Indiana Natural Gas & Oil Co. v. Hinton

64 N.E. 224, 159 Ind. 398, 1902 Ind. LEXIS 53
CourtIndiana Supreme Court
DecidedMay 27, 1902
DocketNo. 19,865
StatusPublished
Cited by16 cases

This text of 64 N.E. 224 (Indiana Natural Gas & Oil Co. v. Hinton) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Indiana Natural Gas & Oil Co. v. Hinton, 64 N.E. 224, 159 Ind. 398, 1902 Ind. LEXIS 53 (Ind. 1902).

Opinion

Dowling, C. J.

— This was an action upon a gas and oil mining lease to recover damages for the breach of a covenant to furnish gas to the lessor for the purpose of heating and lighting the buildings upon the premises demised. Demurrer to complaint overruled.. Answer in denial. Trial by jury, and verdict for appellee. Motion for a new trial overruled, and judgment on verdict. The rulings on the demurrer and on the motion for a new trial are assigned for error.

The facts as stated in the complaint were as follows: On July 25, 1899, one Joseph McGraw, being the owner of the west half of the northeast quarter of section ten, in township twenty-two north, range seven east, in Grant county, leased to J. S. Smith and H. C. Ziegler the pi'iv[400]*400ilege of drilling wells for oil, gas, and water thereon, and transporting these substances from said lands. Shortly afterwards Smith and Ziegler sold, assigned, and transferred their rights as lessees to the appellant, the Indiana Natural Gas and Oil Company. After the making of the lease, the lessor, McGraw, sold and conveyed the said lands, together with his interest in the lease, to William S. Beeson, and on March 2, 1896, Beeson sold and conveyed said lands, and his rights under said lease, to the appellee Albert II. Hinton. The said company has ever since the assignment of the lease paid to the successive owners of the said premises the money rent of $56 stipulated for in the lease. The appellee owned and occupied the lands from March 2, 1896, -until January 6, 1900. Performance of the agreement to furnish gas according to the terms of the lease was demanded by the appellee, but was refused by the appellant. The value of the gas which should have been furnished by the appellant to the appellee was $200.

A copy of the lease was filed with the complaint, and was made an exhibit. It was in the usual form, and, among other provisions, contained the following: “The above grant is upon the following terms: (1) Second party agrees to drill a well upon said premises within twelve months from this date, or thereafter pay to the first party a yearly rental of $56 until said well is drilled. * * * (2) Should oil be found in paying quantities upon the premises, second party agrees, to deliver to first party, in the pipes with which second party may connect the well or wells, the one-eighth part of all the oil produced and saved from the premises. (3) Should gas be found, second party agrees to pay first party $200 yearly, payable quarterly on demand, for each and every well which is transported or used' off the premises, so long as the same is transported. (4) First party shall have, free of expenses, gas from the well or wells, to use at his own risk, to light and heat the dwell[401]*401ings now on the premises, with pipe to .conduct the same to said dwellings free of cost. * * * (9) Second party agree to furnish gas to first party for use at his premises on or before the 15th day of November.” The lease was executed July 25, 1899, by Joseph McGraw, as lessor, and by J. S. Smith and II. C. Ziegler, as lessees.

The points made against the complaint are that no copy of an assignment of the lease by Smith and Ziegler to the appellant was filed with that pleading; that the complaint contains no averment that the appellant agreed to perform the conditions of the lease on the part of the lessees; that it was not alleged that any well was drilled on the premises leased; and that by the terms of the lease it appeared that upon the failure of the lessees to drill a well within twelve months after July 25, 1889, the only indemnity to which the lessor became entitled was a yearly money rent of $56.

The complaint shows a sale of the lease by Smith and Ziegler, the original, lessees, to the appellant, and thé paymént thereafter by the appellant to the appellee of the money rent as it became due, so long as the appellee occupied the lands. The action was not founded upon the assignment, if there was one, but upon the lease itself; and therefore it was not necessary to set out an assignment, or to file a copy of it with the complaint. It is only when a pleading is founded upon a written instrument that a copy must be filed. §365 Burns 1901, §362 R. S. 1881 and Horner 1901; Short v. Kerns, 95 Ind. 431; Clark v. Trueblood, 16 Ind. App. 98, 100; Barnes v. Mowry, 129 Ind. 568.

The agreement of the lessees to pay the rent, and to furnish the lessor with gas to heat and light the dwellings on the premises demised, were covenants running with the land, and the appellant, as the assignee of the lease, was bound to perform them. Its tenancy under the lease was acknowledged by its payment of th,e yearly rent of $56, agreeably to the terms of that instrument, and, as assignee [402]*402and tenant, it was charged with the performance of these conditions.

“Covenants are either real or personal; the former are such as are annexed to an estate, or are to be performed on it, and are said to ‘run with the land,’ so that he who has the one is subject to the other. In order to run with the land and bind the assignee it must respect the thing granted or demised, and the covenant must concern the land or estate demised.” Wood, Land, and Ten. (2d ed.), §306. “An assignee is personally liable to the lessor upon all covenants which run with the land; the premises also remaining liable to a distress by the latter for rent.” Taylor, Land, and Ten. (8th ed.), §109. “Where a covenant is for the benefit of the estate demised it runs with the land, and will extend to the assignee, though he is not named.” Wood, Land, and Ten. (2d ed.), §307, and cases cited in note 1.

It is said in Carley v. Lewis, 24 Ind. 23, that: “A covenant for the payment of rent, whether it be made by the grantee of lands in fee, reserving rent to the grantor, or by a lessee for a term, belongs to that class of covenants which are annexed to, and run with, the land. The land itself is the principal debtor, and the covenant to pay rent is the incident. It follows the land upon which it is chargeable into the hands of the assignee. Van Rensselaer v. Bonesteel, 24 Barb. 365; Vyvyan v. Arthur, 1 Barn. & Cr. 410.”

As the assignee of the lease is liable to the original lessor, or his assigns, only in respect of privity of estate, the lessor’s right of action in no sense arises upon the assignment, unless he chooses to take advantage of special conditions for his benefit contained in it. Wood, Land, and Ten. (2d ed.), §337. See, also, De Pere Co. v. Reynen, 65 Wis. 271, 22 N. W. 761, 27 N. W. 155; Salisbury v. Shirley, 66 Cal. 223, 5 Pac. 104; Bradford Oil Co. v. Blair, 113 Pa. St. 83, 4 Atl. 218, 57 Am. Rep. 442; [403]*403Fennell v. Guffey, 139 Pa. St. 341, 20 Atl. 1048; McCormick v. Young, 32 Ky. 294; Trague v. McAdams, 71 Ky. 74; Bedford v. Terhune, 30 N. Y. 453, 86 Am. Dec. 394; Trask v. Graham, 47 Minn. 571, 50 N. W. 917; Waller v. Thomas, 42 How. Pr. 337. An allegation that the assignee of the lease agreed to perform the covenants of his assignor was not required.

The proposition that the failure of the lessees to drill any well upon the premises excused the appellant from the performance of the covenant to furnish gas to heat and light the dwellings on the land is not sustained by the provisions of the lease as we understand them.

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Bluebook (online)
64 N.E. 224, 159 Ind. 398, 1902 Ind. LEXIS 53, Counsel Stack Legal Research, https://law.counselstack.com/opinion/indiana-natural-gas-oil-co-v-hinton-ind-1902.