Ripley v. Kaemmerer

279 Ill. App. 336, 1935 Ill. App. LEXIS 109
CourtAppellate Court of Illinois
DecidedMarch 4, 1935
StatusPublished
Cited by1 cases

This text of 279 Ill. App. 336 (Ripley v. Kaemmerer) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ripley v. Kaemmerer, 279 Ill. App. 336, 1935 Ill. App. LEXIS 109 (Ill. Ct. App. 1935).

Opinion

Mr. Justice Murphy

delivered the opinion of the court.

In September, 1918, appellee herein, by written instrument, leased to certain persons the coal rights in approximately 100 acres of land located near Belle-ville in St." Clair county. On June 11, 1930, appellants herein, by a chain of assignments, became the owners of the lease and, after making certain improvements, began the operation of a slope mine. All assignments, including the one to appellants, were made with the consent of appellee.

Appellee filed his bill in chancery in the circuit court of St. Clair county to the April term, 1932, alleging that appellants had violated the terms of the lease in the following respects: (1) by working the mine in an unworkmanlike manner causing falls of the roof and subsidence of the surface; (2) by failure to keep an account book at the mine; (3) by failure to provide a scale to weigh the coal; (4) by failure to make monthly statements to appellee; (5) by refusing to pay 10 cents per ton royalty on the coal mined and removed from said mine; (6) by failure to make annual survey as required by statute; (7) by employing a second class mine manager while employing more than 10 men as miners; (8) by selling* an interest in said lease without the consent of appellee. The prayer was for an accounting* to determine the amount of royalty due and unpaid, that' appellee be allowed damages for subsidence of the surface soil caused by improper mining and that the court declare a forfeiture of the lease.

The defendants answered the bill denying* all the material allegations, except as to the charge of failure to pay royalty at the rate of 10 cents per ton and, as to that allegation, they averred the lease provided that when conditions change that then the rate should be four cents per ton instead of 10 cents and “that conditions in the mining* industry have changed to such an extent that they should be required to pay only the sum of four cents per ton as provided by the terms of said lease.” There is no averment in the answers as to what the conditions were upon which the change was based. General replication was filed and the cause referred to the master in chancery to make findings of fact, report conclusions of law and make recommendations for a decree.

The material parts of the lease upon which the royalty controversy arose are as follows: “To pay to the lessors the sum of ten cents for each and every ton of mine run coal mined and taken out of said mine, except the necessary coal that is consumed by the lessees in the necessary operation of said mine. . . . It is agreed, however, by the parties hereto that the ten cents to be paid by the lessors for every ton of coal mined and taken from said mine is based on the present conditions and it is stipulated and agreed that when those conditions change that then the rate shall be four cents for every ton of coal mined instead of ten cents per ton mined.”

In support of appellants’ contention that the conditions had changed, justifying a reduction of royalty from 10 cents to four cents, they offered evidence as to the sale price of coal and the cost of production at the time of the execution of the lease in 1918 and in 1931 and 1932. There is no evidence tending to prove the date the changes in price and cost of production occurred.

Appellee contended that the “conditions” referred to in the lease, the change in which was to justify a reduction in royalty, was in reference to the construction of a railroad switch to the mine, thus enabling the operators to load onto railroad cars instead of wagons and trucks and offered evidence tending to support his theory.

On this branch of the case, the master found that the evidence was so conflicting that it was impossible to determine what the parties meant in the use of the words “present conditions” and “when those conditions change” and he recommended that the decree be entered denying appellee’s prayer for forfeiture for failure to pay royalty and that appellants be held to account to appellee for 10 cents per ton and that, if the same was not paid within 30 days from the date of the decree, the lease be declared forfeited, otherwise, in full force.

Upon the other issues raised by the pleadings, evidence was introduced and the master found that during the period the mine was being operated by appellants, four falls had occurred which resulted in the subsidence of the surface; that these falls were caused by an attempt on the part of appellants to drive entries through under a certain ravine for the purpose of reaching a field of coal lying beyond; that appellee knew of these attempts and consented and acquiesced in appellants’ efforts and that in the attempt to drive said entries, the appellants did it in a workmanlike manner and that appellee was not entitled to damages for subsidence of the surface soil; that appellee caused a notice of forfeiture of lease to be served on appellants, but, that the proof was not sufficient to warrant a forfeiture of the lease.

Exceptions were overruled and a decree entered in accordance with the findings and recommendations of the master and taxed one-half the costs to each of the parties.

Appellants perfected their appeal to this court from that part of the decree finding that the. royalty clause in said lease was so ambiguous and uncertain that its meaning could not be determined, that it was null and void, that the provisions of the lease requiring 10 cents per ton royalty was in full force and effect, that the appellants owed plaintiff for royalty $3,009.80, and from the order directing that appellants pay one-half the costs.

Appellee has perfected his cross appeal from that part of the decree finding that the defaults of appellants were not of a sufficient, grave nature to warrant the termination of the lease and for failure of the court to allow damages for the subsidence of the surface and on that part of the decree which directed that one-half of the costs of the suit should be paid by appellee.

The questions presented on appellants’ appeal calls for a • construction of the royalty clause in the lease. In construing a contract, it is proper for the court to take into consideration the surrounding circumstances and to place itself as nearly as it can in the same situation as the parties who made the lease, so that it may view the circumstances as they viewed them and so it may judge the meaning of the words and their application to the things described as the parties judged and applied them. But, this does not give either party the right to establish a different contract from that expressed in the written agreement. Armstrong Paint & Varnish Works v. Continental Can Co., 301 Ill. 102. It is to be presumed that the parties introduced into the contract every material item and term and in construing it, the court will not add thereto another term about which the agreement is silent. Decatur Lumber & Mfg. Co. v. Crail, 350 Ill. 319; Sterling-Midland Coal Co. v. Great Lakes Coal & Coke Co., 334 Ill. 281. It is-apparent that at the time of the execution of the contract in 1918, there were many conditions and circumstances surrounding the making of that contract, the change of which might properly be considered in changing the royalty to be paid under such changed conditions. The contract is silent as to which one or ones of those conditions the parties agreed upon.

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279 Ill. App. 336, 1935 Ill. App. LEXIS 109, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ripley-v-kaemmerer-illappct-1935.