Virginia Iron, Coal & Coke Co. v. Graham

98 S.E. 659, 124 Va. 692, 1919 Va. LEXIS 159
CourtSupreme Court of Virginia
DecidedMarch 13, 1919
StatusPublished
Cited by34 cases

This text of 98 S.E. 659 (Virginia Iron, Coal & Coke Co. v. Graham) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Virginia Iron, Coal & Coke Co. v. Graham, 98 S.E. 659, 124 Va. 692, 1919 Va. LEXIS 159 (Va. 1919).

Opinion

Prentis, J.,

delivered the opinion of the court.

The briefs herein filed are unique in that (either purposely or inadvertently) counsel have observed Rule II (120 Va. v, 94 S. E. vi). This rule requires the briefs to contain a concise abstract or statement of the facts admitted and controverted, which are disclosed by the record. When fairly observed, the precise questions involved are manifest and much subsequent labor for the court and counsel will be thereby avoided.

*695 The facts here to be considered are: that by indenture of December 31, 1897, David P. Graham and wife demised unto Carter Coal and Iron Company for forty years from January 1, 1898, that certain iron ore property in Wythe county, Virginia, known as “Cedar Bun,” theretofore granted to Graham by Franklin Carter and wife, said to contain about 3,600 acres, with the right during the term to mine and remove all the iron ore which the lessee might or could mine on these lands, with certain easements and privileges fully set forth in the instrument. By deed of January 27, 1899, Carter Coal and Iron Company conveyed unto Virginia Iron, Coal and Coke Company (appellant, hereinafter called the lessee), together with other property the rights and privileges granted by the said lease. Theretofore, on October 1, 1898, the Carter Coal and Iron Company executed a deed of trust to the Continental Trust Company of the city of New York, conveying the leased property and privileges to secure a bond issue of $2,000,000. The New York Trust Company has succeeded the Continental Trust Company as trustee in that conveyance. On February 23, 1899, the lessee (Virginia Iron, Coal and Coke Company) conveyed the leased estate, together with much other property, to the Manhattan Trust Company, trustee, to secure a bond issue of $10,000,000. David P. Graham, the original lessor, having died, his successors in title, Nannie M. Graham, his widow, and others (hereinafter called the lessors), on May 13, 1903, modified the lease so as to reduce the minimum quantity of ore required to be shipped from 20,000 tons to 12,000 tons per annum. A partial' partition of the real estate of the original lessor has been made, whereby the rights of his widow and heirs to participate in royalties under the lease are fully set forth and established by conveyance of August 20, 1904.

The original lease fixed a royalty of fifty cents per long ton (N. & W. Ry. Co. or its successor’s weight) for each *696 ton of good merchantable ore mined and shipped from the leased premises, to be paid to the lessor on or about the 25th days of April, July, October and January of each year for the ore shipped the preceding three months, with the following provisions as to minimum :l“Not less than twenty thousand tons to be shipped each year. ‘If less is shipped, ^royalty is to be paid on twenty thousand tons., and if more '■¡than twenty thousand tons are shipped in one year, and less ^than that quantity in the next preceding or succeeding year, the surplus of the one year, and the royalty paid thereon, may be carried to the credit of the other .year, either preceding or succeeding, to make the required minimum. If the minimum quantity is not shipped in any_ year or paid for | in sixty days after the expiration of the year, or if the ore 'shipped is not paid for in sixty days after the rent there;for is due, the said David P. Graham, his heirs, representatives, or assigns, may terminate this lease on ten-days’ ‘notice of intention so to do.” 5 And the following clause: “The said David P. Graham, his representatives, heirs or assigns, or their agent, may enter the property at any time for the purpose of inspecting the mining operations and of requiring’ the same to be carried on in a proper way, and with due regard to the rights of each party.” The lessee is given the right to remove, at the end of the term, all tramways, machinery and appliances, all pipes, sluices and troughs, and everything used in connection with the mining and washing operations, except the houses and the timber used as supports in the mines, and except pipe lines, tramways and washing plant which were there prior to October 1, 1897. Provided, however, that nothing put on the property by the lessee for use in mining and washing operations shall be removed until the rents are paid; and the privileges and easements granted are to be enjoyed in the operation of the mines leased. • The mine had been in operation prior to the date of the lease, and was operated at that time.

*697 The Carter Coal and Iron Company took possession and continued to operate the mine until it conveyed its rights to the Virginia Iron, Coal and Coke Company, and thereafter the last-named company continued to operate it until July 25, 1916, upon which date it gave written notice to Nannie M. Graham and others, the lessors, of the cancellation or surrender of the original lease of December 31,1897, to become effective as of September 1, 1916. The reason therefor stated in the notice ¡Ivas that iron ores could no longer be found on the leased premises, either of the quality or . in the quantity that could be profitably mined, the cost of such tonnage as could be gotten out being altogether prohibitive^ The lessors replied to this notice August 29, 1916,- advising that they intended to hold the lessee strictly to the terms of the contract, and conceded no authority to cancel it. j

The lessee, in accordance with such notice, ceased operations upon the leased premises, has abandoned possession thereof for all the purposes of the lease, though it has not removed its property therefrom, has paid all royalties accrued up to the date designated for the cancellation and surrender to become effective, and has not since that time occupied the property or exercised any of the privileges granted by the lease. After the attempted cancellation and surrender, the lessee undertook to remove from the leased premises the machinery, rails and equipment placed thereon by its predecessor, which, under the terms of the lease, it had the right to remove upon its termination, but under threat of proceedings by the lessors to secure an injunction, has for the present abandoned its claim of right to remove such property. It seems that this allegation of threatened injunction proceedings is made in an amendment to the bill, and that this threat was made after the institution of this suit. The cancellation and surrender of the lease has been ratified by the board of directors of the lessee, *698 and the deed of release tendered to the lessors with the bill and amended bill.

The lessee, on January 30, 1917, filed its original bill, and thereafter filed an amended bill against Nannie M. Graham and others, successors in title to the original lessor, and the trustees in the deeds of trust referred to, setting forth these facts land'praying for a decree canceling the lease, permitting it to remove its personal property from the premises, enjoining the lessors from prosecuting any actions for the recovery of royalties under the lease and for general relief . j The lessors, defendants, filed their demurrer and answer, and the trial court sustained the demurrer and dismissed the bill. Of this action the lessee is here complaining.

''Fairly stated, the demurrer is based upon two grounds:

1.

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Bluebook (online)
98 S.E. 659, 124 Va. 692, 1919 Va. LEXIS 159, Counsel Stack Legal Research, https://law.counselstack.com/opinion/virginia-iron-coal-coke-co-v-graham-va-1919.