W. T. Hudson v. Grand Deposit Mining Company, a Nevada Corporation

Appellants appeal from an adverse order of the district court approving a petition to compromise and settle a dispute with reference to a lease. We affirm.

FACTS

Brushing aside the non-relevant skirmishes of counsel, the controlling facts though extensive, are relatively simple. Appellee, Comet Coalition Mines Company (Comet) owns certain mining property in Nevada. In 1956, it leased the property to Combined Metals Reduction Company (Combined) and, in 1965, it approved an assignment of the lease to Combined and Grand Deposit Mining Company (Grand). The latter then formed a joint-venture known as the Grand Panam Company (Grand Panam). The lease was later renewed for a five year term, expiring on December 1, 1971. After operating the mining property for approximately two and one-half years, the principals to the joint-venture were faced with insolvency, due, among other things, to a strike in the non-ferrous metals industry.

Later, a proceeding was instituted in the United States District Court for the District of Nevada and a receiver was appointed for Combined. In August, 1968, Comet notified Combined and Grand that the lease on the mining property had been materially breached…