Suntrana Mining Company v. Widich

360 P.2d 84, 1961 Alas. LEXIS 75
CourtAlaska Supreme Court
DecidedMarch 7, 1961
DocketNo. 11
StatusPublished
Cited by2 cases

This text of 360 P.2d 84 (Suntrana Mining Company v. Widich) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Suntrana Mining Company v. Widich, 360 P.2d 84, 1961 Alas. LEXIS 75 (Ala. 1961).

Opinion

NESBETT, Chief Justice.

Appellant as well as appellees question the jurisdiction of this court to hear this appeal on grounds very similar to those raised in Hobbs v. State of Alaska, Alaska, 359 P.2d 956. Since the jurisdictional issues raised here have already been considered and decided in favor of the jurisdiction of this court in the opinion just referred to, it should suffice' to say that there is no lack of jurisdiction in this court to hear the present appeal.

The main question to be determined is whether the trial court properly submitted to the jury the interpretation of a disputed contract based on a writing with oral modifications.

Appellant mining company, an Alaska corporation, was the lessee of land near Fairbanks, Alaska, containing several seams of coal. It had conducted coal mining operations on the land for several years prior to July of 1956, and continued to mine portions of the property during the period of the controversy which caused this action.

Appellee, C. G. Morrison, was an experienced heavy equipment mechanic and welder with considerable mechanical experience in mines. Appellee, George Wid-ich, was a competent miner with experience in both underground and strip mining operations. Together they had purchased caterpillar tractors, trucks and miscellaneous other equipment suitable for use in mining operations. Prior to July 12 of 1956 they had formed an oral partnership and pooled their equipment for the purpose of ' securing a contract as an. independent operator to mine coal and were to share any profits on a fifty-fifty basis.

At the invitation, or at least with the encouragement of Andrew C. Costa, mine superintendent for appellant, appellees had used their tractor dozers during May, June and part of July of 1956 in an attempt to uncover from the surface mineable portions [85]*85of several seams of coal located on appellant’s land. The understanding between Costa and appellees was that if appellees found mineable coal in sufficient quantity, appellant would be willing to enter into a contract with them to mine the coal for ap-pellant to supplement its own output.

As a result of appellees’ efforts a portion •of No. 3 seam was uncovered which appeared to contain accessible mineable coal in sufficient quantity to justify a mining •operation. The portion of the seam exposed by appellees was inspected by Costa, and Albert Swalling, President of appellant. At Swalling’s invitation appellees conferred at 'length with Swalling and Costa on the •evening of July 12, 1956, discussing the terms of a contract.

On the following day Swalling delivered to appellees a letter addressed to them which is quoted in full:

“Suntrana, Alaska

“July 13, 1956

“Mr. George Widich

“Mr. C. G. Morrison

“Dear Sirs:

“This letter is to confirm in written form the agreements reached in our conversation last evening relative to the partnership of Widich and Morrison to open a small mine on our lease, the location to be on No. 3 seam, north and west of 0 Chute of No. 2 seam.

“The coal produced will be sold only to Suntrana Mining Co. and the price is to be .$3.50 per ton. Suntrana Mining Co. is to assume the 40‡ U.M.W.A. Welfare payment and the 10{í per ton lease royalty payment to the U. S. Geological Survey. Weight for payment will be based on Sun-trana’s average monthly mine car weight.

“The partnership is to furnish all their own equipment, supplies, power, labor, and insurance, and is to comply with Territorial .and Federal regulations where applicable.

“Point of delivery will be in a chute which Suntrana will drive from No. 2 seam Jn the vicinity of 0 Chute. The partnership will accomplish all preparatory above-ground work at the site, including removal of overburden at the chute.

“All development work and mining procedures, and quality control of the product will be subject to the approval of Suntrana Mining Co., through Mr. Costa.

“Development work will start immediately, with coal from such work to be stockpiled at the chute site. Actual delivery into the chute will start in October and continue through February, and can be up to 5,000 tons per month. However, so that we may plan our production, estimates of your production should be submitted at least 30 days ahead.

“Payments will be made to the partnership on the 15th of the month following delivery, and one advance on the 20th. The partnership may order supplies for their account through Suntrana Mining Co., with a handling charge of 10% to be added to the cost.

“Very truly yours,

“Suntrana Mining Co., Inc.

“s/ A. C. Swalling, President”

In accordance with the terms of the letter, appellees immediately commenced to prepare the ground for a mining operation. During the months of July and August they had uncovered as much of No. 3 seam as could be economically strip mined due to the circumstances of the terrain. The amount of coal made available was established by the expert testimony of an engineer as being 2,900 tons which was not sufficient to supply the production contemplated in the letter of July 13th. Appellees had also cleared the overburden at a place located by Costa as being the point where the chute to be driven by appellant from underlying No. 2 seam would reach the surface.

Appellees then located the face of No. 3 seam immediately across the canyon from the . above mentioned workings and commenced developing it. for an underground mining operation. In these preparations considerable equipment adapted to underground mining was purchased on appellant’s [86]*86account and charged against appellees. Other equipment necessary to the operation was furnished or loaned to appellees by Costa, who visited the scene of their operation on several occasions.

Appellees contended at the trial that they were ready, able and willing to commence the delivery of coal on October 1, 1956 but could not do so in accordance with the terms of the contract because of the failure of appellant to drive the delivery chute provided for in the contract. It is conceded by both parties that the chute was never driven. There was testimony that appellees had requested of Costa on several occasions that the chute be driven, but that Costa had stated that he didn’t have the steel or couldn’t spare the men from-his own mining operation, but had assured them that the chute would be driven in time for the contemplated use. Appellees claimed to have given Costa oral notice in late August of their intended coal deliveries for October and in September of their intended November deliveries. Written notice of appellees’ intended delivery schedule was also given at a later date. Appellant made no response to any of these notices. Attempts were made by appellees during the months of October and November, at Costa’s request, to deliver with their trucks strip coal from No. 1 and No. 3 seams directly to appellant’s tipple. This effort had to be abandoned after delivery of approximately forty-seven truck loads because appellees were prevented from using the available road on appellant’s property because of the prior rights of another mining company.

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Bluebook (online)
360 P.2d 84, 1961 Alas. LEXIS 75, Counsel Stack Legal Research, https://law.counselstack.com/opinion/suntrana-mining-company-v-widich-alaska-1961.