East Kentucky Energy Corp. v. Niece

774 S.W.2d 458, 106 Oil & Gas Rep. 42, 1989 Ky. App. LEXIS 99, 1989 WL 81233
CourtCourt of Appeals of Kentucky
DecidedJune 23, 1989
DocketNo. 87-CA-2455-MR
StatusPublished

This text of 774 S.W.2d 458 (East Kentucky Energy Corp. v. Niece) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
East Kentucky Energy Corp. v. Niece, 774 S.W.2d 458, 106 Oil & Gas Rep. 42, 1989 Ky. App. LEXIS 99, 1989 WL 81233 (Ky. Ct. App. 1989).

Opinion

HOWARD, Judge.

The appellant in this case appeals from a judgment of the Knott Circuit Court in which a deed that was the basis of the appellant’s claim of ownership was construed to only convey a life estate with a contingent remainder and not a fee simple estate.

On January 1, 1897, James King executed a deed to his wife, Drucilla, concerning certain property in Knott County. That deed provides in pertinent part:

This deed of conveyance made and entered into this 1st day of January 1897 between James King of Knott County, Kentucky party of the first part and Drucilla King of the same county and state aforesaid of the second part. Witnesseth, that said party of the first part for and in consideration of the sum of Five hundred dollars, cash in hand paid, the receipt whereof is hereby acknowledged, do hereby sell and convey to the party of the second part & her heirs and the following described property to wit:
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The conditions of this conveyance is such that at the death of said Drucilla King that the above lands is to descend to the heirs of her body belonging to the said Grantor James King, and that the said James King is to use and control the said land during his natural life.
To have and to hold the same together with all the appurtenances thereunto belonging unto the party of the second part her heirs and forever. And the said party of the first part hereby covenants with said party of the second part that he will warrant the title to the property hereby conveyed unto the said party of the second part and her heirs and forever.

In 1903, James and Drucilla executed a mineral deed to Duncan Coal & Iron Co. for a tract which was part of the property conveyed in the 1897 deed. In 1905, a similar mineral deed was executed regarding a second tract to the Northern Coal & Coke Company. These two deeds are the basis of the claim of title by the appellant, East Kentucky Energy Corporation.

James and Drucilla had seven children. James predeceased Drucilla and three of the children died before Drucilla passed away in 1936. The four remaining children or their representatives are appellees. These heirs of Drucilla made a coal lease to the appellees, Wilford Niece and Apple Tree Mining Company. Niece and Apple Tree Mining began to mine the area in question in the early 1980’s.

On May 18, 1984, the Bethlehem Mines Corporation instituted the action at bar to enjoin Apple Tree from mining on the two tracts. The injunction was not granted, but the suit was allowed to proceed with the royalties from the mining being placed in escrow. Because Bethlehem’s interest was apparently transferred to the appellant, the trial court granted a motion for substitution of parties on February 4,1986.

A hearing on the question of title was held on December 16, 1986. Briefs were then submitted and on September 8, 1987, the trial court rendered its findings of fact and conclusions of law.

The trial court ruled that Drucilla was conveyed a life estate under the 1897 deed and that James retained a life estate. It also ruled that the bodily heirs of Drucilla, belonging to James, took a contingent remainder interest which vested at the time of Drucilla’s death.

Because the appellees had allegedly satisfied the elements of a claim of adverse possession, with the possible exception of [460]*460completion of the 15-year period, the trial court further ruled that the transfer of the property from Bethlehem to the appellant was champertous. Consequently, the trial court voided that transfer. This appeal follows.

The appellant first contends that Drucilla King was granted fee simple title under the 1897 deed.

For support of its position, the appellant relies heavily on Humphrey v. Potter, Ky., 70 S.W. 1062 (1902). In that case, the deed in question provided in the granting clause as follows: “to have and to hold to said second part, his heirs and assigns, forever.” A later clause in the deed provided “and after the death of said second part the land hereby conveyed shall go to the children of M.T. Potter by his first wife, and to no one else.” The court stated that the grantee was first given fee simple title and the subsequent clause was an attempt to reduce the fee to a life estate. The court, citing other cases, held that when the words of the granting clause indicate the conveyance of a fee simple with no limitation, a later clause may not reduce that estate.

In Combs v. Hounskell, Ky., 347 S.W.2d 550 (1961), the Court stated that a deed is to be construed so as to give effect to the intention of the parties as it can be gathered from the language as a whole. Thus, “[t]he old rule that the estate conveyed by the granting clause could not be diminished by a later provision in the deed is no longer followed.” Id. at 552. While Humphrey, supra, was not expressly overruled in Combs, supra, the rule relied upon by the appellant is no longer in use.

The appellant also questions whether the subsequent clause in the King deed actually creates a life estate. For example, the appellant argues that the phrase “on Dru-cilla’s death the lands are to descend to the heirs of her body belonging to ... James” are words of limitation, i.e. showing what estate is conveyed, not words of purchase. Thus, it is argued that this phrase shows the intention that the heirs take by inheritance.

Also, the appellant points out that the deed clearly created a life estate in James. Thus, if the parties wished to create a life estate in • Drucilla, the appellant asserts that they obviously knew how to do so.

A life estate is a freehold interest in land where the term continues during the life of the owner or some other person. English v. Carter, 300 Ky. 580,189 S.W.2d 839 (1948). The most obvious way to create a life estate would be to state “to A for his lifetime.” See Combs, supra, or “for and during her life,” Clark v. McGrann, 274 Ky. 1, 117 S.W. 1021 (1938). Further, as previously stated, the parties agree that the conveyance to James King “during his natural life” created a life estate.

But under the definition of a life estate, it appears to us that life estate arises whenever the deed as a whole expresses the intent of the grantor that the term of the estate conveyed would be measured by the lives of one or more persons. Moynihan, Law of Real Property, Chap. 2 § 10. Thus, when A, owner in fee simple, conveys “to B until he dies” or “to B and at his death to B’s children” a life estate for B is created. Id.

Because the deed states that at the death of Drucilla the property would “descend” to certain heirs, we conclude that the estate conveyed to Drucilla was to continue for her life. KRS 381.090

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Bluebook (online)
774 S.W.2d 458, 106 Oil & Gas Rep. 42, 1989 Ky. App. LEXIS 99, 1989 WL 81233, Counsel Stack Legal Research, https://law.counselstack.com/opinion/east-kentucky-energy-corp-v-niece-kyctapp-1989.