Coal & Coke Ry. Co. v. Nease

Citations

• 207 F. 237
• 124 C.C.A. 507
• 1913 U.S. App. LEXIS 1616

Syllabus

<p>Contracts (§ 322*)—Performance—Acceptance by Party—Estoppel.</p> <p>Complainant and associates entered into a contract with second parties relating io certain coal options acquired by the respectivo parties which were conveyed to a trustee. The second parties .undertook to organize a corporation to repay advances made in the purchases and complete payment for the property, and to develop and operate the same, pa'ying complainant a royalty on the production. The second imrties were also to procure money to finance the operation, and to complete a railroad to the property. In case they failed to do such things by a date specified, complainant and his associates were to receive an undivided ¿o/ioo interest in the property in specie. Within the time fixed tile second i>arties organized a corporation which contracted to carry out such agreement, and also presented a man who contracted to finance Ihe mining and complete the railroad. Repayment of complainant’s advances was tendered; but he refused it, and brought suit to enjoin the trustee from conveying the land and to recover *»/10o thereof. .Some months later he dismissed the suit and accepted the money, and the corporation completed payment for the lands. Held, that by such action complainant accepted the contracts made by the second parties as a compliance with their agreement, and could not, several years later, maintain a new suit to recover the specific interest in the property against another corporation which had in the meantime purchased it and executed a mortgage thereon, with other property, to secure a large Issue of bonds outstanding in the hands of innocent purchasers.</p> <p>[Ed. Note.—Eor other cases, see Contracts, Cent. Dig. §§ 1465, 1534:; Dec. Dig. § 322.*]</p>