Stevens v. Delaware, Lackawanna & Western R. R.

122 A. 504, 278 Pa. 284, 1923 Pa. LEXIS 513
Supreme Court of Pennsylvania·Decided June 23, 1923·No. Appeal, No. 2·Published·Cited by 11 cases

Opinion

Opinion by

Mr. Justice Kephart,

Appellant seeks discovery and accounting for the value of coal mined out of lands, in Scranton, Pa., in which he claims, — as legatee under his father’s will and in his own right, — an interest as a tenant in common with defendants. The court below refused relief because of laches and title in one of defendants by adverse possession. As we view the appeal, it is only necessary to consider the first reason to sustain the action of the court below.

The record is voluminous. To obtain a comprehensive view of the case and the attitude of the lower court, it will be necessary to state the relevant facts. As this litigation is solely of interest to the parties, we will endeavor to confine our discussion within narrow limits.

The Bridge Coal Company, a limited copartnership, hereinafter called Bridge Company, prior to December 25, 1888, became the owner of all the coal underneath a fifty-acre tract of land known as “Bridge Lot” (with the exception of the “Big” seam), and of the coal in a number of lots in the Fourteenth Ward, between Ninth and .Main streets. These lots were generally contiguous, [288]*288with some exceptions, and likewise contiguous to Bridge Lot. Under the Fourteenth Ward there were ten seams of coal. From the top, they were known as the Five Foot, Four Foot, Diamond, Bock, Big, New County, Clark, Dunmore No. 1, Dunmore No. 2, and Dunmore No. 3 veins. The two upper seams going east outcrop before reaching Ninth Street; the eight lower seams are continuous through all parcels of land; there are no breaks .or outcrops. Bridge Company did not own, in a few of the ward lots, the coal above the Diamond seam, and in a small half-lot above Big vein; this latter seam under the Bridge Lot was owned by the Delaware, Lackawanna & Western Railroad Company, hereinafter called Lackawanna.

Bridge Company was formed in 1882, for a period of fifteen years; after operating for some years, it found mining unremunerative, and concluded to wind up its affairs. Accordingly a deed was executed and delivered, December 26, 1888, to Judge Willard, one of the members, for what is now claimed to be all the coal in and under the Bridge Lot and the Fourteenth Ward lots. The personal property was sold, some of it to partners, the balance to strangers; mine cars were taken from the mines, tracks torn up, plants dismantled, and the company ceased to do business. In the early part of January, 1889, by a settlement paper, the partners disposed of the assets reduced to cash by distributing them among their members, A. B. Stevens, E. N. Willard, Everett Warren, F. E. Stevens, and C. G-. Miller. Each member received his proportionate distributive share, and the inference from their acts at this time and thereafter was that the limited copartnership then ceased and determined, there being no creditors outstanding.

While the Act of June 2, 1874, P. L. 271, provides two methods, for dissolution of such associations, (a) by expiration of time for which they were to last, and (b) by vote of the majority in number and value of interest, it cannot be denied the conduct of the parties evidenced [289]*289that, among themselves, it was understood and considered the partnership was at an end. Technically, publication might have been necessary, but as no person is interested .except the parties, the fact remains, the partnership was dissolved as to themselves: Bridge Company, to all intents and purposes, ceased to exist when a distribution of all assets was made. This settlement paper becomes important in a further consideration of the case.

Thereafter no claim was made by anyone for twenty-eight years, or until 1917, for or on account of any matter or thing arising from or through the joint enterprise. On the other hand, many things have been done assertive of absolute ownership, by those claiming to own the property formerly of the Bridge Company, and it is only after the death of every other member of the firm that the smallest shareholder puts forth the claim first mentioned in this opinion.

Appellant now contends the deed to Judge Willard conveyed only the coal below the Big vein, with the exception of seven and one-half lots, out of which no coal was conveyed. The reason given for fixing Big vein as the selling line was that the coal from Diamond, Rock and Big veins in the Fourteenth Ward had been first mined, and as to these, and the two top veins, the balance of the coal was not then considered merchantable. Lackawanna, it may be mentioned, also first mined Big seam under Bridge lot.

In this view of the situation, there was no coal of any value above the Big seam; consequently the deed from Bridge Company to Judge Willard fixed that seam as the holding line, and did not give title to any coal in or above it. After dissolution, the partners were tenants in common in all the coal in and above the Big vein, as well as the coal in the seven and one-half lots. An examination of the deed shows the construction contended for by appellant to be undoubtedly correct; but it is likewise true that the partners acted on the assumption, and [290]*290thereafter conducted themselves on the theory, that Judge Willard owned all the coal theretofore owned by Bridge Company. It is quite evident to us. the final settlement bore an important part in governing their acts.

Whatever may be the territorial divisions of this land on the surface, as it affects the coal beneath, illuminated by the cross section in evidence, we must treat the eight lower veins, or such as may be embraced in this action, as being one continuous block, regardless of surface divisions.

Judge Willard, by lease, which was in fact a sale of coal in place, on June 15, 1889, “conveyed to [Lackawanna] all the merchantable coal in, under and upon [66 acres of land described by metes and bounds], except as hereinafter excepted, together with the sole and exclusive right to mine, remove and dispose of said coal.” A royalty of twenty-five cents per ton was fixed, with increases as the price of coal increased, a covenant on part of the lessor to pay taxes, with a limitation clause that the lease did not affect seams where coal had been mined out, and included only coal now owned by the lessor or which he might afterwards acquire.

The lease was evidently thus drawn because of the many small pieces owned by Willard. It included not only the coal of the Bridge Company’s holdings, but coal in other pieces to which he had no title whatever, being either in the ownership of Lackawanna or of individuals. The limitation clause undoubtedly was meant to affect those pieces of land, and referred to the physical condition of all the property as it then existed. The Big vein under Bridge lot was at all times owned by Lackawanna.

That the intention was to convey by lease all of the coal is further emphasized by admissions of A. B. Stevens, a partner, father of appellant. Through knowledge of Lackawanna’s operations, and of the effect of the “settlement” of the Bridge Company’s affairs, he recog[291]*291-nized the scope and validity of this conveyance, treating it as covering all of the Bridge Company’s interests. To nse his language, “I do not own a pound of coal in Hyde Park,” which embraced the Bridge Company’s lands.

This disclaimer was made to Mr. Rymer, an attorney, who particularly interviewed him and Judge Willard in 1907 about this coal.

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Stevens v. Delaware, Lackawanna & Western R. R., 122 A. 504, 278 Pa. 284, 1923 Pa. LEXIS 513 (Pa. 1923).

122 A. 504 (Stevens v. Delaware, Lackawanna & Western R. R.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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