Couch v. Welsh

66 P. 600, 24 Utah 36, 1901 Utah LEXIS 63
Utah Supreme Court·Decided November 13, 1901·No. No. 1304·Published·Cited by 13 cases

Opinion

BAETOH, J.

This action was brought to recover damages for the removal by the respondents of certain improve[44] ments from certain mining claims. From the record it appears that on May 5,1899, the appellants, who were the owners of the mining claims, executed a bond and lease to Ernest G. Miller and Peter Me Court, who then assigned the same to the respondent Huntsman Copper Mining Company. The contract thus assigned contained a covenant granting to the lessees the exclusive right to purchase the mining claims at a stipulated price, and also covenants obligating the lessees to perform certain work upon the claims to improve the same, with the right to mine and sell the ore, and to pay to the lessors certain amounts as royalty, all of which amounts so paid, if any, to apply as part payment of the purchase price in the event of the election by the lessees to purchase the claims, and of their compliance with the conditions of the bond and lease. The contract also provided for forfeitures of all the rights of the lessees, together with all moneys, if any, paid as part of the purchase price, in ease of a failure to comply with the conditions of tire agreement. After the execution and assignment of the bond and lease the respondent company went into possession of the property, and, among other things, erected thereon a bunk house and boarding house, and also constructed a track of iron or steel rails in the tunnel, all of which were used in operating the mine. These buildings and track the respondents, while yet in possession, removed from the claims; and thereafter the lessors declared a forfeiture, claiming a failure or refusal on the part of the lessees to carry out the provisions of the agreement. At the trial, after the plaintiffs rested their case, the court, upon motion of the defendants, granted a nonsuit, and at the same time directed the jury to return a verdict,“No cause of action,”' in favor of the defendants. Thereupon judgment was entered accordingly, and this appeal prosecuted.

The decisive question presented is whether the respondents had the right, under the contract, to remove the buildings and track during the term, and while in possession of the [45] mining claims. It is insisted by the appellants, as appears, that the bond and lease constituted simply a contract of 1 purchase, that the relation of landlord and tenant did not exist, and that the buildings and track in dispute were fixtures of a permanent character, and formed a part of the realty. In neither of these propositions are we able to concur. The contract contains essential characteristics of a lease. On its face it appears that the lessors were “desirous of leasing” as well as selling the property. In-the agreement they “grant, lease, and demise” the mining claims, fix the term of the lease, and provide for work to be performed, which is to be “not less than ninety shifts” each month “during the term of the lease.” Rent is reserved by way of royalty, and the manner of its payment stipulated. Eorfeiture and surrender of possession are provided for in the event of a failure on the part of the lessees to perform any of the covenants of the lease to be performed by them. These are elements of a lease. In fact, an examination of the instrument shows that the evident design of the lessors was to lease the mining claims and grant to the lessees the privilege to purchase them, and the mere fact that the agreement also contains a covenant granting the “privilege of purchasing” the demised premises does not destroy its character as a lease. Nor is such a covenant inimical to the existence of the relation of landlord and tenant between the parties prior to the exercise of the privilege. 18 Am. and Eng. Ency. Law (2 Ed.), 169; Clifford v. Gressinger, 96 Ga. 189, 22 S. E. 399; Nobles v. McCarty, 61 Miss. 456; Hartwell v. Black, 48 Ill. 301; Barrett v. Johnson, 2 Ind. App. 25, 27 N. E. 983; Crinklev v. Egerton, 113 N. C. 444, 18 S. E. 669; Holbrook v. Chamberlin, 116 Mass. 155, 11 Am. Rep. 146. Nor does the fact that the contract provides for the payment of royalty, instead of rent in money, change the character of the-instrument, or prevent the creation of the relation of landlord and tenant. Rent may be made payable otherwise than in-money. 2 Bl. Comm., 41.

Free access — add to your briefcase to read the full text and ask questions with AI

Couch v. Welsh, 66 P. 600, 24 Utah 36, 1901 Utah LEXIS 63 (Utah 1901).

66 P. 600 (Couch v. Welsh) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Patel v. Comm'r
138 T.C. No. 23 (U.S. Tax Court, 2012)
Upen G. Patel and Avanti D. Patel v. Commissioner
138 T.C. No. 23 (U.S. Tax Court, 2012)
Milburn By-Products Coal Co. v. Eagle Land Co.
93 S.E.2d 231 (West Virginia Supreme Court, 1956)
Midwest Fuel & Timber Co. v. West
106 F.2d 973 (Tenth Circuit, 1939)
Chatham Gold Dredging Co. v. Burns
84 F.2d 717 (Ninth Circuit, 1936)
Powell v. Hammon Consol. Gold Fields
8 Alaska 53 (D. Alaska, 1928)
Bennetts v. Silver Bow Amusement Co.
211 P. 336 (Montana Supreme Court, 1922)
Union Trust Co. v. Branch Mint Operating Co.
134 N.W. 65 (South Dakota Supreme Court, 1912)
Smalley v. Rio Grande Western Ry. Co.
98 P. 311 (Utah Supreme Court, 1908)
Williams v. Eldora-Enterprise Gold Mining Co.
35 Colo. 127 (Supreme Court of Colorado, 1905)
Guthiel v. Gilmer
76 P. 628 (Utah Supreme Court, 1904)