Kyle v. Griffin

85 S.E. 559, 76 W. Va. 214, 1915 W. Va. LEXIS 106
CourtWest Virginia Supreme Court
DecidedApril 20, 1915
StatusPublished
Cited by3 cases

This text of 85 S.E. 559 (Kyle v. Griffin) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kyle v. Griffin, 85 S.E. 559, 76 W. Va. 214, 1915 W. Va. LEXIS 106 (W. Va. 1915).

Opinion

Poffenbarger, Judge:

Griffin has appealed from a decree enforcing Kyle’s claim to right of participation in the profits arising from the sale of certain areas of coal, on the theory of a partnership relation between them, and Kyle cross-assigns error in a later decree in the cause, allowing Griffin a commission of $5.00 an acre for his services and expenses in and about the sale of other areas of coal in which both were equally interested.

Sheridan R. Griffin, Jasper S. Kyle and A. B. Van Osten were equal and joint owners of numerous tracts of coal, mak[216]*216ing a consolidated area of 4823.66 acres in the counties of Doddridge and Wetzel, which they had purchased for re-sale. These purchases began in June or July, 1902, and continued until late in the year 1905. On the 27th day of November 1905, they owned about 4000 acres and then executed an option thereon to L. C. Wyer, which seems to have included an additional 500 acres they had not yet acquired. On the 12th day of December 1905, this option, was renewed or extended and enlarged so as to cover 5000 acres, the parties agreeing to obtain and convey additional coal, in ease the option should result in a sale. With the assistance of Wyer, these tracts were sold to William F. Baird in January, March and May 1906, at a large profit.

Being men of limited means, these parties carried on their operations under considerable embarrassment. For the most part, the money with which they paid for the coal was borrowed in various forms and they had some difficulty in finding enough to take all their enterprise contemplated. This circumstance seems to have brought about the peculiar relations respecting other coal out of which the present controversy has arisen. There were coal areas known as the Dewhurst, Hardman and Danial Bates tracts, containing, respectively, 3066.25, 1122.15 and 347.9 acres, which, by reason of their location, could have been included, in the enterprise and handled advantageously with the 4823.66 acres Griffin, Kyle and Van Osten succeeded in consolidating and selling as aforesaid. The Dewhurst, Hardman and Bates coal, with some additional tracts, making in the aggregate about 5500 acres, were purchased by Griffin and one Michael A. Brast. On the same day on which Griffin, Kyle and Van Osten gave Wyer their first option, Griffin and Brast optioned to him 5500 acres of coal including the Dewhurst, Hardman and Bates tracts. Three days later, Griffin and Brast bought the Dewhurst coal and near that date, the Hardman and Bates coal, all of which together with additional tracts, they sold, in the year 1906, to William F. Baird, at a very considerable profit, and executed conveyances thereof. Claiming the purchase of the Dewhurst, Hardman and Bates coal had been contemplated by the alleged copartnership and that Griffin’s purchases thereof in connection with Brast were [217]*217secret and legally fraudulent as to Mm and Van Osten, Kyle claims right of participation in one-half of the profits he realized from these areas and demands an accounting respecting the same as well as the profits arising from the sale of the 4823.66 acres.

G-riffin denies the existence of any partnership relation among the parties, saying they were mere tenants in common of the numerous tracts of coal, constituting the boundary of 4823.66 acres. If this contention cannot be sustained, he insists there was no general partnership for the purchase and re-sale of coal, but only a limited one embracing the land actually purchased and re-sold by them. These positions are based largely upon the terms of the following instrument:

“This, Memorandum of Agreement, by and between Sheridan R. Griffin, Jasper S. Kyle and A. B. Van Osten, all of Clarksburg, W. Va.

CERTIFIES, that, all of a certain lot of coal and coal privileges, bought in Doddridge County, W. Va. through the agency of J. F. Dye, Luther E. Kyle, and a few pieces from Chas. S. Hornor: the deed for the said several tracts, and for individual tracts, are being taken in the name of Sheridan R. Griffin trustee, for the use and benefit of said Sheridan R. Griffin, Jasper .S. Kyle and A. B. Van Osten; and it is agreed by each of them, that, they will bear equally the cost of purchasing said coal, and the contingent expenses, incurred in taking up said coal and taking deeds, etc. for same.

And that, they, each of them, and after them their heirs and assigns, are to hold an equal interest in the property so purchased, or any profits arising from any sale of said coal property.

The aggregate amount of said coal properties, so bought and so deeded, is about Three Thousand Acres, (3000).

Witness the following signatures, and seals, this 20th day of December, 1902.

SHERIDAN R. GRIFFIN (SEAL)

JASPER S. KYLE ■ (SEAL)

A. B. VAN OSTEN (SEAL)

Reading this paper in connection with extraneous evidence disclosing the circumstances under which it was executed, the previous and subsequent situation and conduct of the parties [218]*218and their purposes, the appellee insists that it does not define the relation oí the parties so as to limit it to a tenancy in common or a limited partnership excluding the Dewhurst and other tracts. It was executed, as its date shows, December 20, 1902, several months after the commencement of the operations to which it relates. At that time, the parties had acquired about 3000 acres of coal. Between that date and. the date of the option given to Wyer, they obtained an additional 1000 acres which confessedly went in with the 3000 and was disposed of upon the same basis. Still later there was an addition of more than 800 acres. Kyle’s right to participate in the profits from these additional tracts is not denied. The circumstances constituting the inducement to the preparation and the execution of the memorandum are also relied upon. Conveyances of the 3000 acres mentioned in the agreement had been taken generally in the name of Griffin, trustee, and he had become critically ill of typhoid fever. As the conveyances did not disclose the names of the beneficiaries of the trust, Griffin’s associates naturally became solicitous about the result of his illness. His death, without written evidence of the status of the property they had jointly acquired, might have seriously embarrassed them, since the law would have closed their mouths as to personal transactions with him. Therefore'they deemed it highly important to have an agreement or memorandum in writing, setting forth their interests in the coal. This memorandum was prepared by Kyle, a layman, and, read in the light of the circumstances under which it was drafted and its purpose, his counsel think it is to be regarded as an agreement within the alleged co-partnership, rather than a writing defining, in all respects, the relation of the parties and its scope.

Support of the view of a mere tenancy in common and limited partnership is sought in the method by which purchases of coal were made. None of the parties possessed or exercised the right individually to make binding purchases for the association. No tract of coal was taken in otherwise than upon the unanimous approval by the parties, of its location, character and price. The association maintained no office known as a firm office. Mr. Kyle had an office in which the most of their business was transacted, but it seems to [219]*219Rave been known as. bis. They maintained no firm bank account. No firm books were kept.

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Bluebook (online)
85 S.E. 559, 76 W. Va. 214, 1915 W. Va. LEXIS 106, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kyle-v-griffin-wva-1915.