Majority — Brewer J.
Syllabus
ERROR TO THE CIRCUIT COURT OF APPEALS FOR THE NINTH CIRCUIT.after making the foregoing statement, delivered the opinion of the court.
The first question is, of course, the one of jurisdiction. If
We pass, therefore, to a consideration of the merits, and the first question presented by counsel — indeed, as we look at it, the pivotal question — is the proper construction of the bond and deed by which the plaintiff in error claims title to the compromise ground.
The bond described the ground, adding “together with all the, mineral therein contained.” The deed executed in pursuance of the judicial decree contains the same description, followed by the words above quoted and also the further words given in the statement of facts, “together with all the dips, spurs and angles,” etc.
Now, the contention of the defendant in error is that the effect of the compromise followed by the bond and conveyance was simply to locate the boundary line between the two claims, leaving all subsurface rights to be determined by the ordinary rules recognized in the mining districts and enforced by the statutes of Congress.
The argument in favor of this construction is forcibly put by Circuit Judge Gilbert, delivering the opinion of the Court of Appeals, when the case was first presented to that court. 102 Fed. Rep. 430 ; 42 C. C. A. 415 . Without quoting it in full it is to the effect, that agreements and conveyances of the whole or parts of mining claims are to be construed in the light of the mining law, as, generally speaking, we construe a contract, not merely by its terms, but having regard to the subject-matter involved and the surrounding circumstances, in order to ascertain the intention of the parties. Particular reference was made to Richmond Mining Co. v. Eureka Mining Co., 103 U. S. 839 , 840, in which this court held that a line specified in-a contract between the owners of contiguous mining claims to be one “continued downward to the center of the earth was not a vertical plane, but must be construed as
Further, the argument is that the adverse proceedings were maintained by the owners of the Nine Hour claim on the theory that the strip of land so contracted to be conveyed was a portion of that claim; that if the action had gone to judgment, sustaining their contention, the result would have been simply to fix the surface line of division between the two claims, without affecting the subsurface rights. Reference was also made to the suit for specific performance brought by the present plaintiff in error, in which it alleged that the contract had been made for the purpose of settling and agreeing upon the boundary line between the two claims, and that the suit was maintained upon the theory that, as owner of the Nine Hour claim, it owned the compromise ground afterwards conveyed.
We are not insensible to the force of this argument, and also appreciate fully what is said by counsel in reference to the familiarity of the several concurring justices with mining law • and contracts and conveyances made under it.
Yet, notwithstanding, we are compelled to dissent from their construction of these instruments, and to hold that something more was intended and accomplished than the mere establishment of a surface boundary line. We premise by saying that nothing can be invoked in the nature of an estoppel from the averments in the pleadings in the suit for specific performance. True, the plaintiff in error alleged that the compromise ground was a part of its mining claim, and that the bond was executed “ to settle and compromise the said suit and adverse claims, and for the purpose of settling and agreeing upon the boundary line between” the two claims; but the bond itself, reciting the fact of a settlement and compromise, and an agreement by the contestants to withdraw their objections to the application for a patent, stipulates for a conveyance, after patent, of the compromise ground, “com
The facts in the case, as well as the allegations in these pleadings, show that the two claims conflicted; that when application was made for a patent adverse proceedings were instituted, and that rather than try the title of the respective locators to the territory in conflict,-and by way of compromise, they agreed that the owner of the St. Louis claim might proceed to patent, and then convey the compromise ground to the grantors of the plaintiff in érror.
It must also be noticed that the dispute between the two Claims was not simply in respect to the compromise ground -at least, testimony offered to prove this was ruled out— but involved a larger area, and that the disputing parties settled by the bond, describing what was to be conveyed.
It is undoubtedly true that if the bond, had simply described the surface area or fixed a boundary line between the two claims, the subsurface and extralateral rights might have been determined by the mining law. It might have been implied that there was no intention to disturb the rights given by it. .
Further, while it may be true that the words “ together with all the- dips, spurs and angles,” etc,, are generally employed in conveyances of mining claims in order to emphasize the fact that not merely the surface but the extralateral rights which go with a mining claim are conveyed, yet it must be noticed that in addition to these customary words are these, found in both the bond and the deed, “together with all the mineral therein contained,” and they cannot be ignored, but must be given a meaning reasonable and consistent with other parts of the instruments. It is not satisfactory to say that they
The scope of this deed would not be open to doubt if only the common law was to be considered. And in this connection it may be remarked that the common law has been kept steadily in force in Montana. “The common law of England, so far as the same is applicable and of ’a general nature, and not in conflict with special enactments of this Territory, shall be the law and the rule of decision, and shall be considered as of full force until repealed by legislative authority.” Laws of Montana, 1871, 1872, p. 388, ch. 13, sec. 1, substantially reenacted in Mont. Ann. Code, § 5152. See also Territory v. Ye Wan, 2 Montana, 478, 470; Territory ex rel. v. Virginia Road Co., 2 Montana, 96; Butte Hardware Co. v. Sullivan, 7 Montana, 307, 312; Palmer v. McMasters, 8 Montana, 186, 192; Milburn Mfg. Co. v. Johnson, 9 Montana, 537, 541; Forrester v. B. & Min. Co., 21 Montana, 544, 556. By that law a deed of real estate conveys all beneath the surface, unless there be some words of exception or limitation. But the mining laws of both State and Territory were in force, and in construing conveyances of mining claims the provisions of those laws must be taken into account, and may add to or subtract from the rights passing by a common law conveyance of agricultural or timber lands. It is probably not necessary to specify extra-lateral rights in order that a conveyance of a mining claim be operative to transfer them, and yet it is not strange that the custom grew up of naming them for the sake of avoiding the possibility of disputes. While the bond made no mention of extralateral rights, yet in all probability it would have been held to pass them and the court may have thought that the single specification, “all the mineral therein contained,” was liable to be construed as narrowing the conveyance so' as to
To the suggestion that giving this construction to the bond and conveyance is in effect the granting of a section of a vein of mineral, the answer is that there is nothing impracticable or unnatural in such a conveyance. It does not operate to transfer the vein in toto, but simply carves out from the vein the section between the vertical side lines of the ground and transfers that to the grantee. The title to the balance of the vein remains undisturbed.
To the further suggestion that the owner of the apex might be left with a body of ore on the descending vein beyond the further side line.'of the com propuse ground which he could not reach, the answer is that this assumes as a fact that which may not be a fact. The owner of the apex may be the owner of other ground by which access can be obtained to the descending vein, and -it also is a question worthy of consideration whether granting a section out from a descending vein does not imply a right reserved in the grantor to pass through the territory of the section conveyed in order to reach the further portion of the vein. Those are questions which need not now be determined. This secondary vein does not appear to have been known at the time of the compromise, and while, of course, there is always a possibility of such a vein being discovered, yet parties are more apt to contract and settle upon the basis of what they know than upon the possibilities of future discovery.
The action of the parties hereto is suggestive, although not of itself decisive. This action for the recovery of ore taken out from beneath the surface of the compromise ground was pending when the suit for specific performance was brought in 1894. Nothing was done in this action from that time until
The disposition of this question compels a reversal of the judgment. It may also effectually dispose of all disputes between the parties, and, therefore, it would be a mere waste of time to attempt to consider other questions which have been discussed with ability and elaboration by counsel.
In view of this conclusion it is also apparent that the order restraining defendant in error from removing ore from the disputed territory ought, not to have been set aside.
The judgment of the Court of Appeals is reversed and the case remanded to the Circuit Court with instructions to grant a new trial. Further, the order restraining defendant in error from mining and removing any of the ore in dispute will be reinstated and continued in force until the final disposition of the case.
Judgment reversed and restraining order reinstated.
Cases cited
- St. Louis Mining & Milling Co. v. Montana Mining Co. 171 U. S. 650 p. 205
- Montana Mining Co. v. St. Louis Mining & Milling Co. 186 U. S. 24 p. 207
- Cromwell v. County of Sac 94 U. S. 351 p. 208
- New Orleans v. Citizens' Bank 167 U. S. 371 p. 208, p. 209
- Green v. Bogue 158 U. S. 478 p. 208
- President of the Bank of the United States v. Beverly 1 How. 134 p. 209
- Southern Pacific Railroad v. United States 168 U. S. 1 p. 209
- Mitchell v. First National Bank 180 U. S. 471 p. 209
- Southern Pacific Railroad v. United States 183 U. S. 519 p. 209
- Lander v. Mercantile Bank 186 U. S. 458 p. 209
- Van Ness v. Mayor of Washington 4 Pet. 232 p. 210
- 5 Pet. 594 5 Pet. 594 p. 210
- Buttfield v. United States 192 U. S. 499 p. 211
- Lavagnino v. Uhlig 198 U. S. 443 p. 211
- Creede & Cripple Creek Mining & Milling Co. v. Uinta Tunnel Mining & Transportation Co. 196 U. S. 337 p. 211
- Walrath v. Champion Mining Co. 171 U. S. 293 p. 211
- Last Chance Mining Co. v. Tyler Mining Co. 157 U. S. 683 p. 211
- 122 U. S. 484 122 U. S. 484 p. 212
- Conolly v. Taylor 2 Pet. 556 p. 213
- Anderson v. Watt 138 U. S. 694 p. 213
- Pullman's Palace Car Co. v. Central Transportation Co. 171 U. S. 138 p. 214
- Richmond Mining Co. v. Eureka Mining Co. 103 U. S. 839 p. 214