Case Digest (G.R. No. 8170)
Facts:
L. O. Hibberd v. Estate of James P. McElroy, G.R. No. 8170. August 27, 1913, the Supreme Court, Trent, J., writing for the Court.
The appellant, L. O. Hibberd, and the deceased James P. McElroy entered into a written mining contract dated November 25, 1910. Under the contract Hibberd was granted exclusive possession and exploitation of ten mining claims for one year, with the right to use improvements and to take all profits during that year. The contract further stipulated that Hibberd would perform “all the assessment work on the said mining claims required under the laws of the Philippine Islands.” A third clause provided that at the end of the first year McElroy, if in good health, would assume comanagement with Hibberd; if McElroy were unable to do so, Hibberd would continue in exclusive possession and, after paying exploitation expenses, pay one-half of the net proceeds monthly to McElroy.
The parties submitted the case to the trial court on an agreed statement of facts. That stipulation recited that the assessment work had been performed and a watchman’s salary paid; that the claims had been operated for the first year under the contract and produced a loss; that the claims could not be operated at a profit; and that after the first year Hibberd requested the administrator of McElroy’s estate to perform the estate’s share of the assessment work, but the administrator refused and no part of the claim for such assessment work was paid.
The Court of First Instance disallowed Hibberd’s claim for P1,000 against McElroy’s estate for assessment work performed after the first year. Hibberd appealed to the Supreme Court from that judgment. The only contested question before the Court was the proper interpretation of the contract—whet...(Subscriber-Only)
Issues:
- Did the contract obligate L. O. Hibberd to perform all annual assessment work on the ten mining claims indefinitely on his own account, or only for the first year?
- Is the Estate of James P. McElroy liable to reimburse Hibberd for the assessment work performed after the first ...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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