Holliday v. Perry

78 N.E. 877, 38 Ind. App. 588, 1906 Ind. App. LEXIS 234
CourtIndiana Court of Appeals
DecidedOctober 9, 1906
DocketNo. 5,697
StatusPublished
Cited by15 cases

This text of 78 N.E. 877 (Holliday v. Perry) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Holliday v. Perry, 78 N.E. 877, 38 Ind. App. 588, 1906 Ind. App. LEXIS 234 (Ind. Ct. App. 1906).

Opinions

Comstock, P. J.

The complaint is in one paragraph and alleges that some time prior to January 11, 1896, the defendant Henry W. Perry proposed to the plaintiffs, who were engaged in the practice of law, that if they would prepare and assist him in taking options for the sale or leasing of certain coal and mineral lands in Parke county, Indiana, he would procure said lands to be drilled or otherwise tested for coal and minerals, and if any part of said lands or the coal under said lands was purchased said plaintiffs were to have a one-third interest therein, and said Perry was to have the remaining two-thirds; that plaintiffs accepted said proposition, and prepared and caused to be printed a large number of blank options; that [591]*591Perry had an extensive experience in the discovery of coal and in coal mining operations, and represented to these plaintiffs that he knew of a large quantity of land in Parke county which he believed was underlaid with coal, and upon which options for the purchase thereof could he obtained; that afterwards said Perry and plaintiff Byrd went over the territory selected by Perry upon which options were to he procured, and thereafter plaintiffs began the work of securing said options; that they were engaged in said work for more than a year, and spent a large amount of labor, time, and money in procuring options upon about two thousand acres of land; that before all said options were taken said plaintiffs and said defendant Perry, entered into a written contract, a copy of which is filed herewith as ‘exhibit A,’ and which contract is as follows:

“This contract by and between Henry W. Perry, party of the first part, and E. S. Holliday and George A. Byrd, composing the firm of Holliday & Byrd, party of the second part, witnesseth:
Whereas, said parties have been and still are engaged in taking options upon coal located under certain lands in Parke county, Indiana, all of said parties contributing their time and skill in procuring said options; and, whereas, for convenience, all such options are taken in the name of Henry W.r Perry. Now in consideration of the services rendered and to he rendered by said Holliday & Byrd and the further consideration hereinafter stated, it is hereby contracted and agreed that said first party shall furnish two-thirds of all the money necessary to drill said lands and purchase the coal thereunder, and to defray all other expenses connected with fully carrying out the purpose of taking such options ; and said party shall furnish the remaining third. It is further agreed that when deeds are taken to such lands, they shall he so drawn as to vest the title to all the coal purchased, two-thirds in said first party and one-third in such second party. It is further agreed that all the profits arising from and growing out of such business of taking options shall be divided in the [592]*592proportion of two-thirds to the first party and one-third to the second party, and whatever losses accrue shall be borne in the same proportion.
Henry W. Perry.
E. S. Holliday.
George A. Byrd.”

That after they had procured the options provided for therein and tested the coal, finding that 240 acres was coal land, and the balance not, appellants found that they did not have sufficient money on hand to pay their one-third of the cost of drilling said lands and one-third of the purchase price of said 240 acres, which it had been decided to purchase, and that they would have to borrow money to meet the same, which they could and would have done from persons other than said Henry W. Perry, had not said Henry W. Perry agreed to loan and advance to them the sum needed; that they orally agreed with appellee Henry W. Perry to the modification of the written contract as follows:

“Said Henry W. Perry agrees to loan to them, advance and pay for them, the cost of drilling said land and the purchase price of all lands bought. He shall take the deeds for the lands purchased, in his own name, and hold the plaintiffs’ one-third interest therein, as security for the money so loaned to and advanced for plaintiffs, with interest thereon at six per cent per annum. As soon as any one can be found who will lease the land, or lease and mine the coal in said land, said Henry W. Perry is to execute proper leases in his own name and hold one-third interest in any such lease or leasesj in trust for plaintiffs. Whenever he collects a sufficient amount of royalty from the lands and the coal minecl in said lands, to reimburse him for the money so loaned to and advanced for plaintiffs, or whenever plaintiffs pay him said sum or the balance thereof remaining due him, then said defendant Plenry W. Perry agrees to assign a one-third interest in any and all said leases to the plaintiffs, and to convey and deed to them a one-third interest in said lands and coal.”

[593]*593That in pursuance of the terms of said written contract and the oral modifications thereof, as above set out, the parties hereto purchased, under said options, etc. They allege that under these contracts, the written one and parol modification, appellee Henry W. Perry took title to the lands, paid all expenses and the purchase price, entered into possession of the same, leased, rented and operated this land as his own, and has refused to account to appellants for the rents and profits of the coal leased on royalty, or to permit appellants to examine the books, and has generally exercised all the acts of ownership.

It is alleged that the parties purchased under said options certain described pieces of real estate; that said defendant Henry W. Perry leased said lands to Walter Ringo & Co. and to other persons and corporations to these plaintiffs unknown, for the purpose of mining coal thereunder; that said lessees sunk a shaft on said lands and have been continuously, for more than three years last past, mining the coal in and from said lands and paying to said defendant the entire royalty therefor; that said defendants conceal from these plaintiffs the amount of royalty so received under said leases, and refuse to give them any information concerning them; that said lessees, claiming to be under the instructions of said defendant Perry, refuse to inform these plaintiffs how much royalty they have paid said defendants on coal mined, although said plaintiffs have demanded of them such information; that defendant Perry refuses to account to them for one-third of said rent and royalty and refuses to give them information on the subject; that they have no means of ascertaining the amount of said rent and royalty, or what amount, if any, is due said Henry W. Perry, and are without any adequate remedy at law to compel said defendant to account therefor; that they have never received any compensation or reimbursement for the time, labor and.money expended in and about the taking of said options as aforesaid; that they are ready and willing [594]

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Bluebook (online)
78 N.E. 877, 38 Ind. App. 588, 1906 Ind. App. LEXIS 234, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holliday-v-perry-indctapp-1906.