Standard Island Creek Coal Co. v. Shamrock Coal Co.

104 S.E. 106, 86 W. Va. 675, 1920 W. Va. LEXIS 175
West Virginia Supreme Court·Decided September 21, 1920·Published·Cited by 2 cases

Opinion

Miller, Judge:

It is sought by this appeal to reverse, the decree below, requiring defendant to secure its mine at the places indicated by point “3”, and if necessary by points “1” and “3”, on the map filed as Exhibit “A” with its answer, so as to prevent the wate,r which accumulates in 'its mine at those points from flowing into plaintiff’s mine, but denying relief against such flow-age at other points then open along the division line between the mines of the parties where they had respectively mined across said division line in accordance with an understanding [677] or attempted agreement between their general managers for an exchange of coal.

The defendant by its answer and proof relies on said agreement, not in writing, made about the first of the year 1918, which, according to its version thereof, provided that in consideration that plaintiff had prior thereto in violation of the, statute, section 7 of chapter 79 of the Code, and for a considerable distance mined up to, and in several places over, the said division line into the coal of defendant, and was about to be sued by it for damages for the coal taken and for the penalties imposed by said statute, agreed, as a settlement and compromise of their respective rights and liabilities, that defendant might also mine and remove the coal on its side up to said division line opposite 'the places or points where plaintiff had removed the coal on its side of the line, and further that defendant was to go across this line onto plaintiff’s land and mine out a certain area of coal designated on said map as area “B”, and that plaintiff should continue on defendant’s side of the line to mine out a certain are,a of coal designated as area “A”, and that in addition thereto and in consideration of the premises defendant should also have the right to make break-throughs in its coal to the division line opposite where plaintiff had taken out the, coal on said division line, for the purpose of drainage of the waters from its mine through a ditch in plaintiff’s mine.

The record shows that at the time of the institution of thi3 suit plaintiff had mined out practically all of area “A” on defendant’s land, and that defendant was then engaged in mining and removing the coal from area “B” on plaintiff’s land, and which at the hearing of the cause had been practically completed by it. There is no controversy about the fact that some agreement was made between the managers of the respective parties hereto, except that plaintiff and its representative- contend that said agreement did not include any right of defendant to make such break-throughs to said line for the purpose of drainage, as alleged.

Plaintiff relies mainly on three propositions to support the decree: First, that plaintiff’s manager McPhail, with whom said contract is alleged to have bee,n made, was without authority to negotiate or consummate the contract in so far at least as it [678] related to removing- the barrier coal, not alone because not authorized but because, it would have been unlawful: Second, that being unlawful, the contract, if made, was not susceptible of ratification by the plaintiff: Third, that McPhail as manager had no authority vi/rtute officii to burden the leasehold estate with such a servitude in favor of the defendant’s adjoining mine, and that the burden of showing authority for or ratification of the alleged contract was iipon defendant, not borne by it in this cause.

The reply of the defendant to these propositions is: First, that at the common law the owner of the higher mine has the right to work the whole mine and take out the produce without liability for injury to the lowe,r mine from percolating waters: Second, that the right to mine coal in any part of the mine extends to the boundary line, except as restricted by the statute, section 7, chapter 79 of the Code,: Third, that regardless of McPhail’s want of authority as general manager to enter into said contract, plaintiff with full knowledge thereof had accepted and retained its benefits, and had thereby ratified it, and was estopped to deny his authority: Fourth, that equity is without jurisdiction to settle the title and boundaries to land where plaintiff has -no equity against defendant holding the land: Fifth, that equity will not do a vain and useless thing, especially where actual injury will result to a party thereby: Sixth, that it does not appear from the record that plaintiff’s remedy at law would be, inadequate.

It is quite true, as was decided in Carroll-Cross Coal Co. v. Abrams Creek Coal & Coke Co., 83 W. Va. 205, that the general manager of a coal company has no implied authority to dispose of or incumber to another company any part of its leasehold estate; and in that case we concluded that the evidence of ratification was not sufficient to overcome the evidence of want of such ratification -of the alleged contract, justifying the reversal of the decree below .there.on. Here, however, there is no denial of the contract or the ratification thereof so far as it pertained to the settlement of defendant’s claim against plaintiff for damages and for the penalties for violation of the statute, except that part thereof relating to drainage. It is admitted that prior to the contract plaintiff had mined out the coal [679] ■up to tlie division line and liad gone beyond that line and taken out a considerable portion of defendant’s coal.

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Standard Island Creek Coal Co. v. Shamrock Coal Co., 104 S.E. 106, 86 W. Va. 675, 1920 W. Va. LEXIS 175 (W. Va. 1920).

104 S.E. 106 (Standard Island Creek Coal Co. v. Shamrock Coal Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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