Laing v. Price

83 S.E. 497, 75 W. Va. 192, 1914 W. Va. LEXIS 240
CourtWest Virginia Supreme Court
DecidedOctober 29, 1914
StatusPublished
Cited by8 cases

This text of 83 S.E. 497 (Laing v. Price) 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
Laing v. Price, 83 S.E. 497, 75 W. Va. 192, 1914 W. Va. LEXIS 240 (W. Va. 1914).

Opinion

POEEENBARGER, JUDGE :

The two-fold purpose of the bill in this cause, rescission of a coal lease and restraint, by injunction, of an action of assumpsit to recover minimum rentals accrued on it and in arrears, was defeated by dissolution of the preliminary injunction and dismissal of the bill.

Additional grounds of relief, set up in the bill, were an alleged bar of the right of the defendants to the stipulated rentals; by a former adjudication, and an alleged termination of all rights under the lease by surrender thereof. The ground of rescission was alleged non-existence, in the leased land, of coal of the quantity and quality contemplated by the parties, at the time of the execution of the lease.

The history of the lease and some of its material provisions are narrated in the opinion in Beckwith v. Laing, 66 W. Va. 246.

The adjudication relied upon as extinguishment of the rights of the defendants under the lease and affording ground for the injunctive relief sought, is the decree in Price et al. v. Laing, Admr., affirmed by this court, as shown by the decision reported in 67 W. Va. 373.

That decree expressly sustained a demurrer to the bill and then dismissed it in general terms, making no reservation of [194]*194right to sue in another forum or a different form of action. Analysis of the numerous decisions invoked in the argument in support of the allegation of conelusiveness of the decree is unnecessary. Most of them merely declare general principles of res ¡judicata and apply them under conditions and circumstances differing from those disclosed here. As the demurrer could have been sustained on the ground of lack of equity jurisdiction, and not on the ground of lack of legal right in the plaintiffs, arising out of the facts stated, the court may have sustained it upon that ground. In other words, it is obvious that the decision on the demurrer may have gone no further than to deny the appropriateness or validity of the remedy chosen. That was the first defense raised by the demurrer. To get to the merits, the court would have been bound to pass over it. Inappropriateness of the remedy, if found, warranted dismissal of the bill. An adjudication on the merits, adverse - to the plaintiffs, would have called for the same order. No language of the decree shows upon which ground it was entered. The recital of lack of equity, in the bill, in the opinion of the court, does not disclose it. These general and indefinite terms are susceptible of interpretation, and may mean either that the remedy was not in a court of equity, or that the facts stated in the bill conferred no right. Hence, as to the ground of dismissal, the decree is ambiguous. This element of uncertainty alone deprives the adjudication of the force and'effeet claimed for it. “Where in an answer various matters of defense are set forth, some of which relate to the maintenance of the suit, and others to its merits, ¿nd there is a general decree of bill dismissed, it is impossible to hold the decree a bar to further proceedings. This is because it is uncertain upon what ground the bill was dismissed.” Herman, Est. & Res Judicata, p. 474, sec. 404, citing Foster v. Busteed, 100 Mass. 409, which fully sustains the text. See also Van Fleet’s Form. Adj., p. 667, sec. 309, and authorities there cited, including Griffin v. Seymour, 15 Ia. 30, and Kleinschmidt v. Binzel, 14 Montana 31. In conformity with this principle, it was held, in Poole v. Dilworth, 26 W. Va. 583. that “A decision upon a demurrer, though it be but a decree dismiss[195]*195ing the plaintiff's bill, will be conclusive of every matter whether specially stated in the bill or not, provided it is clear,'that such matter was necessarily in controversy in the suit and was decided in it, otherwise such decree will not be conclusive of such matter.” Furthermore, the ambiguity, justifies resort to the record for aid in the interpretation of the decree. St. Lawrence Co. v. Holt and Mathews, 51 W. Va. 352, 376; Herman, Est. & Res. Judicata, p. 470, see. 402. Recourse to it shows no issue upon any matter of fact. There .is nothing in it but the bill, demurrer and decree. It would be unreasonable to say the court refused a decree for money due upon a solemn covenant to pay it, exhibited with the bill, and not denied or impeached in any manner whatever. Upon the general demurrer stating no grounds,, lack of remedy in equity could be urged, and, being obvious, it was presumptively the ground upon which the demurrer was sustained. Had an answer been filed and proof taken, or, had the demurrer been overruled expressly or Impliedly ánd a decree pronounced in favor of the plaintiffs, the question would take an entirely different form and would fall under different rules of disposition.

The allegation of. a surrender of the lease wholly fails for want of proof. It was assigned by James Laing, the lessee, to Isadore Meadows, who, it is said, re-assigned it to the New River Fuel Company. That company, through one of its subsidiaries, paid the stipulated rentals accrued under the lease from January 1907 to October 1907, and taxes on the land, amounting in the aggregate to about $2400.00. After the decision in Becktwith v. Laing, 66 W. Va. 246, involving an alleged assignment of the lease to Beckwith, trustee, it ceased to make further payments, and S. Dixon, president- of the company, notified one of the plaintiffs that no further royalties would be paid, because the lease had been cancelled in said suit and the prospecting done by the company had revealed a lack of coal in workable quantities. Beckwith did not amend his bill, and his suit was dismissed. The decree in his favor which the court reversed would have compelled the Laings to assign the lease to him and taken it from the New River Fuel Co., if it had not been reversed, [196]*196but there was no cancellation of the lease and the reversal rendered the decree harmless to the New River Company. Nor was there any formal or legal surrender thereof. Mr. Dixon’s mere verbal notice of intention to give up the lease and not pay further rentals did not constitute one. No authority in him to make a surrender is shown, and, moreover, he does not claim to have made a formal surrender either verbally or in writing. Non-payment of the rentals vested right in the lessors, by express provisions of the lease, to forfeit it, but they did not do so. On the contrary they have affirmed its continued existence by their efforts to enforce payment of the rentals. There was no abandonment of actual operation under the lease, for none was ever commenced. If there had been and the lessors had re-entered or executed a new lease, these circumstances would establish an implied surrender. Sult v. Hochstetter Oil Co., 63 W. Va. 317. An express surrender would require corporate action. The joint action of the parties is essential to such a surrender. Here we have the act of only one of them. The president of the company had no inherent authority to make it. We do not say whether the lessee has an absolute right to surrender in the first half of the term.

The plaintiffs say they were entitled to relief, if the coal is not of the thickness of vein, persistency and quality requisite to profitable mining, because both parties believed it to be so, at the time of the execution of the. lease, and their mutual mistake and failure of consideration afford two well recognized grounds for equitable relief by way of rescission.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Brand v. Lowther
285 S.E.2d 474 (West Virginia Supreme Court, 1981)
Cottrell v. State Compensation Commissioner
115 S.E.2d 153 (West Virginia Supreme Court, 1960)
Coastal Tank Lines, Inc. v. J. M. Hutchinson & Chemical Tank Lines, Inc.
110 S.E.2d 735 (West Virginia Supreme Court, 1959)
Babcock Coal & Coke Co. v. Brackens Creek Coal Land Co.
37 S.E.2d 619 (West Virginia Supreme Court, 1946)
Aden v. Dalton
107 S.W.2d 1070 (Supreme Court of Missouri, 1937)
Toney v. Sandy Ridge Coal & Coke Co.
99 S.E. 178 (West Virginia Supreme Court, 1919)
Virginia Iron, Coal & Coke Co. v. Graham
98 S.E. 659 (Supreme Court of Virginia, 1919)

Cite This Page — Counsel Stack

Bluebook (online)
83 S.E. 497, 75 W. Va. 192, 1914 W. Va. LEXIS 240, Counsel Stack Legal Research, https://law.counselstack.com/opinion/laing-v-price-wva-1914.