Rodriguez v. Oakley Valley Stone, Inc.

816 P.2d 326, 120 Idaho 370, 1991 Ida. LEXIS 122
CourtIdaho Supreme Court
DecidedAugust 6, 1991
Docket18600
StatusPublished
Cited by21 cases

This text of 816 P.2d 326 (Rodriguez v. Oakley Valley Stone, Inc.) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rodriguez v. Oakley Valley Stone, Inc., 816 P.2d 326, 120 Idaho 370, 1991 Ida. LEXIS 122 (Idaho 1991).

Opinion

BOYLE, Justice.

In this appeal from a judgment of the district court quieting title to mining properties in respondent Lionel Rodriguez (designated plaintiff-intervenor in the district court), we are called upon to determine whether respondent was properly allowed into the action as a party plaintiff in an adverse claim procedure initiated under 30 U.S.C. §§ 29, 30 by a third party, Idaho Quartzite Corporation (designated plaintiff in the district court). Because the record is unclear on the preliminary procedural question of whether substitution under I.R.C.P. 25(c) or intervention under one of the sub-parts of I.R.C.P. 24 was ordered by the district court, we remand for clarification.

I.

FACTS AND PROCEEDINGS

On the west side of Middle South Mountain, situated south of Oakley in the southern part of Cassia County, Idaho, are located substantial deposits of quartzite stone utilized for building and ornamental purposes, and generally characterized as “Oakley Stone.” In 1954, Elden Whittle and his brother, Freeman Whittle, entered upon public lands owned by the United States for the purpose of mining the quartzite deposits there. The brothers ultimately divided their mining claims, Elden taking those on the east which are designated the “Rock Garden Quarry Claims” (hereinafter “Rock Garden” claims) and Freeman taking those on the west which are designated *372 the “Freeman Whittle” claims. These Rock Garden and Freeman Whittle claims share a common boundary described in the district court’s findings of fact which is the subject of this dispute. Elden later received title to the Freeman Whittle claims in a mortgage foreclosure judgment against his brother Freeman and others giving him the mining claims on both sides of the now disputed boundary.

In 1978 Lionel Rodriguez entered into an installment real estate purchase contract, accompanied by an executed warranty deed, with Elden Whittle and his wife, Elsie Whittle, as sellers, for the purchase of certain Rock Garden claims. These claims included those sharing the common boundary with the Freeman Whittle claims. All payments have been made under the terms of the contract and final payment was tendered during the pendency of the district court proceedings. Pursuant to the district court’s order of January 22, 1990, the tender has been accepted by the Whittles and the deed has been delivered to Rodriguez.

Contemporaneously with the negotiation of the contract between Rodriguez and Elden and Elsie Whittle, Rodriguez leased the Rock Garden claims to John E. Hurley, Jr. and entered into a quarrying contract with Idaho Quartzite Flagstone Company, the predecessor in interest to Idaho Quartzite Corporation (hereinafter collectively referred to as “Idaho Quartzite”). Later, Hurley assigned his interest in the lease to Idaho Quartzite. The lease and quarrying contract were structured to provide the funds necessary to pay the purchase contract between Rodriguez and the Whittles. Because of the close relationship between Rodriguez and Idaho Quartzite, Idaho Quartzite at one time asserted that it held an interest in the Rock Garden claims in its own capacity through a joint venture or partnership arrangement with Rodriguez. However, after examining the transactions between Idaho Quartzite and Rodriguez, the district court concluded that Idaho Quartzite’s interest was related solely to its lease with Rodriguez and that no joint venture or partnership was created.

Oakley Valley Stone, Inc. (hereinafter “Oakley Valley”), is an Idaho corporation and has conducted the quarrying operations of Oakley Stone since 1956. In November, 1984, James C. Burch, an officer of Oakley Valley, and the son-in-law of Elden and Elsie Whittle, executed a quitclaim deed for certain Freeman Whittle claims and the disputed Rock Garden claims to Oakley Valley. In executing this quitclaim deed, Burch ostensibly acted on behalf of his in-laws under a power of attorney recorded the prior year in Cassia County. At the time of this purported conveyance, Oakley Valley was aware of the installment purchase contract between Rodriguez and the Whittles.

In late 1984, Burch, as agent for Oakley Valley, executed and filed with the Bureau of Land Management (hereinafter “BLM”), four placer mining location notices purporting to alter the boundary line of the Rock Garden claims in dispute and to include this area as part of the Freeman Whittle claims. In addition, on December 13, 1984, Oakley Valley filed an application for mineral patent with the BLM to patent certain mining claims situated on the Freeman Whittle claims including the area of dispute.

Idaho Quartzite, filed a timely adverse claim pursuant to 30 U.S.C. §§ 29, 1 *373 30 2 asserting that the patent sought by Oakley Valley conflicted with its leased Rock Garden mining claims. The adverse claim was based not only upon Idaho Quartzite’s interest under the lease, but also upon the assertion that Idaho Quartzite’s predecessors in interest were partners with Rodriguez under the installment purchase contract. Both of these adverse claims depended upon the validity of the installment contract between Rodriguez and the Whittles to give them rights superior to the claims of Oakley Valley under the quitclaim deed. Rodriguez, however, did not file an adverse claim to Oakley Valley’s notice and patent application as contemplated by 30 U.S.C. §§ 29, 30.

On August 2, 1985, Idaho Quartzite filed suit in the district court to quiet title. Oakley Valley filed its answer and a counterclaim alleging ownership of the disputed boundary of the mining claims at issue. During the pendency of the suit, Idaho Quartzite and Rodriguez entered into two written agreements that are important to the resolution of this case. The first agreement conveyed to Rodriguez all of Idaho Quartzite’s interest in the adverse claim proceeding with the BLM. In addition, this agreement provided for

the substitution of [Rodriguez] in any current or future litigation brought pursuant to such Adverse Claim, to the extent such litigation involves the Rock Garden Quarry claims. Substitution shall be effected by entry of [Rodriguez] into existing litigation as an intervenor or by amendment of a pleading if appropriate and permitted____ Such substitution shall also be applicable to any and all proceedings before the U.S. Department of Interior brought pursuant to such Adverse Claim____

R., Vol.I, p. 108. (Emphasis added.) The second agreement entered into between Idaho Quartzite and Rodriguez conveyed all of Idaho Quartzite’s asserted ownership interest in the Rock Garden claims to Rodriguez. 3 Thus, as a result of these agreements, Idaho Quartzite relinquished all of its asserted interest in the Rock Garden claims as owners and agreed to the substitution of Rodriguez in the adverse claim action brought before the BLM and in the pending district court proceeding.

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Bluebook (online)
816 P.2d 326, 120 Idaho 370, 1991 Ida. LEXIS 122, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rodriguez-v-oakley-valley-stone-inc-idaho-1991.