Lawrence E. Tierney Coal Co. v. Smith's Guardian

203 S.W. 731, 180 Ky. 815, 4 A.L.R. 1540, 1918 Ky. LEXIS 151
CourtCourt of Appeals of Kentucky
DecidedJune 4, 1918
StatusPublished
Cited by5 cases

This text of 203 S.W. 731 (Lawrence E. Tierney Coal Co. v. Smith's Guardian) 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
Lawrence E. Tierney Coal Co. v. Smith's Guardian, 203 S.W. 731, 180 Ky. 815, 4 A.L.R. 1540, 1918 Ky. LEXIS 151 (Ky. Ct. App. 1918).

Opinion

Opinion of the Court by

Judge Carroll

Reversing.

This case presents the important question, whether a circuit court, pursuant to legislative authority so to do, has the power to lease the mineral land of infants for a term of years beyond their minority, and brings before us the validity of the legislative act, attempting to confer upon the circuit court the power exercised in this case.

The question comes up in this way: In 1916 the legislature enacted a statute providing in section 1: “That the guardian of an infant, curator or the committee of a person of unsound mind may lease the real estate, or any interest therein, of such infant or person of unsound mind for the purpose of mining and removing all or part of the coal, oil, gas and any or all other mineral or mineral substances and products therein;' together with the usual and reasonably necessary privileges to mine, bore for, store, pump and remove the same, and similar products taken from other land, and the right to dump upon said land refuse or other products taken therefrom and from other land; and to erect upon said land miners’ houses, commissáries and hotels and other houses and equipment reasonably necessary to enable the lessee to carry on the business in the most [817]*817economical way. Snch lease may be for such length of time as the guardian, curator or committee may approve, without being limited to the time at which the liability of such infant or person of unsound mind may be removed.”

In section 2, it was provided that no such lease shall be made until the guardian, curator or committee shall have filed, in the office of the circuit court clerk, a petition against the infants or person of unsound mind, setting forth a description of the land, and showing the propriety of making a lease thereto.

In section 3 it was provided that a guardian ad litem should be appointed to protect the interest of the infants, or the person of unsound mind, and in section 4 that the court should hear and dispose of the case upon the evidence taken, and if it was made to appear by the evidence of at least two creditable witnesses that the interests of the infants, or person of unsound mind, would be promoted by the lease, the court should order that the property be leased and prescribe the royalty to be paid. Sections 5, 6, 7 and 8 relate to the practice and procedure, and prescribe the descent of the estate upon the death of the infants, or persons, or unsound mind, without having disposed of the same.

In section 9 it was provided that the guardian, curator or committee should settle from time to time his accounts “and upon the infant becoming of age or the person of unsound mind becoming of sound mind shall make a final and complete settlement of all amounts received under such lease, and account for the same as herein and by law provided; and shall thereupon be discharged from further duty or accountability as such guardian or committee. Thereafter the rights and obligations of such former infant or person of unsound mind and the lessee shall be the same as if the lease had been executed originally to the lessee by a person over twenty-one years of age and free from any disability.”

In 1917, Jesse D. Hash, as statutory guardian of Octavia, Jake and Ike Smith, filed his petition in the Pike circuit court against these infants averring that Octavia was 11, Ike 16 and Jake 18 years of age; that they were the owners of about 2,500 acres of land devised by the will of Jacob Smith, in 1906, to their father for life, with remainder to them in fee; that the land was unfit for cultivation on account of its rough and mountainous char[818]*818acter, and its sole value consisted in' the coal thereon; that the infants have no income, and if they were permitted to lease the coal'and mining rights in the land, •the royalty derived therefrom would be sufficient to educate and maintain them; he prayed that the court enter a decree authorizing him to lease the property for coal mining purposes, pursuant to the terms of a lease proposed to be made between these infants by Kash as their guardian of the one part and the Lawrence E. Tierney Coal Company of the other part. This lease stipulated that the grantors, in consideration of certain royalties, provided for, leased all of the coal in and under the land to the coal company for a period of forty years, with the privilege of renewal for an additional term of forty years. . The lease further contained a number of stipulations providing for the use and occupation of the property by the coal company to enable it to mine and deliver the coal, and then provided that the lessee should pay to the lessors, during the continuance of the lease, or any renewal thereof, a royalty of ten cents for each ton of coal produced from the land and fifteen cents for each ton of coke that might be manufactured on the premises, the minimum royalty to be $5,000 for the first year, $10,000.00 for the second and $15,000.00 for the third, and each year thereafter.

After this, the infants were properly brought before the court and a guardian ad litem was appointed to represent them, and he filed a report reciting that, in his opinion, the lease would be beneficial to them. Thereupon evidence was taken supporting the averments of the petition and afterwards the court rendered a judgment authorizing the guardian, Kash, to lease the land for a period of forty years with the privilege of renewal for forty years for the purpose of mining and removing coal therefrom, with the usual privileges contained in such leases. The judgment further recited that the conditions of the lease, filed with the petition, were reasonable and satisfactory, and that the guardian should lease the coal privileges in the land under and according to the terms of the form of lease filed with the petition at public outcry, reserving to the court the right to reject any and all bids.

Following this the privileges as set out in the lease filed with the petition, were. sold pursuant to the judgment, and the Lawrence E. Tierney Coal Company, be[819]*819ing the only bidder, became the purchaser under the terms of the lease heretofore referred to. Formal exceptions were filed to the report of sale by the company and overruled, and it prosecutes this appeal for the purpose of having the correctness of the judgment, and the rulings of the court in respect to the exceptions determined by this court in order that there might be no questions about the validity of the lease, and its rights and privileges thereunder.

It may here be remarked that the proceedings had in the lower court were in conformity with the provisions of the act, and so, if there were no objections to its validity, the judgment should be affirmed.

At this point we may digress a moment to briefly review the state of the law previous to the act of 1916. In sections 489-498 of the Civil Code, provision is made for the sale of the real estate of infants and persons of unsound mind. But the sale of the real estate of infants and persons of unsound mind, under these code provisions, is only allowable: (1) For the purpose of paying a debt of the ancestor with which the infant or person of unsound mind may be chargeable'; (2) for the purpose of paying the debts of the infant or person of unsound mind; (3) for the maintenance and education of the infant, and the maintenance of the persons of unsound mind and their families; (4) for purposes of reinvestment in other property.

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Bluebook (online)
203 S.W. 731, 180 Ky. 815, 4 A.L.R. 1540, 1918 Ky. LEXIS 151, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lawrence-e-tierney-coal-co-v-smiths-guardian-kyctapp-1918.