Thompson v. Gibb

1 Cal. Unrep. 173
California Supreme Court·Decided January 21, 1865·No. No. 3675·Published·Cited by 3 cases

Opinion

A rehearing was granted June 5, 1865, but there is no record of any decision -or opinion on rehearing.

CURRY, J.

The New Idria Mining Company by deed executed on the 28th of January, 1858, granted and leased to Daniel Gibb a tract of land in Fresno county in this state known as the New Idria Mine, containing therein a quicksilver mine, and also the appurtenances to the same belonging, for the term of ten years. Under this grant the lessee and his heirs and assigns were granted the privilege of working the mine and extracting therefrom quicksilver. On the 25th of August following Daniel Gibb and the plaintiff entered into an agreement in writing under seal by which the former assigned and conveyed to the latter one-third part or interest of the lease and the estate and property granted by the New Idria Mining Company to said Gibb. This assignment and conveyance was made upon certain terms and conditions therein, expressed, as well as for a money consideration specified, and also contained therein certain reservations. It was provided that the plaintiff should be liable and responsible to Daniel Gibb for one-third of all the expenditures made by him before that date and which should be thereafter incurred in and incidental to the working of the mine, and also one-third of all expenditures and outlays made or to be made by Daniel Gibb as lessee of the mine and property, provided the same should be limited to fifty thousand dollars above the receipts and products arising from working the mine, unless the plaintiff consented in writing to a greater amount. It was also provided that Daniel Gibb should be, until the termination of the leasehold, the sole agent and attorney irrevocably of the plaintiff, and of the interest assigned and conveyed to him, in all matters and things in any way appertaining to or concerning the lease and the interest assigned and conveyed to the plaintiff, and that as su#h agent and attorney he should continue to work the mine an.d to manage the concerns thereof [175] and of the leasehold in the manner as to him might seem most to advance the interest of the parties concerned, but as such agent and attorney he should have no power to sell the interest so assigned and conveyed to the plaintiff. It was also provided that as such agent and attorney he should sell and dispose of the products of the mines and property leased, in this state or elsewhere, as he might deem proper, and should manage the affairs and business of the parties, charging and receiving therefor, over and above all the expenses of the management of the business, five per cent commissions on all sales of the products of the mine, and also five per cent commissions on all moneys disbursed in the working of the mine or in conducting the business of the same, and should also be allowed and paid, on all cash advances or outlays made by him on account of the business of the enterprise over and above the proceeds of sales, interest at the rate of two per cent per month payable half yearly, and for the due payment of the plaintiff’s portion of all these outlays and expenditures made and liabilities incurred and which ihould be incurred and for the due payment of the commissions and interest specified, it was stipulated that said Gibb should have and hold a lien on. the portion and interest assigned and conveyed to the plaintiff. It was also further provided that Gibb should keep all necessary and proper books and accounts of the transactions connected with the lease, or rendered necessary by the contract between the parties, and should, on demand, render to the plaintiff an account current or balance sheet of such transactions on the 31st of December and 30th of June of each year or as soon thereafter as the accounts could with reasonable diligence be prepared, during the term, «when settlements should be made between the parties.

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Thompson v. Gibb, 1 Cal. Unrep. 173 (Cal. 1865).

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