Lowry v. Atlantic Coal Co.

Citations

• 272 Pa. 19
• 115 A. 847
• 1922 Pa. LEXIS 767

Syllabus

<p>Mines and mining — Lease—Covenant running with land — Covenant as to assignments — Consent of owner — Personal covenant— Subsequent assignees — Bes adjudicata.</p> <p>1. The assignee of a lease is not bound by stipulations which arise from the contract made by another, but only from the liability arising from privity of estate.</p> <p>2. Where the owner of coal, leases mining rights therein, on royalty for a term of years, and stipulates that the lessee shall not assign the lease without the written consent of the owner, such covenant is a personal one by the lessee, and where he assigns with the written consent of the owner, his assignee is not bound by the covenant, but may assign the lease without the owner’s consent.</p> <p>3. If the lessee so assigns the lease, the assignee becomes liable for the royalty, and the responsibility of the lessee ends.</p> <p>4. Covenants to pay rent or royalty run with the land, and the assignee is bound by their terms, and this is so though the lease binds the original party and his assigns.</p> <p>5. In such case it is immaterial that the assignee is of no financial worth, so long as it appears that the transfer was not merely colorable.</p> <p>6. In a suit against a second assignee for royalty which had become due after the date of a third assignment, and after the third assignee had taken possession, a successful suit against the second assignee for royalties which had accrued in the previous year cannot be set up as res adjudicata. The cause of action was not the same in the two suits.</p>