Candelaria Industries, Inc. v. Occidental Petroleum Corp.

ORDER RESPECTING MOTIONS FOR SUMMARY JUDGMENT

BRUCE R. THOMPSON, District Judge.

In 1970, Candelaria Industries, Inc. (Cl), a closely held corporation owned by Henry Von Kohorn, sold several mining claims which it owned in Nevada’s Candelaria mining district to Thomas E. Congdon. The purchase agreement provided, inter alia, that Cl reserved ten percent of the net profits derived by Congdon from the property. Cl later sold seventy percent of its net profits interest to a partnership, International Development Fund (IDF).

Congdon’s interest in the property was eventually transferred to a limited…