Estate Property Corp. v. Hudson Coal Co.

139 Misc. 808, 249 N.Y.S. 418, 1931 N.Y. Misc. LEXIS 1236
CourtNew York Supreme Court
DecidedApril 7, 1931
StatusPublished
Cited by3 cases

This text of 139 Misc. 808 (Estate Property Corp. v. Hudson Coal Co.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Estate Property Corp. v. Hudson Coal Co., 139 Misc. 808, 249 N.Y.S. 418, 1931 N.Y. Misc. LEXIS 1236 (N.Y. Super. Ct. 1931).

Opinion

Untermyer, J.

On November 17, 1898, Frances Hackley, the owner of a tract of coal land in Pennsylvania, leased the exclusive right to mine thereon for coal to the Dolph Coal Company, Ltd. By that lease the tenant agreed, among other things, to construct such improvements as might be necessary for the proper working of the mine. The lease further provided that “ at the expiration of said term the said lessee shall and will leave upon the premises all buildings, breakers, railroads, fixtures or improvements that may be erected thereon in reasonably good repair ” and that all such improvements should “ become and remain absolutely the property of said lessor, her heirs or assigns, on the expiration, forfeiture or other termination of said lease.”

On July 3, 1916, the Dolph Coal Company assigned its lease to the defendant. While in possession of the premises, and shortly before July, 1920, the defendant removed a substantial quantity of steel rails, which had been laid by its predecessor, the Dolph Coal Company, for the transportation of coal in connection with the working of the mines. Thereafter, on July 8, 1920, the defendant assigned all its rights under the lease to the Humbert Coal Company, which since then has been in possession of the Hackley tract, operating the mines under the lease and paying the stipulated rents or royalties. In connection with its operation of the mines the Humbert Coal Company appears to have relaid upon the Hackley tract at least as much rail as the defendant had removed.

In 1919 the plaintiff acquired and is now the owner of the premises. It was, therefore, the owner when, in 1920, the defendant, then in possession by assignment of the lease, removed the rail. Although there is no privity of contract between the parties here, there was such privity of estate at the time of the removal of the property as would entitle the plaintiff to maintain this suit. (Mann v. Munch Brewery, 225 N. Y. 189, and cases there cited.)

In 1926 the plaintiff instituted this action to recover, among other things, for the value of the rail which had been removed by the defendant in 1920 and the removal of which, it is contended, constituted a breach of the covenants of the lease. Among other affirmative defenses the defendant set up the six-year Statute of Limitations applicable to actions for waste (Civ. Prac. Act, § 48), and, furthermore, that the cause of action was not brought within the period limited by the laws of the State of Pennsylvania. At the trial the plaintiff moved to dismiss this defense on the [810]*810ground that the cause of action arose upon a sealed instrument (Civ. Prac. Act, § 47), and that statutes limiting the time within which actions for waste might be instituted were not applicable. The defendant, resisting this motion, contended in substance that the complaint might be construed either as asserting a cause of action for waste or for the breach of a covenant of the lease and that this affirmative defense should be allowed to stand unless the plaintiff elected to proceed exclusively on the theory of breach of covenant. The plaintiff thereupon elected to proceed on the alleged breach of covenant and the court accordingly, without objection by the defendant, dismissed so much of the answer as set up the Statute of Limitations as a defense.

It is important to observe that the lease has not expired by forfeiture or other termination. The Humbert Coal Company, the defendant’s assignee, is now in possession of the premises. It is paying, and the plaintiff concededly is accepting under the lease, the rents or royalties required to be paid.

It is manifest, therefore, that this action is not for waste. Manifestly, also, it cannot be maintained on the theory that the term of the lease has expired and that by reason thereof the fixtures in question were at the time of removal, or are now, the property of the plaintiff. If the plaintiff can succeed at all, it can only be on the theory that although the lease has not expired the removal of the rail during the term constituted a breach of the covenant requiring the tenant at the expiration, forfeiture or other termination of said term * * * to leave upon the premises ” all the improvements thereon, which should then “ become ” the property of the lessor.

At the conclusion of the plaintiff’s case and again at the end of the entire case the defendant moved to dismiss the complaint. The court reserved decision on these motions and, without objection by either party, the case was submitted to the jury with the motion sub judice. The plaintiff now contends that, the jury having rendered a verdict for the plaintiff for the value of the rail removed, the court no longer has power to grant the motion to dismiss. The rule is to the contrary. Both parties having acquiesced in the procedure followed at the trial, the motion to dismiss survived the verdict. (Bail v. N. Y., N. H. & H. R. R. Co., 201 N. Y. 355; Fitzgerald v. Colt-Stewart Motor Co., 231 App. Div. 176.) This practice, moreover, is justified by practical consideration. It operates to the detriment of neither party and facilitates the final disposition of the litigation by producing a record on which the action of the trial court dismissing the complaint may be affirmed or the verdict of the jury reinstated by an appellate court.

[811]*811The question thus presented is whether the plaintiff can maintain an action for damages before the expiration of the lease for the breach of the covenant, because, if it can, it will receive the benefit of a verdict for the value of the rail removed by the defendant while retaining the rail substituted therefor by the defendant’s assignee.

I am of the opinion that the action cannot be maintained until the expiration of the term. The equipment removed from the premises by the defendant was not the property of the plaintiff and would not be its property until the term expired. The complaint, it is true, alleges otherwise, but the undisputed evidence discloses that the track was laid either by the defendant or by the Dolph Coal Company, the defendant’s assignor. Such tracks, used in connection with a mining enterprise of such a character as this, constituted trade fixtures (Northern C. R. Co. v. Canton Co., 30 Md. 347; see note, 21 A. L. R. 1089), which, in the absence of special agreement, the lessee would be entitled to remove before the expiration of the term. (Andrews v. D. B. Co., 132 N. Y. 348; Massachusetts National Bank v. Shinn, 18 App. Div. 276; affd., 163 N. Y. 360; Debobes v. Butterly, 210 App. Div. 50.) Here on account of the express provision of the lease the tenant is required to relinquish all such fixtures at the expiration of the term. But the term has not expired and it cannot be said that a violation of this covenant has occurred, for the defendant may replace all the property which has been removed or, as has actually occurred, its successor might do so.

The language of the lease is significant. The tenant did not covenant that these fixtures should become ” the property of the landlord upon annexation to the land, but at the “ termination of said lease.” It did not covenant to keep the fixtures on the premises, but only “ to leave ” them there, also “ at the expiration of said term.” Until then the fixtures remained the property of the tenant and the tenant reserved the right to move or to remove them provided only it restored them at the end of the term in fulfilment of its covenant to leave them there.

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

Related

Guido v. Delaware, Lackawanna & Western Railroad
8 Misc. 2d 168 (New York Supreme Court, 1956)
Estate Property Corp. v. Hudson Coal Co.
259 A.D. 546 (Appellate Division of the Supreme Court of New York, 1940)

Cite This Page — Counsel Stack

Bluebook (online)
139 Misc. 808, 249 N.Y.S. 418, 1931 N.Y. Misc. LEXIS 1236, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-property-corp-v-hudson-coal-co-nysupct-1931.