Hart
Hart v. California Pacific Title & Trust Co.
Opinion
Lead Opinion
Healy, J.
. Appellant Hart is trustee for the Mount Gaines Mining Company in reorganization proceedings under Chapter X of the Bankruptcy Act, 11 U.S.C.A. § 501 et seq. Upon his petition the appellees were ordered-to show ca.use why they should not convey to the debtor the title to a three-fourth interest in a certain mining property situate in Mariposa County, California. From the dismissal of his petition the trustee appeals.
The petition shows that in December 1933 one Humphrey executed a ten-year leaáe on the mine to Yates and Binns with an option in the latter to purchase an un *431 divided three-fourths interest. As the result of proceedings in a state court Humphrey thereafter conveyed title to appellee California Pacific Title and Trust Company in trust for certain individuals, appellees here, subject to the terms of the lease. In December 1934 the lease was assigned to the corporate debtor.
The lease provided for the payment monthly of a gross royalty of 10% of all production, the royalty “to be considered as a rental only.” All equipment and improvements installed by the lessees were to be deemed fixtures, becoming part of the mine, as were any water rights acquired in the…