Madison v. Garfield Coal Co.

86 N.W. 41, 114 Iowa 56
CourtSupreme Court of Iowa
DecidedMay 15, 1901
StatusPublished
Cited by18 cases

This text of 86 N.W. 41 (Madison v. Garfield Coal Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Madison v. Garfield Coal Co., 86 N.W. 41, 114 Iowa 56 (iowa 1901).

Opinion

McClain, J.

1 I. Although a prior adjudication, if it involved the construction of the contract now before us, would be conclusive in this case, we prefer to consider first the construction of the contract itself. Without setting it out in full, we may collect the provisions which are involved in this controversy as follows: By its terms the plaintiffs lease to defendants, for the purpose of mining coal, the said coal lands, and give them the power to mine and remove all coal underlying said lands. The defendants are to pay for all coal taken out of said mine at a specified royalty per ton, payable monthly, but the royalty for each year is to he not less than $250, and if, during any year, the royalties paid have not amounted to that aggregate sum, then the balance of such sum is to bo paid at the end of the year. This minimum royalty per year is to continue “as long as said mine is operated, not to exceed twenty-five years, but, if the coal is sooner mined out, then the royalties are to cease when the coal is exhausted.” [58]*58The defendants are given the right to secure necessary air and water shafts, and to place “the refuse from said shafts upon said surface in the usual way as is done in operating coal mines; and they shall have the right to dump the waste from the main shaft on the surface, as is done in operating coal mines.” The defendants are “to have the right of way over the surface of said land for railway track to shaft, not exceeding 50 feet in width, and also the right of way, not exceeding 150 feet in width, for switches and dump buildings, and any necessary buildings for the operation of said mine at said mine. They are to have sufficient ground to properly operate said mine in the usual manner in which coal mines are operated. That for said right of way and switch grounds they are to pay $20 per year on the first of January of each year.” With reference to such rental for right of way it is stipulated that, “if the second party desires to use the right of way upon the land after the coal has been exhausted from the first parties’ land, they may continue to do so at a rental of $20 per year during the continuance of the use, to be paid on or before the first day of January of each.year.” The first party “reserves the surface, except as herein granted, and the right to farm the same, or use it in any manner that he desires, subject to the rights herein granted.” It is to be noticed that the lease is “for the purpose of mining coal.” Nowhere in the lease is there any language used involving an express limitation of the use to the mining of coal from the land itself. It appears, therefore, that the situation of the parties at the time of making the lease was this: That plaintiffs had an 80-acre tract of land at least partially underlaid with coal, which they desired to have removed on payment of royalty. The removal of this coal would involve the construction of shafts, of underground entries, and of some sort of track on the surface by which the coal could be taken away from the mouth of the shafts; also the dumping on the surface of refuse. The reservation of the surface for agricultural purposes would indicate that the plaintiffs attached [59]*59some importance to the occupancy of the surface, and in harmony with this idea it is stipulated that for right of way over the surface the defendants are to pay the additional rental of $20 per-year. It may be that, without other provision in the lease, it ought to be construed as relating entirely to the removal of coal from the plaintiffs’ land, although no such express limitation is specified; but the parties -went further, and expressly provided that the second party might use the right of way upon the land after the coal had been exhausted from the land in question, the rental for the use of the surface right of way being continued during such additional use. What could have been the object of this provision if no coal was to be taken from the shaft on plaintiffs’ land except coal from the land itself? Plaintiffs’ counsel has not suggested any occasion possibly arising from the taking of coal from plaintiffs’ land which would require-the use of this right of way after such coal should be exhausted. The parties must, therefore, have contemplated some use for the shaft and the right of way other than the use for the removal of plaintiffs’ coal, and it- is reasonable to suppose that the parties considered that the continued use of this shaft for the removal of other coal, and the transportation of it over plaintiffs’ land, would .be sufficiently compensated by the payment of the yearly rental of $20 for the surface right of way while defendants continued to use it. The plaintiffs may very well have considered that such an annual rental for the use of the surface right of way would adequately compensate them for all damages which they would suffer in view of the fact that the surface of the land was suitable for agricutural purposes only, and as to such purposes the continued use of the underground entries for the removal of other coal would be no detriment- whatever. It appears from the evidence of John Madison, one of the plaintiffs, who, by the way, had had at the time this, contract was made, long experience in coal mining, that plaintiffs were to receive a considerably greater royalty for the coal removed from their land than was paid [60]*60by defendant for coal from adjoining land which was leased from other owners at about the same time; and plaintiffs may well have thought that, on the whole, they would be sufficiently compensated for all the use which defendants could make of the land in question. The only possible inconsistency which we find in the lease is that the minimum royalty is to “continue as long as said mine is operated, not to exceed 25 years, but, if the coal is sooner mined out, then the royalty shall cease when the coal is exhausted” ; whereas the surface right is to continue after the coal is exhausted. But, taking these two provisions together, it is clearly the intention that, after the coal is exhausted, and the payment of the minimum royalty ceases, the defendants are still to have the use of the surface right of way, and, as we think, impliedly, the use of the underground entries and shafts, at a rental of $20 per year, at least, to the end of the period of 25 years. It appears that the coal on plaintiffs’ land is not yet exhausted, and that defendants are still paying at least the minimum royalty per year, and we are not now called on to’ decide what the situation will be during the balance of the 25 years after plaintiffs’ coal is exhausted, nor whether the defendants will have the right to use the underground entries, shafts and surface right of way after the expiration of the 25 years on the payment of the annual rental of $20. Appellants contend that, in any event, there is nothing in the lease authorizing the-use of the entries, shafts and surface right of way for the removal of coal from other lands until plaintiffs’ coal is exhausted; but, in Anew of the fact that, as Ave hold, the lease does imply the right to remove other coal through and over plaintiffs’ land at some time during the continuance of the lease, then the privilege must have been contemplated as vesting from the beginning of the lease; and. Ave see no reason why that privilege need have been expressly stipulated for, in view of the general provision that defendants were to use the land for the purpose of mining coal, without restriction, and .that it Avas expressly stipulated that at least the minimum royalty should [61]*61be paid to plaintiffs during each year until plaintiffs’ coal is exhausted.

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Bluebook (online)
86 N.W. 41, 114 Iowa 56, Counsel Stack Legal Research, https://law.counselstack.com/opinion/madison-v-garfield-coal-co-iowa-1901.