Hall v. Eversole's Adm'r

64 S.W.2d 891, 251 Ky. 296, 1933 Ky. LEXIS 851
CourtCourt of Appeals of Kentucky (pre-1976)
DecidedJune 9, 1933
StatusPublished
Cited by15 cases

This text of 64 S.W.2d 891 (Hall v. Eversole's Adm'r) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky (pre-1976) primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hall v. Eversole's Adm'r, 64 S.W.2d 891, 251 Ky. 296, 1933 Ky. LEXIS 851 (Ky. 1933).

Opinion

Opinion of the Court by

Judge Dietzman

Affirming.

This is a suit in equity under the Declaratory Judgment Act (Civil Code of Prac. secs. 639a-l to 639a-12) to have ascertained the rights of the lessor and lessees under two leases of coal lands in Piarían county, Ky.; the first being dated November 14, 1922, and which will hereafter be referred to as the 1922 lease; and the sec *298 ond, supplemental to the first, being dated March 9, 1929, and which will hereafter be referred to as the 1929 lease. This suit was originally brought by Gr. A. Eversole, who died during its pendency; the action being revived in the name of his son, Yirgil Eversole, as the administrator of his father’s estate. By the 1922 'lease, Gr. A. Eversole, as the first party, and John M. Pope, F. F. Cawood, Henry Pope, and W. F. Hall, as the second parties, the wives of all of these individuals .joining with them, entered into a lease contract, the purpose of which was to pool a tract of land underlain with coal owned by Eversole on Martin’s fork with a tract of land owned by the second parties and adjoining the land of Eversole; the pooled tracts to be operated 'by the second parties as a unit in a coal mining operation. By the terms of this lease, Eversole leased his land containing 321 acres to the second parties whose land to be pooled with his comprised 865 acres. The term of the lease was 25 years with a fixed annual rental of $3,000, together with taxes and other charges set out in the very lengthy lease evidently drawn with care and thought. The lessees were then operating under the firm name of Ellis Knob Coal Company and to it they assigned this lease as they had a right to do. The lease granted to the lessees the exclusive right for the period of the lease to mine and remove the coal from under the lessor’s land. The lessees also had the right to use the surface for tramways, railways, roads, buildings, dwellings for miners, tipples, etc., and to deposit refuse material . from . the .mines. It- contained, many other provisions such as are usually found in these mining leases. Many of such provisions are not pertinent to the present controversy and hence will not be noticed in this opinion. The seventh clause of the lease provided:

“The lessees covenant and agree to pay to the lessor for the use and enjoyment of the premises hereby leased for the purpose aforesaid, irrespective of the amount of coal mined, a certain yearly rental of $3,000.00, payable in monthly installments of $250.00 each, at the office of the lessor at Harlan, Kentucky, on the 20th day of each calendar month succeeding the month for which the rent is due, the first monthly installment to become due and payable on the 20th day of October, 1922.”

*299 Other provisions in the lease provided that this, fixed rental was to he credited by royalties paid on the. coal actually mined, the royalty to be paid on all coal, mined from the pooled premises, irrespective of whether it came off the Eversole tract or the land owned by the second parties. The lease also provided that the royalty to be paid for coal taken from the pooled premises-should be 15 cents per ton on coal mined and not coked.. It was further agreed by the lease that before any mining operations should begin on any particular seam of coal, the parties should agree as to, or by arbitration have settled, their respective • acreage of that particular-seam of coal to be mined. In this connection, the 1922: lease set out that the parties had agreed that the Harlan seam which was to be mined underlay 217 acres of Eversole’s land and 371 acres of the second parties’ land, which being true, the 15-cent royalty on this Harlan seam was to be divided so that Eversole was to get 5% cents of it and the second parties the rest; the 5%-cents being that proportion of the 15-cent royalty which Eversole’s acreage of Harlan seam bore to the total acreage of that seam pooled. The fourteenth clause of the lease in part provided:

“The working by the lessees of the mines on the leased premises shall be governed by the following regulations:
“1. The lessees shall work and mine the coal on the leased premises in the most diligent, effectual and suitable methods of current mining, and iii. conformity also with all the laws and all regulations made by authority of law which may from time to time be in force in respect to the working of coal mines and the safety of employees therein..
“2. The lessees shall drive the regulation size of gangways and airways through such portions of any vein as may prove faulty or may not yield merchantable coal.
“3. The lessees upon abandoning any room,, opening or other working shall pay to the lessor royalty at the rate herein reserved, upon all coal left and in which in consequence of such abandonment cannot thereafter be economically mined, provided, however, that if the lessees shall before such abandonment give the lessor reasonable notice *300 thereof, the engineer of the lessor shall thereupon inspect such room, opening or other working, and if said engineer shall decide, or if the lessees shall not agree with his decision and shall thereafter and without delay secure an award of arbitrators, that all or any of the coal so left is necessary for proper security and is unmerchantable (and has not been rendered unmerchantable by any act or default of the lessees or by any cause for which the lessees are responsible) then the lessees shall be released from the payment of royalty upon so much of said coal as is so determined to be necessary for security or unmerchantable.
“4. If any coal in any vein on the leased premises shall become unmerchantable or be lost by any squeeze, creep, lifting of the bottom or other cause resulting from improper methods of mining practiced by the lessees, or if any coal shall at any time before use or shipment become unmerchantable or be lost through the fault or negligence of the lessees, the amount thereof shall be determined by arbitration and upon the report of the arbitrators, the lessees shall forthwith pay to the lessor royalty at the rate herein reserved upon every ton of merchantable coal which, according to said report, has been so rendered unmerchantable or lost. ’ ’

The thirty-third clause of the lease has reference to arbitrators. After setting up the machinery of arbitration, it provides in subsection 3 as follows: •

“3. The following matters shall be submitted to arbitration hereunder:
“a. All matters hereinbefore specifically referred to arbitration.
“b. All questions of quantity, quality, value or amount of loss or damage.
“c. • All questions of mining or lumbering practice.
“d. All disputed questions of fact arising under this lease.”

The second parties immediately on the execution of this lease began the operation of the pooled premises through the Ellis Knob Coal Company, the corporation they had organized and to which they assigned *301 this lease.

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Cite This Page — Counsel Stack

Bluebook (online)
64 S.W.2d 891, 251 Ky. 296, 1933 Ky. LEXIS 851, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hall-v-eversoles-admr-kyctapphigh-1933.