Little Rock Granite Co. v. Shall

27 S.W. 562, 59 Ark. 405, 1894 Ark. LEXIS 80
CourtSupreme Court of Arkansas
DecidedJuly 14, 1894
StatusPublished
Cited by23 cases

This text of 27 S.W. 562 (Little Rock Granite Co. v. Shall) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Little Rock Granite Co. v. Shall, 27 S.W. 562, 59 Ark. 405, 1894 Ark. LEXIS 80 (Ark. 1894).

Opinion

Wood, J.

This was an action at law, brought in the Pulaski circuit court, to recover the possession of a tract of land, embracing a rock quarry, belonging to the plaintiff, Elizabeth S. Shall, and leased to the assignor of the defendant, the Eittle Rock Granite Company, in 1887, for a period of ten years. The lease contains certain covenants whereby the lessee bound himself to pay seven cents per cubic yard for all rock sold or taken from the quarry, to be paid as the work progresses, “or at least as often as once per month for all rock delivered to that date;” and also to furnish copies “of all contracts to deliver rock before the delivery of the same.” He further agreed that a failure to do a reasonable amount of work—that is, to work at least an average of ten men per month for three consecutive months—“should forfeit the lease at the option of the lessor;” and also, at her option, the lease should be forfeited by a failure to perform either of the other covenants mentioned, or to use the quarry in a workmanlike manner, and with proper drains.

The lease was assigned to the defendant in October, 1889, with the consent of the plaintiff’s agent, and this suit was commenced in February, 1891. The complaint alleges the non-payment of any rent or royalty by the Granite Company, and that it has broken all the other covenants of the lease. The prayer is for a judgment forfeiting the lease, and for recovering the rent due, and for the possession of the demised premises.

The answer alleges a tender of all sums due under the lease, and denies a breach of either of the covenants. It contains a statement of the reason why the rents were not paid, and alleges a readiness and willingness at all times to settle, and that it was not the company’s fault that the settlement had not been made. In short, the answer contains matters of equitable defense against forfeiture, and concludes with a prayer that the cause be transferred to the Pulaski chancery court. On motion of defendant the case was transferred to the chancery court, without objection, where the cause was heard upon conflicting evidence as to the material matters in issue, and a decree rendered forfeiting the leasehold estate of the defendant, and for the possession of the premises, and the recovery of a sum found due as rent. The defendant appealed.

1. Equity will not enforce forfeit-

It is well settled that equity, as a general rule,- will not enforce a forfeiture. In Marshall v. Vicksburg, 15 Wall. 146, it was said: “Equity never, under any circumstances, lends its aid to enforce a forfeiture.” The rule is not less broadly stated in Story’s Equity, and by the authorities generally. 2 Story, Eq. sec. 1319; 4 Kent. Com. 131. Mr. Pomeroy says that there are some apparent, but no real, exceptions to this doctrine, and that it is well settled “that a court of equity will not enforce a forfeiture, but will leave the party entitled to it to his legal remedies, if any, even though the case might be one in which no equitable relief would be given to the defaulting party against the forfeiture.” 1 Pom. Eq. Jur. secs. 459, 460.

The plaintiff, desiring a forfeiture, Selected the proper forum to declare it; and she was clearly entitled to have the law court pass upon the question, notwithstanding the filing of an answer containing some grounds of equitable defense. Mansf. Dig. secs.. 1380, 1381, 4929; Act April 1, 1885, sec. 12: see, also, Mansf. Dig. secs. 5033, 5408, 5409. All the breaches complained of, that could be held sufficient to forfeit the lease, were denied, and the answer' does not set up any matter to avoid a forfeiture that would not have been available in the circuit court; for a court of law, though not clothed with all the powers of a court of equity to grant relief in such cases, will construe with strictness the conditions on which a forfeiture is claimed, and a cause of action to recover damages for a breach of the covenant does not necessarily carry with it the right to a forfeiture. A forfeiture is odious to the law, and a court of law may not only grant relief against it, upon an equitable defense, but will ordinarily refuse to enforce it because of a failure to perform an act the performance of which has not been demanded, or where compensation can be made io the party complaining. Atkins v. Chilson, 11 Met. (Mass.) 117; Insurance Co. v. Norton, 96 U. S. 242; Bowman v. Foot, 29 Conn. 341; Tate v. Crowson, 6 Ired. (N. C.) 65.

2. Practice in equity.

But, while it was the right of plaintiff to have the •court of law determine this cause, it appears that she waived this right by not objecting to the transfer, provided the answer contains matters of equitable cognizance. The answer, as to the failure to pay rents and furnish copies of contract, was in the nature of confession and avoidance. It admitted that the rents had not been paid, and, virtually, that copies of contracts had not been furnished. But it seeks to avoid a forfeiture on account of such failure (especially to pay rents) by setting up matters which would give a court of equity jurisdiction. And while the answer does not pray for affirmative relief, and is not made a cross bill, in express words, such was the evident purpose of the motion to transfer; and the only legitimate effect of the equitable •defense, when proved in a court of chancery, would be relief against the forfeiture. The question then is, should appellant be relieved against a forfeiture ?

This cause, being here on appeal from the chancery •court, must be determined according to the practice and principles prevailing in courts of equity.

3. When forfeiture waived.

Mr. Pomeroy says : “If there has been a breach of the agreement sufficient to cause a forfeiture, and the party entitled thereto, either expressly or by his conduct, waives it or acquiesces in it, he will be precluded from enforcing the forfeiture, and equity will aid the defaulting party by relieving against it, if necessary.” 1 Pomeroy, Eq. Jur. sec. 452. But equity will not relieve against a forfeiture where the ‘‘violation of the contract was the result of gross negligence or was wilful and persistent.” 1 Pomeroy, Eq. Jur. sec 453.

Measuring the conduct of the parties litigant by these fundamental principles, we conclude, if there was a forfeiture in this case, appellant should be relieved against it. The testimony shows conclusively—there being no proof to the contrary—that, for a period of over two years from the execution of the lease to the time the appellant took possession under the transfer, there had been no certified copies of contracts for rock, quarried furnished appellee. She had not asked for any, and none were given. But during all this time there was no demand for a forfeiture on account of such failure. On the contrary, it appears that appellee received the rents or royalty for all this time, and there is-no proof of any complaint because of the failure to furnish copies of contract, as per the stipulations of the lease in this particular. The proof shows, during this period, all the other conditions of the lease were fully complied with.

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Cite This Page — Counsel Stack

Bluebook (online)
27 S.W. 562, 59 Ark. 405, 1894 Ark. LEXIS 80, Counsel Stack Legal Research, https://law.counselstack.com/opinion/little-rock-granite-co-v-shall-ark-1894.