Bullion Monarch Mining, Inc. v. Barrick Gold Strike Mines, Inc.

345 P.3d 1040 (2015)

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Nature of the Case

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Facts

Bullion Monarch Mining, Inc. (P), alleges that Barrick Goldstrike Mines, Inc. (D), owes royalty payments to P under an area-of-interest provision in a 1979 agreement. According to P, its predecessor-in-interest entered into the agreement with a mine operator, D's predecessor-in-interest, to develop P's predecessor's mining claims in the Carlin Trend. The area-of-interest provision requires the mine operator to pay P a royalty on production resulting from the operator's mining claims that the operator might subsequently acquire within the area of interest. P is to receive royalty payments on production from after-acquired claims in the area of interest for 99 years. P sued D seeking royalty payments. D argued that it did not owe royalties because the area-of-interest provision is void under the rule against perpetuities. P claimed that the rule does not apply to area-of-interest royalty agreements. In the alternative, P sought reformation of the agreement. The district court granted summary judgment to D based on the rule against perpetuities. P appealed. The Ninth Circuit Court of Appeals certified questions to the Nevada Supreme Court.