Mullins v. Sturgill

66 S.E.2d 483, 192 Va. 653, 1951 Va. LEXIS 213
Supreme Court of Virginia·Decided September 5, 1951·No. Record No. 3777·Published·Cited by 10 cases

Opinion

Hudgins, C. J.,

delivered the opinion of the court.

On March 29, 1948, for a royalty of 20^5 per ton, payable monthly, Mrs. Mary E. Riner leased to Joe Leedy and Virgil C. Wilfong “all the coal contained in that certain tract” of land owned by her and lying in Wise County, Virginia. The lease, among other things, provided that if the mining and removal of the coal from the leased premises should be discontinued for a period of thirty days the lease should terminate and be void, but that this provision should not apply in the event of disruption of mining operations ‘ ‘ due to labor disputes, strikes and other work shut-downs.” On termination, expiration or cancellation of the lease the lessees were given ninety days in which “to remove all their equipment, mining machinery and other such articles or merchandise” from the premises.

Leedy and Wilfong agreed between themselves to divide the leased land, Wilfong agreeing to mine the coal on that part of the land lying on the right going up a certain described stream running through the premises, and Leedy to mine that part of the coal lying on the left of the stream.

On May 27, 1948, Leedy, in consideration of a royalty of 20^ per ton, payable to Mrs. Riner, and a royalty of 20 <¡; per ton and a minimum sum of $25.00 per month, payable to him, subleased his mining rights in the land lying on the left hand side of the stream to H. D. Martin and H. J. Crabtree. These sublessees. [656]*656were women with, no experience in mining operations. 'However, they authorized J. H. Martin, husband of one of the sublessees, to exercise their rights under the sublease. Martin entered upon the premises, built tipples and faced up the entries to the openings to the seam, after which he made a verbal contract with John Wesley Mullins and Tivis Browning, whereby the latter agreed to operate the mine, using their own equipment, mining machinery, etc., in consideration of which they agreed to pay the royalties stated in the sublease and to divide with Martin the net proceeds accuring from the sale of coal mined on the premises. They began mining operations in June and continued through July, 1948, during which time they paid all the royalties and all expenses of operation. No net profits were realized from the venture. Mullins and Browning were unable to sell any coal from this seam after July, 1948, and for this reason they, as did other truck miners in the vicinity, shut down the mine.

In January, April and September, 1949, Mrs. Biner discussed operation of the mine with Mullins and Browning, but work was not resumed, and on September 29, 1949, she leased the coal on said tract of land to L. E. Sturgill and C. L..Cox, who took possession of the mine and the mining equipment placed on the premises by Mullins and Browning. In October, 1949, Sturgill and Cox refused to permit Mullins and Browning to remove this equipment. Thereafter, Mullins and Browning filed a bill in equity praying that Sturgill and Cox be enjoined from using the equipment and that they be permitted to remove it.

The chancellor sustained respondents’ demurrer to the bill, on the ground that the property was personalty and complainants ’ remedy at law was adequate. After the dismissal of the suit in equity, Mullins and Browning, hereinafter referred to as “plaintiffs,” instituted this action against L. E. Sturgill, C. L. Cox and Mary E. Biner to recover the value of the equipment, mining machinery, etc. moved by them on the premises. Defendants pleaded not guilty and filed a counter-claim for the value of certain articles of equipment removed from the premises by plaintiffs before the date of the lease to Sturgill and Cox. The trial court entered judgment on a verdict returned by the jury for defendants. To review that judgment, the plaintiffs «obtained this writ of error.

Plaintiffs contend that the evidence is insufficient to sup[657]*657port the verdict of the jury for defendants and that the trial court committed reversible error in refusing to set it aside.

The pertinent parts of the lease made by Mrs. Riner with Leedy and Wilfong, bearing date on March 29, 1948, are as follows :

“It is agreed that this lease shall commence from this date and continúe so long as the parties of the second part hereto continue to mine and remove coal from the leased premises; provided that the parties of the second part hereto commence to operate within four (4) months from this date and continue to mine and remove coal from the leased premises and if the mining and removing of coal from the leased premises is discontinued or not performed and operated, for a period of thirty (30) days; except for disruptions due to labor disputes, strikes and other work shut-downs; this lease shall terminate and be void. *#####

“The parties of the second part hereto are given the right and privilege to assign, sublease or sell this lease agreement at any time during the life of this agreement; provided, that the same royalties, covenants and agreements herein contained are made a part of said assignment, sublease or sale.

“It is mutually agreed between the parties hereto, that the said parties of the second part shall have ninety (90) days in which to move all of their equipment, mining machinery and other such articles or merchandise as they may desire to move after the termination, expiration or cancellation of this lease.

*-1'. .y. ¿í, W TP Tp

“It is further agreed that all of the terms, conditions, covenants, stipulations and agreements, to be performed and observed by the respective parties hereto, shall be binding upon their successors and assigns, and shall inure to the benefit of the party or the said parties receiving same as successors or assigns and may enforce any and all of said terms, conditions, covenants, stipulations and agreements. ’

Plaintiffs, pursuant to their verbal agreement with J. H. Martin, agent for the sublessees, H. D. Martin and H. J. Crab-tree, in June, 1948, for the purpose of mining the coal, moved the following equipment owned by them upon the premises: 6% tons of steel rails, valued at $975; 300 steel and 20 wooden ties, valued at $345, and 4 steel mining cars, valued at $560.

[658]*658Defendants contend that the equipment, mining machinery, etc. in question were trade fixtures, and that title thereto passed to Mrs. Einer, the original lessor, upon the failure of plaintiffs to remove the same from the premises within ninety days after they stopped mining operations. On the other hand, plaintiffs contend -that defendants having asserted in the suit in equity that the identical articles were mere chattels, they are estopped in this action to contend otherwise.

The question of what elements were necessary to determine whether an article was a fixture, or not a fixture, was before this court in Danville Holding Corp. v. Clement, 178 Va. 223,16 S. E. (2d) 345, where Mr. Justice Spratley, speaking for the court, at page 231, said:

“It is difficult, if not impossible, to frame any precise rule to determine whether an article used in connection with realty is to be considered a fixture or not a fixture. Each case must be decided according to its particular facts and circumstances. Certain general rules to determine the question, however, have been adopted by the great majority of our courts. •

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Mullins v. Sturgill, 66 S.E.2d 483, 192 Va. 653, 1951 Va. LEXIS 213 (Va. 1951).

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