Kentucky Fluorspar Co. v. Pierce's Executors

213 S.W. 542, 184 Ky. 573, 1919 Ky. LEXIS 138
CourtCourt of Appeals of Kentucky
DecidedJune 3, 1919
StatusPublished
Cited by3 cases

This text of 213 S.W. 542 (Kentucky Fluorspar Co. v. Pierce's Executors) 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
Kentucky Fluorspar Co. v. Pierce's Executors, 213 S.W. 542, 184 Ky. 573, 1919 Ky. LEXIS 138 (Ky. Ct. App. 1919).

Opinion

Opinion of the Court by

J udge Sampson

Affirming.

In November, 3901, J. P. Pierce, ~W. H. Crow, and Mrs. Mary J. Brown, were the owners of the mineral and certain mineral rights and easements in a tract of 100 acres of land, situated in Crittenden county. Kentucky. The surface of the land belonged to Mrs. Brown, and she owned a one-third undivided interest in the mineral also, and Pierce and Crow each owned a one-third undivided interest in the mineral. On November 23, 1901, they entered into a lease contract with the Kentucky Fluorspar Company, a corporation, whereby Pierce, Crow and Mrs. Brown leased and let the mineral in and under the tract of land described to the fluorspar company to be operated on a royalty basis, and said lease granted to the company certain easements and rights necessary to the mining and removing of the fluorspar; it also provided that the grantors “do hereby lease and rent and convey unto second party, its successors or assigns for a term of five years, from and after this date, the mines and minerals and mine rights and privileges in, and on and underlying the said land of the first parties, which is situated in Crittenden county, Kentucky, and bounded as follows (here follows the description).”

The lease also contains ' the following provisions r

“Second party agrees to do their work on said lease in a mineral like way, considering the character and location of the minerals and beds or veins, and to timber well any shaft they may sink thereon.
“So long as second party may hold in its possession this title paper, or fail to give notice to first parties of its intention to surrender said land, then second party shall be liable for and shall pay each year a minimum guaranteed royalty of $50.00, whether said mines are worldng or not, and should second party fail to pay the royalties as stipulated herein, or fail in any material way to live up to this contract then first party shall have the right to declare a forfeiture and terminate it.”

[575]*575The Kentucky Fluorspar Company began to mine and operate for fluorspar on the premises described, and continued so to do from 1901 up until the bringing of this action in 1918. The royalties were paid from time to time, but not as provided in the contract, which is: “Second party agrees to pay first party as royalty the sum of fifty cents per ton of 2,000 lbs. on every ton of fluorspar that is hauled or shipped from said land. . . . Said party shall pay said royalties monthly as said minerals are shipped or hauled away, and during the months just after same is taken away.

“Beginning with January 1,1902, second party guarantees to first parties that the royalties that may accrue during any one year while second party holds said land, shall not be less than $50.00 per year, that is, if the total royalty earned for any one year shall be less than $50.00, then the second party agrees to pay in addition to the earned royalty a sum sufficient to make it $50.00.”

J. P. Pierce died in 19........., naming Mrs. Ella C. Pierce and C. J. Pierce executors of his will, with power to sell and dispose of his interest in the mineral rights referred to. In March, 1905, Mary J. Brown, widow, sold and conveyed her one-third undivided interest in the mineral in the tract of land named, to the Kentucky Fluorspar Company and in December, 1917, W. H. Crow conveyed his ■one-third undivided interest in the minerals mentioned to C. J. Pierce.

The lease contract made to the fluorspar company was not recorded and the grantors retained no copy thereof. After the death of J. P. Pierce an effort was made by his representatives to obtain a copy of the lease ■or to examine the original lease, but they were unable to see the lease or to know its contents, except that the general manager of the company assured Pierce’s representative that the lease was still in full force and effect. While fifty cents per ton royalty was considered a fair price in that district in 1901, at the time the lease was made, fluorspar had in recent years greatly increased in value until the reasonable fair royalty was $6.00 per ton, in that district at the time of the commencement of this action. When C. J. Pierce, representing the estate of J. P. Pierce as well as himself, was permitted to see and read the lease contract and discovered that the lease was for a term of five years from November, 1901, he at once [576]*576declined to receive further royalties from the fluorspar company and demanded a surrender of the lease, hut this was refused hy the company and they continued to mine the fluorspar and to make out and offer to Pierce the royalty checks. C. J. Pierce and the representatives and heirs of J. P. Pierce, owners of a two-thirds undivided interest in the minerals aforesaid, instituted this action against the Kentucky Fluorspar Company as the owner of a one-third undivided interest in said minerals, for a sale of their joint property and a division of the proceeds according to their respective rights.

In the petition it is alleged that the minerals are not susceptible of division in kind without impairing the value of the whole property and of the plaintiffs’ interest therein. The petition also alleges “that the defendant company held a lease of some kind upon said property, hut that same expired several years ago, and that defendants are removing large quantities of fluorspar from said property and selling and disposing of same.” The title of the plaintiffswas set forth in detail andcopies of the deeds were attached to and made a part of the petition. To the petition the defendant company filed special and general demurrers, each of which was overruled. Then came the defendant company and filed answer, set-off and counterclaim in which it set up and relied upon the lease contract which it alleged was in full-force and effect as a har to the rights of plaintiffs to have a division of the joint property, or a sale and a division of the proceeds. To this answer, set-off and counterclaim the plaintiffs filed a pleading styled, “Reply and cross-petition,” in which they also set up the lease contract and alleged that it had long since expired. In another paragraph of said reply it was alleged that the defendant company had violated the terms of the lease contract in material parts and had thereby forfeited said lease, and a cancellation of the lease was prayed.

Issue being joined and evidence heard, the court entered a decree cancelling the lease and holding it of no effect, and adjudged a sale of the lands for a division of the proceeds among .the joint owners according to their respective rights. From this judgment the Kentucky Fluorspar Company appeals.

This is not a suit for the sale for division of lands, but only the mineral therein. Thornton on the Law of Oil and Gas, sec. 314, is as follows:

[577]*577“ ‘The mere fact of joint ownership in a mine does not give an equitable right to a partition. Seldom can a division of a mine be made. Generally partition must result in a sale. To snch property there is an unknown value; and a chancellor may well require full information as to all the relations of the parties to the property before decreeing any partition which will practically result in dispossessing one of the parties entirely.’ And in a dictum in an Illinois case it was said: ‘The mines, when opened, in their nature were indivisible. Neither partition could be made at law, nor dower assigned by metes and bounds.

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Related

Howard v. Mitchell
105 S.W.2d 128 (Court of Appeals of Kentucky (pre-1976), 1936)
Henderson v. Chesley
273 S.W. 299 (Court of Appeals of Texas, 1925)
Kentucky Fluorspar Co. v. Pierce
245 S.W. 889 (Court of Appeals of Kentucky, 1922)

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Bluebook (online)
213 S.W. 542, 184 Ky. 573, 1919 Ky. LEXIS 138, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kentucky-fluorspar-co-v-pierces-executors-kyctapp-1919.