Griffin v. Eustice

255 S.W. 12, 160 Ark. 508, 1923 Ark. LEXIS 307
CourtSupreme Court of Arkansas
DecidedOctober 29, 1923
StatusPublished
Cited by2 cases

This text of 255 S.W. 12 (Griffin v. Eustice) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Griffin v. Eustice, 255 S.W. 12, 160 Ark. 508, 1923 Ark. LEXIS 307 (Ark. 1923).

Opinion

Wood, J.

This is an action by tbe appellants against tlie appellees to declare a certain lease forfeited and to recover damages alleged to have been sustained by the appellants by reason of alleged wrongful acts of the appellees in destroying a certain coal mine and in dismantling the tipple, removing the machinery from the mine, in violation of the terms of the original lease under which the appellees hold as sub-lessees. The appellants sold a certain tract of land in Johnson County, reserving in their deed the coal underlying the tract and the right to mine and remove the same. On the 29th of May, 1918, appellants leased the coal and the right to mine the same to appellee, Elizabeth Eustice. She sank a shaft, as by the terms of her lease she was required to do, and proceeded to develop the mine. The shaft was about 34 feet deep. Mrs. Eustice assigned her lease to the North Spadra Coal Company, one of the appellees. It operated the mine under its lease for about two and a-half years. The development work done by the coal company consisted in running an entry in a westerly direction for a distance of about 500 feet, from which entry rooms were turned off and driven north toward the' crop line. A slope was driven south and southwest and rooms turned. In the fall of 1920 the coal company sublet the mine to appellees, Werner & Dunlap. The equipment at the time Werner & Dunlap took over the property under their lease consisted of tipple, breakers, scales, boiler and engine-room, pit-cars and such other machinery, tools - and appliances as were necessary to the successful operation of the mine. The lease from the coal company contained a provision giving the sub-lessees, Werner & Dunlap, the right to strip and remove the coal under the lands for such period of time as the lessees were able to operate the mine in such manner as to derive a profit of at least one dollar per ton for the coal mined or stripped therefrom. The lease was made subject to prior leases, among them the lease from appellants to Elizabeth Eustice, which leases were made a part of the lease contract from the coal company to Werner & Dunlap.

The original lease from appellant and wife to Elizabeth Eustice leased the property to Mrs. Eustice for a period of fifteen years, and if, at the end of that period, the provisions of the lease had been complied with, the lessee had the right to renew the same for an additional period of fifteen years, “for the purpose of mining the coal lying under the land and removing the same.” It was provided that the lessee should begin at once sinking a shaft and opening and developing a mine on said property, and that she should diligently prosecute such work until a mine is properly opened and in operation. The lessee was to pay 12% cts. per ton. She was to pay $100 the first year as a minimum royalty, $150 the second year, and $250 the third year and each year thereafter'. It was provided that the lessee should open all the mines according to the most modern and approved methods of coal mining, and at all times keep and maintain the same in good condition for safe mining and so as to pursue the mining of coal under said lands-within said mines with entire safety and economy. The lease further provided that the lessee or his assigns, when the lease was terminated, should deliver the mines in good working condition and leave the tracks and tracking and the pumps and shafts and air-shafts and all the houses connected with the mines, and air-course and entrance, in good condition. The forfeiture clause was as follows: “A failure of the second party or assignee hereof to pay the royalty on the coal mined for three months, or to pay the minimum royalty agreed upon, or should the second party, for any cause, cease to operate said mine or mines for a period of six months, then this lease shall, except in cases of strikes or unavoidable accident, upon written notice from party of the first part, his heirs or assigns, become forfeited at once, and all rights of the second parties hereunder cease, and the mine and property leased revert to the party of the first part, his heirs or assigns.”

There is a further provision that, in case the mine was not operated for one year or for one coal season,so as to produce the tonnage as specified, and in case the minimum royalty was not paid for any one year as specified, then the lease should forfeit, without notice to the lessee. There was also a provision that, if the lessee failed to pay the royalty on the coal mine for three months, or fo pay the minimum royalty agreed upon, or for any cause cease to operate the mine or mines for a period of six months, except for strikes or unavoidable accident, then, upon written notice to the lessee or his assigns, the lease shall he forfeited. The minimum royalty was to be paid quarterly. There is a further provision in the lease that, in case of forfeiture, or at the termination of the lease, if all mineable coal had not been removed from the lands, the lessor should have the exclusive right to use and occupy all surface lands bought or leased by the lessee, or his assigns, also all surface tracking and track used in stocking coal, until the lessor or his assigns had mined the coal from' the lands, provided the same was done within thirty years from date. For the use of these surface privileges and rights, the lessor was to pay the lessee dr his assigns the sum of $10 per ton.

The appellants, in their complaint, set out the provisions of the above lease to Mrs. Eustice, and alleged that, by the terms of the lease under which the appel-lees claimed, the Eustice lease was made a part of their lease contract, and set up that the appellees had wholly failed to comply with the provisions of the lease and had thereby forfeited all rights thereunder. They specifically alleged that the appellees had not opened up and developed the mine according to modern and approved methods; that they had pretended to open for the past coal season so as to produce the minimum royalty called for in the lease ■ that they had ceased to work the mine they had opened, and wholly abandoned the same; liad removed the machinery and pumps, and torn down part of the tipple; also, had torn down the pillars and removed the machinery and equipment; had torn down and destroyed the tipple and abandoned the mine, and permitted it to fill with water. That, if they had carried out their contract and mined the coal which cannot now he mined, appellants would have received a net profit from the mining of such coal in the sum of $1,500; that, by reason of the destruction of the mine and depriving the appellants of the use thereof, they had damaged appellants in the sum of $10,000; and that, by failure to pay the royalties, they had damaged appellants in the sum of $500; that appellants’ aggregate damages by reason of the failure of the appellees to comply with their lease contract was $12,000, for which they prayed judgment.

The appellees categorically denied all the material allegations of the complaint concerning their failure to carry out the provisions- of the lease. They alleged that they had continuously operated the mine to the satisfaction of the appellants.

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Bluebook (online)
255 S.W. 12, 160 Ark. 508, 1923 Ark. LEXIS 307, Counsel Stack Legal Research, https://law.counselstack.com/opinion/griffin-v-eustice-ark-1923.