Kentucky Block Cannel Coal Co. v. Sewell

249 F. 840, 1 A.L.R. 556, 1918 U.S. App. LEXIS 2303
CourtCourt of Appeals for the Sixth Circuit
DecidedMarch 5, 1918
DocketNo. 3074
StatusPublished
Cited by15 cases

This text of 249 F. 840 (Kentucky Block Cannel Coal Co. v. Sewell) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kentucky Block Cannel Coal Co. v. Sewell, 249 F. 840, 1 A.L.R. 556, 1918 U.S. App. LEXIS 2303 (6th Cir. 1918).

Opinion

KNAPPEN, Circuit Judge.

Appellees, hereinafter called plaintiffs, filed bill in equity to quiet their alleged title to the minerals (coal, oil, and gas) in a tract of land in Morgan county, Ky., lying on both sides of the Stone Coal or Prater fork of Caney creek. They base their claim of title upon a formal conveyance of such mineral rights, made in 1865 by John Sebastian to J. W. Sewell & Co., which was a partnership composed oí John W. Sewell and Harriet Sewell — father and mother, respectively, of plaintiffs, whose rights descended in equal shares to plaintiffs, their children and heirs at law. Defendants claim the property in separate parcels, tracing their alleged title to a devise by Sebastian, subsequent to his conveyance to Sewell & Co., of the fee simple iu the lands to his two sons, subject only to the widow’s life estate. They make defenses (1) that the alleged conveyance of the mineral rights by Sebastian to Sewell & Co. was intended to. be, and was in legal effect, merely a mining lease upon future payment of royalties; (2) that the conveyance, if effective as such, passed the legal title to John W. Sewell only; (3) that the latter sold and conveyed the mineral rights in question to Mary F. Gregory, whose claimed [842]*842rights are vested in one of the defendants; (4) that defendants’ title, as against plaintiffs, has been finally and effectually adjudicated in a suit in a state court of. Kentucky, to which plaintiffs were parties; (5) that plaintiffs’ rights, if they ever had any, have been lost by adverse possession and laches. On hearing upon pleadings and proofs, the District Court concluded that the alleged deed of the mineral rights from Sebastian to Sewell & Co. was a valid and effectual conveyance thereof; that the title thereto was thereby vested in John W. Sewell and Harriet Sewell, as tenants in common; that John W. Sewell conveyed his rights to Mary E. Gregory, but that the latter subsequently reconveyed them to Sewell (Harriet Sewell never made conveyance); that the adjudication had -in the state court was binding on but one of the appellees; that the defenses of laches and adverse possession had been established only as to the mineral rights in so much of the land as lies on the eastern or-left-hand side of the fork, and as. to the coal in the Asa Carter tract, so called, on the westérn or right-hand side. 'Each of the two appellees was accordingly decreed the owner of an undivided one-third of the minerals underlying the land on the western side of the fork, excepting therefrom the coal in the Asa Carter tract. Plaintiffs have not appealed.

[1,2] 1. We agree with the District Judge that the conveyance from Sebastian to Sewell & Co. must be accepted as intended to convey absolutely the entire mineral rights in the lands in question. It is by its express terms and in clear and unambiguous language, a warranty deed, “for a true and valuable consideration to us paid,” of “the entire oil and mineral privileges” in the land described. It was made at the grantor’s house. It purports to be witnessed by Sebastian’s son-in-law, and by the deputy clerk of the county, and to have been acknowledged before that officer. It was duly recorded as a deed on the day of its execution. It is persuasively established that the deputy clerk was present at the execution, together with John W. Sewell and one Amyx (who was assisting Sewell in buying land and mineral rights, as well as taking leases), as was also the son-in-law referred to.

At the time of the hearing Sewell, Amyx and the deputy clerk were all dead, as were also Sebastian and his wife.' While there was testimony that the instrument was spoken of as a lease, and testimony tending to show that it was intended only as such, there was substantial testimony tending to the contrary conclusion, including the facts, as testified to, that Sewell then and there paid to Sebastian $25 in money, which cannot be said to have been regarded as wholly disproportionate to the then value of the minerals, having in mind their remoteness from transportation lines and the price recently paid by Sebastian for the fee simple of a portion of the land — together with other pertinent considerations, including the fact that the Sewells, one or,both, during the five months period including the date of the deed in question, had táken in that district not only several deeds of lands in fee and several mining leases, but also 14 deeds outright of mineral interests. Sebastian’s subsequent devise of the fee simple of the lands is not highly significant, especially as he still held the surface rights, and not improbably the mineral rights were regarded by [843]*843him as not very important. See in this connection Pond Creek Coal Co. v. Hatfield (C. C. A. 6) 239 Fed. 622, 630, 152 C. C. A. 456; It would serve no useful purpose to discuss the testimony in detail. Such discussion may be found in the opinion of the District Judge, before whom the testimony of several of the more important witnesses was taken, and who closes a detailed discussion of the testimony, with the statement that there is “no evidence of any weight sustaining the position that the agreement pursuant to which the grant in question was executed was for a lease and not a deed.” A deed absolute on its face cannot be shown to be otherwise by anything less than explicit testimony, and a certificate of acknowledgment may be impugned by nothing short of fraud or duress. Johnson v. Van Velsor, 43 Mich. 208, 5 N. W. 265. Neither fraud nor duress were established.

[3] 2. Defendants say, in brief, that “from the evidence it appears that the firm of John W. Sewell & Co. [of course, meaning J. W. Sewell & Co.] was composed of John W. Sewell and Harriet M. Sewell, his wife.” We agree with the conclusion of the learned District Judge, that the deed to J. W. Sewell & Co. vested the legal title in the partners as tenants in common. A deed to a copartnership in its firm name is not for that reason void. The modern authorities are practically uniform to the effect that a conveyance to a firm in its firm name passes to some one the legal title to the land as real estate. Partnership real estate is now regarded in equity as personalty only for the purpose of subjecting it to the payment of debts and adjustment of balances between partners (Riddle v. Whitchill, 135 U. S. 635, 10 Sup. Ct. 924, 34 L. Ed. 282; Stearns Coal & Lumber Co. v. Van Winkle [C. C. A. 6] 221 Fed. 590, 596, 137 C. C. A. 314); and. in the absence of debts the partners have a right to personally divide the lands between them as real estate (Godfrey v. White, 43 Mich. 171, 179, 5 N. W. 243; Lovewell v. Schoolfield [C. C. A. 6] 217 Fed. 689, 703, 133 C. C. A. 449), or to convey their respective interests therein, subject to its being needed to pay creditors or adjust balances between partners (Taylor v. McLaughlin, 120 Ga. 703, 707, 48 S. E. 203). The Court of Appeals of Kentucky lias more than once declared this rule. In Wilhite’s Adm’r v. Boulware, 88 Ky. 169, 171, 10 S. W. 629, 630, it is said:

“The principle is universally recognized that a.t law real estate owned by a. partnership, even if purchased in the name of the partnership, and with partnership funds, is held by the members of the firm as tenants in common.”

And in Carter v. Flexner, 92 Ky. 400, 405, 17 S. W. 851, 853, the court said:

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Bluebook (online)
249 F. 840, 1 A.L.R. 556, 1918 U.S. App. LEXIS 2303, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kentucky-block-cannel-coal-co-v-sewell-ca6-1918.