Sanchez v. Taylor, 8600.

• Decision Date: 23 June 1967
• Docket Number: No. 8600.,8600.
• Citation: 377 F.2d 733
• Parties: Jacob SANCHEZ et al., Appellants, v. J. T. TAYLOR, Jr., Appellee.
• Court: U.S. Court of Appeals — Tenth Circuit

377 F.2d 733 (1967)

Jacob SANCHEZ et al., Appellants, v. J. T. TAYLOR, Jr., Appellee.

No. 8600.

United States Court of Appeals Tenth Circuit.

May 17, 1967.

Rehearing Denied June 23, 1967.

Eugene H. Tepley, Denver, Colo., for appellant.

V. G. Seavy, Jr., of Zarlengo, Zarlengo, Seavy & Mulligan, Denver, Colo., for appellees.

Before PICKETT and SETH, Circuit Judges, and STANLEY, District Judge.

PICKETT, Circuit Judge.

In 1960, alleging that he was the owner of 77,524 acres of land in Costillo County, Colorado, appellee J. T. Taylor, Jr., a citizen of North Carolina, made application in the United States District Court for the District of Colorado for registration thereof under the Colorado Torrens Title Registration Act, 1953 C.R.S. 118-10-1 et seq. Named as defendants were several hundred persons comprising the entire adult population of the area immediately to the west of the land here involved. The land sought to be registered, as well as the land inhabited by the defendants, was part of an 1844 Mexican land grant which was later ratified by the Congress of the United States.

In their answer, defendants claimed unlimited equitable rights upon this land with respect to grazing cattle, taking timber, hunting, fishing, water, and recreational uses. These claims are based essentially upon (1) grant or dedication, and (2) prescription or adverse possession. The issues were fully set forth after two pre-trial conferences. A default judgment was entered against 369 named defendants for failure to respond to interrogatories. Issues were joined as to 112 defendants. Thereafter Taylor filed a motion for summary judgment which was sustained in part and denied in part. It was held that the defendants had no rights in common in the land by reason of grant or dedication, and that defendants acquired no prescriptive rights by reason of common use as inhabitants. As to individual claims premised upon prescription or adverse possession, however, the court determined that a material issue of fact existed, and trial was had to the court on this issue. The court concluded that none of the remaining defendants had any right to the land by reason of individual prescription or adverse possession. Following the final report of the Examiner of Titles for Costilla County certifying fee simple title in Taylor, the court entered a final decree of confirmation of title and registration, making final its order of summary judgment and its findings, conclusions, and judgment subsequent to the trial.

On January 12, 1844, a parcel of land in New Mexico, consisting of approximately 1,000,000 acres, was granted by the Mexican government to Luis Lee and Narciso Beaubien. This is known as the "Sangre de Cristo Grant", and it includes not only the land owned by Taylor, which is commonly referred to as the "Mountain Tract", but also the area to the west where the defendants reside. In 1847 Narciso Beaubien and Luis Lee were killed at the Massacre of Taos. Narciso's father, Carlos (Charles) Beaubien, inherited Narciso's undivided one-half interest in the grant and thereafter purchased the remaining undivided half from the estate of Luis Lee.

In 1848, by the terms of the Treaty of Guadalupe-Hidalgo, Mexico ceded to the United States large areas of land which included the Sangre de Cristo Grant. The treaty provided that Mexican property rights in the lands ceded "shall be inviolably respected." 9 Stat. 922, 929. On June 21, 1860, following recommendation of the United States Surveyor-General, Congress confirmed in Carlos Beaubien ownership of the Sangre de Cristo Grant, 12 Stat. 71, and a patent issued in 1880.

Meanwhile, beginning in 1852, Beaubien had attracted a number of settlers ("pobladores") to the grant. Numerous parcels of land were thus sold and conveyed. On May 11, 1863, Beaubien executed and thereafter recorded a document setting forth certain regulations and privileges respecting these settlers.¹ Prior to his death in 1863, Beaubien entered into an oral agreement with William Gilpin concerning sale of the remainder of the grant. After his death, Beaubien's heirs conveyed the remainder of the grant to Gilpin. As part of this transaction, Gilpin executed and recorded an instrument whereby he agreed to recognize and confirm certain "settlement rights" theretofore conceded by Beaubien. Attached to this contract was a list of settlers entitled to conveyance of purchased land upon payment of the amounts due. All money notes in writing and other obligations were transferred to Gilpin. Gilpin and his successors in title continued over the years to sell and dispose of portions of the grant, and most of the lands of the grant, other than the Mountain Tract, have been segregated and fenced. This 77,524 acre tract, which Taylor purchased in 1960, remains the only unfenced portion of the grant of any significance.

It is first asserted by appellants that the United States District Court was without jurisdiction to entertain this case for lack of the existence of a federal question. The pre-trial order dated August 24, 1961 recites that federal jurisdiction "is admitted on the basis of diversity of citizenship and jurisdictional amount." It is clear, therefore, that jurisdiction here is based upon 28 U.S.C. § 1332, and the court entered specific findings of fact and conclusions of law in this regard:

28 U.S.C. § 1332 provides in part:

"(a) The district courts shall have original jurisdiction of all civil actions where the matter in controversy exceeds the sum or value of $10,000, exclusive of interest and costs, and is between —

(1) citizens of different states; * * *"

This proceeding is essentially in the nature of an action to quiet title. No monetary relief is sought; what is sought, rather, is that the court "declare the title or interest of applicant, and order the Registrar of Titles to register the same." In such proceeding the amount in controversy is the value of the realty directly affected. A. C. McKoy, Inc. v. Schonwald, 10 Cir., 341 F.2d 737; Ronzio v. Denver & R. G. W. R. Co., 10 Cir., 116 F.2d 604; Jones v. Box Elder County, 10 Cir., 52 F.2d 340, cert. denied 285 U.S. 555, 52 S.Ct. 456, 76 L.Ed. 944; Peterson v. Sucro, 4 Cir., 93 F.2d 878, 114 A.L.R. 890. It cannot seriously be contended that requisite jurisdictional amount does not exist respecting this 77,524 acre tract of land for which Taylor paid $497,700.93. As to diversity, the record discloses that when this action was commenced in 1960, Taylor was residing, working, paying taxes, and voting in North Carolina. Since all defendants are citizens of Colorado, the requisite diversity of citizenship is present.

The Colorado Torrens Title Registration Act, under which this proceeding was brought, provides that "The application for registration shall be made to the district court of the county wherein the land is situated." 1953 C.R.S. 118-10-8. In Erwin v. Barrow, 10 Cir., 217 F.2d 522, this court held that federal jurisdiction was not excluded by a state statute requiring that suits to set aside conveyances of real estate be brought in the county where the land is located. See also, Madisonville Traction Co. v. Saint Bernard Mining Co., 196 U.S. 239, 25 S.Ct. 251, 49 L.Ed. 462; Holt v. King, 10 Cir., 250 F.2d 671. This rule is applicable here.

Appellants complain that the court erred in granting any part of Taylor's motion for summary judgment. The court's summary judgment order concluded:

"IT IS THEREFORE ADJUDGED that the defendants have no rights of any kind or nature in and to the lands here involved, by virtue of Mexican law or by virtue of a grant or dedication by Carlos Beaubien and William Gilpin or either of them; or by virtue of the uses of plaintiff\'s land by the inhabitants in common of the areas in which the defendants reside."

The pre-trial order dated May 25, 1962 set forth the following issues:

"A. Was the grant of the land herein involved by the Mexican Government burdened with a servitude in favor of any person or group of persons other than the grantee?

* * * * * *

C. If it was so burdened, did the servitude survive to burden the lands in the hands of subsequent purchasers?"

For purposes of the motion for summary judgment, it was admitted by Taylor that under Mexican law the settlers had certain rights in common on the lands of the grant, such as grazing and wood. The court determined that these rights under Mexican law did not survive the acquisition of the lands by the United States and the congressional confirmation of title to the Sangre de Cristo Grant in Beaubien.

The Treaty of Guadalupe-Hidalgo provided that property rights under Mexican law would be respected. In 1854 Congress established the Office of Surveyor-General to ascertain the nature and validity of any such claims respecting the land ceded to the United States under the treaty. 10 Stat. 308. Upon the recommendation of the Surveyor-General, the entire Sangre de Cristo Grant was approved and confirmed in Beaubien by Act of Congress in 1860, 12 Stat. 71, and a patent issued in 1880. Beginning with Tameling v. United States Freehold, Etc. Co., 93 U.S. 644, 23 L.Ed. 998,² the Supreme Court has consistently held that the confirmatory Act of Congress is final and conclusive as to the nature and validity of such a grant and is therefore not subject to judicial review. See, Astiazaran v. Santa Rita Land & Mining Co., 148 U.S. 80, 13 S.Ct. 457, 37 L.Ed. 376; Maxwell Land-Grant Case, 121 U.S. 325, 7 S.Ct. 1015, 30 L.Ed. 949, on rehearing 122 U.S. 365, 7 S.Ct. 1271, 30 L.Ed. 1211. This court too has so held. Martinez v. Rivera, 10 Cir., 196 F.2d 192, cert. denied 344 U.S. 828, 73 S.Ct. 30, 97 L.Ed. 644; Flores v. Bruesselbach, 10 Cir., 149 F.2d 616. See also, H. N. D. Land Co. v. Suazo, 44 N.M. 547, 105 P.2d 744. We find no error in the trial court's conclusion that appellants, as a matter of law, have no rights in Taylor's land under Mexican law or the original grant. Any conflicting...