Appendix — Durand v. Arif

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O2 976 DEC 1 9 2002

or Ge OF THE OLERK

In The

SUPREME COURT OF THE UNITED STATES

Edwin Durand, and Madelaine Durand, Petitioner‘(s),

V.

Syed M. Arif, Norman F. Rice, d.b.a North American

Technical Trading Co., Inc., Gloria M. Rice, Clifford S. Rice,

and Matthew C. Huntley, Esq.,

Respondent(s);

Jerry W. Slusser, James W. Scott, d.b.a Valtec Capital Corp.,

and Earthco Inc.,

Respondent(s).

On Petition For Writ Of Certiorari

To the Court of Appeal of the State of California

In And For The Third Appellate District

“APPENDIX TO PETITION”

FOR WRIT OF CERTIORARI

Edwin Durand, and Madelaine Durand, Pro Se Petitioner(s)

P.O. Box 34719 Reno, Nevada 89533

Tel: (775) 345-0141

“ SA ad ‘

APPENDIX TABLE OF CONTENTS

. Unpublished “OPINION” Court of Appeal of The State

of California, 3rd Appellate District, 06-24-02:

Page Al to Al4.

. Appellants’ petition for rehearing “DENIED” Court

of Appeal of the State of California, 3rd Appellate

District, 07-22-02: Page B1.

. Appellants’ petition for review “DENIED” Supreme

Court of California, 09-11-02: Page Cl.

. “ORDER AFTER HEARING OF NOVEMBER 29, 1999”

Superior Court of the State of California, In and for the

County of Lassen, 02-23-00: Page D1 to D3.

. “APPELLANTS’ PETITION FOR REHEARING”

Court of Appeal of the State of California, 3rd

Appellate District, 07/02/02: Page E1 to E41.

. “APPELLANTS’ PETITION FOR REVIEW”

Supreme Court of California, 08-05-02:

Page F1 to F41.

. “STATEMENT OF DECISION” Superior Court of

the State of California, In and for the County of

Lassen, 04-28-99: Page G1 to G24.

Se PE E N ION AND

DETERMINING RIGHT OF ESSION T

MINING CLAIMS * Superior Court of California, In

and for the County of Lassen, 04-23-99:

Page H1 toH20.

I.

APPENDIX TABLE OF CONTENTS

9. “U.S. Code Title 28 Part IV...; U.S. Constitution Article ~

IIl...; California. Penal Code Sections 132, 134, 118a, 119,

124, 126, 129; California Code of Civil Procedure

Sections 473(d) & Sec. 473(b);, 592, 128.5, 128.6, 128.7;

California Business and Professions Code Sections 6068,

6106; California Code of Civil Procedure Section 1033.5:

Page I-1 to I-11.

APPENDIX A

The opinion of the Court of Appeal of the State of

California, Third Appellate District

NOT TO BE PUBLISHED

COPY

IN THE COURT OF APPEAL OF THE STATE OF

CALIFORNIA

THIRD APPELLATE DISTRICT

(Lassen)

SYED M. ARIF et al. C035449

Plaintiffs, Cross-defendants (Super. Ct. No.

and Respondents 29224)

GLORIA M. RICE et al.,

Cross-defendants and Respondents,

v. FILED

Jun 24 2002

EDWIN DURAND et al., Court of Appeal

Defendants, Cross-complainants _— Third District

and Appellants. Deena C. Fawcett

Appellants challenge the trial court’s post-trial rulings

denying them relief from judgment, declaring them to be

vexatious litigants, and imposing sanctions. Except to

reverse the determination of appellants as vexatious

litigants, we affirm the trial court's post trial rulings.

FACTS

Plaintiffs, cross-defendants, and respondents Syed M.

Arif (Arif), individually and doing business as North

Al

American Technical Trading Company (NATTCO), and

Norman F. Rice (Rice) (collectively plaintiffs) filed a

complaint on February 5, 1997, against defendant, cross-

complainant, and appellant Edwin Durand (Durand).

The complaint alleged Rice, prior to January 4, 1996,

owned real property in Lassen County known as Mapes

Ranch, along with mining claims and rights associated with

that land. He also owned certain mining claims on other

Lassen County lands owned by the federal government.

On January 4, 1996, NATTCO allegedly purchased

Rice’s property and mining rights. Under the purchase

agreement, Rice agreed to act as an agent of NATTCO to

aide the properties’ development. He also retained a royalty

interest. Plaintiffs thereafter applied for permits from the

County of Lassen to begin mining the properties for

pozzolan. According to plaintiffs, pozzolan is a “high-silica

high-alumina material that has traditionally been used as a

cement additive. One of the largest known natural deposits

of Pozzolan is located in the Long Valley Area [of Lassen

County] .”

The complaint accused Durand of disrupting

plaintiffs’ efforts to attract investors and commence mining.

Durand allegedly staked over plaintiffs’ mining claims,

recorded various documents attempting to assert title in the

properties and mining rights adverse to plaintiffs’ title, and

made slanderous statements regarding plaintiffs during a

closed meeting with staff of the Lassen County Planning

Commission who were reviewing plaintiffs’ mining permit

application.

Plaintiffs sought damages and injunctive relief under

causes of action alleging intentional interference with

economic relations, libel, slander of title, quiet title, and

trespass.

A2

Acting in pro per, Durand answered and, on April 17,

1997, filed a “First Amended Counterclaim Complaint for

Injunctive Relief and Damages” (First Counterclaim).

Durand named plaintiffs and a number of other individuals,

companies and agencies as cross-defendants, many of

whom purported to own claims which allegedly conflicted

with Durand’s claims. The _ cross-defendants and

respondents remaining in this appeal are, along with

plaintiffs, Gloria M. Rice; Clifford S. Rice, individually and

doing business as Norman Rice Enterprises, Inc.; Matthew

Huntley; and Jerry W. Slusser, individually and doing

business as Valtec Capital Corporation and Earthco. (For

ease of reference, we will refer to the plaintiffs and

remaining cross-defendants collectively as respondents

unless individual identification is required.)

On the same day Durand filed the First Counterclaim,

the trial court issued on order to show cause requiring

Durand to appear on June 5, 1997, and explain why the First

Counterclaim was not filed in a more condensed format.

On May 8, 1997, the trial court vacated the June 5

hearing, returned the First Counterclaim to Durand, and

gave him 30 days to file an amended pleading.

On June 5, 1997, Durand filed a “Second Amended

Counterclaim Complaint for Injunctive Relief and Damages”

(Second Counterclaim). He alleged he was the owner of

mining claims known as the Sierra Lady claims that

preceded and competed with respondents’ claims. He sought

to quiet title in the disputed properties and mining claims in

his favor.

Four days later, on June 9, Durand filed a

“Supplemental pleading to Second Amended Counterclaim

Complaint for Relief and Damages” (Supplemental

Pleading). In this pleading, Durand alleged he was

A3

introduced to Rice in 1991 as someone who could help him

obtain financing to develop his mining rights. Rice allegedly

misrepresented his intent to assist Durand, and instead used

confidential information obtained from Durand to develop

the mining business for himself and the other respondents.

Rice’s actions included obtaining allegedly invalid title and

mining claims and transferring them to NATTCO. Durand

sought damages and injunctive relief under the same causes

of action alleged by respondents: intentional interference

with economic relations, libel, slander of title, quiet title, and

trespass.

The trial court held a case management conference on

September 29, 1997. It described the case as one for a

“[dJjetermination of ownership of claim[s,] damages,

breach.” The court instructed Durand “to reduce pleadings

and to telephone parties on pleadings submitted to them

that they do not understand.” Durand filed no additional or

reduced pleadings.

The court held another case management conference

on March 25, 1998. Among other matters, the court allowed

Durand’s wife, Madelaine Durand, to intervene. (We refer to

them collectively as the Durands unless noted otherwise.)

According to its minute order, the trial court also ordered

the following: “Bifurcate Quiet Title to be set for trial in 45

days agreed to and stipulated by all parties.” The court

directed Mark Davis, counsel for respondents Jerry W.

Slusser, Earthco, and Valtec Capital Corporation, to prepare

the order.

On June 22, 1998, the trial court executed an order

prepared by Mr. Davis memorializing the orders made at

the March 25 management conference. This written order

says nothing about the case being bifurcated for trial.

Instead, it reads: “The Court dismissed, with prejudice, all

causes of action set forth in the Ist and 2nd Amended

Complaint, excepting the causes of action for Quiet Title

A4

solely regarding the parties|‘] respective claims of title.” The

document on record is certified as being a copy of an

original on file with the court, but the order does not appear

on the trial court’s docket sheet. The record contains no

proof the order was ever served on the Durands. In their

reply brief, the Durands claim they saw the order for the

first time when reviewing the trial court's files in 2000 after

they filed their notice of appeal with this court.

In a letter to the Durands dated July 16, 1998, counsel

for respondents referred to the case going to trial as the

“title phase of the lawsuit,” “title issue,” and “title portion

of this litigation.”

The quiet title issue proceeded to a court trial in

October 1998. On April 28, 1999, the trial court entered its

Statement of Decision, quieting title in all of the competing

claims in favor of respondents, and permanently enjoining

the Durands from entering upon respondents’ real property

and mining claims. The court also determined the Durands’

Sierra Lady claims were invalid except for two.

On May 11, 1999, the Durands filed motions to set

‘ aside the judgment, to declare a mistrial, and to order a new

trial. Much of the motion contained the same arguments the

Durands raised at trial. However, the Durands also

requested the court to hear their other causes of action

which were bifurcated from the first trial, claiming the

judgment had not resolved them. On August 20, 1999, the

trial court denied the motions.

The Durands did not file a notice of appeal from the

trial court’s denial of their motion for new trial within the

time allowed under rule 3 of the California Rules of Court.

Instead, on October 25, 1999, the Durands filed a motion

Entitled “Notice of Motion C.C.P. 473 Relief from Judgment

Taken by Mistake & To Set Aside etc. [&] Notice of Motion

AS

C.C.P. 592 Issues of Fact: Jury Trial.” Issues of Fact: 1

1 All subsequent references to sections are to the Code of

Civil Procedure unless noted otherwise

Nowhere in these papers did the Durands allege

what mistake, inadvertence, surprise or excusable neglect

they committed which resulted in the judgment entered

against them. Instead, the Durands attempted to bring all of

their pleadings and evidence before the court again in order

to receive a determination of their bifurcated causes of

action. The Durands asked the court to set aside its

judgment as being only an interim order until all remaining

causes of action were heard.

Respondents’ opposed, arguing each of the

Durands’ theories for damages was predicated on the

Durands’ Sierra Lady claims being legally valid. Because the

trial court concluded the Durands’ claims were not valid,

their remaining causes of action were moot. They also

argued the Durands failed to show any mistake,

inadvertence, surprise, or excusable neglect. (Respondents

did not as part of their opposition cite to the June 22 written

order allegedly dismissing all of the Durands’ other causes

of action.)

On November 19, 1999, while the Durands’

motions were pending, respondents filed a motion for

sanctions against the Durands and a motion to designate the

Durands as vexatious litigants. The Durands responded by

filing their own motion for sanctions against respondents.

By written order filed February 23, 2000. the trial court

denied all of the Durands’ motions, but granted respondents

motions for sanctions and declaring the Durands to be

vexatious litigants. Regarding the Durands’ motions, the

trial court reasoned as follows: “The Motion for Relief from

A6

Judgment under section 473 is denied on its merits, because

it is not timely, because that section is not a substitute for

appeal, and because it is yet another attempt to have the

Court reconsider its original Judgment. The Motion under

CCP 592 is denied because, the Durands having lost on the

issue of ownership of the disputed claims, there is nothing

left to litigate. The Court’s Judgment . dated April 23, 1999,

was intended to and did become a final determination of the

rights of the parties, subject only to appellate review. There

is nothing left to litigate except the mutual motions for

sanctions.” |

The trial court subsequently filed its Prefiling Order

designating the Durands as vexatious litigants.

The Durands filed a Notice of Appeal on April 13,

2000, appealing from the trial court’s February 23, 2000

order on the parties’ post-trial motions and appealing the

trial court's April 23, 1999 judgment. On respondents’

motion, we dismissed the appeal as untimely filed in so far

as it concerned the trial court’s judgment on the merits.

In what remains of this appeal, the Durands assert

the trial court:

1. Abused its discretion in denying Durands’

post-trial motion under section 473;

2. Improperly denied the Durands their right to

a jury trial on issues of fraud and economic interference they

claim remained pending after the trial court quieted title in

favor of respondents;

3. Erred in designating the Durands as

vexatious litigants; and

4. Abused its discretion in awarding sanctions against

the Durands.

A7

DISCUSSION

I

Trial Court Did Not Abuse Its Discretion in Denying the

Durands’ Motion for Relief Under Section 473

The Durands argue the trial court abused its

discretion in denying them relief under section 473. They

assert the tort causes of action bifurcated from the first trial

were independent of the quiet title cause of action. They also

believed they could not obtain an appealable final judgment

until the trial court held a trial on all of their causes of

action. Therefore, they filed their motion under section 473

to obtain a trial of their tort theories and to obtain an

appealable final judgment. They argue the trial court abused

its discretion in denying them the requested relief. We

disagree.

Disposition of a motion for relief under section 473

rests largely in the discretion of the trial court, and its

decision will not be disturbed on appeal unless there has

been a clear abuse of discretion. (Eigner v. Worthington (1997)

57 Cal.App.4th 188, 196, fn. 6.) Abuse of discretion is

established if, considering all of the circumstances before it,

the trial court’s decision exceeded the bounds of reason.

(People v. Parmar (2001) 86 Cal.App.4th 781, 792.) 2

2 Section 473, subdivision (b) includes provisions for

both discretionary and mandatory relief. Mandatory relief is

available only from entry of default or judgment of default

(English v. IKON Business Solutions, Inc. (2001) 94 Cal.App.

4th

Respondents first argue the Durands’ tort causes of

action were all dismissed pursuant to the trial court’s order

entered June 22, 1998. Given the court records surrounding

the validity of this order are unclear — no proof of service on

A8

the Durands, no record of the order in the trial court's

docket, the order’s contradiction with the trial court's

minute order — we determine to resolve the Durands’

argument on another basis.

A party seeking relief under section 473 bears “the

double burden of showing (1) diligence in making the

motion after discovering its own mistake, and (2) a

satisfactory excuse for the occurrence of that mistake.”

(Eigner v. Worthington, supra, 57 Cal.App.4th at p. 196, italics

added.) If the party “fails to show that a judgment has been

taken against him through his mistake, inadvertence,

surprise or excusable neglect the court may not grant relief.

It has no discretion.” (Parage v. Couedel (1997) 60 Cal.App.4th

1037, 1042, internal quotation marks omitted, italics added.)

The Durands’ papers on the motion below and their

briefs on this appeal argue the trial court’s judgment was

mistaken. However, the Durands do not argue in their

papers the judgment was mistaken because of their mistake.

Nowhere do the Durands allege the trial court’s judgment

resulted from their mistake, inadvertence, surprise or

excusable neglect. 3

3 Because the Durands filed an answer to plaintiffs’

complaint, we presume they sought discretionary relief, as

they are not entitled to mandatory relief.

At oral argument, Mrs. Durand claimed their mistake

was to rely on rule 232.5 of the California Rules of Court as

- grounds for ensuring they would be able to proceed to trial

on their remaining causes of action after trial on the quiet

title cause of action. Rule 232.5 states in pertinent part:

“When a factual issue raised by the pleadings is tried by the

court separately and prior to the trial of other issues, the

judge conducting the separate trial shall announce the

tentative decision on the issue so tried but no proposed

judgment shall be prepared until the other issues are tried,

A9

except when ... a separate judgment may otherwise be properly

entered at that time.” (Italics added.)

Here, the trial court determined the Durands’

remaining causes of action became moot upon its resolution

of the quiet title action. As a result, the trial court concluded

it had nothing left to adjudicate, and it properly entered

judgment at that time as allowed by rule 232.5. “[A]lthough

a case may originally present an existing controversy, if

before decision it has, through act of the parties or other

cause, occurring after the commencement of the action, lost

that essential character, it becomes a moot case or question

which will not be considered by the court.” (Wilson v. L.A.

County Civil Service Coni. (1952) 112 Cal.App.2d 450, 453.)

The Durands mistakenly believed rule 232.5 required

the trial court to proceed to trial on their remaining causes

of action because in their opinion those causes of action

were not moot. However, nothing in rule 232.5 prohibited

the trial court from determining the remaining causes of

action had become moot, or required the court to adjudicate

causes of action it determined had become moot.

More significantly for this matter, the trial court's

judgment did not result from the Durands’

misinterpretation of rule 232.5. The Durands’ view of rule

232.5 had absolutely no bearing on the trial court’s decision

to enter judgment against them. Indeed, when pressed

further at oral argument, Mrs. Durand acknowledged her

contention of mistake was the trial court misinterpreted rule

232.5, i.e., the mistake was made by the trial court, not her.

The Durands’ failure to prove the judgment resulted from

their mistake denied the trial court of any discretion except

to deny their section 473 motion, which the trial court

correctly did.

Alo

II

Trial Court Did Not Unlawfully Deny the Durands

Their Right to a Jury Trial

The Durands allege the trial court’s denial of their

section 473 motion not only was an abuse of discretion, but

was also a denial of their right to a jury trial under section

592 on their tort causes of action. The Durands could not use

section 473 to attack a trial court’s denial of a jury trial

unless such an order resulted from their mistake. Again, the

Durands fail to allege any mistake on their part which

resulted in them losing whatever right they may have had to

a jury trial on their remaining claims.

Il

The Trial Court Erroneously Determined

the Durands Were Vexatious Litigants

The Durands claim the trial court erroneously

determined they were vexatious litigants as a result of their

filing the motion under section 473. We agree.

In their motion against the Durands, respondents

alleged the Durands were vexatious litigants under

subdivisions (b) (2) and (b) (3) of section 391. These statutes

define a vexatious litigant as one who “does any of the

following:

SSSSSSSHSSSSHEHSSHESSHSHSSHSHSHSSSSEHHESHSESHESSSHEHSEESHEHSEHSESHEHEESSEHEESEEHEEESHEE EHH EESE

“(2) After a litigation has been finally determined

against the person, repeatedly relitigates or attempts to

relitigate, in propria persona, either (i) the validity of the

determination against the same defendant or defendants as

to whom the litigation was finally determined or (ii) the

All

cause of action, claim, controversy, or any of the issues of

fact or law, determined or concluded by the final

determination against the same defendant or defendants as

to whom the litigation was finally determined.

“(3) In any litigation while acting in propria persona,

repeatedly files unmeritorious motions, pleadings, or other

papers, conducts unnecessary discovery, or engages in other

tactics that are frivolous or solely intended to cause

unnecessary delay.”

Respondents specifically alleged the Durands’ motion

under section 473 demonstrated the Durands were

vexatious litigants.

The Durands failed to appeal in a timely manner either

the judgment or the denial of their motion for new trial.

Their litigation was thus finally determined against them.

However, they subsequently brought their motion for relief

under section 473 and raised the same issues which the trial

court resolved in denying them a new trial.

The trial court granted respondents’ motion under

subdivision (b) (2), but did so without stating its reasoning.

Subdivision (b) (2) applies when a party repeatedly

relitigates or attempts to relitigate the judgment or issues

finally determined against him. Here, the Durands filed

only one motion after their claims had all been finally

determined against them — their section 473 motion. While

that motion may have attempted to relitigate the matters

raised in the motion for new trial, it was the first time the

Durands attempted to relitigate those issues after the trial

court's judgment became final. Thus, it was not a “repeated”

attempt to “relitigate” issues after a judgment became final.

No evidence supports the trial court's determination the

Durands were vexatious litigants under subdivision (b) (2)

Al2

~ IV

The Trial Court Did Not Abuse Its Discretion Awarding

Sanctions Against the Durands

Respondents filed motions for sanctions under

sections 128.5 and 128.6 against the Durands, claiming the

section 473 motion was frivolous, was brought for an

improper purpose, and lacked legal and evidentiary

support. The Durands assert the trial court erred in granting

respondents’ motions. We disagree.

“We review the imposition of monetary sanctions

for a prejudicial abuse of discretion.” (‘20th Century Ins. Co.

v. Choong (2000) 79 Cal.App.4th 1274, 1277.)

Prior to receiving the section 473 motion, the trial

court had already determined on a motion for new trial the

Durands were not entitled to any of the relief they sought.

The Durands disagreed with those determinations, but failed

to appeal them to this court in a timely manner. Instead, they

filed their section 473 motion, raising the same arguments

raised in the motion for new trial, and doing so without

demonstrating any legal basis for seeking relief under section

473. The trial court did not abuse its discretion in awarding

sanctions.

V

Durands’ Motion for Sanctions

The Durands ask us to impose sanctions on

respondents. We deny the request. (§ 907; In re Marriage of

Flaherty (1982) 31 Cal.3d 637.)

A113

DISPOSITION

The order determining the Durands to be vexatious

litigants is reversed. All of the remaining appealed orders

are affirmed.

The parties shall bear their own costs on appeal.

NICHOLSON , Acting P.J.

We concur:

HULL 3

KOLKEY __J.

Al4

APPENDIX B

The decision of the Court of Appeal of the State of

California, Third Appellate District, denying Appellants’

Petition for Rehearing

IN THE

Court of Appeal of the State of California

IN AND FOR THE

THIRD APPELLATE DISTRICT

FILED

JUL 22 2002

COURT OF APPEAL -

THIRD DISTRICT

DEENA C. FAWCEI1T

SYED M. ARIF et al.,

Plaintiffs, Cross-Defendants and Respondents,

GLORIA M. RICE et al.,

Cross-Defendants and Respondents,

v.

EDWIN DURAND et al.,

Defendants, Cross-Complainants and Appellants.

C035449

Lessen

County

No. 29224

BY THE COURT:

Appellants’ petition for rehearing is denied.

Dated: July 22, 2002

NICHOLSON, Acting PJ.

Bl

APPENDIX C

The decision of the Supreme Court of the State of

California, denying Appellants’ Petition for Review En

Banc

Court of Appeal, Third Appellate District - No. C03 5449

S108975

IN THE SUPREME COURT OF CALIFORNIA

En Banc

SYED M. ARIF et a!., Plaintiff, Cross-defendants and

Respondents,

Vv.

GLORIA M. RICE et a!., Cross-defendants and Respondents;

EDWIN DURAND et a!., Defendants, Cross-complainant and

Appellants.

Petition for review DENIED.

SUPREME COURT

FILED

SEP 1 1 2002

Frederick K. Ohirich Clerk

DEPUTY

GEORGE

Chief Justice

Cl

APPENDIX D

The Order After Hearing of November 29, 1999, of the

Superior Court of the State of California, In and for the

County of Lassen

LASSEN COUNTY COURTS FILED

220 S. Lassen Street FEB 23 2000

Susanville, Ca 90130 Lassen County Superior Court

R. REED, CHIEF ADMIN. OFFICER

SUPERIOR COURT OF THE STATE OF CALIFORNIA

IN AND FOR THE COUNTY OF LASSEN

SYED M. ARIF, etc, et al., No. 29224

Plaintiffs, ORDER AFTER HEARING

OF NOVEMBER 29, 1999

vs.

EDWIN DURAND, et al.

Defendants.

EDWIN DURAND, etc., et ux.,

Cross Complainants,

VS.

SYED M. ARIF, etc., et al.,

Cross Defendants.

The Durands have filed three post judgment motions.

They seek relief under CCP §473, CCP §592, and CCP

§128.7(c)(1). The Arif plaintiffs and cross defendants have

sought sanctions under 128,7, CCP; and have asked that the

Durands be designated vexatious litigants under CCP §391.

The Cross-Defendants Valtec and Earthco have also asked

for sanctions under section 129.7, CCP.

It is ORDERED that the Durands Motions are denied. The

Motion for Relief from Judgment under section 473 is

denied on

D1

its merits, because it is not timely, because that section is not

a substitute for appeal, and because it is yet another attempt

to have the Court reconsider its original Judgment. The

Motion under CCP 592 is denied because, the Durands

having lost on the issue of ownership of the disputed claims,

there is nothing left to litigate. The Court’s Judgment for

Permanent Injunction and Determining Right of Possession

dated April 23, 1999, was intended to and did become a final

determination of the rights of the parties, subject only to

appellate review. That decision was reviewed on the

Durands’ motion to reconsider and was affirmed by the

Order on Various Post Trial Matters dated August 20, 1999.

There is nothing left to litigate except the mutual motions

for sanctions.

It is further ORDERED that the Motion of the Durands

for sanctions is denied. It is ORDERED that the Motions of

the Arif plaintiffs and the Valtec cross defendants are

granted to the extent of awarding sanctions under §128.5

and 128.7, CCP, in the amount of $1,000.00 for each group; a

total of $2,000.00 for all non-Durand parties.

The Arif plaintiffs and cross defendants have moved for

an Order determining that as to them the Durands are

vexatious litigants and prohibiting the Durands from filing

new litigation without first obtaining permission of the

presiding judge of whatever California jurisdiction in which

they wish to file. That motion is granted. Edwin and

Madeline Durand are determined to be vexatious litigants

within the provisions of §391(b)(2), CCP. They are

prohibited from filing any litigation against Syed M. Arif;

North American Technical Trading Co; Nattco; North

D2

American Technical Trading Co. (Inc. Of Illinios); Norman

F.Rice; Gloria M. Rice; Clifford S. Rice; Norman Rice

Enterprises, Inc.; Arthur Koffinke, Jerry W. Slusser,

individuallY and dba Valtec Capital Corporation & Earthco

unless they first follow the. procedures set out in CCP

§391.7.

Dated: February 18, 2000

/S

Larry L. Dier, Judge

D3

APPENDIX E

Appellants’ Petition for Rehearing, Court of Appeal of the

State of California, Third Appellate District

IN THE COURT OF APPEAL OF THE STATE OF

CALIFORNIA IN AND FOR

THE THIRD APPELLATE DISTRICT

SYED M. ARIF et al., CASE NUMBER.

Plaintiffs /Cross- Defendants 3 Civil C035449

and RespondentS

and Lassen County Sup.

Ct. #29224

JERRY SLUSSER, VALTEC/EARTHCO et al .

Cross-Defendants and Respondent,

Vs

EDWIN and MADELAINE DURAND

Defendant/Cross-Complainants

and Appellants.

APPELLANTS’ PETITION FOR REHEARING

E1

LEGAL DISCUSSION ...... igi nekaineiimartinenbniCeinth 10

A.

TRIAL COURT LACKED JURISDICTION

OVER ISSUE OF VALIDITY OF FEDERAL

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APPELLATE COURT’S OPINION BASED

ON AN UNBRIEFED ISSUE.................... 11

TRIAL COURT’S REFUSAL TO

DETERMINE DURANDS’ TORT CAUSE OF

ACTION IS A VIOLATION OF DURANDS’

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DURANDS FORMALLY REQUEST

APPELLATE COURT TO GRANT

EE PEE ORME cvincsccenrsesievsenixdevones 13

THE RECORD CLEARLY DEMONSTRATES

THE TRIAL COURT'S ABUSE OF

OTR cnicninccininiinesunisuan caneieutida 14

TRIAL COURT’S OWN WORDS STATES IT

DID NOT CONSIDER ALL

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TRIAL COURT NEVER DETERMINED

DURANDS’ TORT

CPE Oe FE iiccreccsercnssensssssernvses 15

E2

H. THE APPELLATE COURT CANNOT

PRESUME TRIAL COURT’S DECISION

PR iitnehotarmievionivistimicon 17

APPELLATE COURT CANNOT PRESUME

TRIAL COURTDECIDED ISSUE............... 21

APPELLATE COURT ERRONEOUSLY

STATED DURAND FAILED TO ARGUE

. DURAND WAS SURPRISED BY TRIAL

COURT RULINGG................... Lvontbadeences 26

. IT ISOF GREAT PUBLIC IMPORTANCE

THAT ATTORNEYS ARE NO LONGER

CONSIDERED ABOVE THE LAW............ 29

. THIS COURT’S AFFIRMATION OF THE

TRIAL COURT’S SANCTIONS REVERSES

THE “SAFE HARBOR” PROVISION......... 31

TABLE OF AUTHORITIES

PAGE

Adoption of Alexander S.

CFG Oe Ge BF vice vssincsvsnsnestannen 12, 29

Andres v. Armstrong

(1959) 168 Cal.App.2d 344.................. 20

Bowden v. Green (1982)128 C.A.3d 65, 70,

Pe iiitietiorsstrsndunincseigvekaeaae 25

California Cas. Ins. Co. v. Super. Ct.

(1996) 46 CA4th 1145............ccccccesees 12

Eigner v. Worthington

(1997) 57 Cal.App.4™ 188..............0004. 14

Elston v. City of Turlock —

FE Pe IEE biivesnsveincoscanesnnsned 29

English v. IKON Business Solutions Inc.

(2001) 94 Cal.App.4" 130..........0...000. 27

Estate of McAfee

” I eI TGFs sevkcitcdensdncseensoniees 20

In re Marriage of Flaherty

he BRS SS Sy er rennrnre 8, 29

Kaliterna v. Wright

(1949) 94 Cal.App.2d 926................66. 20

FA

Lafayette Morehouse Inc. v. Chronical Pub. Co

Fee Ew, Se ae seek

Marriage of Oddino _ :

oo : ER 10

Nevada Sierra Oil Co. v. Miller

EE 1]

Packer v. Sillas

(1976) 128 Cal.Rptr 907................ ee

People v. Parmer

(2001) 86 Cal.App.4" 781............... 14, 24

Peterson v. Ellebrecht

(1962) 205 Cal.App.2d 718.................. 19

Sime v. Malouf

Boe) 10

Southern Pac. Co. v. Eshelman

fs re 22, 23

State Farm Fire & Casualty v. Pietak

(2001) 90 Cal.App.4" 600.......... 26, 28, 29

Wilson v. L.A. County Civil Service Com.

(1952) 112 Cal.App.2d 450.................. 22

Thomas Van Dyken Joint Venture v. VanDyken,

90 Wis. 236, 279 N.W. 2d 459, 463........... 16

Yeap v. Leake ‘

(1997) 60 Cal.App.4" 591..............0000. 27

E5

STATUTES & COURT RULES

CRC Rule

CO Wi iivkeseavcsscnichearcineioncneen 30

COR Bats sis cen 12, 15, 16, 21, 23, 26, 27, 28

ODE oii eee 8

Ce Eilon thin tsin tee aeeaiens 18, 28

Ce Bi ickasssysticncneaon 20, 21, 22

Cha. ©. Be anssiccstcnivcemicncenncysson 12

CONSTITUTIONS

U.S. Constitution, Art. ITI, § 2.................. 10

U.S. Constitution, 14" Amendment Peer marr 13

California Constitution, Art. 1, § 7............. 13

California Constitution, Art. 1, § 16............ 13

California Constitution, Pe eee neue 13

MISCELLANEOUS

7 Witkin Cal. Procedure (4 ed. 1997)

I BG asks seco vitaveeesdticases Y in yg Mie:

Black’s Law Dictionary A TON es maaan PEEL 16, 21

IN THE COURT OF APPEAL OF THE STATE OF

CALIFORNIA IN AND FOR

THE THIRD APPELLATE DISTRICT

SYED M. ARIF et al., CASE NUMBER.

Plaintiffs /Cross- Defendants 3 Civil C035449

and RespondentS

and Lassen County Sup.

Ct. #29224

JERRY SLUSSER, VALTEC/EARTHCO etal. ~

Cross-Defendants and Respondent,

v. APPELLANTS’ PETITION

FOR REHEARING

EDWIN and MADELAINE DURAND

Defendant/Cross-Complainants

and Appellants

INTRODUCTION

_ This court based its opinion on its own theory

rather than the Respondent's arguments. This

court stated that the validity of the Order of June

22, 1999, which was, along with the allegedly

falsified Local Rules used by Mr. Kellison, the only

defense used by the Respondents, is unclear, and

therefore determined to resolve this appeal on

another basis.

This court’s opinion is predicated on the

erroneous assumption that the trial court had

jurisdiction to dismiss or consider “moot” a viable

cause of action, aiid that the Durands never

asserted their mistake, inadvertence, surprise, or

excusable neglect.

E7

This court's opinion states, “Here, the trial court

determined the Durands’ remaining causes of

action became moot upon its resolution of the quiet

title action.” (Opinion pp. 11) The first statement

by the trial court that Durands’ other causes of

action had disappeared or become “moot” was in

the “Order” of February 23, 2001, which is the

“Order” being appealed. The Record is very clear

that Durands’ tort cause of action was not “moot,”

and that the trial court just refused to allow a fair

adversarial hearing on the issue.

This court affirms on the ground that there must

have been some unknown reason, which supported

this supposed “finding” by the trial court. As we

demonstrate below, there is no evidence, or legal

reasoning, which supports the trial court's

determination the Durands’ “Fraud” cause of

action is “moot,” and this arbitrary dismissal in the

“Order” now being appealed is a violation of

Durand’s civil rights of due process.

We will also demonstrate below that the

Durands’ argued mistake, and surprise.

Durand will also demonstrate that the Superior

Court of Lassen County has no jurisdiction over

Federal Statutes pertaining to Federal lands and so

the “Judgment” of April 28, 1999, pertaining to the

mining claims is void.

This court affirms the trial court's granting of

sanctions in violation of the “safe harbor”

provision.

This court denied sanctions against the

respondents and their attorneys based on CCP §

907 and In re Marriage of Flaherty (1982) 31 Cal.3d

E8

637. Both the statute and cited case law deal with

the filing of a frivolous appeal. There is nothing in

this statute or case law dealing with the egregious

violations of the Penal Code and the Business and

Professions Code as shown by uncontrovertable,

indisputable evidence, that was _ allegedly

perpetrated by the Mr. Kellison, Mr. Davis, and

their clients.

Whether the court grants a rehearing or not, it

must report these unlawful acts to the State Bar,

the Attorney General’s Office, and the Department

of Justice for criminal prosecution, and permanent

disbarment. Attorneys can no longer be considered

“above the law” as they have in the past and

present.

_ FACTS NOT STATED IN OPINION

There are numerous facts that were not

enumerated in this courts opinion: especially

important were the interference with economic

relations, theft of intellectual property and

research, unjust enrichment, etc., that were

perpetrated by Mr. Jerry Slusser and his associates

who comprise Valtec Capital Corporation and

Earthco, against Durand and which make up

Durand tort cause of action.

A complete factual recital of the egregious acts

committed by the Respondents and their attorneys

was included in the Appellant's Opening and

Reply Briefs and will not be reiterated here.

The statement that Durand attempted to bring

all of their pleadings and evidence before the court

again in order to receive a determination of their

bifurcated causes of action is erroneous. (Opinion

E9

pp. 6) The evidence included in the 473 motion had

not been presented to the trial court since it was

barred from the initia! quiet title trial.

A.A. refers to Appellants Appendix; A.O.B. refers

to Appellants Opening Brief; R.T. refers to

Reporter's Transcript.

LEGAL DISCUSSION

A. TRIAL COURT LACKED JURISDICTION

OVER ISSUE OF VALIDITY OF FEDERAL

MINING CLAIMS

Jurisdictional defects are never waived. Thus,

jurisdictional defects can be raised at any time,

including for the first time in a petition for

rehearing (Sime v. Malouf (1950) 95 CA2d 82, 116,

213 P2d 788)

Issues concerning trial court subject matter

jurisdiction must be addressed no matter how far

into the appellate process the matter is first raised.

(Marriage of Oddino (1997) 16 C4th 67, 73, 65 CR2d

566) Jurisdictional issue was raised for the first

time in petition for supreme court review.

The Constitution of the United States, Article III,

Section 2 states, in pertinent part:

“The judicial power shall extend to

all cases, in law and equity, arising under

this Constitution, the laws of the United

States, and treaties made, or which shall

be shall be made, under their authority.”

E10

The U.S. District Courts have jurisdiction over

federal lands, federal laws, and federal issues. The

question of the validity of mining claims on federal

lands in this case is based on the United States

Code, the Code of Federal Regulations, and the

U.S. Public Law 94-579-Oct. 21, 1976 commonly

known as FLPMA, the Federal Land Policy and

Management Act and therefore the subject matter

jurisdiction is under the Federal Courts.

Judge Noel Watkins on March 25, 1998 stated he

doubted the Superior Court in Lassen County had

jurisdiction. a

“If, however, it appears from the bill

that the complainant asserts a right under

and by virtue of some law of the United

States, and that such right constitutes, in

whole or in part, its alleged cause of

action, and demands for its determination

the construction or proper application of

a law of the United States, it is equally

clear that jurisdiction is shown..” (Nevada

Sierra Oil Co. V. Miller (1899) 97 F. 681)

Any judgment made where the trial court

lacked jurisdiction is void. Any subsequent

judgment or order predicated upon a void

judgment is void.

B. APPELLATE COURT’S OPINION BASED ON

AN UNBRIEFED ISSUE

The Appellate Court's affirmation of the trial

court's denial of Durands’ 473 motion has two

prongs:

E11

1. That the Appellate Court had found that

Durands’ tort causes of action had

somehow become “moot,” and therefore

“nothing in rule 232.5 prohibited the trial

court from determining the remaining

causes of action had become moot, or

required the court to adjudicate causes of

action it determined had become moot.”

2. That the Durands’ never asserted their

mistake, inadvertence, surprise, or

excusable neglect for a 473 motion to be

granted.

The issue of how Durands’ tort cause of action

somehow became “moot” is an unbriefed issue.

A petition for rehearing must be granted if the

decision was based on an issue not raised or

briefed by any party and the court failed to give

the parties an opportunity to present

supplementary brief on that issue. (Gov.C. § 68081;

Adoption of Alexander S. (1988) 44 C3d 857, 864, 245

CR 1, 5; California Cas. Ins. Co. v. Super. Ct.

(Chellette) (1996) 46 CA4th 1145, 1149-1150, 54

CR2d 118, 119-120)

C. TRIAL COURT’S REFUSAL TO DETERMINE

DURANDS’ TORT CAUSE OF ACTION IS A

VIOLATION OF DURANDS’ CIVIL RIGHTS

It will be clearly shown below, in the words

written by Mr. Craig Kellison and adopted by the

trial court, that the trial court refused to consider

or determine Durands’ tort cause of action. Such

abuse of discretion constitutes a violation of

Durands civil rights and must be reversed.

E12

The United States Constitution, 14%

Amendment, Section 1, states in pertinent part:

“...mor shall any state deprive any

person of life, liberty, or property,

without due process of law; nor deny to

any person within its jurisdiction the

equal protection of the laws.”

The California Constitution, Article 1, Section 7

states in pertinent part: “(a) A person may not be

deprived of life, liberty, or property without due

process of law or denied equal protection of the ©

laws...”

The California Constitution Article 1, Section 16,

states in pertinent part: “Trial by jury is an inviolate

right and shall be secured to all...” (Emphasis

added)

In violating Durands’ civil rights, the judge

violated his oath of office which states in pertinent

part: “I will bear true faith and allegiance to the

Constitution of The United States and the

Constitution of the State of California...” (Ca.

Const. Article 20)

D. DURANDS FORMALLY REQUEST

APPELLATE COURT TO GRANT EQUITABLE

RELIEF

The record on appeal proclaims the trial court

did not determine Durands’ tort cause of action,

and violated Durands civil rights: under the

Constitutions of the United States and the State of

California.

E13

Based on the trial courts refusal to allow proper

adjudication of Durands’ tort cause of action and

the civil rights violations, Durand formally

requests the Court of Appeals to grant equitable

relief by reversing the trial court’s order and

allowing Durand to proceed to trial with their tort

cause of action.

E. THE RECORD CLEARLY

DEMONSTRATES THE TRIAL

COURT'S ABUSE OF DISCRETION

This court’s opinion states that disposition of

the motion per CCP 473 will not be disturbed

unless there is an abuse of discretion (Eigner V.

Worthington (1997) 57 Cal.App.4 188, 196, fn. 6)

and that abuse of discretion is established if,

considering all of the circumstances before it, the

trial court’s decision exceeded the bounds of

reason. (People v. Parmer (2001) 86 Cal.App.4® 781,

792.) (Emphasis added) (Opnion pp. 9)

However, People v. Parmer, supra, 86

Cal.App.4" 781 further states:

“the scope of discretion always

resides in the particular law being

applied; action that transgresses the

confines of the applicable principles of

law is outside the scope of discretion

and we call such action an abuse of

discretion.”

We will demonstrate below that

the trial court transgressed the

“confines of the applicable principles of

law.”

E14

F. TRIAL COURT’S OWN WORDS STATES IT

DID NOT CONSIDER ALL CIRCUMSTANCES.

The Statement of Decision was filed April

28, 1999, which stated:

“This issue is also difficult for

the Court to respond to. Apparently,

the Durands maintain that the Court

should sympathize with the notion that

they were somehow taken advantage of

by some or all of the Plaintiffs and

Cross-Defendants. Here, the Plaintiffs

and Cross-Defendants presented a

prima facia case establishing their

possessory interest to each and all of the

Ironcloud, Jennifer, Native American

and R&R claims. Thus, the issue of who-

did-what-to-whom would appear to be

outside of the scope of the narrow issue of

quieting title that was presented to this

Court for consideration.” (Emphasis

added)(A.A. Vol. 12, 3190-3191)

G. TRIAL COURT NEVER

DETERMINED DURANDS’ TORT CAUSE OF

ACTION

This court’s opinion further states: “Here,

the trial court determined the Durands’ remaining

causes of action became moot upon its resolution

of the quiet title action. As a result, the trial court

concluded it had nothing left to adjudicate, and it |

properly entered judgment at that time as allowed

by rule 232.5.” (Emphasis added) (Opinion pp. 11)

Rule 232.5 of the Galifotnia Rules of Court,

states:

E15

“When a factual issue raised by the

pleadings is tried by the court

separately and prior to the trial of other

issues, the judge conducting the

separate trial shall announce the

tentative decision on the issue so tried

and shall, .. . but no proposed

judgment shall be prepared until the

other issues are tried, except when an

interlocutory judgment or a separate

judgment may otherwise be properly

entered at that time.”

Rule 232.5 does not explain when a separate

judgment is available.

The Deluxe Black’s Law Dictionary, Sixth

Edition states:

“A ‘determination’ is a ‘final judgment’

for purposes of appeal when the trial

court has completed its adjudication of

the rights of the parties in the action.

Thomas Van Dyken Joint Venture v. Van

Dyken, 90 Wis. 236, 279 N.W.2d 459,

463.”

The “Order” of February 23, 2000, which is

now being appealed, is the first time the trial court

referred to Durands’ tort cause of action as being

“moot.” However, the trial court’s own words in

the Statement of Decision are clear and convincing

evidence that Durands’ tort cause of action was

never determined, as required by law.

The question is: 1. How did it become moot?

2. Why did it become moot?

3. Where did it become moot?

4. When did it become moot?

E16

The answer to those questions is “it didn’t.” The

trial court did not, as this court’s opinion states,

resolve or “determine” the factual dispute of the

Durands’ tort cause of action; to the contrary, the

trial court refused to determine this factual

dispute. In fact the trial court's refusal to

determine an issue of fact goes against every

authority on point and was erroneous as a matter

of law.

The Record is clear that Durands’ tort cause of

action was viable, that the trial court had no legal

reason to consider it not viable, and because

Durand kept asserting their right to due process,

finally stated in the “Order” of February 25, 2000

that it was “moot,” but did so without adjudication

or determination as required by law.

H. THE APPELLATE COURT CANNOT

PRESUME TRIAL COURT’S DECISION WAS

CORRECT

“When the record clearly demonstrates

what the trial court did, we will not presume it

did something different.” (Lafayette Morehouse,

Inc. v. Chronicle Pub. Co. (1995) 39 CA4th 1379,

1384, 46 CR2d 542, 545)

“Where the trial court has made no

findings, the reviewing court will not

on such a record make independent

findings of its own, and where the facts

are in conflict the appellate court will

not supply the missing facts.” Packer v.

Sillas (1976) 128 Cal.Rptr. 907, 57 C.A.3d

206.

E17

A record demonstrating that the trial court

failed to perform its function of weighing evidence

or failed to exercise its discretion in making a

discretionary ruling overcomes the presumption of

correctness and warrants a reversal on appeal.

What the trial court did was refuse to allow

Durands’ viable tort cause of action to be

adjudicated in a fair adversarial hearing, thus

violating Durands’ civil rights.

This court's opinion presumed the trial court

had “determined” Durands’ tort cause of action,

when in fact the record clearly states otherwise.

CCP 632 states in pertinent part:

~ “... The court shall issue a statement of

decision explaining the factual and legal

basis for its decision as to each of the

principal controverted issues at trial

upon the request of any party

appearing at the trial.”

The lack of adjudication of the Durand tort

cause of action was brought to the trial court's

attention in Durand’s Request for Statement of

Decision, (A.A. Vol. 12, 3116-3117) Proposals to

Issues Raised in Defendant/Cross-Complainants

Request for Statement of Decision, (A.A. Vol. 12,

3143-3148) and the Objection to (Proposed)

Statement of Decision (A.A. Vol. 12, 3167-3169).

The trial court stated: “Thus, the issue of who-

did-what-to-whom would appear to be outside the

scope of the narrow issue of quieting title that was

presented to this Court for consideration.” Where

is the factual and legal basis for this statement as

required by CCP § 632? The above statement does

E18

not state that Durands’ tort cause of action was

“moot.” It states clearly that the trial court did not

consider the issue of “who-did-what-to-whom”.

Mr. Kellison wrote this Statement of Decision and

has a personal interest in making sure that the

“Fraud” tort cause of action never gets to a jury

trial. It is also important to note that there is no

mention of the alleged “dismissal order” of June

22, 1998 that the Respondents purported in their

briefs as the definitive evidence that Durands’ tort

cause of action had been dismissed.

Previously, Judge Guy Martin Young had made

a Tentative Decision based on all of the evidence

including the egregious acts perpetrated by Mr.

Rice, Slusser/Valtec/Earthco that are a part of the

“Fraud” tort cause of action.

Judge Young stated:

“THE COURT: For the record, if

not in this hearing, but in private

hearings, there has been substantial

evidence presented that would allow

the Court to conclude that the validity

of the Durand’s case, or claims, is likely

to be established.” Mr. Davis” As to

Earthco? THE COURT: As to the

claims, all the claims.” (R.T. hearing

11/19/97 pp. 30:21)

Of course, Mr. Kellison and his client Mr.

Matthew Huntley, Esq., immediately had Judge

Young removed.

Peterson v. Ellebrecht (1962) 205 Cal.App.2d 718

_ [23 Cal.Rptr. 349, at pp. 351] states:

E19

“A judgment rendered without

findings on all material issues must be

reversed. . . . [8] Not only must the

court make findings-on all material

issues, but the findings made must be

definite and certain. (Estate of McAfee

182 Cal.App.2d 553, 556 [6 Cal.Rptr.

79].) Furthermore, it is now the

statutory rule that ‘If upon appeal . . . it

appears that the court has not made

findings as to all facts necessary to

support the judgment, or that the

findings are ambiguous or conflicting

upon a material issue of fact, the court

before which such appeal . . . is pending

shall not infer that the trial court found

in favor of the prevailing party on such

issue if it appears that the party

attacking the judgment made a written

request for a specific finding on such

issue . . prior to the entry of judgment.

... (Code Civ. Proc., § 634.)”

The Statement of Decision states the trial court

did not consider Durands’ tort cause of action; the

“Order” now being appealed states Durands’ tort

cause of action was considered “moot” with the

“Judgment” on the claims. These two statements

made by the trial court are in direct conflict with

each other, and therefore this court must reverse

its decision and remand this case so that Durands’

tort cause of action can be properly adjudicated by

Kaliterna v. Wright (1949) 94 Cal.App.2d 926,

[212 P.2d 32 at pp. 36] states: “We have recently

held that, where findings are required and are not

waived, a judgment without findings is a nullity.”

E20

Black’s Law Dictionary defines nullity as:

“Nothing; no proceeding; an act

or proceeding in a cause which the

opposite party may treat as though it

had not taken place, or which has

absolutely no legal force or effect.”

i, APPELLATE COURT CANNOT

PRESUME TRIAL COURT DECIDED

ISSUE

CCP 634 states:

“When a statement of decision does

not resolve a controverted issue, or if

the statement is ambiguous and the

record shows that the omission or

ambiguity was brought to the attention

of the trial court either prior to entry of

judgment or in conjunction with a

motion under Section 657 or 663, it shall

not be inferred on appeal or upon a

motion under Section 657 or 663 that

the trial court decided in favor of the

prevailing party as to those facts or on

that issue.”

On May 11, 1999, Durand filed their “Notice of

Motion, Intention to Move to Set Aside Judgment

Per CCP § 663a, Notice of Motion Court Declare

Mistrial & Grant New Trial per CCP §

657(1)(5)(6)(7) & Per, Cal. Court Rules Rule 232.5.”

(A.A. Vol. 12, 3209) This document states that

Durands’ tort cause of action had not been

adjudicated and that the entry of the “Judgment”

of April 28, 1999 was in violation of CRC 232.5

(A.A. Vol. 12, 3211:18-28, 3212:10-27, 3217:17-19,

3218:10-3219:2, 3220:17-3221:13, 3222:1-17, 3223:7-

3224:11, 3227:1-4) j

E21

On August 20, 1999 the trial court denied

Durands’ motion for a new trial without any

determination of Durands’ tort cause of action.

There is no mention that it became “moot” nor was

there any mention of the so called “dismissal

order” on which the Respondents predicated their

whole defense.

Durand properly brought the lack of

adjudication to the trial court's attention as

required by CCP § § 634 and 657. The trial court’s

refusal to determine Durands’ tort cause of action

must be reversed.

This court in its opinion cited Wilson v. L.A.

County Civil Service Com. (1952) 112 Cal.App.2d

450, 453 (Opinion pp. 11) stating:

“[A]lthough a case may originally

present an existing controversy, if

before decision it has, through act of the

parties or other cause, occurring after

the commencement of the action, lost

that essential character, it becomes a

moot case or question which will not be

considered by the court.”

This case is irrelevant to the present case being

appealed. In Wilson v. L.A. County Civil Service

Com., supra, 112 Cal.App.2d 450 the controversy

was moot since the eligibility list on which the suit

was predicated, had expired. No eligibility list =

no cause of action.

Southern Pac. Co. v. Eshelman (1914) 227 F. 928, a

U.S. District Court decision and Wilson v. L.A.

County Civil Service Com., supra, 112 Cal.App.2d

450, which cited Southern Pac. Co. v. Eshelman supra,

E22

(1914) 227 F. 928, the opinions clearly stated as to

why the issue had become moot. In Wilson, ibid,

the basis of the cause of action, the eligibility list,

no longer existed. In Southern Pac. Co. v. Eshelman,

supra, 227 F. 928, the issue had been settled

between the two parties. There is no such

explanation in the present opinion other than this

court presumed Durands’ tort cause of action was

somehow determined, which such presumption is

not available to this court as stated above.

In this case the record clearly states that

Durands’ tort cause of action was not “moot.” The

record is undeniable that Durands’ tort cause of

action was viable before and after the rendition of

the “Judgment” of April 28, 1999, and that the trial

court abused its discretion by refusing to allow a

jury trial on this issue of fact.

Southern Pac. Co. v. Eshelman, supra, 227 F. 928

states: “...did not have the effect of settling the

controversy, and the cause could not, therefore, be

justly said to have lost its vitality as presenting no

living issue.”

This court states: “However, nothing in rule

232.5 prohibited the trial court from determining

the remaining causes of action had become moot,

or required the court to adjudicate causes of action

it determined had become moot.” (Opinion pp. 11)

As stated above, there was no determination of

Durands’ tort cause of action based on the

applicable principles of law, and this cour’ cannot

presume there was when the record undeniably

states otherwise, and therefore the trial court was

prohibited per CCP § 232.5 to enter any alleged

final “Judgment.”

E23

In People v. Parmer, supra, 86 Cal.App.4th 781,

Presiding Justice P. J. Scotland states in pertinent

part:

“A trial court’s decision ... may be

found to be an abuse of discretion if the

record does not establish a sufficient

basis for invocation of the court's

authority. Accordingly, we will review

the record in light of applicable

principles of law to determine whether

defendants presented a sufficient legal

basis to support an_ exercise of

discretion. If the record does not

establish a sufficient legal basis to

support an exercise of discretion, the

disqualification order must be

considered an abuse of discretion. If a

sufficient showing to support an

exercise of discretion has been made,

the trial court’s order must stand unless

it appears to exceed the bounds of

reason in light of all of the

circumstances presented.”

The record is clear that, based on the applicable

principles of law, the trial court's refusal to allow

Durands’ tort cause of action to be adjudicated is

an abuse of discretion, and that such prejudicial

abuse exceeds the bounds of reason.

J. APPELLATE COURT ERRONEOUSLY

STATED DURAND FAILED TO ARGUE

MISTAKE

Durand has shown above that the trial court

expressly stated that it had not determined Durands’

tort cause of action. Durand had properly filed a

request for a statement of decision, and objection

E24

to the statement of decision, and a motion per CCP

§ 657, each time bringing up the fact that Durands’

tort cause of action was still unadjudicated.

Durand stated in their Opening Brief that they

had originally filed their 473 motion based on CCP

§ 473(d) which states that the trial court has the

power to “set aside any void judgment or order.”

Durands’ Opening Brief states:

“The truth is that all issues between

the parties have not been adjudicated.

Durand had hoped that the entering of

the “Judgment” was an inadvertent

“clerical” error of the Trial Court

forgetting that this case had been

bifurcated and there was still another

issue to be heard.” (A.O.B. page 43)

As_ stated above the trial court had not

adjudicated Durands’ tort cause of action, so no

matter what the “Judgment” of April 28, 1999 was

called, it was not a final judgment.

7 Witkin. Cal. Procedure (4th Ed. 1997)

Judgment § 68, p. 595 states in pertinent part:

“Judicial error, as distinguished from

clerical error, is a relatively simple

concept...The test is simply whether the

challenged judgment was made or

entered inadvertently (clerical error) or

advertently (judicial error). (Bowden v.

Green (1982) 128 C.A.3d 65, 70, 180 C.R.

90, quoting the text.)”

E25

When you take the trial court’s statement it had

not considered or determined Durands’ tort cause

of action in conjunction with CCP § 473(d), Witken

Cal. Procedure and Rule 232.5, Durand hoped that

the entry to the “Judgment” was inadvertent rather

that an overt act to deny Durand their civil rights

under the California and U.S. Constitutions.

Upon realizing that the trial court was

deliberately refusing to have this issue of fact

adjudicated, Durand stated at the 473 hearing that

they must have made a mistake in following and

believing in the trial court's ruling that their tort

cause of action would be adjudicated in a separate

jury trial. (R.T. 473 hearing of 11/29/99, at p. 13:6-

23)

K. DURAND WAS SURPRISED BY TRIAL

COURT RULINGS

The Durands made the mistake of following the

trial courts rulings and were “surprised” to find

that the trial court was refusing to abide by the

law. (A.O.B. p. 47-48)

“A “mistake” justifying relief may be either a

mistake of fact or a mistake of law. “The term

“surprise” as used in Section 473 refers to ‘some

condition or situation in which a party ... is

unexpectedly placed to his injury, without any

default or negligence of his own, which ordinary

prudence could not have guarded against.” State

Farm Fire & Casualty Company v. Pietak ising 90

Cal.App.4 600.

1. The trial court did not determine Durands tort

cause of action.

E26

Rule 232.5 states no final judgment will be

entered until all causes adjudicated and is

ambiguous as to when a separate judgment is

available.

. CCP § 904.1 defines the one “final judgment”

rule

. After trial court denied motion for new trial

and ignored CCP 232.5 Durand was left in a

“catch 22.”

. 7 Witkin Cal. Procedure (4% Ed. 1997)

Judgment § 69, p. 597 states:

“A court of general jurisdiction has the

power after final judgment, and

regardless of lapse of time, to correct

clerical errors or misprisions in its

records, whether made by the clerk,

counsel or the court itself, so that the

records will conform to and speak the

truth.”

. Misprisions: neglect or improper performances

of official duty.

. In English v. IKON Business Solution, Inc. (2001)

94 Cal.App.4" 130, 114 Cal.Rptr.2d 93, Justice

Nicholson quoted Justice Epstein’s dissenting

opinion in Yeap v. Leake (1997) 60 Cal.App.4*

591, as follows: “Without belaboring the

obvious, it should suffice to say that, in the

context of pleadings and motions, a dismissal is

the withdrawal of an application for judicial

relief by the party seeking such relief, or the

removal of the application by a court.”

. Here we have an illegal, involuntary dismissal

since the trial court refuses to determine the

issue or allow a jury trial. Durand did

everything known to do at the time to get the

trial court to follow 232.5 but to their surprise

they found the trial court was intent on

denying them their civil rights.

E27

9.

10.

11.

12.

13.

In State Farm Fire & Casualty Company v. Pietak.

supra (90 Cal.App.4" 600, Justice Hull stated:

“Initially, we find no merit in Pietak’s

contention he was “surprised” by State Farm's

dismissal of the interpleader action.”

(Cal.Rptr.2d, 256 at pp.263)

Pietak’s attorney did not file an affidavit of

fault.

This court found that the trial court erred in

denying relief and reversed with directions to

grant Pietak’s 473 motion.

“An honest mistake of law is a valid ground for

relief when the legal problem posed ‘is

complex and debatable.” State Farm Fire &

Casualty Company ov. Pietak. supra (90

Cal.App.4* 600)

In reviewing rule 232.5, which states final

judgment is when all issues are adjudicated

and the part pertaining to a separate judgment

is vague and ambiguous; CCP 904.1 which

requires all issues to be adjudicated before final

judgment; CCP 632 which requires the trial

court to state factual and legal basis for

decision; in conjunction with CCP 473(d) and 7

Witkin Cal. Procedure Judgment § 69; the state

of the law is complex and debatable.

“While it is certainly true that

Pietak’s counsel made a_ tactical

decision to pursue his claim in federal

court, this does not belie the fact such

tactic was informed by a _ possible

misinterpretation of the law. In other

words, Pietak chose to abandon the

state court action only because he

understood the law to permit him to

seek relief in federal court.” State Farm

E28

Fire & Casualty Company v. Pietak. supra

(90 Cal. App.4* 600, )

Durand filed under CCP 473(d) in order to gain

relief and realizing at the hearing the trial court

was intent on violating Durand civil rights stated

“mistake” which left Durand in a “surprised”

position.

Pietak, supra (90 Cal.App.4" 600, ) stated

“Counsel need not be right; it is necessary only

that the issue be debatable.”

Bottom line-—-Appellate Court did not believe

Pietak’s theory of “surprise” and there was no

affidavit of fault, but this court reversed anyway.

This court's opinion in the present case is

opposite of the published opinion reversing the

denial of Pietak’s 473 motion.

CCP 473 is to be liberally construed to subserve

and not to impede or defeat the ends of substantial

justice. (Elston v. City of Turlock (1985) 38 Cal.3d

227)

“..doubt should be in favor of

application...” Andres v. Armstrong (1959) 168

Cal.App.2d 344, 347.

L. IT IS OF GREAT PUBLIC IMPORTANCE

THAT ATTORNEYS ARE NO LONGER

CONSIDERED ABOVE THE LAW

This court denied Durands’ motion for sanction

per CCP § 907 and In re Marriage of Flaherty (1982)

31 Cal.3d 637.

E29

Durand filed for sanctions per CRC 41(A) and

~ 26 (e) based on the alleged multiple Penal Code

and Business and Professions Code violations. The

motion was supported by clear and convincing

evidence.

The alleged Local Rules filed with this court by

Craig Kellison in his Respondent's Appendix were

intentionally falsified in order to support an

otherwise worthless defense. The evidence is clear

that the “Pretrial Order” of June 22, 1998, never

existed until after February 23, 2000.

These alleged egregious, felonious acts cannot

go unpunished.

OAL AE, APRON NR ORM ETN IMT Te

e

hasa bees

The general public has no confidence in the

judicial system. Based on the white-collar crime

now so prevalent in the news, especially

perpetrated by the attorneys for companies like

Tyco, attorneys can on longer be considered ‘

“above the law.” :

rape?

It is of grave public importance that what has

happened in this case be made public and that the

attorneys be prosecuted and disbarred for their

alleged unethical and illegal acts. This must be

done in order to regain some confidence in the

judicial system, and to provide fair warning to

those attorneys who have done or are

contemplating similar acts.

Sanctions are warranted since the acts

perpetrated by Mr. Kellsion and Mr. Davis, are of

the most egregious possible.

E30

M. THIS COURT’S AFFIRMATION OF THE

TRIAL COURTS SANCTIONS REVERSES THE

“SAFE HARBOR” PROVISION

Mr. Davis requested sanctions against Durand

under CCP 125.8, a non-existent statute. Even if he

meant 128.5 he would still have been wrong since

that statute deals with proceedings initiated after

January 1, 1995. This opinion needs to be

published because, by affirming the trial court's

sanctions, this court has reversed the “safe harbor”

provision, which hopefully will allow more judges

to discipline attorneys.

Mr. Kellison requested sanctions based on the

allegation Durands’ 473 motion was meritless. It

has been shown that Durand was being a vigorous

advocate in trying to defend and preserve their

civil rights. If this were done to an attorney there

would be outrage that the sanctions were “chilling

vigorous advocacy.”

Respectfully submitted,

/S

Madelaine Durand

In Pro Per

/s

Edwin Durand

In Pro Per

E31

FOR YS ata eee hae ke

APPENDIX F

Appellants’ Petition for Review, Supreme Court of the State

of California

Case No.

IN THE

SUPREME COURT OF CALIFORNIA

*

*

Fs

be

"

€

a

e

- SYEDM. ARIF, etal., — - Plaintiffs,

vs.

EDWIN DURAND et al., Defendants, Cross-

: Complainants, and

y Appellants

i vs.

SYED M. ARIF, et al., Cross-Defendants,

Respondents,

JERRY SLUSSER, et al., Cross-Defendants,

Respondents.

After a Decision By the Court of Appeal, _

Third Appellate District

Case No. C035449

PETITION FOR REVIEW

MADELAINE DURAND

EDWIN DURAND

In Propria Per Persona

P.O. Box 34719

Reno, Nevada 89533

Fl

TABLE OF CONTENTS

TABLE OF AUTHORITIES ........... cnuhbnengnniwiel 3

ISSUES

7 TE IRIs sxe vinsdncensiniehsenarneeieuiaatnercnnses 7

WHY REVIEW SHOULD BE GRANTED........... 8

2. FE 6 A scacinssstiipiornwevcane 9

2. INVIOLATE RIGHT TO A JURY TRIAL....11

3. CAN THE APPELLATE COURT IGNORE

THE CALIFORNIA RULES OF COURT?....12

4. THE APPELLATE COURT’S DECISION IS

CONTRARY TO A SUPREME COURT

SA a sis ticrtnabisksritieweeienteiesnn 13

5. ATTORNEY MISCONDUCT................... 14

AE shin karan cdas ead enaiensetavicnianncavee 15

TIRRPR RADRRERS CPU ia esi nkstncenkeeenksuxaenyiansrine 23

LEGAL DISCUSSION

A, FRE Se sidnnenernsecinadnwinciconuncewenn 24

2. INVIOLATE RIGHT TO A JURY TRIAL....29

3.APPELLATE COURT VIOLATES THE

CALIFORNIA RULES OF COURT RULE

4. APPELLATE COURT’S DECISION

CONTRARY TO RECENT DECISION BY

Sg 5 34

5. ATTORNEY MALFEASANCE...............6+: 38

ese es svnawandavnansentacend 40

VERIFICATION REESE EERIE EO 40

TABLE OF AUTHORITIES

PAGE

Cases

Bank of California Nat. Ass’n et al. v. Superior Court

In and For City and County of San Francisco et al.,

(1940) 16 Cal.2d 516, 106 P.2d 879................000008 26, 27

Elston v. City of Turlock

(1985) 38 Cal.3d 227, 695 P.2d 713, 211 Cal.Rptr.

DM AMLcnULUbephdankeensivesetedneanactesevavensedeeonsen 36-38

Doran v. Magan

(1999) 76 CA4th 1287, 1293, 91 CR2d 60, 64..............2665 30

Griset v. Fair Political Practices Comm’n

(2001) 25 C4th 688, 698, 107 CR2d 149, 156..............+ 30

In re Marriage of Flaherty

ET icrinsincaviennvivestteseissvedsssseseenses 39

In re Marriage of Oddino

(‘97) 16 Cal.4 67, 65 Cal. Rptr.2d 566, 939 P.2d 1266....24

lott v. Franklin

(1988) 206 Cal.App.3d 521, 253 Cal.Rptr. 635............ 38

F3

Martin v. County of Los Angeles

(1996) 51 CA4th 688, 697-698, 59 CR2d 303, 308-309...29

Morehart v. County of Santa Barbara

(2996) 7 CA 7D, B78 FA BED oo 6sccrcccrcsossvnveesseoses 30

Nevada Sierra Oil Co. v. Miller

Ee CE adi sick in icndansnkinnmsrsanretennmmnsacweuea’ 25

Parage v. Couedel

(1997) 60 Cal.App.4 1037, 70 Cal.Rptr.2d 671...13, 38

Reid v. Balter

(1993) 14 Cal.App.4 1186, 18 Cal.Rptr.2d 287.....35

Rogers v. Silverman

(1989) 216 Cal.App.3d 1114, 1121, 265 Cal.Rptr286....

Slusser v. Commodity Futures Trading Com’n.

(2000) 210 F.3d 783 (7 Cir. 2000)............:ecceceeee eens 19

State Farm Fire & Casualty Company v. Pietak

(2001) 90 Cal.App.4* 600, 109 Cal.Rptr.2d 256......17, 35

- Constitutions

Constitution of the United States, Article III, Section 2...25

The California Constitution Article 1 § 16................. 8, 29

The California Constitution Article 1 § 7...............9, 11, 29

F4

United States Code

United States Code Title 28, Part IV, Chapter 85, Section

BO Riis isciitinvinsnns sini adonaamenmianaminns 25

United States Code, Title 28, Part IV, Chapter 89, Section

SI i scnine<cinevivinncecvinasaevidevieeosentipmaatenenanen 25, 26

Statutes

Ra pea reiiieininntasannccenieddabboal 13, 15, 23, 31, 32, 34-38

Ce ik tbdeniavesivenicianesmeticaierebinci nas 23, 31, 32, 38

ccP PG rtnvtecscasticsarrneeasanene 15

See EIN Ea whswnsnenkiuaildiaintsensesrsanhsehinaieyeommaedae 30

Ce A sksccnceunneticeriinnnieiabamaaaaneaal 39

Rules of Court

CORI Re AON ectkines bonnivenivsentnceenaanenneients 29, 31-33

Ck. BTA Bibinttrsriniecicudincinunteeeaial 8, 12, 33, 34

Miscellaneous

Business and Professions Code................sse+0ees 15, 39, 40

PORT Giisincninniiintadempionnentas 39, 40

Witkin 7 Cal. Proc. (4), Trial §972..............cscscecececsceeeees 32

5 Witkin, op. cit. § 164, p. 3737......sceccsesseeseessesseseeeaees 37

F5

Federal Codes

Case No.

IN THE

SUPREME COURT OF CALIFORNIA

SYED M. ARIF, et al., Plaintiffs

vs.

EDWIN DURAND, et al., Defendants, and

Cross-Complainants

vs.

SYED M. ARIF, et al., Cross-Defendants

and

JERRY SLUSSER, et al., Cross-Defendants

PETITION FOR REVIEW

ISSUES PRESENTED

1. Does the Superior Court of Lassen County,

California have subject matter jurisdiction over a cause of

action based on Federal laws, Federal issues, on Federal

lands?

2. When a court lacks subject matter jurisdiction,

isn’t any judgment from a court lacking such jurisdiction

void?

F7

3. Isn’t any subsequent judgment also void when

it is totally predicated on a judgment made void by lack of

subject matter jurisdiction?

4. Is the judgment void when “indispensable

parties” have not been joined in the case?

5. Does the Superior Court of Lassen County

have the authority to ignore the Constitution of the State

of California, and the Constitution of the United States,

and deny due process along with the inviolate right to a

jury trial?

6. Can the Appellate Court ignore the California

Rules of Court, specifically CRC Rule 52?

7. Are attorneys who commit multiple felonious

acts during the course of a lawsuit, considered “above the

law”?

8. Are sanctions that are granted in violation of

the “safe harbor” provision or are used to chill vigorous

advocacy valid?

WHY REVIEW SHOULD BE GRANTED

The grounds for review in the Supreme Court are

made pursuant to Rule 29(a)(1) since the decision in this

case is counter to the California Constitution, California

Supreme Court decisions, a large body of case law, the

California Rules of Court, and the Constitution of the

United States.

This case presents very important questions as to

the Constitutional Rights of the citizens of California and

the United States - whether a court lacking subject matter

jurisdiction has the authority to made a judgment -

whether a trial court has the authority to deprive the

rights of “indispensable parties” who were not joined in

the case — whether a trial court has the right to deny

citizens their Constitutional inviolate right to a jury trial

on a tort cause of action pursuant to the California

Constitution Art. 1 § 16 — whether a trial court can deny a

F8

citizen their right to due process pursuant to the

California Constitution Art. 1 § 7 - whether the Court of

Appeals can affirm on the presumption that the trial court

had determined a cause of action, when the Record clearly

states the trial court had not considered or determined

that cause of action, which is a violation of CRC Rule 52 —

whether, in the heat of the battle against white collar

crime, attorneys, who have allegedly committed multiple

felonies, causing obstruction of justice during the course

of this litigation, are “above the law” -- whether sanctions

can be granted in violation of the “safe harbor” provision

or granted in a manner which would chill vigorous

advocacy? -

The answer to these questions must be a

resounding “NO!” However, the trial court and the

Appellate Court have answered, “Yes,” in violation of

both statutory and well-settled case law. Even though the

Appellate Court's opinion in this case is unpublished, it

will erode the Constitution, case law, the statutes, and

society at large. If the decision in this case is allowed to

stand, California will now have a precedent case wherein

parties who steal and defraud, falsify documents and

evidence, and obstruct justice, such as those at Enron,

Tyco, and Worldcom, will be considered the rightful

owners of the stolen property and be absolved of any

wrongdoing.

1. JURISDICTION

2.

This question of jurisdiction is two-fold. 1. Does

the Superior Court of Lassen County have jurisdiction of a

cause of action, which is predicated upon Federal laws,

Federal issues, and Federal lands? 2. Can the trial court

proceed to judgment without the presence of

“indispensable parties”? |

Jurisdictional defects are never waived.

For a court to pronounce upon the merits of a

case when it has no jurisdiction to do so is for a court to

F9

act ultra vires. Subject matter jurisdiction is a question

that often arises and this Supreme Court has stated that it

is bound to address the issue.

R.T. refers to the Reporter's Transcripts on Appeal. AA

refers to the Appellants Appendix. CRC refers to the

California Rules of Court. AOB refers to Appellants

Opening Brief.

First, the U.S. District Courts have jurisdiction

over federal lands, federal law, and federal issues. The

validity of the original mining claims known as the

“Troncloud”, “R&R”, “Jennifer,” and “Native American”

was based on the United States Code, the Code of Federal

Regulations, and the U.S. Public Law 94-579-Oct. 21, 1976,

commonly know as FLPMA, the Federal Land Policy and

Management Act and therefore the subject matter

jurisdiction is under the Federal Courts.

Second, the “Judgment” of April 28, 1999 giving

title to the Cross-Defendants is void since certain

“indispensable parties” i.e. Robert Novak, his alleged co-

locators and heirs, and American Pozzolan Corporation,

were not represented in this case.

Plaintiffs /Cross-Defendants Arif / Rice

(hereinafter named Arif/Rice) admitted they never

received a deed, which is the only way to legally transfer

title, and their only claim to the title of the mining claims

was a forged “To Whom It May Concern” letter filed with

the BLM. Even though Arif/Rice admitted that the letter

was a forgery, the trial court granted Arif/Rice clear and

quiet title to the mining claims thus denying the Novaks

any alleged right, title, and pecuniary interest in the

property.

American Pozzolan Corporation had _ been

dismissed from this case in September of 1997 and was

F10

not represented throughout the subsequent proceedings.

However, American Pozzolan Corporation was named in

the “Judgment” of April 28, 1999, which made the

corporation subject to the “Judgment” in its entirety

including being liable for the Plaintiffs /Cross-Defendants

litigation costs. (AA Vol. 12, 3193-3204)

Many cases state that a court would have no

jurisdiction to proceed without these “indispensable

parties” and the any subsequent judgment would be void

and subject to collateral attack.

This matter is of grave importance to the general

public. In the present case, parties who were not

represented have been deprived of their rights and their

property without due process of law and been denied

equal protection under the law. If the “Judgment” in the

present case stands, California will have a precedent

wherein anyone can be named in a judgment even though

they are not a party to the case. The ramifications of such

a case would be the monumental destruction of Article 1 §

7 of the California Constitution.

2. INVIOLATE RIGHT TO A JURY TRIAL

Does a trial court have the authority to deny a

party their inviolate right to a jury trial? There are certain

cases where the answer could be yes, such as an accident

case or malpractice; if the defendant were not found liable

there would be no point to have a jury trial on damages.

There are possibly other cases where one cause of action is

totally predicated on another cause of action, which is

determined against the party. However, none of the

parameters, which would allow such a dismissal without

a fair adversarial hearing, apply to the present case. What

we have in the present case is an arbitrary denial by the

trial court of an inviolate right to a jury trial on a viable

tort cause of action. The trial court’s prejudice against the

F1l1

Durands, as evidenced in the Record, is as bright as the

neon lights in Las Vegas, Nevada.

Can a trial court deny Constitutional rights,

arbitrarily, prejudicially, without any basis in law? They

can if the present case is not reversed.

3. CAN THE APPELLATE COURT IGNORE THE

CALIFORNIA RULES OF COURT

The Appellate Court had to resolve Durands’

argument on a different basis than the Arif/Rice or

Slusser/Valtec/Earthco (hereinafter Slusser) arguments,

since the Appellate Court found that their briefs were

completely without merit. In fact, the Respondents’

arguments were solely predicated upon alleged falsified

evidence, which they filed in their Respondent's

Appendix.

The problem is that the Appellate Court's theory

of the case is directly contrary to the Record. The

Appellate Court stated the trial court had determined

Durands’ tort causes of action to be moot upon its

resolution of the quiet title. (Opn. p. 11) However, the

Statement of Decision specifically states the trial court had

never considered, let alone determined, Durands’ tort

causes of action. (AA Vol. 12, 3190:27-3191:5)

The Appellate Court decision was rendered in

violation of the California Rules of Court Rule 52, which

states an Appellate Court cannot presume something

happened when the Record clearly shows otherwise. The

case law pertaining to CRC Rule 52 is extensive. But the

decision in the present case is contrary to a long list of

decisions and therefore significantly impacts and affects

the administration of justice and causes great conflict

among the courts of appeal.

F12

4. THE APPELLATE COURT’S DECISION IS

CONTRARY TO A SUPREME COURT DECISION

It is well settled that motions per CCP 473 are to

be liberally construed and that if there is any doubt the

473 should be granted in order to promote the ends of

substantial justice. It is also well settled that if the

opposing party does not argue prejudice, that very slight

evidence is required to justify relief.

CCP § 473(C) states the court may grant other

relief as is appropriate. CCP § 473 (C)(d) states that the

trial court can correct its own mistakes, such as

prematurely entering an “interlocutory judgment” as was

done in the present case. The Appellate Court ignored this

part of Durands’ appeal that was based on this section.

The Appellate Court used a case against Durand,

Parage v. Couedel, (1997) 60 Cal.App.4t 1037, 70

Cal.Rptr.2d 671, one of only two cases that stated the trial

court has no discretion but to deny a 473 motion, unless

the applicant proves, beyond a shadow of a doubt, that

they were totally at fault for the denial of a fair

adversarial hearing. This decision is contrary to a very

recent decision made by this same Appellate Court, State

Farm Fire & Casualty Company v. Pietak (2001) 90

Cal.App.4" 600, 109 Cal.Rptr.2d 256, which stated there

was no evidence of the appellant's mistake, inadvertence,

surprise, or excusable neglect, but the Appellate Court

still granted relief. Again, the lack of uniformity in the law

is confusing. Does the court have discretion or not? Is the

criterion “any doubt” as the Supreme Court and past case

law have prescribed, or is it beyond a shadow_of a doubt

as in the present case? The Appellate Court decision in

this case and the two other decisions, both from the

Second Appellate District, are diametrically opposite to

the Supreme Court decisions and volumes of case law.

F13

5. ATTORNEY MISCONDUCT

CEO’s, their accountants and attorneys have

been in the news in recent months with reports of the

white-collar crimes they have committed. One particular

case comes to mind. The attorney for one of the

companies in the news, TYCO, included as part of his

retainer, a Ten Million Dollar bonus should he be arrested .

and convicted of the illegal acts he committed on behalf of

his client.

Ohio Congressman James Traficant has also been.-

in the news. Mr. Traficant’s guilt or innocence is of no

bearing to the case at hand except that during his hearing

before the Congressional Committee, he made one

statement that is well known and truthful; the citizens of

the United States have no confidence in the Judiciary.

Why?

One of the main reasons is that attorneys are

considered “above the law.” Numerous attorneys have

stated to Durand that Rule 11 and the Business and

Professions Code are considered, among attorneys,

laughable.

In the present case, Durand filed a motion for

sanctions against Arif/Rice, Slusser, and their attorneys

based on the alleged falsified evidence that they filed with

the Appellate Court. (See Appellants Reply Brief) Durand

had uncontrovertable evidence these certain documents

were falsified. The Arif/Rice and Slusser briefs were

totally predicated on the alleged falsified evidence.

Durand requested sanctions and a recommendation to the

State Bar and the Supreme Court for disbarment and

prosecution of both attorneys. The only response was “we

deny the request.”

F14

It was also clearly shown to the Appellate Court

that the sanctions that were granted to Slusser were in

violation of the “safe harbor provision.”

; Sanctions are a punishment but are not to be

used to chill vigorous advocacy. Durands’ 473 motion

may not have been perfect, but after a quick perusal of

case law pertaining to 473 motions and listening to

statements made by the Appellate Court in oral argument,

especially the remark of how Mr. Craig Kellison and Mr.

Mark Davis were trying to “jury-rig” the Record in this

case, it is easy to see that many attorneys after years of

law school and practice are unable to do much better.

Why do the citizens of this country distrust the

Judiciary? A good example is that attorneys who commit

multiply felonies are not even reprimanded, but a private

party is sanctioned for being a vigorous advocate in

fighting for their Constitutional rights.

By ignoring the alleged felonious acts

perpetrated by the attorneys in the present case the

Supreme Court will essentially destroy the Business and

Professions Code, Rule 11, and every other rule of ethics,

professionalism and morals and open the floodgates for

every disreputable attorney to file falsified evidence not

only with the trial courts but with the Appellate and

Supreme Courts as well, since they know it will go

unpunished.

BACKGROUND

Plaintiffs Syed Arif, doing business as North

American Technical Trading Company (NATTCO), and

Norman Rice filed a SLAPP suit (CCP § 425.16) against

Defendant/Cross-Complainant/ Petitioner Edwin

Durand. (AA Vol. 1, 19-43) Edwin Durand filed a cross-

complaint and enjoined Jerry W. Slusser, individually and

doing business as Valtec Capital Corporation, and

F15

Earthco, along with Gloria Rice, Clifford Rice, Norman

Rice Enterprises, Inc., and Matthew Huntley, Esq. (AA

Vol. 2, 178 through Vol. 5, 1185) Madelaine Durand later

joined Edwin Durand as a cross-complainant. (hereinafter

Durand) The original cross-complaint was returned to

Durand and Judge Guy Martin Young ordered a more

condensed cross-complaint, which Durand filed the

Second Amended Cross-Complaint on June 5, 1997 and

the Supplemental to the Second Amended Cross-

Complaint on June 9, 1997. (AA Vol. 5, 1189 through Vol.

6, 1333)

The Plaintiffs alleged intentional interference

with economic relations, libel, slander of title, quiet title,

and trespass. Plaintiffs later abandoned all of their causes

of action since their contentions were fraudulent, without -

supporting evidence, and they had the trial court proceed

on the quiet title portion of Durands’ Cross-Complaint in

order to change the burden of proof.

Durands’ Cross-Complaint also alleged

Intentional Interference with Economic Relations, Libel,

Slander of Title, Quiet Title and Trespass.

In early 1991 Mr. Durand was in negotiations

with Mr. Novak for some mining claims, which contained

alumina silicate, an industrial mineral commonly know as

pozzolan, and Mr. Tim Swickard for some private

property.

In September Mr. Durand was introduced to Mr.

Rice. Mr. Rice represented himself as a Certified Public

Accountant with marketing contacts and funding sources.

Mr. Rice, under the guise of obtaining funding

for Mr. Durand, proceeded to defraud Mr. Durand out of

his research, intellectual property, and interfered with the

economic relations with his business contacts. Mr. Rice

F16

stated under oath it was his intent from the very

beginning to defraud Mr. Durand. (October 14, 15, 21, 22,

1998 Trial R.T. Vol. II 486:6 to 493:24)

There was a meeting at First Interstate Bank with

Mr. Durand, Mr. Woods, an associate of Mr. Durand, Mr.

Swickard, Mr. Rice, and the banker, Mr. Bryan Avaylon.

Mr. Swickard was borrowing money using his ranch and

cattle as collateral, part of which was to be invested with

Mr. Durand for the pozzolan project. The banker Mr.

Avaylon turned down the loan, stating he did not know

the value of 5,000 head of cattle, and 3,353 acres of prime

ranch land.

Mr. Rice, using Mr. Durand’s research and

intellectual property, got himself funded, and proceeded

to negotiate deals with Mr. Novak for the mining claims

and Mr. Swickard for the ranch. Mr. Rice and Mr.

Avaylon then entered into a partnership along with a few

other partners, and under the instructions of Mr. Rice,

tried to defraud Mr. Durand out of his latest research.

Later, these partners sued Mr. Rice allegedly for Mr. Rice

cutting them out of the business while making a backdoor

deal with Mr. Syed Arif. Mr. Arif is the Plaintiff in the

present case, although he has never been present in court

throughout this case.

Upon finding that the Novak mining claims were

legally abandoned and not valid under Federal law, Mr.

Durand proceeded to properly file valid mining claims.

On February 5, 1997, Mr. Rice and Mr. Arif filed

a SLAPP suit (Strategic Lawsuit Against a Private Party)

against Mr. Durand for giving testimony at a public

meeting of the Lassen County Planning Department. Mr.

Durand stated Mr. Rice was an insider trader, which Mr.

Rice has admitted to in his sworn testimony, and that

North American Technical Trading Company, NATTCO,

F17

was revoked by the State of Illinois and had no status to

do business in the State of California, facts that were

supported by documented evidence.

Mr. Durand answered the complaint and filed a

cross-complaint, enjoining a number of other cross-

defendants of which the following remain; Gloria Rice,

Clifford Rice, individually and doing business as Norman

Rice Enterprises, Inc., Matthew Huntley, Esquire, Mr.

Jerry Slusser, individually and doing business as Valtec

Capital Corporation and Earthco.

Mr. Rice had no knowledge of the pozzolan

mineral deposit, nor had he met anyone involved with the

property. Mr. Rice, using Durand’s research, got himself

funded, and made a deal with Mr. Novak for the claims

and with Mr. Swickard for the “Constantia” ranch.

Mr. Novak signed a “Contract of Sale” and an

addendum, which stated he would transfer title of the

mining claims upon the payment of $1,000,000.00. (One

Million Dollars) Mr. Novak, in testimony at the June 20,

1997 hearing in the trial court stated his deal with Mr.

Rice had not been consummated and he had never given

Mr. Rice any quitclaim deed to any claims. (R.T hearing

6/20/97, 143:10-25, 144:12-15) The legal transfer of title to

mining claims is by deed. Mr. Rice admitted in testimony

at trial that he had never received any kind of deed

transferring title from Novak. (Trial R.T. Vol. II 513:25-

514:6)

In a rush to get title before Mr. Novak would sign

a deed, Mr. Rice had his attorney Matthew G. Huntley,

Esq., file a “To Whom It May Concern” letter with the

BLM. Durand had uncontrovertable evidence the letter

was forged. In fact, Mr. Craig Kellison admitted to the

trial court it was a forgery. (R.T. hearing June 17, 1999,

58:13) The seven Novak signatures (the Novaks were the

alleged original locators) had been photo-statically copied

F18

off another letter in the BLM file. (Trial Exhibit # DR &

DS, Vol. 14, 3967 letter 7/7/92 versus 3968 letter 9/30/93

with seven forged signatures.)

Durand was told they could not speak for the

Novaks. But the Novaks were not a party to this case.

The trial court proceeded to give Arif/Rice quiet title to

claims allegedly owned by the Novaks without the

Novak’s consent, knowledge, or participation in the

litigation, all based on Mr. Rice’s forged letter.

The BLM transferred title in their office because

the “letter” was accompanied by the correct amount of

money, not because it was a legal transfer of title. Then

Mr. Rice proceeded to file a quitclaim deed changing title

into his partner's name, Syed Arif, in order to bury the

fact he had never received legal title himself.

Mr. Slusser is a longtime associate of Tom Nevis,

who was convicted of defrauding the Savings and Loans

Companies of approximately One Hundred and Twenty

Million Dollars ($120,000,000.00). Mr. Slusser has been

convicted of multiple felony frauds. See Slusser v.

Commodity Futures Trading Com’n. (2000) 210 F.3d 783 (7%

Cir. 2000). Mr. Norman Jenson, vice president of Earthco,

is a disbarred attorney convicted in the U.S. District Court

of Northern California, Case Number CR-87-0546 EFL, of

drug trafficking and tax evasion.

Mr. and Mrs. Durand went through 2 ¥2 years of

rigorous work in order to obtain a Surface Mining Use

Permit from the State of California, which included a

tremendous amount of research in writing their

Environmental Impact Studies and Report.

In 1995, Durand was in negotiations with Mr.

Francis Brown of Auburn, California, to fund the

development of Durands’ private property, the building

F19

of a business complex, which included Mr. Durand’s skills

as a contractor and engineer, along with mining the

pozzolan.

Within two days of Mr. Brown checking on the

Durands’ Surface Mining Use Permit with Mr. Richard

Simon of the Lassen County Planning Department, Mr.

Slusser contacted Mr. Brown to set up a meeting. Mr.

Slusser’s purpose was to interfere with the business

relationship between Durand and Mr. Brown. He

succeeded.

After Mr. Slusser left the meeting, Durand and

two witnesses, Mr. Woods and Ms. Pamela Engle, looked

through the Slusser/Valtec business plan, which

contained Durands’ brochure, still with their company

name and address on it, and Durands’ confidential

information, which had been given to the Lassen County

Planning Department. There was also a copy of an

advertisement/article promoting the Slusser/Valtec

product Absorbs-All, which copied Durands’ research

from their brochure, verbatim.

Judge Bradbury recused himself on this case

since he had been the President of the Constantia Ranch

and had personal knowledge of the ranch and mining

claims. Judge Lazard was assigned but Durand filed a

peremptory challenge against him since it was clear he

had a very close relationship with Mr. Craig Kellison.

Mr. Kellison set up a hearing for his client

Matthew Huntley, Esq., to set aside his default, on

January 5, 1998 in Susanville, California. Neither Mr.

Kellison nor his client bothered to show. Durand spent a

great deal of time in preparation and travel for this

hearing but there was no reprimand or sanctions granted

against Mr. Kellison.

F20

Mr. Davis and Mr. Kellison set up a deposition

with Stacy Beck from the BLM in Sacramento, California.

When Durand arrived in Sacramente they found the

deposition was canceled without notification to Durand.

Again, no sanctions were granted in favor of Durand.

Judge Guy Martin Young was assigned to the

case and remained on the case for almost a year, when,

after he made the remark that based on evidence and

testimony, it looked like the Durands would prevail. Mr.

Kellison had Judge Young removed even though Judge

Young had made numerous rulings on the case.

Mr. Kellison set up a deposition in Dallas, Texas

for Mr. Robert Novak, a key witness and “indispensable

party” and then paid Mr. Novak $500.00 to leave Fallon,

Nevada, which is 60 miles away from Reno, Nevada

where the Durands live, to go to Dallas/ Hillsboro, Texas,

so that Durand would be unable to cross-examine Mr.

Novak at his deposition. Durand filed for a Protective

Order with Judge Dier, who had been assigned to the

case. Judge Dier refused to rule on the Protective Order,

causing gross prejudicial error. (Vol. 8 1925, 1929:20-

1930:11, 1951) Mr. Kellison, Mr. Rice, and Mr. Davis spent

three days in Texas for a one-hour deposition. The trial

court allowed the deposition to be read into the record,

even though Durand had not been allowed to cross-

examine Mr. Novak. The statements made in the

deposition were diametrically opposite to Mr. Novak's

spontaneous statements made during testimony and

cross-examination at the hearing of June 20, 1997. The act

of tampering with and concealing a witness constituted

“bad faith” calculated to prejudice Durand’s case, harass

Durand and cause needless increase to the cost of

litigation. After proving to the trial court that Mr. Novak

was a Fallon, Nevada resident, the trial court removed the

$500.00 “travel expense” but refused to remove the costs

of hotel rooms, rental cars, airplane tickets, movie and

F21

alcohol, etc., for Mr. Kellison and Mr. Rice, for their trip to

Texas.

Durand had filed three motions to compel, to get

Mr. Kellison and Mr. Davis to abide by the rules of

discovery. The trial court kept vacating the hearings, and

at the beginning of trial, Durand asked the trial court

again to rule on the motions. The trial court stated it was

not going to rule because it did not know how “they

would react.” (Trial R.T. Vol. 1 14:3-11)

The trial was split over two weeks, per Mr.

Kellison’s request, which was totally disruptive and

prejudicial to Durand’s case since their witnesses had to

be taken out of order.

The trial court stated that the trial would proceed

on Durands’ Cross-Complaint, therefore _ literally

changing the burden of proof from the Plaintiffs to the

Defendant, since Arif/Rice had no legal proof of

ownership.

Mr. Kellison called the Durands “greasy pigs”

although the transcript reads, “greased monkeys.”

Durand started to object and the trial court stopped

Durand. (Trial R.T. Vol. III, 639:15)

The case had been bifurcated by Judge Noel

Watkins on March 25, 1998 with the quiet title to be heard

first and Durands’ tort causes of action to be heard at a

separate jury trial. That jury trial never happened in

violation of Durands’ right to due process and inviolate

right to a jury trial on an issue of fact. The trial court

arbitrarily and without legal reason, denied Durands’

rights.

The trial court's bias and prejudice is blatantly

shown in the Record. The trial court refused to allow a

fair adversarial hearing on a viable cause of action; the

trial court refused to rule on the Protective Order to stop

F22

the witness tampering; the trial court allowed tainted

testimony in violation of Durand’s right to cross-examine;

the trial court refused to remove American Pozzolan

Corporation from the “Judgment;” the trial court refused

to disallow the expert witness fee for Mr. George

Wickman, a Susanville resident in violation of CCP §

1033.5(b)(1); the trial court had made up its mind to deny

Durands’ 473 and 592 motions before it had looked at the

evidence; the trial court granted sanctions pursuant to CCP

§ 128.5, which deals with cases filed before January 1,

1995; the trial court granted sanctions in violation of the

“safe harbor provision;” the trial court deemed Durand to

be vexatious litigants subject to a prefiling order, without

a scintilla of evidence or case law to support such a

finding; the trial court stated in its tentative decision: “It is

tempting to try to write a decision in this case in such

clear language and with such straight forward, tight logic

that the parties defendant and cross complainant could

understand whv their positions are untenable. Sadly, it is

doubtful that that could be done. A reading of the post

trial briefs shows how frustrating (Kellison and Davis)

and futile (Durand Supplement One) such an attempt

would be.”(AA Vol. 12, 3100:26-3101:4); by not allowing a

jury trial on the tort causes of action, the trial court has

caused obstruction of justice; the trial court violated

Durands' Constitutional rights of due process and the

inviolate right to a jury trial.

TRIAL COURT BIAS

As stated above, the trial court's prejudice is

blatantly clear. Deciding an issue before looking at the

evidence, denying Constitutional rights, refusing to rule

on proper motions to compel and protective order,

refusing to allow a fair adversarial hearing on a viable

issue, etc., all demonstrate actual bias. Where the average

person could well entertain doubt whether the trial judge

was impartial, appellate cour's are not required to

F23

speculate whether the bias was actual or merely apparent

or whether the result would have been the same if the

evidence had been impartially considered and the matter

dispassionately decided, but should reverse the judgment

and remand the matter to a different judge for a new trial

on all issues. The rejection of a proper offer of proof and

determination of an issue without a fair hearing

constitutes a denial of due process and reversible error

per se. Since the trial court’s bias was so clear the

Appellate Court should have reversed and remanded to a

different judge.

LEGAL DISCUSSION

1. JURISDICTION

The Superior Court of Lassen County lacked

subject matter jurisdiction as to the validity of the

Ironcloud, R&R, Jennifer, and Native American mining

claims. Durand has always contended that under Federal

law these claims are invalid. Therefore, any alleged

judgment made by a court lacking jurisdiction, is void.

Any subsequent judgment solely predicated on such a

judgment is also void.

Jurisdictional defects are never waived.

In In re Marriage of Oddino (1997) 16 Cal.4** 67, 65

Cal.Rptr.2d 566, 939 P.2d 1266, the Supreme Court stated:

“The question of state court subject

matter jurisdiction was not raised by the

parties in either of the lower courts and was

not addressed by the Court of Appeal; the

Plan objected on jurisdictional grounds for

the first time in its petition for review. Asa

matter of fundamental jurisdiction affecting

the power of the lower courts to act,

however, the issue must be addressed.”

(Emphasis added)

F24

The U.S. District Courts have jurisdiction over

federal lands, federal laws, and federal issues. The

question of the validity of mining claims on federal lands

in the present case is based on the United States Code, the

Code of Federal Regulations, and the U.S. Public Law 94-

579-Oct. 21 1976 commonly known as FLPMA, the Federal

Land Policy and Management Act and therefore the

subject matter jurisdiction is with the Federal Courts.

The Constitution of the United States, Article III,

Section 2 states, in pertinent part:

“The judicial power shall extend to

all cases, in law and equity, arising under

this constitution, the laws of the United

States, and treaties made, or which shall be

made, under their authority.”

The United States Code Title 28, Part IV, Chapter

85, Section 1331, states: “Federal question. The district

courts shall have original jurisdiction of all civil actions

arising under the constitution, laws, or treaties of the

United States.”

United States Code, Title 28, Part IV, Chapter 89,

Section 1441(b) states, in pertinent part:

“Any civil action of which the district

courts have original jurisdiction founded

on a claim or right arising under the

Constitution, treaties or laws of the United

States shall be removable without regard to

the citizenship or residence of the parties.”

Nevada Sierra Oil Co. v. Miller (1899) 97 F.

681 states:

“If, however, it appears from the bill that

the complainant asserts a right under and

by virtue of some law of the United States,

and that such right constitutes, in whole or

in part, its alleged cause of action, and

demands for its determination the

F25

construction of proper application of a law

of the United States, it is equally clear that

jurisdiction is shown.”

In 1997, Slusser tried to remove this case to

Federal Court. Mr. Mark Davis, attorney for

Slusser/Valtec/Earthco, filed for removal without

notifying Durand or the Superior Court of Lassen County.

Durand only found out about it when the U.S. District

Court sent Durand a copy of the Order remanding the

case back. Durand contacted Mr. Davis for copies of what

he had filed with the U.S. District Court but Mr. Davis

refused to send copies.

According to the U.S. District Court, Mr. Davis

had filed the removal based solely on diversity. (AA Vol.

7 1595:10) The U.S. District Court remanded the case

based on the fact that cross-defendants (third-party

defendants) are not entitled to remove, that the notice of

removal was absent the joinder by all defendants, and that

diversity jurisdiction between Valtec/Earthco and

Durand did not exist.

However, since the validity of the mining claims

is based on Federal laws on Federal lands, and the

original jurisdiction is with the U.S. District Court not the

state court, pursuant to the United States Code, Title 28,

Part IV, Chapter 89, Section 1441(b), diversity is irrelevant.

The other jurisdictional problem is with the trial

court's lack of “indispensable” parties.

The Supreme Court, In Bank, stated in pertinent

part:

“...but when a complete controversy

cannot be had without the presence of other

parties, the court must then order them to

be brought in...” (Bank of California Nat.

Ass'n et al. v. Superior Court In and For City

F26

and County of San Francisco et al., (1940) 16

Cal.2d 516, 106 P.2d 879)

In Bank of California Nat. Ass’n et al. v. Superior

Court In and For City and County of San Francisco et al.,

supra, 16 Cal.2d 516, 106 P.2d 879) the Supreme Court

further stated:

“...failure to join the latter was held fatal

to the judgment...” “Many cases go so far

as to say that the court would have no

jurisdiction to proceed without them, and

that its purported judgment would be void

and subject to collateral attack.” ... “It

follows that if the court does attempt to

proceed, it is acting beyond its jurisdiction

and may be restrained by prohibition.”

American Pozzolan Corporation was dismissed

from the present case in 1997. The “Judgment” of April

28, 1999 was written by Mr. Craig Kellison and adopted

by the trial court. Durand objected to the inclusion of

American Pozzolan Corporation since the corporation had

not been represented throughout the course of this

litigation. The trial court made no ruling on the removal

of American Pozzolan Corporation from the “Judgment”

making the corporation subject to all parts of the

judgment including being liable for the litigation costs.

(R.T. hearing 6/17/99, 56:17-57:1-9) a

The joinder of this non-party into the

“Judgment” was before the Appellate Court, but was

ignored. (Appellant's Reply Brief, p. 51)

Undoubtedly, this is a case of first impression,

but it is a question of law that is of extreme importance to

the general public. If the present case stands, it will mean

that anyone can name a non-party into a judgment. Such a

precedent will cause utter chaos, especially since the

F27

credit bureaus place judgments into personal credit files.

It is next to impossible to remove fraudulent or false

information out of your credit file, and even if a party is

successful, it is usually short-lived, since the credit

bureaus sneak the false information back in as soon as a

party is not looking. The entry of such false or fraudulent

information in a parties credit file could ruin their lives,

since they not only could be denied credit, but could be

denied employment or could be fired from a present job,

since many companies now check credit reports for their

employees or future employees.

There were other “indispensable parties” missing

from the present case besides American Pozzolan

Corporation, namely the Novaks. The “Judgment” in the

present case, deprived the Novaks of their right to title

and pecuniary interest in their property, i.e. the mining

claims.

Arif/Rice presented the trial court with some

quit claim deeds for Robert Novak’s_ co-locators,

purporting this gave Arif/Rice title. However, the co-

locators signed their interest over to Robert Novak, not

Arif/ Rice, and Robert Novak never signed the title over to

Arif/ Rice. In fact, Mr. Rice stated under oath he had never

received a deed and had never paid Mr. Novak the full

sales price under the contract of sale. Arif/Rice’s only

claim to title was a forged “To Whom It May Concern”

letter filed at the BLM. The law requires transfer of title to

be made by deed and State law requires the deed to be

recorded within 10 days of the transfer. This never

happened.

However, the trial court found the forged letter

sufficient to quiet title in favor of Arif/Rice thus

depriving the Novaks of their property. Robert Novak is

now dead, but his co-locators are his heirs and as such

they are “indispensable parties.”

F28

2. INVIOLATE RIGHT TO A JURY TRIAL

The California Constitution Article 1 § 16 states:

“Trial by jury is an inviolate right and shall be secured to

The California Constitution Article 1 § 7 states:

“(a) A person may not be deprived of life, liberty, or

property without due process of law or denied equal

protection of the laws.”

In the present case, the trial court denied Durand

their inviolate right to a jury trial on a tort cause of action,

and their right to due process. Constitutional due process

requires that parties be given a fair hearing. Errors

infringing on this right are presumptively prejudicial and

thus reversible per se. Denial of a jury trial on jury triable

issues is reversible error per se. (Martin v. County of Los

Angeles (1996) 51 CA4th 688, 697-698, 59 CR2d 303, 308-

309)

CRC Rule 232.5 states that in a bifurcated case,

such as the present case, after one issue is tried, the court

will only make a tentative decision until all issues are

adjudicated. CRC Rule 232.5 further states: “but no

proposed judgment shall be prepared until the other

issues are tried, except when an interlocutory judgment or

a separate judgment may otherwise be properly entered at

that time.” This section stating a separate judgment may

be entered is vague and ambiguous and West's Annotated

California Code’s gives no real clarity.

In the present case the trial court prematurely

filed a “Judgment” on a bifurcated issue in violation of

CRC Rule 232.5, leaving Durand with, according to the

law, a nonappealable so-called tentative

decision/ order / interlocutory —— since Durands’

tort causes of action remain unadjudicated.

When is a separate judgment available? In a case

of hability / damages, it makes sense not to proceed with

F29

the damages when the party is not found liable. But can a

trial court file a so-called “final judgment” after it

specifically states it has not considered or determined a

viable cause of action, which still exists between the

parties? The trial court thought so and the Appellate

Court affirmed. However, this Supreme Court has in

numerous cases reached a contrary conclusion, holding

that a “final judgment” is one that concludes all causes of

action between the parties.

In Morehart v. County of Santa Barbara (1994) 7

C.4th 725, 872 P.2d 143, this Supreme Court stated:

“Accordingly, we hold that an appeal

cannot be taken from a judgment that fails

to complete the disposition of all the causes

of action between the parties even if the

causes of action disposed of by the

judgment have been ordered to be tried

separately, or may be characterized as

“separate and independent” from those

remaining.”

Any judgment, no matter what it may be titled, is

not a “final” judgment, as required by CCP 904.1 and the

above Supreme Court ruling, unless there is a disposition

of all causes of action.

The substance and effect of the judgment — not its

label — determine whether it is “final” and thus appealable.

(Griset v. Fair Political Practices Comm’n (2001) 25 C4th 688,

698, 107 CR2d 149, 156; Doran v. Magan (1999) 76 CA4th

1287, 1293, 91 CR2d 60, 64.)

Durands’ tort causes of action were not

predicated on the quieting of title on some mining claims.

This Supreme Court has made it clear that there will be no

piecemeal appeals. In trying to give the trial court the

benefit of the doubt rather than accusing the court of

F30

extreme prejudice, Durand filed their 473 motion based

on the premise that the trial court had made an error in

overlooking Durands’ tort cause of action rather than

stating that the trial court was intent on denying due

process. CCP § 473(d) allows the trial court to fix errors or

set aside any void judgment or order.

Durand also filed for a jury trial per CCP § 592.

However, at the hearing on Durands’ 473 and 592

motions, the trial court made it clear that, before looking at

the evidence, it was not going to allow a fair adversarial

hearing on Durands’ tort causes of action. (R.T. hearing

11/29/99, 7:9-11, 27:4-10) Durand appealed the

subsequent order denying the 473 motion and their

motion for a jury trial on the unadjudicated tort causes of

action.

A grave error appears on the face of the

Appellate Court’s opinion. The opinion completely

ignores the appeal taken on CCP § 473(d). CCP § 473(d)

allows the trial court to fix its errors, such as inadvertently

entering a premature “judgment” on one issue in a

bifurcated case. CRC Rule 232.5 only allows a tentative

decision. The fact is that the appeal on CCP § 473(d) is one

of the most essential parts to the appeal and the question

remains unanswered. The Rule is that Appellate Courts

will not address issues whose resolution is unnecessary to

the disposition of the appeal. However, in the present case

the appeal pursuant to CCP § 473(d) is a vital part of the

Durands’ appeal and must be dealt with. Can the

Appellate Court ignore a necessary issue of an appeal?

(AOB p. 43)

Does a trial court have the authority to deny the

inviolate right to a jury trial on an issue of fact? Does a

trial court have the authority to deny due process? It is

well settled that any court, which denies the right of trial

by jury in a case where any party has the constitutional

right to it, exceeds its jurisdiction. It is well settled that the

F31

denial of these rights, as presented in the present case,

constitutes an act in excess of jurisdiction and is reversible

error per se. (Witkin 7 Cal. Proc. (4), Trial §92.) The

decision in the present case was an arbitrary refusal by the

trial court to abide by the Constitution and the laws of the

State of California and is contrary to established case law.

3. APPELLATE COURT VIOLATES CALIFORNIA

RULES OF COURT RULE 52

The Respondents’ (Arif/Rice, Slusser) Briefs were

solely predicated upon alleged falsified evidence they

filed with the Appellate Court. The Appellate Court

found the Respondents’ briefs were completely without

merit, and decided to affirm the trial court's ruling on

their own theory.

The theory had two parts; the first part was that

the trial court had determined that Durands’ tort causes of

action had become “moot” upon the trial court's

resolution of the quiet title action. (Opn. p.11) This

presumption is wrong. The Appellate Court's theory is

contrary to what the Record specifically shows the trial

court did. In the Statement of Decision the trial court was

specifically asked about Durands’ unadjudicated tort

causes of action, and the trial court specifically stated it

had never considered (or determined) those causes of action.

(AA Vol 12, 3190:27-3191:5) The only mention by the trial

court about Durand’s tort causes of action being “moot,”

was in the denial of the motions per CCP § § 473 and 592.

The Record is complete and there is nothing in the Record

that would support the sudden statement by the trial

court that Durands’ tort causes of action had suddenly

become “moot.”

The Appellate Court stated: “However, nothing

in rule 232.5 prohibited the trial court from determining

the remaining causes of action had become moot, or

F32

required the court to adjudicate causes of action it

determined had become moot.” (Opn. p.11-12) Since the

trial court had not determined Durands’ tort causes of

action had become “moot” upon the resolution of the

quiet title, CRC Rule 232.5 did, in fact, bar the trial court

from entering a “Judgment” on a bifurcated issue.

For the Appellate Court to presume the trial

court had determined Durands’ tort causes of action when

the trial court specifically stated it had not, is a clear

violation of the California Rules of Court Rule 52. The

trial court's prejudicial error is clearly shown on the face

of the record, and as such the Appellate Court acted

beyond its jurisdiction in affirming the trial court's

decision. The decision in this case goes against every

prior decision pertaining to Rule 52, which states that the

Appellate Court will not presume there was no error

when the prejudicial error appears on the face of the

record; or that the error was cured by some proceeding

not appearing in the record. In this case the Appellants

Appendix includes everything subsequent to the

Statement of Decision, and the Record clearly shows

Durands’ tort causes of action were never considered, or

determined, thus the trial court and the Appellate Court

denied Durand due process and their inviolate right to a

jury trial on an issue of fact.

Further, the alleged falsified evidence proffered

by Arif/Rice (and referred to by Slusser) in their

Respondent's Appendix is uncontrovertable evidence that

Arif/Rice and Slusser knew that Durands’ tort causes of

action still existed and had not been adjudicated, and

therefore they allegedly falsified the record in order to

support the trial court’s denial of Durands’ constitutional

rights.

There is now a huge discrepancy and lack of

uniformity of decision between this case and precedent

F33

case law. The precedent case law spells out when and

how CRC Rule 52 is to be administered within the correct

limitations, and properly guides and restricts the

appellate court in resolving the points raised by

appellants. Can an Appellate Court ignore CRC Rule 52

whenever it wants to? If this case is not reversed the

answer will be “Yes.” How many other unpublished

opinions are there where CRC Rule 52 was ignored, but

the appellants were not able to take it to the Supreme

Court?

4. APPELLATE COURT'S DECISION CONTRARY TO

RECENT DECISION BY THE SAME COURT

The Appellate Court’s opinion further

erroneously stated that Durand never alleged the trial

court's judgment resulted from their mistake,

inadvertence, surprise or excusable neglect, and as such

the trial court had “no discretion” but to deny Durands’

473 motion.

First, there is nothing in the wording of CCP §

473(d) that states that the setting aside of a void judgment

or order must be based on the appellants mistake,

inadvertence, surprise or excusable neglect. On _ the

contrary, it states that the trial court has the authority to

correct its own mistake.

“Section 473 provides in part; “The

court...may, on motion of either party after

notice to the other party, set aside any void

judgment or order.’ Courts also possess

inherent power to set aside void judgments.

(Rogers v. Silverman (1989) 216 Cal.App.3d

1114, 1121, 265 Cal.Rptr, 286.) ...lt is well

settled that a judgment or order which is

void on its face, and which requires only an

inspection of the judgment-roll or record to

show its invalidity, may be set aside an

motion, at any time after its entry, by the

F¥4

court which rendered the judgment or

made the order.”(Reid v. Balter (1993) 14

Cal.App.4® 1186, 18 Cal.Rptr.2d 287.)

Second, along with CCP § 473(d), (Appellants

Opening Brief p. 43) Durand did file their appeal under

the mandatory and discretionary parts of CCP § 473.

At the 473 hearing on of November 29, 1999,

even though Durand never used the term “surprise” the

statements made were synonymous to the legal definition

of “surprise.” (R.T. hearing of 11/29/99, at p. 10:22-14:4)

Durand was surprised by the fact that the trial court was

intent on denying them their Constitutional right to a jury

trial and their right to due process.

“Surprise,” as used in the statute permitting

relief from judgment, dismissal, order, or other proceeding,

entered by surprise, refers to some condition or situation

in which a party is unexpectedly placed to his injury,

without any default or negligence of his own, which

ordinary prudence could not have guarded against.”

In stating that the trial court had “no discretion”

in the present case since Durand never admitted mistake,

the Appellate Court's opinion in the present case, is in

direct conflict with its own recent opinion in State Farm

Fire & Casualty Company v. Pietak, supra, (2001) 90

Cal.App.4® 600, 109 Cal.Rptr.2d 256, wherein it stated that

neither Mr. Pietak nor his attorney ever admitted any

mistake, and yet this same Appellate Court ruled that

relief by way of section 473 was warranted. According to

the theory in the present case, since Pietak had never

admitted mistake, the trial court had “no discretion” but

to deny Pietak’s 473 motion. But the Appellate Court

found its way around this through the back door by

stating maybe Pietak’s attorney did not know what he

was doing, maybe Pietak’s attorney should have read the

F35

appropriate statutes and case law pertaining to the

subject, and maybe the statutes are ambiguous, so maybe

this was a honest mistake, and therefore relief is

warranted by way of CCP § 473.

The Supreme Court case, Elston v. City of Turlock

(1985) 38 Cal.3d 227, 695 P.2d 713, 211 Cal.Rptr. 416,

states:

“Section 473 permits the trial court to

‘relieve a party...from a judgment, order, or

other proceeding (Emphasis added) taken

against him or her through his or her

mistake, inadvertence, surprise or

excusable neglect.’ A motion seeking such

relief lies within the sound discretion of the

trial court, and the trial court's decision will

not be overturned absent an abuse of

discretion...However, the trial court's

discretion is not unlimited and must be

‘exercised in conformity with the spirit of

the law and in a manner to subserve and

not to impede or defeat the ends of

substantial justice.”

“Section 473 is often applied

liberally where the party in default moves

promptly to seek relief, and the party

opposing the motion will not suffer

prejudice if relief is granted....In such

situations ‘very slight evidence will be

required to justify a court in setting aside

the default.” (In the present case prejudice

was never argued by Arif/Rice/Slusser)

“Moreover, because the law

strongly favors trial and disposition of the

merits, any doubts in applying section 473

must be resolved in favor of the party

F36

seeking relief from default.” (Emphasis

added)

“Where, as here, the trial court

denies the motion for relief from default,

the strong policy in favor of trial on the

merits conflicts with the general rule of

deference to the trial court’s exercise of

discretion. (5 Witkin, op. cit. supra, § 164, p.

3737.) Unless inexcusable neglect is clear, the

policy favoring trial on the merits prevails.

(Ibid.) Doubts are resolved in favor of the

application for relief from default....and

reversal of an order denying relief results (5

Witken, op. cit. supra, Sec 164, p. 3737).

Reversal is particularly appropriate where

relieving the default will not seriously

prejudice the opposing party.” (Emphasis

added)

“Reversal of an order denying

relief is appropriate where the effect of the

order is to ‘defeat, rather than to advance

the ends of justice....Accordingly, the trial

court abused its discretion in denying

plaintiffs’ section 473 motion.”

In the present case the trial court denied

Durands’ inviolate right to a jury trial and their right to

due process. The Appellate Court affirmed. Not only is

this decision contrary to the Constitution, but also more

importantly it is contrary to the Supreme Court's decision.

There is nothing in Elston v. City of Turlock, supra, 38

Cal.3d 227, or in the statute itself that states the trial court

has “no discretion” pertaining to either CCP § 473(d) or

the section on discretionary relief.

F37

The Appellate Court's opinion in the present case

is contrary to the Supreme Court case of Elston v. City of

Turlock, supra, 38 Cal.3d 227, 695 P.2d 713, and a long line

of case law which states that CCP § 473 is to be liberally

construed to promote the ends of substantial justice. Not

only has there been no justice in the present case, but also

the trial court had to violate the Constitution in order to

make sure that the ends of substantial justice were

defeated.

There now stands two published cases (Parage v.

Couedel, supra, (1997) 60 Cal.App.4 1037, 70 Cal.Rptr.2d

671 and lott v. Franklin (1988) 206 Cal.App.3d 521, 253

Cal.Rptr. 635) and one unpublished case (the present

case), whose decisions are diametrically opposed to the

above precedent Supreme Court decision. These cases

have literally stripped the trial court of its discretionary

power in dealing with CCP § 473.

5. ATTORNEY MALFEASANCE

The Appellate Court found that the Arif/Rice

and Slusser briefs were completely without merit. Mr.

Craig Kellison, attorney for Arif/Rice, predicated his

entire brief on two documents, both shown to the

Appellate Court to be falsified evidence. The first

document was the alleged “dismissal order.” Mr. Davis,

attorney for Slusser/Valtec/Earthco, predicated his entire

reply brief on this same “dismissal order.”

Durand showed to the Appellate Court

irrefutable evidence this “dismissal order” never existed

until after the Order of February 23, 2000, denying the

CCP § § 473 and 592 motions, was filed. (Appellants

Reply Brief)

The second document Mr. Kellison based his

Respondent's brief on was a copy of the Lassen County

F38

local rules, which Mr. Kellison had falsified by removing

the last page from the old local rules and the first page of

the new local rules, combining the two, and then

repeatedly stating Durands’ appeal must be denied

because Durand had not followed a local rule, a rule that

was not in existence until two years after the fact. Durand

motioned for sanctions, disbarment, and prosecution, but

was summarily denied citing CCP § 907 and In re Marriage

of Flaherty (1982) 31 Cal.3d 637. (Opn. p.15) Both CCP §

907 and Flaherty, ibid, pertain to sanctions for filing a

frivolous appeal and are irrelevant to Durands’ requested

sanctions against Mr. Kellison and Mr. Davis and their

clients, for attorney malfeasance.

However, in In re Marriage of Flaherty, supra, 31

Cal.3d 637, the Supreme Court did state: [Sanctions]

“...can serve the important purpose of penalizing the

most egregious conduct without deterring valid appellate

claims.” “...a few extreme examples demonstrate the

necessity for a deterrent.” Isn’t the filing of falsified

evidence with the Appellate Court egregious conduct,

which would warrant the granting of sanctions? What

about the Penal Code violations?

Are attorneys considered “above the law”? If

attorneys can so egregiously violate the Penal Code, the

Business and Professions Code, Rule 11, and cause

obstruction of justice without any repercussions, than the

answer is “Yes”.

The Appellate Court affirmed the trial courts

granting of sanctions against Durand based on their

erroneous theory that the trial court had determined

Durands’ tort causes of action had become moot upon its

resolution of the quiet title. The Record belies that theory

as stated above.

F39

The sanctions in favor of Slusser were granted in

violation of the “safe harbor” provision. The Arif/Rice

sanctions were granted on lack of merit.

Sanctions are not to be used to chill vigorous

advocacy. When a pro per litigant is sanctioned for being

a vigorous advocate in asserting their Constitutional

rights, and attorneys who allegedly violate the Penal

Code, the Business and Professions Code and obstruct

justice, are not even reprimanded, it is no wonder that the

American people have zero confidence in the Judicial

system. The Supreme Court now has an opportunity, by

properly and equally enforcing the law, to stem the tide

and regain confidence lost.

CONCLUSION

The Supreme Court has the authority to secure

harmony and uniformity in the decisions of all the courts,

to enforce their conformity to the settled rules and

principles of law, to secure a uniform rule of decision

throughout the state, to gain a correct and uniform

construction of the constitution, and statutes, and in some

instances, to make a final decision by the court of last

resort of some doubtful or disputed question of law.

In the present case there are significant issues of

widespread importance and it is in the public interest to

decide these issues at this time. Review of these issues is

necessary to decide important legal questions and to

secure uniformity in case law.

VERIFICATION

I/We declare under penalty of perjury under the

laws of the State of California that the foregoing is true

and correct, and that if called to testify as to said matters,

I/We could competently do so.

DATED: August 5*, 2002.

F40

/S / /S

MADELAINE DURAND EDWIN DURAND

In Propria Persona In Propria Persona

F41

APPENDIX G

The Statement of Decision of the Superior Court of the

State of California, In and for the County of Lassen

Craig M. Kellison, SBN 074621 FI LED

Law Offices of Craig M. Kellison APR 28 1999

P.O. Box 1238 LASSEN COUNTY,

60 South Lassen Street SUPERIOR COURT

Susanville, CA 96130 R. REED, CHIEF ADMIN.

(530)257-5555 OFFICER

Attorney for Plaintiffs By: /S Deputy

IN THE SUPERIOR COURT OF THE STATE OF

CALIFORNIA IN AND FOR THE COUNTY OF LASSEN

SYED M. ARIF, et al., CASE NO. 29224

Plaintiffs,

vs. STATEMENT OF

DECISION

EDWIN DURAND, et al. [CCP § 632; Rule 232

Defendants. Cal. Rules of Court]

EDWIN DURAND, et ux.,

Cross-Complainants,

vs.

SYED M. ARIF, et al,

Cross-Defendants.

This case was tried to the court sitting without a jury

in November, 1998. At the conclusion of trial the parties

were allowed time to brief their positions. The closing brief

was filed in January and the matter was submitted then for

decision. The Court has read and considered the extensive

briefs filed, has reviewed its own trial notes, and has

recently reviewed all of the exhibits that were admitted at

the trial.

On March 23, 1999, the Durands timely filed a Request

for Statement of Decision pursuant to CCP § 632.

Gl

The Court is not persuaded that the “claim jumper”

arguments add anything to the arguments of the Plaintiffs or

Cross-Defendants Earthco and Valtec. The Durands are not

claim jumpers if they win this lawsuit; they are if they lose.

The Court does not find bad faith on t he part of the Durands.

They appear to honestly hold their views that these mining

claims are invalid for the reasons they state. If that were true,

the properties would have been open to relocation.

Not all of the mining claims that the Plaintiffs and

Cross-Defendants hold are subject to competing claims by

the Durands. There is no provision in the law for an action

analogous to a qui tam action. A non-claiming party has no

right to contest the title of a mining claimant. Judgment

therefore will be for Arif and Earthco quieting title as

against all Defendants and Cross-Complainants to the

uncontested (by stipulation at trial) mining claims.

The Defendants and Cross-Complainants challenge the

title of the Plaintiff and Cross-Defendants to the contested

claims. The suggestion is made that since the Plaintiff and

Cross-Defendants cannot trace their claims back to the

original locators by means of quitclaim deeds, they do not

have title. The Court finds that there is no law or rule that

requires transfer by quitclaim. Any method of transfer

recognized in California is adequate, even an unrecorded

one. It is clear here that the Durands and their corporation

are not bona fide purchasers. Therefore, any failure, if there

was any, to record the instruments of transfer prior to the

Durands’ entries onto the mining claims is immaterial.

As to the mining claims to which the Durands hold

competing claims, the Court finds Arif and Earthco have

met their burden of making a prima facia showing that they

or their predecessors made valid discoveries, properly

located the various claims, recorded them as required, and

have done the annual assessment work or paid since 1993

G2

the necessary fees. The Durands have not overcome this

prima facia showing.

Much of the case presented by the Defendants and

Cross-Complainants suggests that there may not have been

valid discoveries, that the location on the ground may not

have met the federal and or state requirements, that the

locating could not have been done in the time periods

claimed, and that the annual assessment work was either

not done or would not qualify. These suggestions were

without supporting evidence. In the absence of evidence, the

Durands have not overcome the presumption created by the

Plaintiffs’, the Cross-Defendants’, and their predecessors’

filings, recordings and payment of fees.

In addition, all of the evidence is that the Durands’

claims arose at times when the Plaintiffs and Cross-

Defendants or their predecessors in interests were current in

their obligations. If there was any default by them, it was

cured before the Durands intervened by locating, filing, and

recording their claims.

Therefore, it is found that Plaintiffs are entitled to

have judgment quieting title in them to the disputed and

undisputed claims. It will also be ordered that the

Defendants and Cross-Complainants are enjoined from

entering onto any of the Plaintiffs’ claims or the Mapes

Ranch for the purposes of exploration, discovery or location.

The Court will also Order title quieted in the Earthco claims.

The Durands also have filed a pleading entitled

“Proposals to Issues Raised by Defendant/Cross-

Complainants Request for Statement of Decision” which

will be construed as proposals to the statement of decision

pursuant to Rule 232(b) of the California Rules of Court.

G3

These proposals are actually arguments that were

previously raised and rejected by this Court either expressly

or implicitly and are summarized as follows:

pF (11) each “Ironcloud” claims traversing U.S.

Hwy. 395 BLM letter and federal law uphold

validity of “Sierra Lady” Claims.

2 (22) each “R&R” mining claims sold to Tract

West, Inc.

3. Prudent Man Test - The BLM Federal mining

law shows that without a discovery or proof

thereof there is no valid mining claim.

4. Title transferred using forged document;

(23) each “Ironcloud”; (22) each “R&R”;

(8) each “Native American” mining claims.

5. Location of mining claims, discovery before

transfer.

6. Requirements for mining claim and site

locations.

7. Types of assessment work that will not

qualify.

8. Invalid transfers in chain of title and recorded

transfers.

9. Notice of intent to hold - abandonment.

10. Tax default.

11. Tentative decision made by Judge Young

based on facts and evidence appeared

Durand would prevail on title to mining

G4

claims - Rice insider trader, admitted theft,

unjust enrichment, breach of fiduciary and

confidentiality relationship, theft of trade

secrets, failure to answer motions to compel,

obstruction of justice, perjured and false

testimony, non-appearance plaintiff and

cross-defendant at trial.

The Durands claim that they are entitled to “written

findings of fact and conclusions of law” pursuant to CCP §

632. CCP § 632 was amended, however, in 1998 and

provides that “written findings of fact and conclusions of

law shall not be required”.

So far as issues numbered 1 through 11 attempt to

challenge the validity of any of the uncontested claims of

Plaintiffs and Cross-Defendants, this Court again

reemphasizes that the Durands have no standing to

challenge these claims. It is well established that title or

possession to property may not be attacked by persons

showing no color of title in themselves. Perego v. Dodge

(1896) 163 U.S. 160; Cole v. Ralph (1919) 252 U.S. 286; Lind v.

Baker (1939)31 CA2d 631, 639; Hess v. Moodey (1939) 35

CA2d 401, 404-405; Judson v. Herrington (1943) 55 CA2d

476, 480; Jackson v. Roby (1883) 109 U.S. 440; Gibson _v.

River Farms Co. of California (1938) 28 CA2d 757; Pacific

States Savings & Loan Co. v. Warden (1941) 18 C2d 757;

Williams v. City of San Pedro (1908) 153 Cal. 44; Hoeller v.

Lloyd (1959) 173 CA2d 777.

In Pacific States Savings and Loan Co. v. Warden, supra, at

757, the Supreme Court emphasized:

“, . .title to property may not be attacked by

persons showing no color of title in themselves,

and that want of validity may not be set up by

strangers and intruders, that is, persons who

were neither in possession of the property nor

G5

tr ml rn nine ena estate

connected in any way with the paramount

source of title. . . .In a quiet title action the

plaintiff must prove his title in order to recover.

It has been stated as an elementary rule that “If

he has no title, he cannot complaint that some

one else, also without title, asserts an interest in

the land. . . .“ A defendant who does not,

himself, claim some right, title, interest, or

possession, has no status to question the

validity of a conveyance of the property by a

third person to the plaintiff.

It may also be said that the plaintiff's prima facie

showing required the defendant to go forward

with proof also as against one shown to be a

stranger to the title, the plaintiff's prima facie

showing would entitle him to judgment.”

Similarly, in Gibson v. River Farms Co. of

California, supra, the court stated:

“Here, however, owing to the invalidity of the

proceedings, plaintiffs had no title and no

possessory rights and a plaintiff in a quiet title

action must fail unless he shows title in himself,

and is not in a position to complaint if someone

else, even without title, asserts an interest in the

property. Neither plaintiffs nor the appellant

were in a position to complain of the

recognition of any right in favor of defendant.”

In their opening brief, the Durands cited no law to

support their ability to legally challenge the claims of Arif

and Earthco to the above-referenced claims. During trial,

Durands briefly argued that their interest was similar to the

doctrine of private attorney general. There does not exist,

however, any statutory authority for a third party to

G6

challenge the use of public lands of another. The Federal

Land Policy Management Act of 1976 does allow for the

Attorney General of the United States to institute an action

to prevent unlawful activity. In 43 U.S.C. § 1733(b), it is

provided that:

“At the request of the Secretary, the Attorney

General may institute a civil action in any

United States district court for an injunction or

other appropriate order to prevent any person

from utilizing public lands in violation of

regulations issued by the Secretary under this

Act.”

It is equally clear that the federal statutes and

corresponding provisions of the Code of Federal

Regulations do not provide for the maintenance of actions

by parties having no interest in the challenged claims. 30

U.S.C. Sec. 30 provides, in pertinent part:

“Where an adverse claim is filed during the

period of publication, it shall be upon oath of

the person or persons making the same, and

shall show the nature. boundaries, and extent of

such adverse claim. . .” [emphasis added]

In the corresponding sections to the Code of Federal

Regulation, the issue of who may challenge a decision of the

Bureau of Land Management is set forth in 43 C.F.R. § 4.4

10(a), which provides as follows:

“(a) any party to a case who is adversely

affected by a decision of an officer of the

Bureau of Land Management or of an

administrative law judge shall have a right to

appeal to the Board. . .“

G7

ISSUE NO. 1

(11) each “Ironcloud” claims traversing U.S. Hwy.

395, BLM letter and federal law uphold validity of “Sierra

Lady” Claims.

The issue of amended location notices was raised only

briefly at trial. There was no evidence presented that would

allow the Court to conclude that Durands possess a superior

right to any of the claims as a result of defects in any of the

amended relocation notices filed by Earthco.

It should be noted, that since none of the contested

claims of Arif are located adjacent to Highway 395, any

argument that the Durands possessed would appear not to

apply to Arif.

With respect to Earthco, the evidence does support

that once it was determined that the highway intersected

various Ironcloud claims along Highway 395, that Earthco

timely filed amended relocation notices to cure the defect.

While the Bureau of Land Management determined that the

land beneath Highway 395 was “void ab initio” no other

ground was affected by the BLM.

It should be noted that the amended relocation notices

filed by Earthco do not encompass Sierra Lady Claims No.

164 and 165 as Earthco elected not to include that land in the

relocation notices Earthco filed. As such, Arif and Earthco

agree that said Sierra Lady Claims and the underlying

ground should be quieted in the name of Durands.

ISSUE NO.2

(22) each “R&R” mining claims sold to Tract West, Inc.

As stated above, the Durands have no standing to

challenge any of the uncontested R&R mining claims.

G8

The only contested R&R claims relate to R&R claims

No. 22 and 23. With respect to these claims, the Court finds

that Tract West was not a party to this action and the

Durands do not claim title through them. It would only

appear to make sense that if the transfer to Tract West in

1980 was genuine, then the issue of ownership and

possession as to the R&R claims should be one between Arif

and Tract West.

The sales agreement between Novak and Tract West

[Exhibit 22] appeared to make the sale of the R&R claims

conditional upon payment. This fact became reinforced by

evidence introduced by the Durands at trial that Novak

claimed ownership of the R&R claims during the lawsuit

against Lassenite one year later [see Exhibits 65 and DW].

Thereafter, Novak continued to perform the required

annual assessment work and timely made the proper filings

in his own name. That was eighteen years ago, and Tract

West has never resurfaced to claim a competing interest.

The uninterrupted use for five years also applies in the

situation regarding the purported transfer by Novak to Tract

West in 1981. Applicable here, however, is that the

continued uninterrupted use of the R&R claims for a period

of five years by Novak following his purported transfer to

Tract West not only eliminated the ability of Tract West to

complain - but most certainly eliminated the ability of

Durand to claim the defect on behalf of Tract West.

In Altoona Q.M. Co. v. Integral O.M. Co. (1896) 114

Cal. 100, it was held that “when possession has continued for

five years, before adverse rights exist, it is equivalent to

location.” See, also, Dalton v. Clark, supra, at 140.

The principle is similar to “adverse possession” .

With respect to the R&R claims, the continued and

G9

uninterrupted use by Novak for a period of five years at any

time prior to the location by the Durands in September of

1993 was equivalent to location.

In Phelps v. Pacific Gas & Electric Co., supra, at 563-64,

the Court of Appeals noted:

“It is also contended by defendant

(appellant) that the evidence is insufficient to

show that a valid mining claim was

established in 1898 by respondents’

predecessors in interest. It is argued that the

description is insufficient; that there is no

competent evidence that the original claim was

posted on the ground or that the claim was

monumented, and that the amended notice of

claim which attempted to more fully describe

the claim was ineffectual because it was

recorded after the Power Site Withdrawal

Order covering the area in dispute. This

contention is without substance. The record

discloses that in 1898 respondents’

predecessors in interest recorded Notice of

Location of the claim in question. It is

unnecessary to discuss the question of whether

or not their acts were sufficient since the trial

court found that:

‘Plaintiffs and their predecessors in

interest were in the actual, exclusive and

adverse possession of said mining claim

continuously for more than 40 years prior to

the filing of the Complaint herein, and ever

since June 20, 1898, or thereabouts, have

claimed to own and were the owners of the

same and of the right to the sole and exclusive

possession thereof against the whole world

save with respect to the interest of the United

G10

States of America.”

ISSUE NO. 3

Prudent Man Test - The BLM Federal mining law

shows that without a discovery or proof thereof there is no

valid mining claim.

Again, the Court reiterates its position that the

Durands have no standing to challenge the uncontested

claims. It must be stressed that the Durands had the

“burden of proof’ in establishing lack of location or

discovery. The Court finds that they failed to meet this

burden. Such a finding is especially true when the Durands

were required to establish lack of location or discovery as to

the contested claims only. The record is nace of any type

of evidence submitted in this regard.

The Durands cite the prudent man test enunciated

in Crisman v. Miller (1905) 197 U.S. 313, to the effect that:

“Traditionally, a discovery has been

said to exist where the evidence is such that a

prudent individual would be justified in the

further expenditure of his labor and means

with a reasonable prospect of success in

developing a paying mine.”

For purposes of the present case, however, the

argument makes little sense. Here, the Durands have staked

claims over the same ground as Earthco and Arif. The

Durands do not argue that a “discovery” on their part was

necessary with respect to these claims.

J

The argument then becomes why would a

“discovery” by Novak be any less credible than a

“discovery” by Durands on the very same property? Should

Novak be treated differently as a “person of ordinary

Gil

prudence in the further expenditure of his labor and means”

as opposed to the Durands?

These types of collateral challenges have never been

successful in California courts. Hess v, Moodey (1939) 35

CA2d 401, 404-406; Lind v. Baker (1939) 31 CA2d 631, 639;

Judson v, Herrington (1943) 55 CA2d 476, 482; Pease v.

Johnson (1951) 106 CA2d 449.

Such defects (discovery, location, etc.) are not subject

to challenge when the locator has continued in possession

for five uninterrupted years. Hess v. Moodey (1939) 35

CA2d 401, 405-06; Phelps v. Pacific Gas & Electric Co. (1952);

Judson v. Herrington (1943) 55 CA2d 476; Dalton v. Clark

(1933) 129 CA 136.

Even if Durand had met his “burden of proof’ in

establishing lack of “location” or “discovery”, Novak's

uninterrupted possession for five years eliminated the

ability of a junior locator to challenge these types of

collateral challenges.

ISSUE NO.4

Title transferred using forged document; (23) each

“Troncloud”; (22) each “R&R”; (8) each “Native American”

mining claims.

Durands content that Arif does not hold title to any of

the claims as a result of the existence of an alleged “forged

document” which was filed with the Bureau of Land

Management. The Durands forget, however, that the

transfer of claims is subject to state law and recording

requirements. This Court finds nothing in the record to

support that the “purported forged document” was ever

recorded at the county level. Similarly, only R&R Claims

Nos. 23 and 24; and Ironcloud Claims Nos. 28, 29 and 31 are

contested claims in which the Durands possess any type of

G12

standing.

It is also most difficult to follow the claim by the

Durands that one or both of Exhibits DR or DS is a forgery

[see Exhibit 731. Assuming this fact could be true, it would

only mean that the Novak co-locators did not intend to

transfer their interest in the Ironcloud claims to either Arif

or his predecessors or Earthco or its predecessors. The

Durands logic in offering this evidence is difficult to

understand because what business do the Durands have in

challenging whether the co-locators of the Ironcloud claims

have relinquished their interest in the claims? The Durands

do not claim that their interest is derived from these co-

locators, and they certainly have no standing to represent

said co-locators in the present action or to champion for

their cause. At worst, Arif and Earthco would have simply

been a co-owner with the co-locators.

Again, the argument becomes meaningless since the

exact same co-locators of the ironcloud claims have

quitclaimed away their interest to these claims [see Exhibits

66 through 72]. Exhibits 66 through 72 are Quitclaim Deeds

from the very same co-locators that founded the Ironcloud

claims on November 17 and December 13, 1989 [Exhibit 23].

Further, Novak testified that he witnessed each and every

signature on Exhibit DR. Finally, not one of the signatures

have ever challenged the transfer effected by these exhibits.

ISSUE NO. 5

Location of mining claims; discovery before transfer.

Again, the Durands claim the absence of discovery

with respect to all of the Ironcloud and Jennifer claims. They

contend that each of the above referenced claims has been

abandoned.

The Durands have no standing to challenge the

G13

uncontested Ironclouds of Jennifers. During trial, the

Durands failed to meet their “burden of proof’ in

establishing lack of location or discovery as to any of the

contested Ironclouds and Jennifer claims. These types of

challenges have never been successful in California courts.

Hess v. Moodey, supra, at 404-406; Lind v. Baker, supra, at

649; and Judson v. Herrington, supra at 482.

ISSUE NO.6

Requirements for mining claims and site locations.

The Durands challenge whether any of the claims

were properly located. Since we are dealing with only the

contested claims, it is clear that the Durands introduced no

evidence at time of trial to support the lack of location. None

of the witnesses, including the Durands, had personal

knowledge that proper location did not occur. Lack of

proper location or impossibility of location requires “clear

and convincing evidence”. Sampson v. Page (1954) 129

CA2d 356. Clearly, the Durands failed to meet this burden.

ISSUE NO. 7

Types of assessment work that will not qualify.

A contesting claimant is. also not permitted to

challenge the nature and extent of the work performed.

Otherwise, every year thousands of mining claims would be

under the scrutiny of would be “claim jumpers”. That is

precisely the reason that the California Legislature created

the “prima facie evidence” standard in Public Xesource

Code § 39 13(b).

Both Congress and the courts have continually

discouraged technical challenges to “assessment work”.

Pascoe v. Richards (1962) 201 CA2d 680; Ehrhart v. Bowling

(1940) 36 CA2d 503; Pease v. Johnson (1951) 106 CA2d 449.

G14

This was best exemplified in Sampson v. Page,

supra, wherein the court noted:

“The law does not require that the labor shall

benefit the claim in the sense of making the

claim more valuable after the performance of

the labor than before. Therefore any labor

performed upon the claim, if sufficient in

amount, will satisfy the law, if its tendency is to

develop the claim as a mine. The digging of

prospect holes, or the digging of a cut or cuts or

drain ditch or ditches, the removal of brush,

panning, etc., and all things done necessary for

the doing of assessment work, if sufficient, in

amount, will be in compliance with the law.

Work done for the purpose of discovery of

mineral whatever the particular form of

deposit, also is work and improvement within

the meaning of the statute. (Rickelts, supra, pp.

282-283, fn. 4)

Visibility is an untrustworthy test of eligibility.

Worthless trampling on the surface may create

a facade of economically valuable activity

while $100 worth of underground tunneling

may be practically invisible.”

During the passage of the 1993 Interior Department

Appropriations Act, wherein the “maintenance fee”

replaced the previous “assessment work obligation”, the

legislative history reveals the congressional attempt to

eliminate challenges by rival miners concerning the

“assessment work” issue. In the legislative history of the

1993 Interior Department Appropriations Act [H.R. Rep.

103-338], it was noted:

G15

“Diligent development, or that work required

to be done annually, that leads toward the

development of a mine. This assessment work

obligation is policed by rival miners that can

legally overstake a non-diligent miner’s claim

and take possession of the deposit. (This

concept has been modified on the federal level

with the recent substitution of the $1

00/claim/ year “maintenance fee,” first in the

Fiscal Year 1993 Interior Department

Appropriations Act and replicated in the

Omnibus Budget Reconciliation Act of 1993.”

Thus, one of the goals in instituting the “maintenance

fee” was to eliminate the possibility of individuals who sat,

waited and preyed on a “technical defect” of the senior

locator.

Assessment compliance relies upon the Federal Land

Policy and Management Act of 1976 (FLPMA). This Act

governed various assessment work requirements until the

adoption of the Department of the Interior and Related

Agency Relations Act of 1993, which effectively suspended

the assessment work requirement for, beginning with the

1992-1993 assessment year. As of 1993 an annual holding fee

(identified as a “rental fee” or, later “service charge”) for

every unpatented lode or Placer claim is required.

All of the alleged defects claimed by Durand pre-date

the 1993 “rental fee” or “service charge” concept. The

adoption of the “rental fee” demonstrated the Department

of the Interior's intention to eliminate the ambiguity that

was contained in the assessment work recitation that had

created so much divisiveness among claimants.

William Tilden referred to the change between the

“assessment work” and the “rental fee” as a cleansing, in

that the pre-1993 BLM filing was intended to eliminate

G16

collateral attacks as to previous assessment work.

Assuming that any or all of the alleged defects in the

assessment work occurred, the defects do not constitute a

forfeiture unless there exists a relocation by a third party, and

in the absence of such a relocation, the original claimant has

the right to resume work and to retain his claim. Madison v.

Octave Oil Co. (1908) /54 Cal. 768; Clark v. Mallory

(1937)22 CA2d 55; Altouna Q~M. Co. v. Integral O.M. Co.

(1896) 114 Cal. 100; Kramer v. Gladding. McBean & Co.

(1939) 30 CA2d 98.

In the present case, there is no evidence that Durand

established his claim over any of the same ground as the

claims of Earthco or Arif until September 1, 1993. As a

result, any specific claimed defect in the assessment work

would have been cured upon resuming work in the year

following the alleged defect.

Statutorily, this appears in the mining law of 1872. In

30 U.S.C. § 28, it is provided as follows:

“On each claim located after the 10th day of

May 1872, that is granted a waiver under

section 28f of this title, and until a patent has

been issued therefore, not less than $100 worth

of labor shall be performed or improvements

made during each year. . . .and upon a failure

to comply with these conditions, the claim or

mine upon which such failure occurred shall be

open to relocation in the same manner as if no

location of the same had ever been made,

provided that the original locators, their heirs,

assigns, or legal representatives, have not

resumed work upon the claim after failure and

before such location.” [emphasis added]

G17

In Ickes_v. Virginia-Colorado Development Corp.

(1935) 295 U.S. 639, at 645, the Supreme Court emphasized

that “the law is clear that no relocation can be made if work

be resumed after default and before such relocation.”

Similarly, see Hickell v. Oil Shell Corp. (1970) 400 U.S. 48,

53.

In the present case, the Durands cannot challenge any

defect in any given year unless it is further proven that the

assessment work was not “resumed”.

In addition to the Supreme Court decision in Ickes v.

Virginia-Colorado Development Corp.. and Hickell v. Oil

Shell _Corp., supra the Supreme Court of the state of

California has also held.

In Pidgeon v. Lamb (1933) 133 CA 342, the court

emphasized:

“In any event, a forfeiture for failure to do the

annual labor can only be claimed by one who

make a valid location on the claim before the

resumption of labor (U.S. Rev. Stats., sec. 2324;

Madison v. Octave Oil Co., 154 Cal. 768, 773 [99

Pac. 1761.) It is conceded that defendant

performed the required annual labor since

1916, and plaintiffs did not initiate its location

until 1930. Hence, plaintiffs could not claim any

rights by reason of the alleged forfeiture for

failure to do assessment work in 1916 if that

fact be conceded.”

Also, the court, in Clark v. Mallory (1937) 22

CA2d 55, at 62, the court stated:

“... that failure to do assessment work upon a

mining claim does not operate to terminate the

G18

locator’s right in favor of a person who has

merely taken possession of the claim; the sole

effect of the failure, there being no

abandonment, was to throw the land open to

location to others, and in the absence of such

other location, the original claimant's right to

resume work and to hold his claim remains.”

The Durands question both the nature and extent of

the assessment work performed on the claims at issue

herein. During trial, they introduced no evidence to support

their allegation that the assessment work described in the

notice was not performed.

ISSUE NO.8

Invalid transfer in chain of title and recorded transfers.

It is unclear to the Court what is raised by this

particular issue since it begins with the contention that it

would have been impossible to locate various of the claims

in a one day period and then leap to the assertion that only a

quitclaim deed should be recognized when effectuating a

transfer of claims.

Again, it must be stressed that the Durands do not

have the ability to challenge the uncontested claims. As to

the contested claims, the burden of proof was on the

Durands to establish by “clear and convincing evidence”

that acts or omissions of the senior locator have caused the

real property to be reopened to location. Sampson v. Page

(1954) 129 CA2d 356, 362; Dailey v. Wallace (1954) 234 CA2d

689, 692; and Brownv. Murphy (1939)36 CA2d 171, 180.

Durand offered only three witnesses whose testimony

touched briefly on the issues relating to (1) discovery; (2)

location; (3) assessment-work; (4) impossibility of location,

etc. These witnesses were Durand, Sheldon and Witzel.

G19

LOPE SS SE ESOS

PSO SP SO RETIN VLE LER O TE

SORE A o

None of these witnesses made mention of any defect or

infirmity as to the 5 contested claims held by Arif. Neither

Sheldon, Witzel or Durand testified to or made any mention

of defects as to the Ironcloud 28, 29 and 31; or R&R 23 and

24 Claims. Sheldon had no specific recollection of being on

said claims. Witzel and Durand had no knowledge of ever

being on any of these five claims. Additionally, neither

Sheldon or Witzel testified as to defects in the Jennifer

claims.

On the converse, Novak testified that he properly

located each and every claim and performed the necessary

assessment work. Public Resource Code 3913(b) created a

prima facie presumption that the work was done.

Pepperdine v. Keys 198 CA2d 25.

As to location, Ironcloud 28, 29 and 31 were located on

November 17, 1989; and the R&R claims 25 and 26 were

located on January 29, 1976. The competing Sierra Lady

Claims Nos. 144, 145, 147, 156 and 157 were all located on

September 2, 1993 [Exhibit 32}.

As to the issue regarding the necessity of a quitclaim

deed to transfer an interest in mining claims, there is

absolutely no legal authority for such a contention.

When Mr. Durand asked Stacy Beck in her deposition

about this matter, the testimony was as follows:

Question: “If these claims were transferred - you

talked about transfer of interest. To transfer interest,

what does a transfer interest require besides

payment of fee?”

Answer: “A transfer document would need to

be filed with us that would show that, lets say, John

Doe for whatever sum of money or whatever

transf

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