Ketcham v. Brazil Block Coal Co.

88 Ind. 515
CourtIndiana Supreme Court
DecidedMay 15, 1883
DocketNo. 9904
StatusPublished
Cited by31 cases

This text of 88 Ind. 515 (Ketcham v. Brazil Block Coal Co.) 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
Ketcham v. Brazil Block Coal Co., 88 Ind. 515 (Ind. 1883).

Opinion

Bicknell, C. C.

— The appellee commenced this suit in the Clay Circuit Court; it was taken thence by change of venue to the Putnam Circuit Court. The complaint averred, in substance, that the plaintiff, as the holder of certain mining property, was bound to pay and was ready to pay certain royalties; that the defendant John L. Ketcham, as the holder of the estate of the original lessor of said property, was claiming that all of said royalties were due and payable to him, without any deduction except $100, and that the defendant, The Ohio and Indiana Coal Company, was claiming that all of said royalties were payable to it, to be applied in repayment of certain advance payments made by it and by prior lessees, in pursuance of the terms of the original lease to the •original lessor and to his assignees.

The complaint averred that each of said defendants had demanded said royalties and had threatened to declarea forfeiture of the plaintiff's interest in said property unless said royalties were promptly paid, said Ketcham being the owner of the reversion, and said Indiana Coal Company having acquired the interest of the original lessee, which afterwards,'* by assignment or sub-lease, became vested in the plaintiff.

The complaint also averred that the plaintiff was ignorant as to which of said defendants had the right to said royalties. The plaintiff paid into court $1,943 as the amount of said royalties, for the benefit of the defendant wdio should be found really entitled thereto, and the complaint demanded that the defendants should be required to interplead, and that the court would determine whether said royalties were to be paid to said [517]*517Ketcham without deduction except f 100, or whether the advance payments aforesaid should be repaid to The Indiana and Ohio Coal Company out of said royalties, and- that until the determination of such question the defendants should be perpetually enjoined, etc.

To this bill of interpleader the defendant Ketcham filed a demurrer, which was overruled. The causes of demurrer were that the complaint did not state facts sufficient, etc., and that there was a defect of parties, because one "William W. Risher was not a party.

The defendants having been required to interplead, and upon their interpleading the court having rendered a judgment in favor of The Ohio and Indiana Coal Company; the defendant Ketcham appealed therefrom, and his first two specifications in his assignment of errors present the question as to the sufficiency of the complaint.

It was not necessary that Risher should be a party; he had been the owner of the mining interest now held by the plaintiff, and had transferred the same to the plaintiff, the plaintiff agreeing to pay all the royalties he was bound to pay. In the question presented by the bill of interpleader he had no interest whatever; it could make no difference to him whether the, moneys paid into court were paid unconditionally to Keteham or conditionally to The Ohio and Indiana Coal Company.

A bill of interpleader must allege: 1st. That two or more persons have preferred a claim against the complainant. 2d. That they claim the same thing, debt or duty. 3d. That the complainant has, no beneficial interest in the thing claimed. 4th. That he can not determine, without hazard to himself, to which of the defendants the thing of right belongs. Nofsinger v. Reynolds, 52 Ind. 218.

All of these matters are distinctly averred in the complaint under consideration, but it is urged against the complaint that it seeks by its averments to make an issue of fact with one of the alleged claimants, in the exclusive interest of the other, upon the question of the proper construction of the lease.”

[518]*518The bill of interpleader being a creature of equity, apparent collusion between the plaintiff and any of the defendants would necessarily be fatal thereto, but the complaint here shows nothing of that sort; it merely states the claims of both the defendants to the royalties, and it was right to do this to show the necessity for an interpleader.

It is further objected to the complaint that it shows that the money paid into court was $400 less than enough; but the plaintiff paid in what it had on hand, the controversy was about that, and, even if enoúgh were not paid in, the complaint would not be made bad by a mere mistake in the amount, where there is an offer, as there was in this ease, to pay all that may be ascertained to be due.

The last objections made to the complaint are that the plaintiff is only an under-tenant of the defendant, The Ohio and Indiana Coal Company, and that an under-tenant can not maintain a bill of interpleader against his landlord, and that there is no privity of contract or tenure between the plaintiff and Ketcham, so that it appears by the complaint that. Ketcham has no claim whatever to the royalties, and could maintain no action therefor against the plaintiff.

It is true as a general rule that a bill of interpleader will , not lie in behalf of a tenant against his landlord. Whitewater Valley, etc., Co. v. Comegys, 2 Ind. 469; Crane v. Burntrager, 1 Ind. 165. A tenant can not dispute the title of his landlord; but there may be cases in which a tenant, demanding an interpleader, does not dispute his landlord’s title, but affirms it and puts himself ou the mere uncertainty of the person to whom the rent is to be paid; but if a claim to the rent be set ■ up by a mere stranger, without privity of contract or tenure, there the tenant can not compel his landlord to interplead with the stranger. 2 Story’s Eq. Jur., sec. 812. The case at bar comes within the exceptions. The royalties are due under an agreement. If one construction of that agreement be correct they are due to Ketcham; under another construction, The Ohio and Indiana Coal Company would be entitled to [519]*519them in repayment of certain advance payments, and the plaintiff, without disputing anybody’s title as landlord, is seeking by its complaint to ascertain to whom, under the agreement, the royalties are to bo paid. All the parties to the suit are bound by and are claiming under the same original contract ■out of which the royalties arise. In such a case it is not necessary to consider the apparent conflict in the cases as to what constitutes the precise difference between a sub-lease and an assignment, nor how far the old legal rules are modified by sections 9 and 10 of the act of May 20th, 1852 (2 R. S. 1876, p. 341), which give to sub-lessees the same remedy on the original covenant against the chief landlord as they might have had against their immediate lessor, and which give to alienees of lessors and lessees of lands the same legal remedies in relation to such lands as their principals. It is enough to say that if the allegations of the complaint be true (and under the demurrer they must be assumed to be true), the complaint contains all the particulars held to be necessary in Nofsinger v. Reynolds, supra, and there was no error in overruling the demurrer to it.

The Ohio and Indiana Coal Company filed an answer to the complaint, and also a cross complaint against Ketcham and the plaintiff. These pleadings the defendant Ketcham was ordered to answer. He moved to vacate the order requiring him to answer said cross complaint, and he moved also to reject said cross complaint. Both of these motions were overruled.

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Bluebook (online)
88 Ind. 515, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ketcham-v-brazil-block-coal-co-ind-1883.