Utah Mercur Gold Min. Co. v. Herschel Gold Min. Co.

134 P.2d 1094, 103 Utah 249, 1943 Utah LEXIS 104
CourtUtah Supreme Court
DecidedMarch 16, 1943
DocketNo. 6533.
StatusPublished
Cited by8 cases

This text of 134 P.2d 1094 (Utah Mercur Gold Min. Co. v. Herschel Gold Min. Co.) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Utah Mercur Gold Min. Co. v. Herschel Gold Min. Co., 134 P.2d 1094, 103 Utah 249, 1943 Utah LEXIS 104 (Utah 1943).

Opinions

*251 WOLFE, Chief Justice.

Demurrers to both the first and second causes of action of the second amended complaint in this case were sustained, the first on the ground that it did not state a cause of action; the second on the ground that the statute of frauds .applied. The plaintiff tired of pleading over, stood on his second amended complaint and a judgment of dismissal was entered. From the judgment of dismissal plaintiff appeals.

The complaint does not easily lend itself to analyzation. Penetrating its verbiage the situation as set out is substantially that plaintiff Mercer in 1934 went into possession of certain mining claims belonging to defendant corporation in pursuance of a written lease and option. The terms of the lease are not set out nor is a copy of it made part of the complaint. It is then alleged that the trustees of the then defunct defendant corporation in 1935 orally represented and agreed while plaintiff Mercer was In possession and after he had conveyed his rights to the plaintiff corporation that if he continued to develop and mine ore as provided in the original lease he “would be permitted to continue in the operation of said claims to realize upon said development work until such time as he could from said operations purchase the claims for $60,-000.00,” or find a purchaser. He says he continued to do so on that representation. This had the aspect both of an oral extension of the original lease and of an estoppel. The complaint sets out that from time to time during the years 1935 to 1940 inclusive, the said trustees and said Charles Mercer, “in furtherance of, and in order to carry out the said oral agreement and understanding, executed certain written leases in favor of said Charles Mercer and said plaintiff purporting to extend the terms of the original lease and option for successive period.” (Italics added.) Unfortunately the contents of the written leases are not -set out nor are copies of them attached as exhibits. The phrase “purporting to extend the terms of the original writ *252 ten lease,” etc., is the pleader’s conclusion as to what said leases accomplished. The italicized portion gives us a hint of plaintiffs’ theory. They evidently conceive of an oral understanding made during the term of a written lease dated July 13, 1984, which enlarged and extended it and that all the written leases thereafter were extensions of said original lease and were made to carry out said oral agreement. The respondents very aptly suggest that if written agreements were made to carry out oral arrangements these written agreementsi ordinarily would supplant the oral agreements and no evidence to modify or enlarge them could be given. The apparent theory of the plaintiffs-that there can be an overarching oral agreement and segments of it reduced to writing from time to time is somewhat novel. We need not under our disposition of this case determine whether such can be done. When these written, agreements are disclosed the real situation may be clearer. Considering that plaintiffs had written extensions of a former lease and option, or new leases and options, the last of which was enacteed in 1940 and expired April 1st, 1941, the plaintiffs allege a representation by the trustees made before the expiration of the last extension that they would extend the period of operating possession of plaintiffs for 5 years beginning April 1st, 1941, and that they would execute a formal and written extension to that effect. Plaintiffs further allege a consideration in support of that agreement, to wit: “development work already done and further new worthwhile development.” For purposes of demurrer, we must take all allegations of fact as true. If the trustees in 1935 orally requested the plaintiffs to do work of development beyond that required to get out the ore which was the basis of plaintiffs’ revenue, and plaintiffs agreed to do so and performed in that regard in exchange for the promise that they could continue until $60,000 in royalties paid the purchase price or until a mutually satisfactory sale was arranged, then such work performed in pursuance of such promise would support a promise to permit plaintiffs ta *253 continue operations under the same terms for a five-year period from April 1st, 1941, and would be in harmony with the purposes of the previous arrangement. In any event subsequent worthwhile development work done at defendants’ request or the promise to do it would support an agreement for the extension of the written lease. There is sufficient consideration to support the oral contract.

Is sufficient performance alleged to take it out of the Statute of Frauds?

By the weight of authority when a complaint shows that the contract relied on was oral and within the Statute of Frauds, but the facts alleged are not sufficient to take it out of the statute, a demurrer lies on the ground that the complaint does not state sufficient facts. In this way the defense of the statute may be raised by demurrer, 25 R. C. L. 747, para. 399; Slusser v. Aumock, 56 Idaho 793, 59 P. 2d 723; Skeen v. Van Sickle, 71 Utah 577, 268 P. 562.

The contract to extend or renew the written lease for 5 years, was oral. It was tantamount to an oral contract to make a lease and option for five years, from April 1st, 1941. We think such oral agreement to make a written lease is governed by the statute of frauds the same as if an oral lease was made. An oral agreement to make a contract which must itself be in writing is itself within the statute of frauds. Paul v. Layne & Bowler Corp., 9 Cal. 2d 561, 71 P. 2d 817.

We are therefore finally thrown back on the inquiry as to whether the complaint, revealing that the contract for an extension of the written lease for five years was oral, also alleged facts sufficient to take it out of the statute. The acts, which are alleged to constitute part performance must be in pursuance of the oral contract which it is claimed said performance saves from the death sentence of the statute. In Besse v. McHenry, 89 Mont. 520, 300 P. 199 it was stated

*254 “Part performance which will avoid statute of frauds may consist of any act which puts party performing in such position that nonperformance by other would constitute fraud.”

While the matter is not without doubt, we think the allegations in paragraph 10 meet this requirement. It is alleged that “during the year 1940 and 1941 and particularly prior to April 1st, 1941, plaintiffs continued to explore and develop said claims and carried on and established new worthwhile development by doing road work, exploration, tunnel work, and shipping of overburden and by making arrangements whereby said claims could be profitably operated by shovel and otherwise, at large expense extra to plaintiffs and all in reliance upon said oral agreement and understanding and said additional representations made by said trustees in January or February of 1940 aforesaid.” (Italics added.) We think that the fair intendment of this allegation is that extra work beyond that necessary to comply with the lease which by its terms expired April 1st, 1941, was performed.

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Bluebook (online)
134 P.2d 1094, 103 Utah 249, 1943 Utah LEXIS 104, Counsel Stack Legal Research, https://law.counselstack.com/opinion/utah-mercur-gold-min-co-v-herschel-gold-min-co-utah-1943.