United Mercury Mines Company, a Corporation v. Bradley Mining Company, a Corporation

This is an appeal by the United Mercury Mines Company, a corporation, hereafter United, in a suit by United against Bradley Mining Company, hereafter Bradley, from a summary judgment. The District Court dismissed United’s complaint which sought a judgment declaring its right to royalties from Bradley on metals produced from minerals taken from Bradley’s mines which were smelted and sold by Bradley.

The mines in question were originally owned by United and operated by Brad-? ley. At that time the ores were run through a concentration plant near the mines and then sold to outside smelters. Thereafter, on December. 31, 1941, United sold the mines to Bradley for an agreement whereby Bradley was to pay United a royalty of. 5 per cent on all net smelter returns, net revenue, and net mint returns, as defined in the contract. In 1949, Bradley erected its own smelter at the mines to convert the mined ores into metals. The controversy between the parties concerns whether in computing royalties Bradley may be credited with the costs of constructing and operating this smelter at the mine.

United’s complaint asserted that Bradley was not entitled to make such deductions since the following…