United Fuel Gas Co. v. Morley Oil & Gas Co.

135 S.E. 399, 102 W. Va. 374, 1926 W. Va. LEXIS 41
West Virginia Supreme Court·Decided October 19, 1926·No. 5748·Published·Cited by 11 cases

Opinion

Hatcher, Judge:

This case was before us at a former term, when it was reversed for lack of a proper party. Our decision is reported in 131 S. E. 713, where a complete history of the case may be found. We will now state only such of the facts as will make our present decision intelligible.

In December of 1869, T. B. Swann and others, who owned approximately 5500 acres in Roane County, granted to the Township of Geary a tract of one acre, “to be exclusively appropriated and used as a site for a schoolhouse and school for the-said township.” The deed recites a consideration of $10.00, but contains no warranty of title. The plaintiffs are the successors in title of Swann and others, to the 5500 acre tract. The Morley Oil and Gas Company is the assignee of a lease of the said acre for oil and gas, which was made by the Board of Education of Geary District. This is a suit brought to enjoin the defendants from drilling on the school lot and removing oil and gas therefrom. The defendants admit that the schoolhouse acre lies in proven gas territory, and that a well thereon would drain the gas from a considerable adjacent area. A temporary injunction was granted by the circuit court of Roane County, which was later dissolved. The plaintiffs have appealed from that decree.

The sole question presented for our decision is: Do the words “to be exclusively appropriated.and used as a site for a schoolhouse and school for the said township” merely express the purpose of the conveyance, or do they constitute a covenant restricting the use of the property f

The defendants assume doubt as to the meaning of the phrase in question, and invoke two well-known rules: (1) In *376 ease of doubt as to the meaning of a deed, such doubt must be resolved in favor of the grantee, and (2) Restrictive covenants are not favored in equity. The application of both these rules was sought in a similar case recently before the Supreme Court of Virginia. That court in refusing to apply them said: “The first rule here mentioned is itself not a favorite, and is generally said to be the one of last resort when all other rules of construction have failed. It certainly is never to be resorted to unless the language involved can be said to be ambiguous. The second rule, which declares that restrictive covenants are not favored, simply means that all doubts are to be resolved in favor of the free alienation of real estate. Neither rule can operate when there is no room for doubt as to the intention of the parties.” Va. Ry. Co. v. Avis, 124 Va. 711. The statement by the Virginia court is undoubtedly the law. 18 C. J. 386, par. 450.

There is another and more fundamental rule of construction which is applicable here: Words are to be given their ordinary and popular meaning unless they have acquired a peculiar significance. The words in question are of common use, of well-known definition, without peculiar significance, and are intelligently phrased. If the man on the street were asked the meaning of this phrase, he would undoubtedly say that the acre was to be used as a site for a schoolhouse and school and for no other purpose. The word “exclusively” is synonymous with the words “only” and “solely”. It is a word of restriction and exclusion.. As used in-the deed, its effect is to prohibit the grantee from using the acre for any other purposes than the ones specified. There is no ambiguity or room for doubt as to the meaning of the phrase, and accordingly the two rules invoked by defendants have no application.

The defendants assert that the grantors could not possibly have meant to prohibit oil and gas production on the school acre, because in 1869 the acre was not known to be in oil and gas territory. Whether or not the grantors had specifically in mind the exclusion of oil and gas production, is immaterial. If the use of the acre be limited to the schoolhouse and school, *377 thajt limitation necessarily excludes every other use possible, whether foreseen or unforeseen by the grantors. The representatives of the Township well knew from the plain language of the deed, that the Township was not acquiring an absolute dominioij. over the acre. It is a fair assumption that if the Township had purchased or had been promised the unrestricted use of the lot, it would not have accepted the grant of a qualified and limited use. The acceptance of the deed with its restrictive covenant raises an implied agreement on the part of the Township to use the lot only for the purposes specified.

The defendants further contend that this phrase was inserted in the deed merely to show that it was for a purpose which “the Board had a right to take under the law.” They cite 8 R. C. L., Deeds, Sec. 161, and rely particularly on Phillips Oil and Gas Co. v. Lingenfelter, 262 Pa. 500. In the Pennsylvania case, a lot was conveyed to the School Directors of a township “for school purposes only.” In its opinion the court said: ‘ ‘ The directors of the school district could not have purchased the lot for any other purpose than named in the deed and their acceptance of it with the insertion in it of the words ‘for school purposes only’ was a needless admission by them that they were acting within the powers conferred upon them by the Act of the Assembly. It was simply that, and nothing more, and the deed in all respects admittedly conveying an absolute estate, is not affected by them.” The contention of defendants and the persuasive authority of the Pennsylvania court are not relevant to this case because the status of a Township under the laws of West Virginia in 1869 was entirely different from that of the School Directors of a Pennsylvania Township. The West Virginia Township had no jurisdiction over schools. The control of the schools was lodged then, as now, in a Board of Education for the Township. It is true that the Township collected the taxes for the schools, but the Township had other well-defined duties. It had charge of the roads and bridges, and the poor, within its territory. Consequently, a conveyance of property to a Township in West Virginia in 1869 would not necessarily mean *378 that the property was for school purposes. Without specific direction as to use, the Township could have used this acre for a poorhouse, or a township hall, ox in connection with the construction or maintenance of its roads, as well as for school purposes. '

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United Fuel Gas Co. v. Morley Oil & Gas Co., 135 S.E. 399, 102 W. Va. 374, 1926 W. Va. LEXIS 41 (W. Va. 1926).

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