Easley Coal Co. v. Brush Creek Coal Co.

112 S.E. 512, 91 W. Va. 291, 1922 W. Va. LEXIS 121
CourtWest Virginia Supreme Court
DecidedMay 23, 1922
StatusPublished
Cited by21 cases

This text of 112 S.E. 512 (Easley Coal Co. v. Brush Creek Coal Co.) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Easley Coal Co. v. Brush Creek Coal Co., 112 S.E. 512, 91 W. Va. 291, 1922 W. Va. LEXIS 121 (W. Va. 1922).

Opinion

POFFENBARGER, PRESIDENT:

By the decree complained o’f on this appeal, a bill .by a mining corporation claiming right to an assignment of one [293]*293of two certain leases of land for coal mining purposes, against the lessor and a former assignee of the leases, praying specific performance of an agreement to assign and an injunction inhibiting the lessor from proceeding at law to eject the complainant from the property embraced in the lease it claims to have contracted for, was dismissed, after full development of the cause in respect of both pleadings and evidence.

But little dispute as to the facts is found in the record. The rights of the parties are determinable, for the most part, by application of the law to a state of facts disclosed by documentary evidence, the lease, a clause therein, forbidding assignment without the consent of the lessor in writing, and the previous assignment made with such consent. The vital and controlling inquiry in the cause seems to be the effect of the lessor’s written assent to the prior assignment. For the plaintiff and one of the defendants, the former as-signee, it is insisted that the lessor, by such assent, exhausted the right and power reserved to it, by the restrictive clause, and that further assignments can be made without its consent. In other words, it is claimed that, by reason of the assent to the assignment, the lease in the hands of the as-signee may now be assigned as freely as if no restriction upon assignment had been inserted in it.

The two leases are both dated, May 24, 1917, and were executed to A. J. Dalton and Edward H. Butts, by the Coal River Mining Company. Clause 17 of each of them reads; ‘ ‘ This lease shall not be assigned or mortgaged by the lessees, or any part thereof sub-let, except by consent of the lessor in writing.” An assignment of both was made by Dalton and Butts, to the Brush Creek Coal Company, a corporation, and bears date, June 19,1918. It contains a preamble reciting the execution of the leases, the said 17th clause of each, an understanding and agreement that the lessees would transfer them to a corporation to be organized by them, and the desire of the Brush Creek Coal Company, to accept them, under the terms and conditions therein contained, as in the assignment set out. For and in consideration of one dollar and a royalty of three cents per ton, on all coal mined, used, manu[294]*294factured or removed from the property, the lessees bargained,sold, transferred and assigned to said company, its successors and assigns, all of their property rights and privileges as set forth in the leases, and by stipulation, made the leases parts of the deed of assignment and required said deed to be recorded in connection with them. Another stipulation or covenant reads in part: “The Brush Creek Coal Company hereby assumes and will faithfully fulfill all of the terms and conditions imposed upon the said A. J. Dalton and E. H. Butts in the lease agreements hereby assigned. ’ ’ The formal parties to the deed of assignment are Dalton and Butts of the first part and the Brush Creek Coal Company of the second; but the Coal River Mining Company joined them in the execution thereof, by way of assent to the assignment and such assent is expressed in these words: “The Coal River Mining Company by its duly authorized representatives hereby assents to the assignment of said lease agreement to the Brush Creek Coal Company as witnessed by its signature. ’ ’

One of the leases embraces two lots or parcls of land containing in the aggregate 1,635.40 acres, designated Leases Nos. 6 and 7. The other covers four tracts containing in the aggregate 2,790.99 acres, designated Leases Nos. 4, 5, 8 and 9. The contract for a second assignment, enforcement whereof is sought by the bill, is limited to Lease No. 6, containing about 600 acres, and part of Lease No. 7, containing about 735 acres. As to No. 6, there is a written memorandum of the agreement, but, as to No. 7, the agreement was oral.

At the date of execution of ithe two leases, the country in which the land lies seems to have been new and undeveloped, wherefore they were not made effective in all respects, if at all, until after the lessor had constructed a railroad into the territory. By the 20th clause of each lease, it wms provided, that it should not go into effect, except upon conditions set forth in certain agreements between the parties, to which it was annexed. But, by declarations written in them, they were both made effective on and after August 1, 1918, one such declaration having been made by Dalton and Butts and the other by the Brush Creek Coal C.ompanj'-.

[295]*295The negotiations for the assignment from the Brush Creek Coal Company, of Lease No. 6 and Lease No. 7, were commenced about May 1, 1920, and resulted in an agreement as to Lease No. 6, about May 8, 1920. On that date, a letter in duplicate was written bj« the Brush Creek Coal Company, to Fred Easley, promoter or organizer of the Easley Coal Company, in which the assignment and the terms thereof 'were proposed. It seems to have been intended that Easley’s signature to one copy of the letter should constitute an' acceptance of the proposal and convert it into a contract. By a later oral agreement, Lease No. 7 was included. In the letter, the writer agreed to obtain the written consent of the lessor to the transfer of Lease No. 6. From early in May until about June 30, 1920, there was correspondence between the lessor, on the one hand, and Easley and the Brush Creek Coal Co., on the «either, concerning the alttempited assignment, in the course of which the Coal River Mining Co. quoted the Easley Coal Co. prices on some timber on the land, it needed. The desired assent to the assignment was withheld and, about the last of June, 1920, notices were given the Easley Coal Company and the Brush Creek Coal Company, to vacate the property, the former, on the ground that, it had never had any right, and the latter, on the ground that its right had been forfeited by its attempt to assign without consent. At that time, the Easley Coal Company had expended in cash, on the property, about $1,350.00, and, from that time until Dec. 31, 1920, its expenditures increased to about $148,367.66; but it has mined considerable coal from the land. ’ The notice was served on the Brush Creek Coal Company, sometime in July, 1920. It was broad enough in its terms to include both leases and advised that a suit in ejectment to obtain possession of the premises,'would be instituted as soon as possible, unless they should be surrendered without litigation. In view of these notices and the threat of procedure by ejectment against both companies, this suit was instituted for the purposes already stated and a temporary injunction obtained against the Coal River Mining Company.

[296]*296The pleadings filed by the respective parties seem to have brought all of them and their interests: into the suit fully enough for inquiry and determination of their rights. The Coal River Mining Company answered the bill and amended bill. The Brush Creek Coal Company also answered, admitting practically all of the allegations of the bill, and then set up matter as ground for relief against its codefendaut and virtually joined in the prayer of the bill. On this pleading process issued against the Coal River Mining Company. Then it, further answering, put in a special reply in writing to the alleged new matter of its codefendant’s answer. All three of the parties interested in the subject matter of the controversy are thus before the court, with their pleadings and evidence.

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Bluebook (online)
112 S.E. 512, 91 W. Va. 291, 1922 W. Va. LEXIS 121, Counsel Stack Legal Research, https://law.counselstack.com/opinion/easley-coal-co-v-brush-creek-coal-co-wva-1922.