John D. Archer And Elizabeth Basham Archer

Plaintiffs-appellants, the Archers, brought this action to rescind and terminate certain lease agreements which they had entered into with defendant-respondent Mountain Fuel Supply Company, and to rescind and terminate a sublease agreement between Mountain Fuel and defendant-respondent Beker Industries Corp. The Archers also sought damages for nonpayment of royalties. The leases involved are phosphate leases which the Archers originally obtained from the Department of the Interior. The Archers complaint sought relief based upon the failure of Mountain Fuel and Beker to mine and develop the leases. Both Mountain Fuel and Beker Industries moved for summary judgment, arguing that as a matter of law they had no duty to mine and develop the property, and that even if they had such a duty the Archers were barred from pursuing this action by the res judicata effect of a settlement agreement and judgment entered in Utah in 1971, following a dispute between the Archers and Mountain Fuel. The district court granted the summary judgment motion without specifying a basis for its decision. On denial of the Archers motion for reconsideration and/or clarification, the court indicated "[by] reason of the stipulated judgment in the State of Utah and the absence of controversial facts since that judgment leaves the Court without a controversy to be settled by trial." We affirm but on the alternative grounds[Footnote 1] which were urged upon the trial court.