Public-domain · open source
OpenJurist

112 N.C. 677

16 S.E 926

Maxwell v. . Todd

Supreme Court of North Carolina

Decided February 5, 1893

Supreme Court of North Carolina · decided 1893-02-05

<p>Mining Leases — Forfeiture by Non-user — Estoppel. •</p> <p>1. Where a mining lease provides for the payment to lessors of a part of the net proceeds of minerals taken from the lands, hut contains no stipulation for a forfeiture through failure to open aud work the mines, the law will construe the contract as if such a stipulation had been expressly written therein, and will adjudge such lease to be forfeited if, within a reasonable time, the lessee fails to carry out the purpose of the lease.</p> <p>2. Where lessors of mining- privileges were in possession of the land covered by the lease at the date thereof and continued in possession, and the lease became forfeited by the non-user and abandonment according to the terms of the contract as construed by the law, no re-entry by lessors was practicable or necessary, and they or their grantees had a right, without demand or notice to the lessees, after such forfeiture, to resist the entry of the lessees for mining-purposes.</p> <p>3. Where an employee or servant of lessees of mining rights works for them in exploring- the minerals on the land, and afterwards acquires from the lessors the mineral rights on the land, he is not estopped from denying- the title of his former employers to such mineral rights, the lease thereof having been forfeited by non-user. '</p>

Good law ✅— No negative treatment on recordhow we know

Decided 1893-02-05

How this case has been cited

Cited by 13 later decisions — most recently September 2001

1 federal appellate · 12 state decisions

50189319001910192019301940195019601970198019902000decided

Later decisions citing this case, by decade. The current decade is in progress, and our corpus holds fewer opinions from the most recent years, so the latest bars are undercounted — not a real decline.

View the full empirical analysis of this case →

Boiiwkll, J.:

¶1 The plaintiffs claim the exclusive right to all mines and minerals in the land described in the complaint under and by virtue of a mining lease made to them by Elizabeth Gragg and others on the 19th day of December, 1879, for the term of ninety-nine years, and also under and by virtue of a mining lease made by said Elizabeth Gragg and another to one Haigler, dated March 24, 1866, for the period of twenty-five years, the latter lease having-been, as they claim, assigned to them in effect with the assent and concurrence of the lessors.

¶2 The defendants claim all the mines and minerals and all mining rights in said land under and by virtue of a deed made to them on May 27, 1.890, by the plaintiffs’ lessors for the consideration of $2,000.

¶3 *686 Since both plaintiffs and defendants claim under the same parties (the Graggs) the plaintiffs, their titles being anterior, are entitled to recover unless the leases mentioned above have expired or have been forfeited or surrendered, and have thus become void.

¶4 The consideration for the lease to plaintiffs was one dollar and their agreement to pay to the lessors, their administrators, executors, heirs or assigns, one-tenth part of all the net proceeds of any minerals taken from said land, but there is in it no stipulation that a failure to open and work the mines shall cause a forfeiture. But the construction put upon their contract by the law is the same as if such a stipulation had been expressly written therein, for, as was said in Conrad v. Morehead, 89 N. C., 31, of a similar lease: “It would be unjust and unreasonable, and contravene the nature and spirit of the lease, to allow the lessee to continue to hold his term a considerable length of time without making any effort at all to mine for gold or other metals. Such a construction of the rights of the parties would enable him to prevent the lessor from getting hi tolls under the express covenant to pajr the same, and deprive him of all opportunity to work the mine himself or permit others to do so. The law does not tolerate such practical absurdity; nor will it permit the possibility of such injustice.”

¶5 His Honor construed the contract under consideration according to the principle announced in the case cited above, and told the jury that a failure on the part of the lessees to work the mines for five years would cause a forfeiture of which the lessors might take advantage, if they saw fit so to do. Certainly the plaintiffs have no right to complain that the period fixed by his Honor (five years) was too short. No re-entry by lessors was practicable or necessary. They were in possession of the land at the date of the lease, *687 and thereafter continued in possession, that possession being-subject to the mining rights of the plaintiffs until those rights were lost to them by non-user and abandonment according to the terms of the contract as construed by the law. They were presumed to know what meaning the law put upon the expressed terms of that contract, and that, without any claim or demand or notice, the lessors, after such non-user for an unreasonable time, could resist their entry for mining purposes, their rights having been forfeited. And if the lessors could resist an entry by plaintiffs certainly the defendants, the grantees of those lessors, may avail themselves of the forfeiture and resist any interference by plaintiffs with the rights they have purchased, unless their relation to the plaintiffs was such as estops them from asserting an adverse title-; and his Honor’s instructions to the jury in regard to such estoppel were correct.

¶6 The jury having found the fourth and fifth issues in defendant’s favor — that is, that the leases under which plaintiffs claim are void, and this, as we have seen, under proper instructions, the plaintiffs cannot recover, and the judgment must be affirmed.

¶7 We deem it unnecessary to consider separately each exception to the charge made by plaintiffs as what has been said above, which is indeed but a reiteration of the principle announced in Conrad v. Morehead, supra, seems to meet all their objections. We note that some of the exceptions seem not applicable to the charge of his Honor as set out in the case.

¶8 There is no error and the judgment is

¶9 Affirmed.

/112/nc/677 · .json · Public domain