Shiffer v. Hudson Coal Co.

Citations

• 245 Pa. 479
• 91 A. 886
• 1914 Pa. LEXIS 901

Syllabus

<p>Mines and mining — Goal lease — Construction—Royalties—Suspension of payment — Good faith — Case for jury.</p> <p>In an action of assumpsit to recover certain rents and royalties accruing under a coal lease, it appeared that the lease was to continue “until all the merchantable coal available by careful mining should be mined out,” that during the continuance of the lease an annual rental of $4,800 was to be paid, for which the lessee was entitled to mine 1,250 tons of coal a month above the size of pea, and additional royalties were to be paid for pea coal mined, and for larger sizes mined in amounts in excess of the minimum. For three years beginning in 1894, the minimum rentals amounting to $13,000 were paid, but coal of the royalty value of only $4,600 was mined. Thereafter no further rentals were paid by the lessee which claimed that it had paid for all the merchantable coal available by careful mining. The mining operations were continued until 1905, when the deficit was wiped out, and were continued thereafter. It was provided in the lease that if the lessee’s officers should be of opinion that it had paid for as much coal as still remained in the premises, tests should be made by engineers to be selected as provided in the lease, and if it should appear that rentals had been paid on all the coal, no further payments should be made until the coal upon which payments had been made was mined out, provided the coal was mined with- due diligence. The plaintiff sought to recover the full amount of the minimum rentals for certain years when no payment had been made. It appeared that at the time of trial, 12,000 tons of merchantable coal were still unmined. Defendant contended that the suspension of payments had been made as authorized by the lease. Tbe evidence was conflicting and tbe trial judge left it to the jury to determine'whether or not the original lessee “in good faith, with honest intention and intelligent knowledge......suspended payment of the minimu