Ellis v. Cricket Coal Co.

166 Iowa 656
CourtSupreme Court of Iowa
DecidedSeptember 30, 1914
StatusPublished
Cited by11 cases

This text of 166 Iowa 656 (Ellis v. Cricket Coal Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ellis v. Cricket Coal Co., 166 Iowa 656 (iowa 1914).

Opinion

Ladd, C. J.

O. S. Ellis purchased the coal beneath the surface of forty-four acres of land, and on February 9, 1906, disposed of the same to the Cricket Coal Company by contract, under the terms of which the latter undertook ‘ ‘ to commence mining or paying royalty on said coal on the 1st day of April, 1906, and to prosecute the same with reasonable dispatch, taking into consideration the demands of the trade, excepting also any strikes, lockout, or unavoidable accidents, and to continue such mining of such coal until all the merchantable and minable coal is taken from said land.”

The company agreed to pay Ellis “the sum of six and one-fourth cents per ton for all lump coal mined from said land and passing over the regulation screen. In case said mine should be operated upon a mine run basis, then the royalty is to be changed from six and one-fourth cents per ton [658]*658for lump coal to four and one-fourth, cents per ton for all coal mined from said land on such basis. ’ ’ It also undertook “to mine or pay royalty on not less than an average of one 1 thousand tons each calendar month for six months, beginning April 1, 1906, and for the next succeeding six months not less than an average of fifteen hundred tons per month, and after April 1, 1907, second party is to mine not less, than an average of seventeen hundred tons per month for each calendar month, and all money paid as royalty, in excess of the sum produced from such mining at six and one-fourth cents per ton for lump coal or four and one-fourth cents per ton for mine run coal, shall be considered as advanced royalty and shall apply on the next or any succeeding months royalty during the life of this contract. ’ ’

The company was not required to mine coal from a vein less than three feet and nine inches thick, and the contract continued “for a period of twenty years or until all the merchantable and minable coal in said mine has been exhausted.” The company mined coal from the premises until about October 1,1911, and in this action plaintiff sought to recover the minimum royalty from that time until February 1, 1913, which, if recoverable, would amount to $1,806.25. He alleged “that all the real estate herein described is underlaid with a seam of minable coal that is over three feet nine inches in thickness, and is good merchantable coal, and that all of said coal can be mined by the Cricket Coal Company at a profit.”

The defendant denied that there remained any minable coal underlying said land three feet and nine inches in thickness, and averred that, for “a long time prior to the abandonment of the property referred to, the said coal ceased to be minable and merchantable, and that this defendant mined said coal at a financial loss, until it was unable to dispose of the same in the coal market.”

Trial resulted in a judgment for the defendant, subsequent to which Ellis departed this life, and the administrator [659]*659cf the estate left by him was substituted as appellant and is prosecuting this appeal.

Fifty-seven errors are assigned, though but eight of these have been argued, save by way of suggestions in connection with the assignments. The preferable practice is to assign only such errors as are argued, and to print these apart from the brief points and the argument; the latter being in paragraphs corresponding with the assignments. It is enough to say that only those touched in the argument are debatable.

II. The defense was not, as appellant appears to assume, that defendant abandoned the contract and was released therefrom because of- the coal not being minable and i mines and pleadings1^86 "' eonstruction. merchantable, but that, by reason thereof, it terminated. B'y the express terms of the contract, it was to continue twenty years, or “until all the merchantable and minable coal in said mine has been exhausted,” and the company undertook only “to continue such mining of such coal until all the merchantable and minable coal is taken from said land.” If, then, all coal of this character had been removed when defendant ceased to work the mine, the contract was at an end, and all liability thereon ceased. As subsequently there was no contract, there could not be a breach thereof, and, as a consequence, no liability for a minimum royalty. The authorities relied on by appellant construe contracts relating solely to the validity of a stipulation to pay a minimum royalty at last, even though a sufficient quantity of coal to equal that amount, at the price fixed, be not removed, and do not consider the effect of a condition that the contract shall terminate with the exhaustion of coal of a specified character. See Lehigh Co. v. Wright, 177 Pa. 387 (35 Atl. 921); Timlin v. Brown, 158 Pa. 606 (28 Atl. 236); Coal Creek Co. v. Tenn. Co., 106 Tenn. 651 (62 S. W. 169).

Here the limit agreed upon is the exhaustion of the minable and merchantable coal, and this ordinarily should be [660]*660regarded equitable between the parties, and certainly has so proven in this instance, for Ellis paid $4,400 for the coal and received more.than $6,400 in royalties within five years. As seen, the contract was to continue not longer than the coal was minable and merchantable, and, if that had been removed, was at an end.

III. The court instructed the jury that the burden of proof was upon plaintiff to prove, by a preponderance of the evidence, that there remained, under the surface of the land „ . den of proof, described, merchantable and minable coal. To plaintiff takes exception on the theory that defendant, in pleading that no such coal remained, was setting up a release or discharge from further performance of the contract. But this is not so. The defendant did not undertake to mine or pay royalty longer than “until all the merchantable and minable coal is taken from said land,” and that event terminated the contract, for it was to “continue for a period of twenty years or until all the merchantable and minable coal in said land has been exhausted. ’ ’ This was not specified as a condition releasing liability, but as marking the termination of the contract. The burden was on the plaintiff to prove that the contract was in force and a breach thereof in order to recover, and this could only be done by establishing the fact that all the minable and merchantable coal had not been removed when defendant ceased mining therefrom. Had defendant relied on some exception or conditional release or discharge, there would be much force to appellant’s argument, but, as the continuing existence of the contract and the breach relied on depended on the character of coal, the court did not err in imposing the burden of proof on plaintiff.

IY. The court instructed that:

The term 'merchantable and minable coal,’ as used in these instructions, means coal that can be mined and sold at some profit to the operator, with reasonable expenditure, labor, [661]*661and effort, in accordance with, the methods approved among practical miners in that territory.

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Bluebook (online)
166 Iowa 656, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ellis-v-cricket-coal-co-iowa-1914.