Bullion Monarch Mining, Inc. v. Barrick Goldstrike Mines, Inc.

Bullion Monarch Mining, Inc. (Bullion) (plaintiff) sued Barrick Goldstrike Mines, Inc. (Barrick) (defendant) to enforce a 1979 mining contract entered into by each party’s predecessor. Under the contract, Bullion’s predecessor allowed Barrick’s predecessor, a mine operator, to develop Bullion’s predecessor’s mining claim in the Carlin Trend, meaning Bullion’s predecessor’s property in the Carlin Trend on which it had the right to develop and extract minerals. The contract included an area-of-interest provision that required Barrick’s predecessor to pay Bullion’s predecessor royalties on production from Barrick’s predecessor’s operations on any mining claims that Barrick’s predecessor subsequently acquired in the same area for 99 years. Many years later, after the original parties’ interests had transferred to Bullion and Barrick, Bullion sued Barrick to recover royalties allegedly owed under the area-of-interest provision. Barrick argued that it was not liable to pay any royalties because the area-of-interest provision violated the rule against perpetuities and was therefore void. The federal district court held in Barrick’s favor. On appeal, the Ninth Circuit certified a question to the Nevada Supreme Court, seeking guidance as to whether Nevada’s rule against perpetuities applied to the area-of-interest provision.