Middleton v. Western Coal and Mining Company

241 F. Supp. 407, 22 Oil & Gas Rep. 692, 1965 U.S. Dist. LEXIS 7703
CourtDistrict Court, W.D. Arkansas
DecidedMay 21, 1965
DocketCiv. A. 1799
StatusPublished
Cited by11 cases

This text of 241 F. Supp. 407 (Middleton v. Western Coal and Mining Company) is published on Counsel Stack Legal Research, covering District Court, W.D. Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Middleton v. Western Coal and Mining Company, 241 F. Supp. 407, 22 Oil & Gas Rep. 692, 1965 U.S. Dist. LEXIS 7703 (W.D. Ark. 1965).

Opinion

JOHN E. MILLER, Chief Judge.

This action was commenced May 13, 1964, by the plaintiffs in the Sebastian *409 Chancery Court, Greenwood District, of Arkansas. The action was timely removed by the defendants June 2, 1964.

The defendant Western Coal and Mining Company (hereinafter called Western) is a corporation organized and existing under the laws of the State of Missouri, with its principal place of business at St. Louis. The defendant Missouri Improvement Company (hereinafter referred to as Improvement) is a Missouri corporation with its principal place of business at St. Louis. The defendant Missouri Pacific Railroad Company is a Missouri corporation with its principal place of business at St. Louis. The plaintiffs Robert J. Middleton, Robert E. Middleton, Richard B. Griffin and Bradley W. Kidder are citizens of the State of Arkansas and residents of Sebastian County. The court has jurisdiction of the action by virtue of the diversity of citizenship of the parties and the amount in controversy, 28 U.S.C. § 1382.

The plaintiffs in their complaint alleged that Robert J. Middleton and Floy Middleton, husband and wife, purchased certain real property in the Greenwood District of Sebastian County on February 28, 1945. On October 2,1962, Robert J. Middleton entered into a contract of sale with Robert E. Middleton, Richard B. Griffin and Bradley W. Kidder to sell this property for the purpose of subdividing, improving and resale as residential and commercial lots. Pursuant to this agreement the property was subdivided and platted and a bill of assurance filed. Prior to the above described transactions the plaintiffs’ predecessors in title, Franklin Bache and Nannie T. Bache, his wife, on April 2,1904, conveyed to Western “all and singular the coal, fire clay and other minerals contained within and underlying” the property involved in the instant controversy. 1

It is further alleged in the plaintiffs’ complaint that, although the deed to Western was executed more than 60 years ago, at no time has Western or its corporate successor, Improvement, made any effort to mine coal, fire clay or other minerals, nor has Western or its successor, Improvement, purported to exer *410 cise its option under the “elect to take” the surface of said property. In the concluding sentence of paragraph 7 of the plaintiffs’ complaint it is alleged that the provision “elect to take” the surface of the property constitutes a cloud upon the marketability of the surface of said real estate to the extent that it is rendered virtually unmarketable.. It is alleged that the plaintiffs have made substantial improvements on said property and placed it upon the market for sale as residential .and commercial lots. That the plaintiffs did find ready, willing and able purchasers for said property, but sales, however, were not consummated for the reason that lending institutions declined to finance the sales because of the perpetual ■option contained in the April 2, 1904, deed to Western on the grounds that it constituted a cloud upon the plaintiffs’ title to the surface. That since that time the property has been totally unmarketable.

In paragraph 9 of the complaint the plaintiffs alleged that the perpetual option in the April 2, 1904, deed is null and void for the following reasons:

“(a) It is too vague, uncertain and indefinite to constitute a binding option.
“(b) It fails to specify a time limit in which the said option is to be exercised; and in the event a reasonable time is to be inferred as the limit, then said reasonable time has expired.
“(c) It is an unlimited or perpetual option which violates the rule against perpetuities.
“(d) It is inherently inequitable in that it totally destroys the merchantability of plaintiffs’ title to the surface of said property.
“(e) Defendants have failed to use due diligence in the exploration, development and working of the premises.
“(f) Defendants have permitted plaintiffs to make improvements upon the surface of said property and otherwise act in a manner wholly inconsistent with any purported right which defendants might claim under said perpetual option, and defendants are now es-topped from asserting any rights thereunder.
“(g) Defendants are barred by laches from asserting any purported rights under the said provision.
“(h) The purported option to take the surface of said property is not necessary or required for the purpose of mining the coal, fire clay or other minerals underlying said property for the reason that defendants have other access to said minerals through the surface of adjacent lands owned by defendants herein.”

In paragraph 10 of the plaintiffs’ complaint it is alleged that Missouri Pacific is the successor in title to a purported right-of-way across this property; that although Missouri Pacific did at one time maintain railroad tracks across said property, they were removed several years ago, the exact date of removal not being known to the plaintiffs. That the Missouri Pacific removed all tracks, ties, rails and bridges along said right-of-way, and thereby wholly and completely abandoned any interest, right or ownership. That the right-of-way also constitutes a cloud upon the title to the surface of this property.

In paragraph 11 of the plaintiffs’ complaint the plaintiffs alleged that the Bache deed did not convey oil and natural gas by the use of the words “other minerals” in the April 2, 1904, deed. That although the legal and commercial usage of the term “other minerals” in the Greenwood District of Sebastian County, Arkansas, did not include oil and natural gas at the time the deed was executed, the words “other minerals” constitute a cloud upon the title to the oil and gas underlying the property.

*411 The prayer of the complaint is (1) that the court construe the April 2,1904, deed to include the right to conduct underground mining only; (2) that the court declare the perpetual option in the April 2, 1904 deed to be null and void, and the court remove same as a cloud upon the plaintiffs’ title, or, in the alternative, require the defendants to elect whether they will exercise the option to use the surface, and if defendants elect to exercise said option that they be required to designate which portion of the surface will be used, and that the defendants be required to pay compensation for their interest as their interest may appear; (3) that this court declare the right-of-way in favor of St. Louis, Iron Mountain and Southern Railway Company, and its successor, Missouri Pacific Railroad Company, abandoned, and that the court remove same as a cloud upon the plaintiffs’ title; (4) that this court construe the words “other minerals” in the April 2, 1904, deed to include only solid minerals and to exclude oil and natural gas; that, the words “other minerals” be removed as a cloud upon the plaintiffs’ title, and that Robert J.

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Bluebook (online)
241 F. Supp. 407, 22 Oil & Gas Rep. 692, 1965 U.S. Dist. LEXIS 7703, Counsel Stack Legal Research, https://law.counselstack.com/opinion/middleton-v-western-coal-and-mining-company-arwd-1965.