This is a suit by the United States to quiet its title to a large area of tule marsh lands lying northwest of the Mare Island Navy Yard in San Pablo Bay in California. United States v. O'Donnell, 303 U.S. 501, 58 S.Ct. 708, 82 L.Ed. 980, was a similar suit to quiet the Government's title to marsh lands lying between the high land on which the Navy Yard is located and the lands in controversy, which terminated favorably to the Government. In both cases the Government deraigned title through a grant by the Mexican Governor of California to one Castro and certain mesne conveyances by Castro and his grantees. In both cases the defendants claimed title under the State of California on the theory that the State acquired the lands under the Swamp Lands Act of September 28, 1850. The O'Donnell case involved the validity of the grant to Castro, the validity of the decree of the Board of Land Commissioners confirming that grant, the question of priority of right as between the United States as purchaser of the land granted to Castro and the State of California and its grantees under the Swamp Lands Act. The decision in that case settled these questions in favor of the Government.
In the O'Donnell case it was contended that the lands there in controversy were not embraced within the grant to Castro. The District Court found against the contention and the Circuit Court of Appeals approved the finding. We refused to review the concurrent findings of the lower courts.
In the present case, the petitioners do not contest the rulings in the O'Donnell case. Their defences are that their lands, which they hold under patents issued for swamp and overflowed lands, under the Swamp Lands Act, were never part of the land granted to Castro by the Mexican Governor and further that, if they were, the decision in San Francisco Savings, Union v. Irwin, C.C., 28 F. 708, affirmed 136 U.S. 578, 10 S.Ct. 1064, 34 L.Ed. 540, constitutes a ruling as to their title which ought now to be followed. In addition, they claim that the action of the United States is barred by the Act of March 3, 1891 which prohibits suit by the United States to annul any patent after six years from the date of issue. They also contend that laches, estoppel, and failure to undertake to do equity as a condition of obtaining the desired relief require a decree dismissing the bill.
The case was tried before the same District Judge who presided at the trial of the O'Donnell case. Upon the basis of the pleadings and proofs, he made, inter alia, the following findings of fact bearing upon the defence that the lands in controversy were not included in the grant to Castro or the confirmation thereof and hence never passed to the United States as ultimate transferee of Castro's title:
That none of the lands involved was ever a part of Mare Island.
That none of these lands was, either at the time of the grant to Castro or at the time of the proceedings for confirmation of the grant, a part of the lands known as, or referred to as, or by the name of Mare Island.
That none of the lands was embraced in or covered by the grant of Mare Island to Castro.
That none of the lands was ever occupied by, or in possession of, Castro.
That none of the lands was claimed as a part of, or to be a part of, Mare Island.
That none of the lands was covered by, or embraced within, the confirmation proceedings or the order of confirmation of the Board or the decree of the District Court confirming the order of confirmation of the Board.
That none of the lands was purchased or acquired by the United States as part of its purchase of Mare Island.
The judge also further made findings that the petitioners' title was derived from the United States through the State of California under the Swamp Lands, Act. He concluded the action was barred by the Statute of Limitations and that the United States was not the owner of the lands in suit.
The Circuit Court of Appeals reversed the decree by a vote of 2 to 1. The dissenting judge said: 'The District Court found, in effect, that the 'place' which at the time of the grant to Castro and at the time of the confirmation to Bissell and Aspinwall was called Isla de la Yegua or Mare Island did not include any of the land here in controversy. The finding is amply supported by evidence.'