Church & Mullins Corp. v. Bethlehem Minerals Co.

887 S.W.2d 321, 1992 Ky. LEXIS 94, 1992 WL 121717
CourtKentucky Supreme Court
DecidedJune 4, 1992
Docket90-SC-000081-DG, 90-SC-000784-DG
StatusPublished
Cited by20 cases

This text of 887 S.W.2d 321 (Church & Mullins Corp. v. Bethlehem Minerals Co.) is published on Counsel Stack Legal Research, covering Kentucky Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Church & Mullins Corp. v. Bethlehem Minerals Co., 887 S.W.2d 321, 1992 Ky. LEXIS 94, 1992 WL 121717 (Ky. 1992).

Opinions

JOHN DOUG HAYS, Special Justice.

This case involves two judgments of the Pike Circuit Court regarding several separate parcels of property located in Pike County, Kentucky, but known collectively throughout this litigation as Tract 42. The first judgment determined title to the property, and the second awarded damages for trespass.

This action commenced when Bethlehem Mines, hereafter Bethlehem, filed a complaint against John Johnson, claiming title to the mineral estate underlying the 375 acres of land known as Tract 42. Johnson counterclaimed claiming ownership of the surface as well as the minerals. Subsequent to initiation of this litigation, John Johnson died, and his heirs are now claimants in this pro[322]*322ceeding. Church and Muhins Corporation was and is a lessee of certain mineral rights granted to it by John Johnson.

The act which precipitated this litigation was in 1964 when a survey team from Bethlehem appeared on John Johnson’s property. John Johnson forcefully evicted them. Bethlehem, by affidavit of good title, sought and obtained an ex parte temporary restraining order from Circuit Judge Lowe which prevented Mr. Johnson from interfering with surface surveying.

In 1965, John Johnson moved to quash the restraining order. Bethlehem responded that it was using the restraining order to survey. Bethlehem further contended that the motion was premature because the rights of the parties had not been adjudicated. The court denied Johnson’s motion to quash.

Bethlehem in 1965 was in possession of a report from its attorney, Francis Rice, discussing the “ramifications and complications” involving the title to the minerals under Tract 42. That report recites many of Johnson’s claims to title. It specifically puts Bethlehem on notice that the primary deed it relies upon for title to the 375 acre tract only covers the Fleming and Estep patents. The language is as follows: “On May 12, 1890, when Denny Vanover conveyed the coal to Richard M. Broas, Vanover had no title of record, except to the land covered by the Fleming and Estep surveys.”

In 1968, Bethlehem removed in excess of 3,000 tons of coal from the disputed tracts without providing any notice to the court or Johnson that it was conducting mining operations on the disputed premises.

No further mining was conducted on the premises until 1970, at which point Johnson and another lessee leased portions of Tract 42 to Church and Mullins. Church and Mullins thereafter began mining operations of the coal underlying a 93¾ acre tract known as the “Childers Patent.” At about the same time, Bethlehem had entered the same tract, again without disclosure to the court or to any parties, and commenced mining operations. In 1971, Bethlehem filed an amended complaint adding Church and Mullins as a party defendant and seeking to quiet title to the minerals. Bethlehem sought a temporary injunction to prohibit Johnson and Church and Mullins from any further mining pending a decision on title.

Bethlehem filed a map prepared by Mr. Lewis Quick, Bethlehem’s chief property engineer, as well as an affidavit sworn to by Quick in support of the injunction. Since the court had not yet litigated the title issue, it granted the relief sought by Bethlehem. The map filed by Quick depicting Bethlehem’s mining activities was erroneous. In fact, as of the date of Quick’s affidavit, Bethlehem, contrary to the sworn declarations of Quick, had already extended its mining operations several hundred feet into the Childers Patent tract. Thereafter, Bethlehem continued mining and removed several hundred thousand tons of coal from the Childers Patent which belonged to Johnson.

In 1975, after most of the disputed coal had been mined, the parties learned of Bethlehem’s mining activity. At that point, Johnson and Church and Mullins filed their claim for willful trespass and damages.

The final decision on the question of title was made by the Pike Circuit Court in 1986. As the Court of Appeals points out, the trial judge entered a lengthy, well-reasoned opinion and judgment determining the issue of title. The Pike Circuit Court awarded title to the minerals of 164 acres underlying Tract 42 to Bethlehem, while the Johnson interests were successful in being awarded title to the remaining 211 acres of surface and minerals. The opinion of the Pike Circuit Court regarding title was affirmed by the Court of Appeals.

The trial court thereafter in a separate judgment awarded damages and prejudgment interest against Bethlehem in the amount of $16,947,778.00. The trial court found that the trespass by Bethlehem was willful, and the Court of Appeals reversed, finding that Bethlehem was an innocent trespasser. The trial court found that the prejudgment interest was in order, and the Court of Appeals reversed. The trial court awarded post-judgment interest at a rate of 10 percent, and the Court of Appeals reversed, finding that post-judgment interest should have been 12 percent, as provided by [323]*323KRS 360.040. The trial court found that Johnson and Church and Mullins were not entitled to pre-1975 damages under KRS 433.270, and the Court of Appeals affirmed. We granted review of these holdings.

The issues may be summarized as follows:

1. Whether the trial court’s determination of title accords with the trial facts and the law’s application.

2. Whether the trial court’s holding of willful trespass has a factual basis under the principles of Swiss Oil Corporation v. Hupp, 253 Ky. 552, 69 S.W.2d 1037 (1934) and relate ed cases.

3. Whether the trial judge abused his discretion in awarding prejudgment interest.

4. Whether pre-1975 damages should be awarded under KRS 433.270.

1. The Title Issue

This Court has carefully considered numerous title theories advanced by the respective parties, including those raised for the first time in this Court by the respondent. The trial court, in a very thorough, well-documented opinion, adjudicated the respective interests of the parties on the disputed premises. The appropriate standard of review is whether or not the trial court was clearly erroneous or abused its discretion. As the Court of Appeals opined, there is an abundance of title law, but in order to make application thereof there must be factual support. The Court of Appeals found that the trial court’s determination of the intricate title questions involved was not clearly erroneous. Suffice to say, this Court, upon review, cannot say the trial court erred in adjudicating the title interests of the competing parties. It is not for us to determine whether or not we would have reached a different conclusion, faced with the same evidence confronting the trial court.

Bethlehem relied to a great extent on the 1865 Gallop and Sowards survey to support its title claims. The trial court found the Gallop and Sowards survey to be void. We, along with the Court of Appeals, are not willing to go that far. However, as with the trial court and the Court of Appeals, we agree that Bethlehem faded to prove that the contested land fell within that survey.

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Church & Mullins Corp. v. Bethlehem Minerals Co.
887 S.W.2d 321 (Kentucky Supreme Court, 1992)

Cite This Page — Counsel Stack

Bluebook (online)
887 S.W.2d 321, 1992 Ky. LEXIS 94, 1992 WL 121717, Counsel Stack Legal Research, https://law.counselstack.com/opinion/church-mullins-corp-v-bethlehem-minerals-co-ky-1992.