Alford v. Dennis

Citations

• 102 Kan. 403
• 170 P. 1005
• 1918 Kan. LEXIS 52

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Oil and Gas Lease — Improvident Contract — Cancellation. Rule followed that equity will not cancel a contract which is merely a bad or improvident bargain.</p> <p>2. Same — Breach of. Implied Covenant — Forfeiture. Rule followed that equity will not arbitrarily declare a forfeiture for breach of an implied covenant.-</p> <p>3. Oil and Gas Lease — Failure to Develop — Remedy in Damages— Prompt Development or Cancellation. A lease of two tracts of land, 716 acres and 220 acres respectively, was made in 1902 to prospect for oil and gas, for a term-of ten years and as much longer as gas or oil might be found in paying quantities, the lessees agreeing to pay royalties on all paying wells and binding themselves to commence operations, within six months, and to' complete three wells before January 1, 1904, “no other or additional expense shall be incurred under this lease,” etc. The larger tract was developed and many wells were drilled thereon, but in nearly fourteen years nothing was done towards drilling or developing the smaller tract. Plaintiff succeeded to the ownership of the latter and brought suit to cancel the lease, alleging that there was an implied covenant to prospect and develop his tract as well as the other. No demand was made on the lessees to drill on the plaintiff’s tract prior to the commencement of this action. Held, that-the ordinary rule that equity will not relieve against an improvident bargain prevents an absolute forfeiture, that equity -will not forfeit a contract for the mere breach of one of its implied covenants; but held, also, that the petition stated a cause of of action for some redress, either in damages, if such be ascertainable, or in the alternative that the lessees be required to drill and develop plaintiff’s land within a reasonable, time pursuant to their irriplied covenant, under penalty of' forfeiture, following the doctrine announced in the fourth paragraph of the syllabus of Howerton v. Gas