Jenkins v. Clyde Coal Co.

• Decision Date: 23 May 1891
• Citation: 48 N.W. 970,82 Iowa 618
• Parties: JENKINS v. CLYDE COAL CO.
• Court: Iowa Supreme Court

82 Iowa 618

48 N.W. 970

JENKINS

v.CLYDE COAL CO.

Supreme Court of Iowa.

May 23, 1891.

Appeal from district court, Boone county; S. M. WEAVER, Judge.

Action to recover amounts alleged to be due as royalty for coal lands. There was a judgment in favor of defendant for costs, and plaintiff appeals.Barcroft & Bowen and Ramsey & Brocket, for appellant.

J. F. Duncombe, for appellee.

ROBINSON, J.

In May, 1885, the plaintiff and his wife entered into an agreement in writing with defendant by which the former granted to the latter the exclusive right to mine and take coal from a tract of land described, for the term of 15 years. In consideration of that right, defendant agreed to pay to plaintiff a royalty of 10 cents for each ton of coal mined. The royalty was to be paid semi-annually, and in case it did not amount to $1,000 for each year, beginning with September 1, 1885, the defendant was to add to it an amount sufficient to make that sum. The agreement also contained provisions as follows: “If it shall be found at any time impracticable for the second party, from any cause, to profitably mine the coal from said lands, then, upon notice, given by the second party, this lease shall cease and determine upon the day the next semiannual payment shall become due, provided said day shall not be less than thirty (30) days from the giving of the notice. In case said lease shall cease and determine as aforesaid, for the reasons above stated, and upon notice given, then the said second party shall surrender to the first parties the mine under the above-described premises, in good workable condition, except such defects as may arise from natural causes, and not from negligence on the part of the second party.” The petition alleges that the agreement is in full force, and demands judgment for the amount of three semi-annual payments claimed to have become due for the 18 months which commenced on the 1st day of September, 1886. Defendant denies the alleged indebtedness, and denies that the agreement is in force. It claims that on the date named the agreement was terminated by a notice previously given for sufficient reasons, and that it then surrendered to plaintiff the mines in the condition which they were required to be in by the agreement. After the evidence had been fully submitted, a verdict was returned in favor of defendant by direction of the court.

1. On the 31st day of July, 1886, defendant served plaintiff with a notice in writing, as follows: “Minneapolis, Minn., July 17th, 1886. W. H. C. Jenkins, Esq.--Dear Sir: We hereby give you notice that we shall surrender, as provided for in the lease, all our rights to mine coal on your lands and the lease on the first day of September next. Yours, truly, THE CLYDE COAL COMPANY, by E. W. GAYLORD, Manager.” Appellant contends that the notice was insufficient, for the reason that it did not state that it had been found impracticable for defendant to profitably mine coal from the land in question. We do not think that claim is well founded. The notice informed plaintiff that the lease and right to mine coal would be surrendered “as provided for in the lease.” That contained but one provision, which permitted defendant to terminate it before the expiration of the full term, and that was the one we have quoted. The notice given necessarily informed plaintiff of the ground upon which the right to terminate the lease was claimed, and that was that it had been found...