Hoosier Mining Co. v. Union Trust Co.

191 S.W. 305, 173 Ky. 505, 1917 Ky. LEXIS 488
CourtCourt of Appeals of Kentucky
DecidedJanuary 30, 1917
StatusPublished
Cited by3 cases

This text of 191 S.W. 305 (Hoosier Mining Co. v. Union Trust Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hoosier Mining Co. v. Union Trust Co., 191 S.W. 305, 173 Ky. 505, 1917 Ky. LEXIS 488 (Ky. Ct. App. 1917).

Opinion

Opinion of the Court by

Judge Thomas

Affirming.

Samuel O. Brown died testate, ‘domiciled at the time in the city of Pittsburg, Pennsylvania. He owned at the time of his death, as a part of his estate, the property involved in this suit, situated in Crittenden county, Kentucky, which consisted of all minerals and the right to mine them, located in a tract of land in that county containing 191 acres.

The will was probated both at the place of the testator’s domicile and in the county court of Crittenden county. By it the testator devised all of his. residuary estate to the appellee, Union Trust Company of Pitts-burg, a corporation, and his brother, the appellee, W. Harry Brown, also of Pittsburg, as trustees, which devise, covered by the nineteenth clause of the will, is in this langauge:

“Nineteenth. All the rest and residue of my estate, real, personal and mixed, wheresoever the same may be situated, I give, devise and bequeath to my brother, W. Harry Brown, his heirs and assigns, and to the Union Trust Company of Pittsburg, .its successors and assigns, in the special confidence and trust, nevertheless, that they will improve, manage and control the same in their discretion, and will from time to time pay the net income arising therefrom for the period of five years next succeeding my death in manner following, viz.: One-half thereof to my brother, W. Harry Brown, his heirs and assigns, and one-half thereof to my sister, Lizzie B. Ward, wife of James Ward, for her sole and separate use as hereinafter provided.”

[507]*507By the twentieth clause of the will the testator authorized and empowered his trustees “to bargain and sell any part of and all my residuary estate, real and personal, not herein specifically bequeathed and devised for such price and on such terms as to the said trustee shall seem best, and the same to assign, transfer and convey from time to time to the purchaser and purchasers by bill of sale, deed of conveyance or other sufficient instrument of writing.” He then provides that the purchaser of any of the property which the trustees may sell or convey shall be relieved of seeing to the application of the purchase money.

After the probating of the will the trustees qualified and have continued to act as such.

Previous to the 29th day of June, 1910, an agreement had been reached between the trustees and certain individuals doing business under the name of the Hoosier Mining Company by which the latter concern agreed to and did lease for a period of five years from and after April 1, 1910, all of the mineral property and the mining rights and privileges incident thereto and necessary for the operation of the mining business owned by the testator, in the tract of land above mentioned. This lease was reduced to writing on June 29, 1910, and duly signed and acknowledged by both trustees. After this the persons to whom the lease was given incorporated themselves under the name of Hoosier Mining Company and took charge of the property and commenced mining operations thereon and have continued at more or less regular intervals to operate it, or at least until the filing of this suit.

There is a clause in the lease giving to the lessees an option to purchase the- property upon specified terms provided the option should be exercised on or before July 1, 1911. The provision of the lease containing the option privilege is in this language:

“It is expressly agreed by and between the parties hereto that the second parties named herein shall and do have the sole and exclusive option to purchase the mineral rights described herein; that the first parties, for and in consideration of the royalties to be paid, and for other good and valuable consideration, agree that on or before the 1st day of . July, 1911, for and in consideration of ten thousand ($10,000.00) dollars to be paid by the second parties, to convey or cause to be [508]*508conveyed by good and sufficient warranty deed to the second parties, their heirs and assigns, the title which said Samuel S. Brown acquired under that certain indenture dated the 20th day of October, 1891, and recorded as aforesaid, in and to the mineral and mining rights fully described in said indenture, and said first parties further agreed to furnish an abstract of their title to the said mineral or mining rights.
“It is further agreed that second parties may at any time after the signing of this contract and before July 1st, 1911, after having given the first parties reasonable notice of their intention, pay the ten thousand ($10,-000.00) dollars, at which time first parties shall execute a deed and furnish abstract as above stipulated. The various acts to be done by said parties shall be concurrent.”

By the terms of the lease it expired on April 1, 1915, and no conveyance of the property having been made to the Hoosier Mining Company, the trustees insisting that it had failed to exercise its right under the option to purchase the property under the terms contained therein or any legally modified terms, conveyed the property on March 17, 1915, to the corporation appellant, West Kentucky Ore Company.

After the expiration of the lease on April 1, 1915, possession of the property was demanded of Hoosier Mining Company and it declined to surrender same, after which and on May 23, 1915, this suit at law was filed by the two trustees under the will of Samuel S. Brown for themselves and for the use and benefit of the West Kentucky Ore Company, and West Kentucky Ore Company against the Hoosier Mining Company and two individuals who were tenants of the latter company, which suit sought a recovery of the property and damages for the withholding of it.

The answer consisted of several paragraphs in which various defenses were relied, on, but under the conclusion we have reached, we deem it necessary to consider but one of them. Before July 1, 1911, the defendant, Hoosier Mining Company, claims to have exercised its right to purchase and that it did agree to purchase the property; that in compliance with its agreement to purchase it paid to the trustee, Union Trust Company, of Pittsburg, $1,000.00, and has been ready, able and willing continuously since then to pay the bal[509]*509anee of the purchase money, amounting to $9,000.00, whensoever it was furnished a deed to the property. That the trustees had failed and refused to execute the deed and that under its rights obtained^ as insisted upon by it, it has an equity in the property entitling it to the possession, of which it should not be deprived by judgment in this suit.

The allegations of the answer, including that portion setting up the defense stated, were denied by appropriate pleadings, and upon trial before a jury the court at the conclusion of the testimony offered by defendants, they having been adjudged the burden of proof, a verdict was directed to be returned in favor of plaintiffs, which was done, and from the judgment rendered thereon, this appeal is prosecuted.

To sustain their defense the defendants filed with their pleading and offered in evidence the following writing:

“Pittsburg, Pa., June 30th, 1911.
“Union Trust Co., of Pittsburg.
“R. C. MacEldowney, Pres.
“A. W. Mellon, Vice Pres.,
“ J. M. Shoonmaker, 2nd Vice Pres.
“William I.

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

Related

Hofgesang v. Silver
23 S.W.2d 945 (Court of Appeals of Kentucky (pre-1976), 1930)
Metropolitan Life Insurance v. Connelly
271 S.W. 673 (Court of Appeals of Kentucky (pre-1976), 1925)
McCampbell v. McCampbell
250 S.W. 122 (Court of Appeals of Kentucky, 1923)

Cite This Page — Counsel Stack

Bluebook (online)
191 S.W. 305, 173 Ky. 505, 1917 Ky. LEXIS 488, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hoosier-mining-co-v-union-trust-co-kyctapp-1917.