Carlson v. Kentucky Ridge Coal Co.

125 F. Supp. 257, 1954 U.S. Dist. LEXIS 2643
CourtDistrict Court, E.D. Kentucky
DecidedNovember 1, 1954
DocketNo. 696
StatusPublished
Cited by3 cases

This text of 125 F. Supp. 257 (Carlson v. Kentucky Ridge Coal Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carlson v. Kentucky Ridge Coal Co., 125 F. Supp. 257, 1954 U.S. Dist. LEXIS 2643 (E.D. Ky. 1954).

Opinion

FORD, Chief Judge.

The plaintiffs are the owners of approximately five hundred acres of mountain land located on the waters of Simms Fork and Big Camp Branch in Bell County, Kentucky. This land is underlaid with seams of coal and growing upon the surface is a considerable amount of merchantable timber.

On July, 3, 1944, the plaintiffs entered into a contract with the corporate defendant Kentucky Ridge Coal Company (hereinafter referred to as Kentucky Ridge), by the terms of which they leased their land to Kentucky Ridge for coal mining and coke making purposes for a period of thirty years from the date of the contract and granted to the lessee the right

“To cut and use any and all timber under fifteen (15) inches in diameter two (2) feet above the ground which may be located on the premises above described and owned by the first parties, necessary and proper to equip, construct, maintain and operate the mines, road, inclines, tramways, buildings, and any other structures in connection with the mining operations of the second party located in the vicinity of Crocket, or Field, Kentucky; excepting and excluding all boundary, corner, and line trees; * * * »

In addition to the right thus granted, the contract further provides:

“* * * first parties for the consideration of Twenty Five Hundred ($2500.00) Dollars, cash in hand, paid, receipt of which is acknowledged, do hereby sell, transfer and convey unto the second party absolutely all of the timber of all kinds located on the leased premises which measures fifteen (15") in diameter and up, two (2) feet above the ground, and the second party is given the right to cut and remove the same for any purposes at any time during the life of this lease.” (Italics added).

On September 22, 1953, the defendant Kentucky Ridge entered into a contract with it’s co-defendant by the terms of which it purported to sell to defendant McCracken & McCall, Inc., the timber of all kinds except boundary, corner and line trees located on plaintiffs’ lands measuring 15 inches and up in diameter, two feet above the ground “at the time of cutting”, with the right to cut and re[259]*259move such timber within a period of six years after January 1, 1954, and “a right of way leading up Big Camp Branch from the highway running along the left fork of Straight Creek, wide enough for the purpose of removing the timber from the premises, and for transportation of men and materials used in the timbering operation contemplated hereby.”

Claiming that the true agreement between the parties in respect to the timber measuring fifteen inches and up contemplated merely the right to cut and use it on the premises for mining purposes only; that the provision of the contract providing for the absolute sale thereof with the right to cut and remove it for any purposes was inserted in the contract “by mistake, oversight or by the fraud of the agents, servants and employees” of Kentucky Ridge; that the sale of the timber under the contract with McCracken & McCall was without plaintiffs’ written consent and is precluded by a provision of the contract which forbids assignment or transfer of the lease or subletting of the premises without the written consent of the lessors; and that by the terms of the contract Kentucky Ridge acquired only the right to cut such timber as was 15 inches and up as of July 3, 1944, the date of the agreement, plaintiffs seek to have the contract of July 3, 1944, with the defendant Kentucky Ridge reformed accordingly, to have the contract of sale of the timber to McCracken & McCall declared void, and to have the defendant McCracken & McCall enjoined from entering upon the property and from removing any of the timber therefrom.

Upon the above issues the case was tried to the Court and is now submitted for judgment.

In respect to the claim of the plaintiffs for reformation of the contract with Kentucky Ridge which they executed and acknowledged on July 3, 1944, the plaintiffs assume a heavy burden of proof under principles long established. Brown v. L. V. Marks & Sons Co., D.C., E.D.Ky., 64 F.Supp. 352, 355.

In Sears, Roebuck & Co. v. Lea, 6 Cir., 198 F.2d 1012, 1015, it is said:

“It is the settled rule in Kentucky that one who signs a contract is presumed to know its contents, and that if he has an opportunity to read the contract which he signs he is bound by its provisions, unless he is misled as to the nature of the writing which he signs, or his signature has been obtained by fraud. Kentucky Road Oiling Co. v. Sharp, 257 Ky. 378, 388, 78 S.W.2d 38; United Talking Machine Co. v. Metcalfe, 174 Ky. 132, 137, 191 S.W. 881; White Sewing Machine Co. v. Smith, 188 Ky. 407, 409, 222 S.W. 81; Brenard Manufacturing Co. v. Jones, 207 Ky. 566, 568-569, 269 S.W. 722.”

The grant of equitable relief by way of reformation of a contract to embrace terms alleged to have been omitted from the instrument is limited to those cases where the omission was the result of mutual mistake of the parties or mistake of one party and fraud or inequitable conduct of the "other. Where such omission is only by the mistake of one of the parties and the other party is free from fraud or inequitable conduct, the instrument cannot be reformed to embrace such alleged omitted terms “because to do so would be to make a contract for the parties which they have never made”. Scott v. Spurr, 169 Ky. 575, 577, 579, 184 S.W. 866, 868; Hayes v. Hudson, 209 Ky. 657, 273 S.W. 524. To justify such reformation, evidence of mutual mistake or mistake by one party and fraud or inequitable conduct on the part of the other party, considered in the light of the character of the testimony, the coherency of the whole case, the documents and all the attendant circumstances, must be clear and convincing. Indeed many of the authorities on the subject in Kentucky and elsewhere require that the evidence must be so clear, decisive, explicit and satisfactory as to convince the court beyond all reasonable controversy. Chinn v. Baxter, 203 Ky. 630, 633, 262 S.W. 974. The importance [260]*260of maintaining stability of duly executed writings by adherence to these principles has frequently been emphasized by the courts of Kentucky and by the Supreme Court. Maxwell Land-Grant case, (U. S. v. Maxwell Land Grant Co.), 121 U.S. 325, 381, 7 S.Ct. 1015, 30 L.Ed. 949; Campbell v. Northwest Eckington Co., 229 U.S. 561, 584, 33 S.Ct. 796, 57 L.Ed. 1330; Philippine Sugar Estates Development Co. v. Government of Philippine Islands, 247 U.S. 385, 38 S.Ct. 513, 62 L.Ed. 1177.

The contention of the plaintiffs that, by fraudulent conduct of the agents of the defendant Kentucky Ridge, they were led to believe that the provisions of the contract relative to the sale of timber, limited the use of the timber to mining purposes only, is not sustained by the preponderance of the evidence.

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125 F. Supp. 257, 1954 U.S. Dist. LEXIS 2643, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carlson-v-kentucky-ridge-coal-co-kyed-1954.