with the provisions *346 of the lease and option agreement of November 27, 1934. After defaulting it entered into a new agreement with Nichols and Mikesell, dated February 12, 1938. This agreement granted a further lease and option upon said four claims in the Albert group and nine other claims. The company was given until January 31, 1940, to purchase all said claims for $45,000. A number of payments were made under this contract, but the company defaulted in the $3,000 payment due in September, 1939. On the 28th of November following, the company was notified that the agreement would be canceled if the required payment was not made within thirty days. The money was not paid within that time, and a further notice of default was given January 8, 1940. Responding to this notice the president of the company, on January 12, 1940, wrote to Mr. Nichols in part as follows:

“This is to acknowledge your formal notice of cancellation dated January 8, 1940. We are sorry that we were unable to keep up this contract * * * . if you do not immediately dispose of your property it may be that we can get together a little later on * * * you have always been most fair to us, we just were being a little too optimistic * *

Notwithstanding said notice of cancellation and the reply thereto, possession of the Albert group has never, been delivered to the owners.

On April 22, 1940, plaintiffs’ attorney wrote a letter to the president of the company advising that:

“Your agents have not fully removed from the property but still remain on that part of the property located as claim Albert No. 3, which Mr. Carlson is attempting to hold under some claim of right.”

Mr. Carlson was general superintendent for the company. Plaintiffs’ attorney again wrote the company’s president on May 8th, 1940, saying:

“Under date of April 22nd, 1940, I wrote you regarding certain claims in Queen Canyon in Esmeralda and *347 Mineral counties, Nevada. I have been advised that your company is continuing to work thereon under claim of right and unless your company immediately withdraws therefrom it will be necessary to take legal action to clear the ground.”

To this letter Mr. Reed, president of the Indianeen company replied on May 8, 1940, as follows:

“Your letter of May 8th in which you refer to your letter of April 22nd received. To this letter we replied direct to Mr. Nichols and since have heard nothing from him.

“To us your letter does not quite make sense. Three days ago we received a letter from Mr. Carlson, our superintendent at the time, in which he tells us that Mrs. Spor, eldest daughter of the late Mr. Mikesell, and Mr. Nichols were up to see him a few weeks ago. At that time it was agreed between the three of them that in return for our doing their assessment work, they would permit us to leave our cabins on their property and continue on as we have been doing for a payment to them of $1.00 a year. In view of this agreement, and as we have had no notice of its revocation, we feel that there must be some misunderstanding, as we cannot reconcile your letter with the information we have from Mr. Carlson, and which he sent us after we wrote and told him of receiving your letter of April 22nd.

“Will you kindly contact Mr. Nichols and get this straightened out.”

One June 9, 1940, mine surveyor Liddell went upon the Albert claims and surveyed them for plaintiffs, remaining on the ground until the evening of June 13. He informed plaintiffs that the Albert claims were of greater length than permitted by law, and advised they be amended. This course was decided upon, and before leaving the claims on June 13, Liddell fixed the points for placing new posts to mark the boundaries of the claims as amended. New boundary posts for the Albert No. 3 were erected before he left the property op June *348 13. The boundary posts for the other three claims were erected after he had left the ground, and amended certificates of location for all four claims, dated June 13, 1940, were filed for record July 29, 1940.

While engaged in making his survey, Mr. Liddell told respondent Carlson that he, Liddell, was making a survey of the Albert claims. On June 14, the next day after the Liddell survey was completed, Mr. Carlson located the Arthur lode mining claim, and on August 20 following, he also located the Arthur No. 1. When these two claims were located he was general superintendent for the company, and it is stipulated that any rights he may have acquired by said locations were held in trust for it. Much of the ground covered by the amended Albert Claims is included in that covered by defendants’ claims. Any interest there may be in the Albert claims is now owned by appellants; any interest there may be in the Berto, Bennett, Edith Hild, Otto Hanson, Arthur and Arthur No. 1 claims is now the property of the respondents.

Two actions were commenced by plaintiffs in the Fifth judicial district court, county of Esmeralda, one (No. 4109) against the company, and the other (No. 4113) against A. F. W. Carlson et al. These actions were commenced, respectively, on June 18 and October 15, 1940. In each action the plaintiffs prayed that they be adjudged the owners of the Albert claims, that the defendants be adjudged to have no interest in said claims, or in any part thereof, and that they be forever debarred from asserting any claim in or to said claims or any portion thereof adverse to the plaintiffs. The answers denied most of the allegations of the complaints, and prayed that plaintiffs’ complaints be dismissed. In case No. 4109 defendant company alleged that it owned certain mining claims in the Queen Canyon Mining District, Esmeralda County, and that said claims were not being held adversely to plaintiffs. In case No. 4113 the answering defendant Carlson *349

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Cite This Page — Counsel Stack

Bluebook (online)
151 P.2d 615, 62 Nev. 343, 1944 Nev. LEXIS 16, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nichols-v-ora-tahoma-mining-co-nev-1944.