Overview
Case summary
This case involves a motion for appointment of a receiver to take charge of royalties, rents, and profits from land pending an ejectment action to determine title. Plaintiffs claim elder title to coal-rich land in West Virginia under a grant from Virginia. Defendants, lessees from trustees of the Flat Top Coal Land Association, operate large coal mines and coke ovens on the land, generating significant revenue. Plaintiffs moved for a receiver, alleging danger of loss of rents and profits due to mining operations and the transitory nature of the association's shareholders. Defendants opposed, arguing no danger of loss and that plaintiffs were guilty of laches for delaying the ejectment action. The court granted the motion, holding that a receiver may be appointed where plaintiff has probable cause of action and imminent danger of loss pendente lite, treating the bill as ancillary to the ejectment action. The court rejected the laches defense, noting plaintiffs gave public notice of their claim before defendants began operations, and delay was due to owner's health and internal disputes. The court appointed a receiver with conditions for defendants to post bond or have revenues collected and held.
Abstract
Plaintiffs sought appointment of a receiver over royalties, rents, and profits from coal-rich land pending an ejectment action to resolve title disputes, alleging risk of loss from defendants' mining operations. Defendants opposed, claiming no danger of loss and asserting laches due to delay, but the court granted the motion upon finding probable cause and imminent danger pendente lite, rejected laches based on prior public notice and excusable delay, and required defendants to post bond or allow receiver collection of revenues.
Opinion of the court
opinionJACKSON, District Judge
- Receiver may be appointed when plaintiff exhibits apparently good title and there is imminent danger of loss of rents and profits pendente lite
- Bill for receiver is ancillary to ejectment action and does not disturb possession of realty
- Laches not applicable where defendants had notice of claim and plaintiffs' delay was reasonable under circumstances
- Court may require bond from defendants to alleviate inconvenience of receiver appointment
Jurisdiction
not challenged- Action involves appointment of a receiver to preserve rents and profits pending ejectment litigation
Procedural posture
- Motion for receiver based on danger of loss of rents and profits
- Defense of laches
Legal categories
Case record
Issues & holdings
Holdings of the court
Burden of proof
Timeline
Court granted motion for receiver, ordering defendants to execute bond with good security to account for revenues, or receiver to collect and hold revenues
Outcome: Receiver appointed with conditions for bond and monthly reporting
Court exercised equity jurisdiction to preserve rents and profits, rejecting laches defense
Defendants (lessees) entered upon the land, opened mines, and erected coke ovens for mining coal and manufacturing coke, despite plaintiffs' public notice of claim
Outcome: Defendants began mining operations
Defendants acted with knowledge of plaintiffs' claim, leading to dispute over laches and necessity of receiver
Plaintiffs filed motion for appointment of receiver to husband rents, issues, and profits pending ejectment action
Outcome: Motion granted with conditions
Initiated the ancillary equity proceeding to protect rents and profits during litigation
Facts & evidence
Incident
Key facts
6 facts- Plaintiffs claim elder title to land under grant from Commonwealth of Virginia with mesne conveyances
- Defendants operate large coal mines on the land, deriving annual revenue over $110,000 and have mined $120,000 worth of coal
- Defendants are lessees from trustees of the Flat Top Coal Land Association
- Defendants have erected coke ovens on the property
- Plaintiffs gave public notice of their claim before defendants began mining operations
- Plaintiffs delayed filing ejectment action due to owner's ill health and travel abroad, and internal disputes among plaintiffs
Disputed questions
- Whether plaintiffs' title covers the land in controversy
- Whether there is imminent danger of loss of rents and profits
- Whether plaintiffs are guilty of laches
Procedural history
2 steps- Plaintiffs filed motion for appointment of receiver to take charge of royalties, rents, and profits pending ejectment action
- Defendants opposed motion, arguing no danger of loss or mismanagement and that plaintiffs were guilty of laches
Evidence in the record
- Plaintiffs' grant from Commonwealth of Virginia and mesne conveyances showing title
- Coal fields, coke ovens on the land
- Pleadings, public notice in press, by-laws of Flat Top Coal Land Association
- Defendants' mining operations and revenue generation indicating value of property and potential dissipation
Objects of relevance
Policy considerations
- Equity courts should protect legal rights even if it causes inconvenience or hardship to other parties
- Importance of preserving assets pending litigation to ensure rightful owner can benefit from judgment
Authorities
Cited authorities (3)
Standards & doctrines
- Equity principles for receiver appointment based on danger of loss
- Laches doctrine applied with consideration of notice and reasonableness
Legal principles applied
- Receiver may be appointed when plaintiff shows apparently good title and imminent danger of loss of profits
- Laches not imputed if adverse party had notice and delay is reasonable under circumstances
Notable quotes
““harvest and gather the fruits until the labors of the controversy are over.””majority — Cited from Chase Case (17 Am. Dec. 277) to describe purpose of receiver in preserving rents and profitsIllustrates equity court's role in protecting assets during litigation
“It is clear to my mind that the plaintiffs have probable cause of action against these defendants, and that the benefit to be derived from such cause of action might be lost if a receiver was not appointed”majority — Court's reasoning for granting receiver despite defendants' current responsibilityEmphasizes preventive role of equity to avoid future loss