Summaries are prepared by Law Librarians and are not official statements of the Wyoming Supreme Court.
Case Name: Jacobs Ranch Coal Co. v. Thunder Basin Coal Co, LLC
Citation: 2008 WY 101
Docket Number: S-07-0280
Appeal from the
Representing Appellant: Thomas P. Johnson and Andrea Wang,
Representing Appellee Consolenergy, Inc.: No appearance.
Facts/Discussion: Jacobs Ranch appealed the district court’s summary judgment decision that
Covenant that runs with the land: In Mathisen v. Thunder Basin the Court stated that the party seeking to establish that a covenant runs with the land must demonstrate the original covenant is enforceable; the parties to the original covenant intended that the covenant run with the land; the covenant touches and concerns the land; and there is privity of estate between the parties to the dispute. The surface royalty provision in question specified that Consol as “Grantee shall pay” the surface royalty but as in Mathisen there was no language indicating that Consol’s successors in interest or assigns would be bound by the provision. Jacobs Ranch raised two main arguments against the conclusion that the surface royalty was not a covenant running with the land. First, Jacobs Ranch argued that it presented undisputed evidence that when the property was conveyed both parties intended that the surface royalty would run with the land. The Court looked to the language of the written instrument and noted that the language was not ambiguous. The evidence offered by Jacobs Ranch was inadmissible as it constituted only the parties’ own extrinsic expressions of intent.
Jacobs Ranch next maintained that no coal company would intentionally obligate itself to pay a royalty for coal mined by its competitors.
Jacob Ranch’s claim for implied indemnity suffered the same flaw as its claim for express indemnity: the claims do not arise from
Jacobs Ranch and
Holding: The Court agreed with the district court that there was no agreement on
J. Burke delivered the decision.
Link: http://tinyurl.com/5gsflp .
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