Midwest Fuel & Timber Co. v. Steele

142 P.2d 1011, 111 Colo. 458, 1943 Colo. LEXIS 272
CourtSupreme Court of Colorado
DecidedNovember 1, 1943
DocketNo. 15,025.
StatusPublished
Cited by1 cases

This text of 142 P.2d 1011 (Midwest Fuel & Timber Co. v. Steele) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Midwest Fuel & Timber Co. v. Steele, 142 P.2d 1011, 111 Colo. 458, 1943 Colo. LEXIS 272 (Colo. 1943).

Opinion

Mr. Justice Knous

delivered the opinion of the court.

This action was commenced in the district court by plaintiff in error, as plaintiff, against defendant in error and her two sisters, as defendants. Neither of the latter two was served with process or appeared, so, notwithstanding the allegations of the complaint are directed to “the defendants,” we shall refer to the parties in the singular, as plaintiff and defendant.

The question presented here is whether the district court erred in granting the motion of defendant to strike the replication of plaintiff as sham and irrelevant and thereupon in entering judgment dismissing the action.

It appears from the record that in 1917 defendant leased certain subsurface coal rights in Weld county to the Evans Fuel Company, a corporation, on a royalty basis. Subsequently, with the consent of defendant and her colessors, the lease was assigned to the International Fuel Corporation, which later became bankrupt. In 1925, in consideration of the agreement by plaintiff to pay certain back royalties, defendant consented in writing to the assignment of the lease to plaintiff by the trustee in bankruptcy of the International Company. Paragraph nine of the lease provided, inter alia, that lessors (defendant) “shall hold, save and keep harmless the lessee from and against all claims of any and all persons for damages” for subsidence or sinking of the surface of the land resulting from mining operations carried on in good, substantial and miner-like manner. In 1935 one Joe Revielle sued the plaintiff (lessee) and recovered judgment for $5,500 as damages for the settling and sinking of the surface of the ground occasioned by mining operations on the leased premises. The complaint herein, after setting forth the above matters, as *460 well as that the mining operations in question had been carried on under, and in conformity with, the terms of the lease, further alleged that due notice of the claim of said Joe Revielle and of the filing of his suit had been given to defendant by plaintiff, but that defendant had failed and refused to defend said action or to hold plaintiff harmless therefrom, as the result of which plaintiff claimed damages from defendant in the sum of $6,910, being the amount of the Revielle judgment, plus $200 costs, $710 interest and $500 attorney fees allegedly expended by plaintiff in defense of the Revielle action.

In addition to specific admissions and denials of the allegations of the complaint, the answer of defendant set up a number of additional defenses in which, inter alia, it was asserted that the damages, if any, suffered by Revielle were caused by mining operations conducted in 1935 by plaintiff’s sublessee, the Liley Coal and Mining Company, and that since defendant in 1930, with the knowledge of plaintiff, had sold and conveyed her reversionary interest in the property to one A. G. Reynolds, there had been since the date of such conveyance, no privity of contract or estate between defendant and plaintiff; that the 1935 mining operations causing the subsidence were not conducted iñ a “miner-like manner” as required by the lease; that recovery by plaintiff was precluded by its subleasing to the Liley Company without the written consent of defendant as allegedly was required by the express terms of the lease; that instead of being obligated to pay a $500 attorney fee in the Revielle case, plaintiff in fact had expended but $25.00; that paragraph nine of the lease, upon which plaintiff’s action was grounded, was a personal covenant with the original lessee and did not inure to plaintiff’s benefit and that the payment by plaintiff of royalties to A. G. Reynolds, the defendant’s grantee, caused a novation between plaintiff and Reynolds relieving defendant from all obligation under the lease.

The verified replication made general denials of the *461 new matter alleged in the answer and in addition, as to some of the defenses, pleaded facts in avoidance. Defendant moved to strike from the replication as irrelevant, the denials of the defenses of novation and lack of privity and the affirmative allegations that plaintiff did not know of defendant’s alleged conveyance to Reynolds and did not recognize any other lessor until after 1935, and as sham the plaintiff’s denial of defendant’s conveyance; the denial of any subleasing without defendant’s consent, and a related allegation that after the date thereof defendant had inspected the property and had dealt with plaintiff as her lessee and the denial of the allegations of the answer with respect to the attorney fees in the Revielle case.

For the purpose of establishing that parts of the replication were sham, defendant filed an affidavit reciting that she and her sisters had executed, acknowledged and recorded the deed to Reynolds as alleged in the answer and thereupon had ceased to have an interest in, or control over, the property; that thereafter they had never inspected the property nor had any agreement with plaintiff or its sublessees with respect thereto. Upon such basis and the assertion that plaintiff’s denial was “contrary to the testimony introduced in a cause on the docket of this [district] court wherein this defendant was garnisheed,” the affidavit then categorically asserted by way of conclusion that the challenged portion of the replication was “without the slightest foundation of truth,” a “deliberate fabrication” and “not made in good faith.” No counter-affidavit was filed by plaintiff. The court sustained the motion to strike, which substantially nullified the replication, and allowed plaintiff leave to amend or to elect to stand. Within the period prescribed, plaintiff filed an amended verified replication identical with the first, except that in the amended version it admitted that the deed mentioned in the answer was recorded and that the copy attached to the answer was a certified copy thereof; additionally it alleged that de *462 fendant, by the subsequent acceptance of royalty and inspection of the premises, was estopped from asserting any defense based upon plaintiff’s alleged subletting to the Liley Company without the defendant’s written consent. Defendant promptly filed a motion to strike the amended replication and for judgment on the pleadings “or, in the alternative to strike from the amended replication those same matters heretofore stricken” from the original. The court ordered “that said motion to strike and for judgment be, and the same hereby is granted.” Judgment of dismissal and for costs was entered in due course.

We think the suggestion of counsel for defendant that, since the motion was couched in the alternative, the order granting it may be considered as striking only the parts of the amended replication previously stricken from the original, is purely hypothetical. Rather, as plaintiff contends, we are satisfied from the form of the order and the summary judgment of dismissal which followed, that the court intended to, and did, strike the replication in its entirety.

Notwithstanding that, pro forma, plaintiff was given sixty days within which to prepare and tender its bill of exceptions, none such is lodged here, and the matter is submitted on the clerk’s record as certified by him and one of the judges of said court.

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Bluebook (online)
142 P.2d 1011, 111 Colo. 458, 1943 Colo. LEXIS 272, Counsel Stack Legal Research, https://law.counselstack.com/opinion/midwest-fuel-timber-co-v-steele-colo-1943.