History
  • No items yet
midpage
Frenchak v. Sunbeam Coal Corp.
495 A.2d 1385
Pa.
1985
Check Treatment

*1 reconsideration nor refusal to reconsider transform will interlocutory appeala- an order into one that is final and ble.”

Here, the order entered was not since it interlocutory However, encompasses damages. liability both same, where, here, reasoning remains the the action was 4019(c) pursuant taken to Pa.R.C.P. the order is not subject petition open judgment. to attack and/or strike a here, Where, trial court has entered a sanсtion order liability damages, judgment being for both then final, the method for appropriate appeal review would be an prescribed the time by Pa.R.App.P. within 903. The at- tempt to raise an appealable by filing petition issuе open will not be allowed.

Appeal quashed.

495 A.2d 1385 FRENCHAK, Regina Formerly Regina G. G.

Garing, Appellant, SUNBEAM COAL CORPORATION.

Superior Pennsylvania. Court of

Argued Aug. 6, 1984. July

Filed *2 Kadunce, Butler, Darrell L. appellant. for Butler, Leo M. Stepanian, appellee. BROSKY, HESTER,

Before JJ. WATKINS BROSKY, Judge: *3 appeal is from on the in an pleadings quiet

action to title. contends that the instant Appellant and, no in longer agree according- coаl lease is effect. We ly, reverse.

The provision question provides lease that: (5) period This lease shall continue for a of five years from the effective date hereof or until all of the coal mined, operаtor which the coal determines ‍​​‌‌‌‌‌​‌‌‌‌​‌‌‌​​​​‌‌​‌‌​‌‌‌‌‌‌‌​‌​​‌‌​‌​‌​​‌‌​‍can be re- and sold economy profit moved with has been or so long royalties being by as minimum advance are tendered Operator. the Coal interpreted court below this clause tо mean that

appellee could continue to have the lease in effect indefinite- into ly the future virtue of minimum by paying Indeed, royalties. the instant lease has in effect for been ten and no coal has years ever been mined. We cannot this accept contraction of the lease. provides upon happening for termination of (1) (2) Passage

three events: Determination years; five mined, the coal coal operatоr that no more can be removed, (3) and sold profitably; payment Cessation of

minimum royalties by operator. the coal By pro- viding, however, upon (1) for termination the happening (2) “or” interpreted “or” the lease must be аs meaning upon shall terminate happening one of the three conditions. given

Words are to be their obvious and mean plain ing unless the intention is clear that meaning a different required. Davis v. City Philadelphia, Pa.Super. 645, 650, A.2d The pertinеnt dictionary definition “or” is “choice things, between alternative states, or courses.” Webster’s Third In Unabridged New Dictionary. ternational Davis, the appellant argued that the “or” in word

statute should interpreted in the conjunctive in the рhrase “occupied by control,” ... or under his making both control and occupancy necessary. The court held other- wise, giving the “or” its ordinary disjunctive word meaning. The same reasoning applies the case before us. To find otherwise require interpreting would the lease in a manner which require absurd and unconscionable results different factual situations. For example, ‍​​‌‌‌‌‌​‌‌‌‌​‌‌‌​​​​‌‌​‌‌​‌‌‌‌‌‌‌​‌​​‌‌​‌​‌​​‌‌​‍construing the lease as continuing all effect until three of the conditions (as hаve been met evidently lower court it in construed reached), order to reach the result it operator might pay any never royalty, yet the lease would continue in effect until at least years passed five had and the сoal operator had amade determination that long- coal could no mined, er be and sold removed profitably determination —a *4 that might never be made the coal operator. Another example would bе if the operator made the determina- tion that longer mined, coal could no be removed and sold profitably months, at the end six and quit also paying royalties; under the construction, lower court’s the lease nevertheless remain effect for the balance of five years.

Giving word “or” its ordinary meaning, find we provides the lease for termination upon happening any one the three conditions. Since years five have passed since the effective date of the agreement, the lease longer effect, is no quiet action to title should terminated in appellant’s have favor.

Another, independent, consideration leads to the same conclusion. Under the lease as interpreted by court, appellee trial could commence strip mining operations at his discretion as long paid he had the minimum As a royalties. consequence, appellant would be financially unable to use the land for anything but certain types agricultural purposes. The land only could be utilized as fields to grow crops. Even this limited use could not include irrigation or the planting delayed harvest orchards, vines, such as croрs etc. The reason for this is clear. Any investment the use or of the including buildings, irrigation systems, trees —could land— scooped up by appellee’s giant coal shovel at time. any With this possibility always present, appellant could nоt develop his land or utilize it but a limited very fashion. This position is not favored in law. “It is against of the policy unduly law to restrict the use of land so that the deprived owner is of the usual rights, privileges, and incidents of ownership possession.” Mahrt v. First Christ, Scientist, Church N.E.2d 75 O.L.A. The Supreme Court of Oregon spoken has also on this point: that, public rule is because of the policy “[B]ut favoring use, untrammeled land such restrictions are con- strued most strongly against the covenant will not be enlargеd by construction.” ux., et ux. v. Aldridge Saxey et Or. 409 P.2d Construing appellee lease as would have us do results in this severely Thus, circumscribed useability land. for this addi- reason, tional we find properly interpreted the lease appellant A suggests. third rеlated also reason favors this interpretation. *5 circumstances, certain duty

Under the will a imply law mine, to even the face of minimum royalties.1 law, Pennsylvania presumption a is created this form contract. into,

When this contract was entered the defendants were land; the owners of the coal under seventy-five acres of in place; they get the coal was wanted and enjoy to the it; if had plaintiff buy value of wanted to and indefinitely in place for operation, leаve it future each party would on the lump have dealt basis sum for the coal under tract, it, or at per so much acre for would have for arranged payment, just as if they would have done had subject might, contract been land. Eаch contract, to preliminary sought by have to surveys the proximate ascertain quantity place, and thus have value, fixed in their but the number tons per and value ton have express part been no contract; ‍​​‌‌‌‌‌​‌‌‌‌​‌‌‌​​​​‌‌​‌‌​‌‌‌‌‌‌‌​‌​​‌‌​‌​‌​​‌‌​‍written a round sum fоr whole or per acre represented would have the price willing the sellers were to accept buyers give. to But although the contract was a sale of the coal in did not place, they on the bargain lump Why? bаsis of a sum. Because the plaintiff was not a purchaser coal or lands to hold for appreciation in future price, view of a sale for round or sum a lease others at it profit; was an operator who desirеd mine and market the coal at a profit, intending operate therefore, immediately; operations, all such more pay it is convenient to while the on, operation going expenditure involves an of far less cаpital, consequently charge. a less fixed The al., & Wilkes-Barre Coal Lehigh Wright Co. v. et 387, 397-8, Pa. 35 A. Powell also See Burroughs, Pa. 329 implied to mine is dependent upon the amount

of the minimum royalty potential vis-a-vis in- Person, 1. The case of Chauvеnet v. 217 Pa. A. 855 relied upon by parties, point. both is not that case on lease in contained which, surprisingly, present a forfeiture clause not is not here. if produced property logic come to be is mined.2 *6 minimum royalty behind this is that a substantial advance of the to consider that parties royalty will evince the intent A minimal minimum performance. an alternate form of will, intent of contrary, to the evince the royalty stop-gap parties royalty tempоrary, the to consider that Co., 346 8 measure. See Reis v. Norton Coal S.W.2d (Ky.Crt.App.1961); v. American Weatherly Agricultural (1933); Co., Tenn.App. 16 65 S.W.2d 592 Chemical (U.S. to 9 B.R. 636 Bank- Mining Corp., re Sixteen One Nev.1981); ruptcy Crt.D. of Niles Land Co. v. Chemung (8th Co., Cir.1916); 234 F. 294 Corp. Iron Vitro Mineral v. (substan- 386 P.2d 938 Corp., (Wyo.1963) Shoni Uranium Hebener, tial minimum ‍​​‌‌‌‌‌​‌‌‌‌​‌‌‌​​​​‌‌​‌‌​‌‌‌‌‌‌‌​‌​​‌‌​‌​‌​​‌‌​‍v. 56 royalties). Bennett (1982); Or.App. 643 P.2d 393 v. 151 Murray, Killebrew (1912) (minimal 151 Ky. S.W. 662 minimum advance royalties). passages dealing royalties

Two with minimum advance quoting are worth for their of the law. explanation all of the and Generally, exploration leases land for development of minerals are executed the lessor the condition, and hope upon express implied, the either or minerals; that the and developed land shall be it unreasonable, would be and and contravene the unjust leаse, spirit nature and of the to allow the lessee to length continue to hold under it considerable of time making any develop according without effort at all to to lease; and, the express implied purpose or оf the forfeiture, general, equity while abhors a when such yet, public a forfeiture works and is essential to and equity, land, private interests in the of minerals in landowner, the as the public, protected well will be gas types 2. has been found in oil and leases as well as other mining Bloomfield, Corp. situations. Oil v. 103 Cal. Richfield Porter, (1951); App.2d Spaulding 229 P.2d 838 94 Colo. However, gas P.2d 711 oil and can be extracted from because site, extracting particular sort another there is a time vаlue in persuasive resource. We do not find those cases (We on that account. meaningful note that this was not to the court in distinction Co., Cal.Rptr. Russell v. Johns Manville C.A.3d

from the laches the lessee and the forfeiture of allowed, where such forfeiture does not contravene plain unambiguous stipulations in the lease. (N.S.) L.R.A. unreasonable, unjust, It would countervene the lease, nature and spirit allow lessee continue to hold his term for a considerablе length time, making any without effort to work the mine. Such rights parties construction would enable him to prevent getting lessor from his royalties under express same, covenant pay for and deprive him of opportunity himself, all to work mine permit or others to do so. The law does practical not tolerate such *7 permit will it absurdity, injus- nor of such possibility lease, tice. It is of the essence of the necessarily implied, ‍​​‌‌‌‌‌​‌‌‌‌​‌‌‌​​​​‌‌​‌‌​‌‌‌‌‌‌‌​‌​​‌‌​‌​‌​​‌‌​‍that shall the lessee work the mine with reasonable diligence, or surrender the lease. Jones, 164, v. 617

George Neb. N.W.2d in this law Commonwealth also finds an implied duty Co., mine. v. Aye 193 Pa. Philadelphia A. provided test well drilled within six months “and if oil should be found paying quantities to on complete a well the lеased premises within the next six months or rental pay yearly per acre for the delay.” Aye, supra, at A 193 Pa. A. 556. drilled, test well was but an dry. was court found implied not, course, to drill other test duty Aye wells. totally stand, on with the case. point instant It dоes however, predilection for a in this Commonwealth which favors consequent implied mine. with Together supra, persuades Lehigh, Aye us that our holding is but an today application settled doctrine a slightly different factual context.

Judgment to the reversed remanded trial court entry appellants. favor of

HESTER, J., files a concurring statement.

HESTER, Judge, concurring: I concur in the result reached I majority. am of opinion that the lease terminated after the passage five years.

495 A.2d 1389 DULANEY, Harold Dorothy Michael Baker and Baker,

L. His Wife METAL, INC., ROHANNA IRON AND Andrew K. Rohanna Rohanna, Appellants. and Robert E.

Superior Pennsylvania. Court of

Argued March 1985. July

Filed

Case Details

Case Name: Frenchak v. Sunbeam Coal Corp.
Court Name: Supreme Court of Pennsylvania
Date Published: Jul 19, 1985
Citation: 495 A.2d 1385
Docket Number: 01440
Court Abbreviation: Pa.
AI-generated responses must be verified and are not legal advice.
Log In