Myers v. Consumers' Coal Co.

61 A. 825, 212 Pa. 193, 1905 Pa. LEXIS 583
CourtSupreme Court of Pennsylvania
DecidedMay 22, 1905
DocketAppeal, No. 122
StatusPublished
Cited by11 cases

This text of 61 A. 825 (Myers v. Consumers' Coal Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Myers v. Consumers' Coal Co., 61 A. 825, 212 Pa. 193, 1905 Pa. LEXIS 583 (Pa. 1905).

Opinion

Opinion by

Mb. Justice Mestbezat,

The rulings of the learned trial judge on the controlling questions in this case are at variance with the decisions of this court and cannot be sustained, and therefore the decree entered by him must be reversed.

Wright v. Warrior Run Coal Company, 182 Pa. 514, was a bill filed in the court of common pleas of Luzerne County for an accounting of royalties which the plaintiffs alleged were due them from the defendant company on an anthracite coal lease. The lease was dated November 28, 1864, was- for ten years with the right of extension, and the consideration was a shifting price per ton, from fifteen cents to ten cents, and a minimum quarterly payment of $1,250. Chestnut coal was to be one-half price. The defendant company accounted and paid for all the coal mined and removed under the lease except pea and buckwheat, smaller sizes than chestnut, and coal burned under the boilers on the premises. The bill was filed against the company to compel it to pay for the pea and buckwheat and coal used under the boilers. The bill averred, inter alia, “ that defendant by changes in machinery and methods of preparing the coal for market, has largely increased the quantity of chestnut coal, for which the lower royalty is paid, and further, largely increased the quantity of pea and buckwheat coal, for which it denies its liability to pay any royalty.” One of the prayers of the bill was that defendant account for all coal re-broken for the purpose of increasing the product of chestnut and smaller sizes.” This averment and prayer raised the principal contention in the case. The case was most carefully and ably considered in the common pleas of Luzerne county. It [195]*195was found that at the time of the lease there were seven sizes of coal produced in the anthracite coal region, and that the production of chestnut coal (the smallest size) was at that time about fifteen per cent of the output of the mine, and that subsequently the two largest sizes ceased to be marketable and the lessee was compelled to broak these kinds into smaller sizes. Later, two new kinds of coal, known as pea and buckwheat, both smaller than chestnut, had a market value, although at the date of the lease they went into the culm bank as worthless. The lessee largely increased the production of chestnut coal and sold large quantities of pea and buckwheat, the production of which was largely increased and upon which he refused to pay royalties. It was held that the lessors were entitled to royalties upon all chestnut, pea and buckwheat coal in excess of fifteen per cent of the product of the mine. While this was the principal question in the case, the court also determined that, under the facts there presented, the lessors’ representatives by accepting the royalties paid by the lessees had not waived their right to recover the full royalty price for the chestnut and smaller sizes of coal in excess of “the fifteen per cent of the mine product, for the reason that “ there is no proof of knowledge on their part that the production of chestnut coal was in excess of that within the meaning of the contract.” It was also held that “ by the terms of the lease and invariable custom,” the parties to the contract did not contemplate any per ton royalty for coal that might be used under the lessees’ boilers.

Hoyt v. Kingston Coal Co., 203 Pa. 509, was a bill filed in the common pleas of Luzerne county for an accounting for coal mined and removed by the lessee under an anthracite-coal lease, dated April 10, 1867. The plaintiffs’ claim was for royalties on the excess of coal caused to pass through a screen by a change in the methods of preparation over the amount of coal passing through the screen by the methods in vogue at the date of the lease. The decree first entered was in favor of the plaintiffs, but on appeal it was vacated and the record remitted to the trial court that requests for findings of fact and law might be answered as required by the equity rules. The case has been reheard by the court below, and a decree entered again in favor of the plaintiffs has been affirmed in an opinion [196]*196handed down herewith. We hold that, in the disposition of the questions arising'in the case, the trial court followed the rulings in Wright v. Warrior Run Coal Company, 182 Pa. 514. The term in the Hoyt case was for twenty years with the right of extension. The rental was fifteen cents for each ton of coal which would pass over a screen the meshes of which were five-eighths of one inch square, the lessee to pay a minimum yearly rental of 14,500. The lease provided that the premises should be worked in a careful and skillful manner without waste. The case was first heard by the late president judge of the common pleas of Luzerne county (Woodward) and he entered a decree for an accounting. The rehearing of the case was before Judge Halsey, who found that by the methods used in the preparation of coal at the time of the lease, a percentage of .10655 of all the mine product passed through the screen of five-eighths inch meshes; and that by the present methods the percentage is .26522, and that therefore there was a percentage of .15867 of the former royalty coal now passing through the screen. He allowed a credit against this of .0359 for bad coal reclaimed, and entered a decree that the defendant account to the plaintiffs for .12277 of all the coal mined at the rate of fifteen cents per ton. At both trials the defendant unsuccessfully claimed a credit against the excess of production of royalty coal for coal now screened and sold but under former methods permitted to remain in the mine, and also for coal now mined and marketed from certain seams which, at the time of the lease, was of such character as to be valueless. In passing upon the right of the defendant company to a credit for this coal, Judge Halsey in his opinion says : “ The coal that was thrown into the gob which passed through the rakes and which subsequently was loaded into the mine car and passed over the five-eighths inch square mesh for which the plaintiffs were paid royalty, was coal that in part constituted the consideration for which the sale under the indenture of lease was made. Until it was taken from the mine and passed over the five-eighths inch square mesh, it could not be used in liquidation of the consideration for the grant under the indenture of lease. To the same effect is the coal contained in the veins which were not worked at the time of the execution of the lease. The coal in the veins was the consideration for the payment of the grant [197]*197to the lessees under the terms of the indenture of lease and could not operate in a discharge of' the obligation of the consideration until it was moved from the mines and passed over the five-eighths inch square mesh and sent to market. We cannot see how the defendant can be entitled as against the claim of the plaintiffs to have the coal that now is taken from the mines which formerly went into the gob and which has now been determined royalty coal and that which has been taken from the veins which were not worked at the time of the execution of the lease as an offset against the plaintiffs’ claim. All the coal in the mine which would pass over a five-eighths inch square mesh was the consideration which moved the grantors in the indenture of lease to execute it on April 10, 1867.” It was held against the contention of the defendant company that under the terms of that lease the company was not entitled to a credit for royalty coal formerly used for generating steam on the premises, and that the plaintiffs’ acts and conduct did not estop them from making the claim for the un-' paid royalties.

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Cite This Page — Counsel Stack

Bluebook (online)
61 A. 825, 212 Pa. 193, 1905 Pa. LEXIS 583, Counsel Stack Legal Research, https://law.counselstack.com/opinion/myers-v-consumers-coal-co-pa-1905.