Edward R. Swoboda v. Pala Mining, Inc., Jean Magee as of the Estate of William Magee and Eduard Link

I

OVERVIEW

This case provides a rare opportunity for judicial analysis of a relatively obscure area of the federal mining laws. For reasons explained below, we affirm the district court’s disposition in all respects except on the issue of damages. Because the Special Master’s findings with respect to damages (which the district court adopted) were not supported by evidence in the record, we remand solely on the issues of damages for reexamination de novo.

II

FACTS

Since 1980, appellee Edward R. Swoboda has owned and operated the Stewart Mine, which is comprised of 19.54 acres in San Diego County. The western boundary of the Stewart Mine lies contiguous to the eastern boundary of the Pala Indian Reservation, which was established by a trust patent issued to the Pala Band of Mission Indians on February 4, 1920 pursuant to the Act of January 12, 1891.

The Stewart Mine was located in 1898. Until the mid-1920’s, the claim was worked principally to mine lapidolite. On April 26, 1949, the Department of the Interior granted Swoboda’s predecessor-in-interest a mineral patent to the Stewart Mine. Within the boundaries of the Stewart Mine is the apex of a pegmatite dike. Swoboda and…