Peters v. Phillips

• Decision Date: 03 June 1884
• Citation: 63 Iowa 550,19 N.W. 662
• Parties: PETERS v. PHILLIPS AND OTHERS.
• Court: Iowa Supreme Court

63 Iowa 550

19 N.W. 662

PETERS

v.PHILLIPS AND OTHERS.

Supreme Court of Iowa.

Filed June 3, 1884.

Appeal from Wapello circuit court.

This is an action in equity by which it is sought to cancel and set aside a lease of certain coal lands and mines, and to enjoin the defendants, who are the lessees, from using the lands or mines of plaintiff to mine coal from other lands, and for the appointment of a receiver pending the litigation. There was a demurrer to the petition, which was sustained, and plaintiff appeals.McNett & Tisdale, for appellant.

Chambers & McElroy and Stiles & Beaman, for appellees.

ROTHROCK, C. J.

The lease in question is as follows:

“This agreement, made and entered into this twelfth day of January, 1882, by and between John M. Peters and L. L. Peters, of the first part, and Ira Phillips, M. C. Martin, and Henry Phillips, of the second part, witnesseth: That the parties of the first part hath this day leased unto the parties of the second part, for the purpose of mining coal and conducting a coal business, the following described land, to wit: The N. W. 1/4 of N. W. 1/4, section 13, range 14, township 72, Wapello county, on the terms and conditions named below.

The parties of the second part agree to have the mine opened and in operation within nine months from the above date, or forfeit all rights to this lease; and further agree to pay the parties of the first part, or their heirs, three-quarters of a cent per bushel for all coal taken from said land, except the slack and first twenty-five feet of entry coal from such shaft; royalty to be paid every sixty days.

It is also agreed that the parties of the second part shall not allow the mine to stand idle for more than sixty days at any one time, unless accident, strikes among the miners, or some uncontrollable forces compel them to do so; and should they fail to do as per above agreement, this lease may be treated as null and void, at the option of the party of the first part.

The parties of the second part further bind themselves not to sell this lease outright to any other parties, without the consent of the parties of the first part, said parties being obliged to give good and sufficient reasons for refusing said sale, such as inability, irresponsibility, dishonesty, or objections of like character.

It is agreed that the above article shall not debar the parties of the second part from issuing stock or taking into the business other partners.

The parties of the first part do hereby lease unto the parties of the second part the above described land, for the purposes mentioned, for the term of twenty years from date of this paper; and further agree to give to the parties of the second part, free of cost, all slack coal, and all coal taken from the first twenty-five feet of entrance from each shaft; said entrance not to be made wider than is necessary for convenience of the mine.

It is further agreed that the parties of the second part shall have full control of the surface land for the erection of business buildings, residences, shafts, etc., without extra charge, but shall not have use or control of any timber on said land, and have privilege of removing any improvements made by them, either before or at the expiration of this lease.

The parties of the first part further agree not to sell all or any portion of this land,...