183 Ky. 699 | Ky. Ct. App. | 1919
Opinion op the Court by
Affirming.
The Empire Coal & Coke Company was the owner of 1,200 acres of coal mining lands in Christian county. In March, 1911, it leased the property to the Empire Coal Company for a period of ten years, and the lease was recorded in the county court clerk’s office of Christian county. The Empire Coal Company was a corporation organized by Tom and A. Y. Rutland, who were brothers and owned all of the stock except one share. Tom was the president, and A. Y. the vice-president and general manager. In July, 1915, C. N. Bryan, who resided in Nashville, Tenn., arranged with the officers of the Empire Coal & Coke Company to purchase the property for $15,000.00, to be paid in cash upon delivery of the deed. Bryan arranged with A. Y. Rutland to assist him in making the sale of the property, with the understanding that they were to share in the profits. Bryan traded the property to H. Cohen for a stock of furniture in Nashville. At this time, Bryan had no title. Subsequently, Cohen, for reasons not necessary to state, refused to consummate-the trade and the sale was abandoned. Thereupon Bryan endeavored to find another purchaser, and with that end in view, approached a lawyer by the name of (I. Bibb Jacobs. Through Jacobs’ efforts, J. D. Hutton,
This suit was brought by the Empire Coal Company against .the Empire Coal Mining Company, the Empire Coal & Land Company, Hutton, ^Jacobs and Bryan, for the purpose of recovering possession of the coal mines. Subsequently the case was transferred to the equity side of the docket and plaintiff .amended his petition and asked the recovery of whatever sum might be found due it 'under its lease, and that it be awarded a lien on the property to secure its payment. On final hearing, the chancellor gave judgment against Bryan for $8,000.00. He further held that A. V. Rutland, who owned one-half of the stock of the Empire Coal Company, had so conducted himself that he was estopped from receiving any benefit from the Empire mines, or any judgment against the defendants, but that Tom Rutland, who owned the other half of the stock, was' not estopped, and decreed that the Empire Coal Company was entitled to recover, for the use and benefit of Tom Rutland, the sum of $4,000.00, which was adjudged a lien on the property. From this judgment the defendants appeal.
It is first insisted that the court erred in not holding that the lease, under which the Empire Coal Company claimed, was cancelled and annulled, and that the Empire Coal Company was looking to Bryan for whatever part of the purchase money remained unpaid. With this con
Nor is there any merit in the contention that the Empire Coal Company had abandoned its rights under the lease, or that the. lease was of no value'. It had a valid, subsisting lease and was endeavoring at all times to get the sum of $12,500.00 therefor. Hutton and Jacobs were willing to pay at least $57,500.00 in cash and securities for the fee to the property. The chief value of the property consisted in the right to mine the coal. That being true, it cannot be said that the lease, which conferred this right, was worthless.
But it is insisted that the Empire Coal Company is estopped from claiming under its lease because it stood by and permitted Hutton and Jacobs to make valuable improvements on the property without asserting its claim. Of course, one who stands by and sees another purchase land or enter upon it under a claim of right, and permits such other to make expenditures or improvements under such circumstances as would call for notice or protest, cannot afterwards assert his own title against such person. 10 R. C. L., sec. 97, p. 782. But a careful consideration of the record convinces us that the facts of this case do not bring it within the foregoing rule. Here Hutton and Jacobs had both actual and constructive knowledge of the lease, and it is equally clear that they knew that the Empire "Coal Company was asserting its claim prior to the time the improvements were made.
Another ground of estoppel relied on is the fact that A. Y. Rutland, the vice-president and general manager of the Empire Coal Company, represented that the title to the property was perfect. "With respect to this contention, our conclusions may be stated as follows: A Y. Rutland went to Shelbyvillo as the agent or representative of Bryan for the purpose of delivering' the
Judgment affirmed.