Del Monte Mining & Milling Co. v. Last Chance Mining & Milling Co.

No. 147
Decided Supreme Court of the United States
Disposition
affirmed
full scope · unanimous
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Court
Circuit Court of Appeals for the Eighth Circuit
Decided
Judge
Mr. Justice Brewer
Posture
Certified questions from the Circuit Court of Appeals
Defendant/Appellants (2)
Del Monte Mining and Milling Company
Mr. Charles S. Thomas, Mr. William H. Bryant, Mr. Harry H. Lee
v.
Plaintiff/Appellees (2)
Last Chance Mining and Milling Company
Mr. Joel F. Vaile, Mr. Edward O. Wolcott
Other parties: New York Lode mining claim — Third-party claim owner (not owned by either party)

Overview

The Supreme Court answered the certified questions as follows: Question 1 - affirmative (subject to no forcible entry); Question 2 - passed; Question 3 - negative; Question 4 - affirmative; Question 5 - not answered as it seeks decision of whole case. The case was remanded to the Circuit Court of Appeals for further proceedings consistent with these answers.

Case summary

This case involves a dispute between two mining companies over extralateral rights to a vein of silver and lead ore in Colorado. The Del Monte Mining Company (appellant) owns the senior mining claim, while the Last Chance Mining Company (appellee) owns a junior claim. The vein's apex lies within the Last Chance claim but dips under the Del Monte surface. The Circuit Court of Appeals certified five questions to the Supreme Court regarding interpretation of federal mining statutes. The Supreme Court held that: (1) a junior locator may lay location lines within a senior location's surface to secure parallel end lines for defining extralateral rights, provided no forcible entry; (2) the easterly side of an intervening claim (New York) is not an end line of the Last Chance claim; (3) a locator may follow a vein on its dip beyond the vertical side line even if the apex crosses only one end line and one side line, as long as the apex is within the surface boundaries. The Court emphasized that mining rights are statutory and courts must follow the statute's terms, not equitable considerations. The decision clarifies the requirements for extralateral rights under the 1872 mining law.

Abstract

The dispute involves two mining companies contesting extralateral rights to a vein of ore where the apex lies within the junior claim but dips under the senior claim's surface. The Supreme Court answered certified questions from the Circuit Court of Appeals, holding that a junior locator may lay location lines within a senior location's surface without forcible entry, clarified end line boundaries, and affirmed the right to follow the vein on its dip beyond vertical side lines if the apex is within surface boundaries. The Court emphasized strict adherence to statutory mining rights over equitable considerations and remanded for further proceedings.

Opinion of the court

Majority
opinion
Mr. Justice Brewer
  • Mining rights are statutory; courts cannot go beyond statute terms
  • Location determines surface and subsurface rights
  • Parallel end lines bound extralateral rights along vein course
  • Junior locator may place lines within senior location to secure parallel end lines
  • Locator may follow vein on dip beyond side lines if apex within surface, even if vein crosses only one end line
  • Only exception: when location is across vein course, side lines become end lines

Jurisdiction

not challenged
Subject matter
Certificate from the Circuit Court of Appeals for the Eighth Circuit
Jurisdictional facts
  • Case certified by the Circuit Court of Appeals for the Eighth Circuit
  • Involves construction of federal mining statutes

Procedural posture

Posture at trial
Certified questions from the Circuit Court of Appeals
Posture on appeal
Direct appeal via certification
Preserved issues
  • Interpretation of federal mining statutes
  • Extralateral rights under mining claims

Subsequent history

Petition for rehearing
not filed
Rehearing en banc
not filed
Petition for certiorari
not filed
Remand proceedings
Case remanded to Circuit Court of Appeals for further proceedings

Legal categories

BusinessEstate Planning and Real Estate

Case record

Full case name
DEL MONTE MINING AND MILLING COMPANY v. LAST CHANCE MINING AND MILLING COMPANY
Docket number
No. 147
Court
Supreme Court of the United States
Trial court
Circuit Court of Appeals for the Eighth Circuit
Decided
Opinion author
Mr. Justice Brewer
Opinion type
published
Precedential status
precedential
Judges on panel
Mr. Justice Brewer

Issues & holdings

5
Issues raised
3
affirmed
1
reversed
1
dismissed
3
Holdings
Standard of review

de novo

Disposition rationale

Yes, subject to qualification that no forcible entry is made; junior locator may place end lines within senior location to secure parallel end lines required by statute

Preservation

Issue preserved for review

Standard of review

de novo

Disposition rationale

Question passed as answered by discussion of first question

Preservation

Issue preserved for review

Standard of review

de novo

Disposition rationale

No, the easterly side of New York is not an end line of Last Chance

Preservation

Issue preserved for review

Standard of review

de novo

Disposition rationale

Yes, locator may follow vein on its dip beyond vertical side line if apex is within surface lines

Preservation

Issue preserved for review

Standard of review

de novo

Disposition rationale

Question not answered as it seeks decision of whole case

Preservation

Issue preserved for review

Holdings of the court

Junior location lines within senior location
Junior locator may lay lines within senior location surface to define extralateral rights, provided no forcible entry and no conflict with senior rights
Location is notice of claim; statute provides for overlapping locations and dispute resolution; parallel end lines required to bound underground rights; prior locator's rights not infringed
unanimousbinding precedent
End line status of New York side line
Easterly side of New York claim is not an end line of Last Chance claim
End lines are those marked by locator on surface; only exception is when location is across vein course
unanimousbinding precedent
Extralateral rights when apex crosses one end and one side line
Locator may follow vein on dip beyond vertical side line if apex is within surface lines, even if vein crosses only one end line and one side line
Statute grants all veins with apex within surface lines; right to pursue on dip outside side lines limited only by end line planes; no requirement vein must extend from end to end
unanimousbinding precedent

Statutory interpretation

2
Statute
Revised Statutes §§ 2319-2326 (Act of May 10, 1872)
Question
Extralateral rights of mining locators
Court's reading
Locator gets all veins with apex within surface lines; may pursue on dip outside side lines limited by end line planes; parallel end lines required to bound underground rights
Canons applied
Plain meaningStatutory purpose
legislative history considered
Statute
Act of July 26, 1866
Question
Historical context of mining law
Court's reading
First general statute for mine conveyance; granted vein rather than land area; rights limited by surface location
Canons applied
Historical context
legislative history considered

Standards of review

  • Interpretation of federal mining statutes — de novo Statutory interpretation reviewed de novo
  • Extralateral rights under mining claims — de novo Legal questions regarding statutory rights reviewed de novo

Timeline

Procedural path

Del Monte entryNew York entryDel Monte patentLast Chance entryNew York patentLast Chance patentSupreme Court hearingSupreme Court decision
8
Events
1,911
Days, incident to ruling
—
Span
filingcited in opinion

Entry made for Del Monte Lode mining claim at local land office

Outcome: Patent later issued

Establishes priority of Del Monte claim

Priority of mining claims
Del Monte Mining and Milling Company Local land office not applicable
filingcited in opinion

Entry made for New York Lode mining claim

Outcome: Patent later issued

Establishes New York as second in priority

Priority of mining claims
New York Lode mining claim owners Local land office not applicable
rulingcited in opinion

Patent issued for Del Monte Lode mining claim

Outcome: Title conveyed

Formalizes Del Monte ownership

Mining claim patents
Del Monte Mining and Milling Company · U.S. Government not applicable
filingcited in opinion

Entry made for Last Chance Lode mining claim

Outcome: Patent later issued

Establishes Last Chance as third in priority

Priority of mining claims
Last Chance Mining and Milling Company Local land office not applicable
rulingcited in opinion

Patent issued for New York Lode mining claim

Outcome: Title conveyed

Formalizes New York ownership

Mining claim patents
New York Lode mining claim owners · U.S. Government not applicable
rulingcited in opinion

Patent issued for Last Chance Lode mining claim

Outcome: Title conveyed with exceptions for New York conflict

Formalizes Last Chance ownership with limitations

Mining claim patentsConflicting claims
Last Chance Mining and Milling Company · U.S. Government not applicable
hearingcited in opinion

Case argued before Supreme Court

Outcome: Arguments heard

Oral arguments on certified questions

All certified questions
Mr. Charles S. Thomas · Mr. Joel F. Vaile · Supreme Court Justices Supreme Court supreme court
rulingcited in opinion

Supreme Court decision issued

Outcome: Questions answered as specified

Definitive ruling on mining law interpretation

All certified questions
Mr. Justice Brewer · Supreme Court Supreme Court supreme court

Facts & evidence

Incident

Location
Sunnyside mining district, Mineral County, Colorado

Key facts

7 facts
  1. Appellant owns Del Monte Lode mining claim (patented Feb 3, 1894)
  2. Appellee owns Last Chance Lode mining claim (patented July 5, 1894)
  3. New York Lode mining claim (patented Apr 5, 1894) owned by third party
  4. Del Monte claim first in time, New York second, Last Chance third
  5. Vein of silver and lead ore crosses north end line of Last Chance, continues southerly through Last Chance, enters New York territory, crosses New York's south end line
  6. No part of vein apex within Del Monte surface boundaries
  7. Portion of vein in controversy lies under Del Monte surface between vertical planes through Last Chance's north end line and where vein leaves Last Chance for New York

Disputed questions

  • Extent of extralateral rights of junior locator
  • Whether junior location lines can be laid within senior location surface

Procedural history

6 steps
  1. Last Chance applied for patent, adverse proceedings instituted by New York owners
  2. Action in U.S. Circuit Court for District of Colorado resulted in favor of New York against Last Chance
  3. Territory in conflict between New York and Last Chance awarded to New York
  4. Del Monte patent included ground in conflict with New York except overlap with Last Chance
  5. Last Chance patent included all territory except conflict with New York, plus triangular conflict with Del Monte by agreement
  6. Case certified to Supreme Court by Circuit Court of Appeals for the Eighth Circuit

Evidence in the record

Physical
  • Diagram showing relative situation of claims and vein course
Documentary
  • Patents for Del Monte, New York, and Last Chance claims
  • Survey plats and field notes
  • Land office records

Objects of relevance

Silver and lead bearing ore veinStone posts or wooden stakes used to mark locations

Policy considerations

  • Need for clear rules in mining districts to avoid conflicts
  • Balance between senior locator rights and junior locator ability to secure statutory benefits
  • Practical realities of mining location in rough terrain
  • Historical recognition of mining customs and possessory rights

Authorities

Cited authorities (4)

98 U.S. 463
followedquotedprecedent
Mining Company v. Tarbet - location across vein makes side lines end lines
118 U.S. 196
followedprecedent
Iron Silver Mining Company v. Elgin Mining Company - Horseshoe case, end lines must be parallel
104 U.S. 279
distinguisheddistinguished
Belk v. Meagher - second location void if prior valid location exists
Distinguished as not addressing situation where junior location lines laid within senior location without conflict
96 U.S. 513
appliedprecedent
Atherton v. Fowler - forcible seizure gives no preemption rights
Applied to qualify answer to first question regarding forcible entry

Related cases (8)

Sparrow v. Strong, 3 Wall. 97
prior appeal
Recognized validity of mining district customs
Mining Company v. Tarbet, 98 U.S. 463
prior appeal
Held location across vein makes side lines end lines
Iron Silver Mining Company v. Elgin Mining Company, 118 U.S. 196
prior appeal
Horseshoe case; end lines must be parallel as located
Argentine Mining Company v. Terrible Mining Company, 122 U.S. 478
prior appeal
Affirmed Tarbet ruling
King v. Amy &c. Mining Company, 152 U.S. 222
prior appeal
Reaffirmed prior cases
Belk v. Meagher, 104 U.S. 279
prior appeal
Second location void if prior valid location exists
Gwillim v. Donnellan, 115 U.S. 45
prior appeal
Valid location grants exclusive possession
Atherton v. Fowler, 96 U.S. 513
prior appeal
Forcible seizure gives no preemption rights

Statutes

  • Revised Statutes §§ 2319-2326 (Act of May 10, 1872)
  • Act of July 26, 1866

Standards & doctrines

  • Statutory interpretation over equitable principles in mining law

Legal principles applied

  • Mining rights are statutory; courts cannot go beyond statute terms

Notable quotes

“The question in the courts is not, what is equity, but what saith the statute.”
Mr. Justice Brewer — Discussing that courts must follow statutory terms rather than equitable considerations
Emphasizes statutory interpretation over equitable principles in mining law
“Our laws have attempted to establish a rule by which each claim shall be so many feet of the vein, lengthwise of its course, to any depth below the surface, although laterally its inclination shall carry it ever so far from a perpendicular.”
Mr. Justice Brewer (quoting prior case) — Quoting from Mining Company v. Tarbet to explain purpose of mining law
Clarifies legislative intent behind extralateral rights
Index terms74
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Legal actions
Action type
affirmed
Target
Circuit Court of Appeals certified questions 1 and 4
Appealed from
Circuit Court of Appeals for the Eighth Circuit
Context
Supreme Court affirmed answer to question 1 (junior locator may lay lines within senior location) and question 4 (locator may follow vein on dip beyond side line if apex crosses one end and one side line)
Scope
full
Further instructions
Remanded for further proceedings consistent with answers
Disposition vote
unanimous
Action type
reversed
Target
Circuit Court of Appeals certified question 3
Appealed from
Circuit Court of Appeals for the Eighth Circuit
Context
Supreme Court reversed implied answer to question 3, holding easterly side of New York claim is not an end line of Last Chance claim
Scope
full
Disposition vote
unanimous
Action type
dismissed
Target
Circuit Court of Appeals certified question 5
Appealed from
Circuit Court of Appeals for the Eighth Circuit
Context
Supreme Court dismissed question 5 as seeking decision of whole case rather than answering legal question
Scope
full
Disposition vote
unanimous
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