Addleman v. Light & Heat Co.
Addleman v. Light & Heat Co.
Opinion of the Court
Opinion by
On November 8, 1899, the plaintiff leased to The People’s Light and Heat Company all of the oil and gas under a tract of land owned by the lessor in Morgan Township, Greene .County, Pa. The lease afterwards passed into the ownership of the defendant company. It was provided in the lease, that for any gas well producing gas in marketable quantities, a semi-annual sum was to be paid as rental to be ascertained by gauging the well every six months, in the casing in which it was completed. If the well showed for the first minute of the gauging, a pressure of two hundred pounds or more, the rental for the ensuing six months was to be $250.00 and for less amounts of pressure, less amounts of rental in proportion, were to be paid. As to the facts, there is but little dispute. The controversy is as to the proper method of taking the pressure of the gas in the well. The work of drilling was begun in May, 1900, and the well was completed in the latter part of August. A 10-inch, casing was first- inserted, then an 8-inch casing,
In the third and twelfth assignments of error, complaint is made of the action of the trial judge in submitting to the jury the question of fraud, upon the part of defendant. He suggested to the jury that if defendant had put in the 3-inch tubing with an honest purpose, and if a calculation would show from the measurement made therein, what it would have been in the 6%-inch casing, that was a sufficient compliance with the contract. But if, however, the putting in of the tubing was a fraud, and intended for the purpose of taking an undue advantage, then it could not succeed, and the jury should not accept it. We can find nothing whatever in the evidence to justify any suggestion of fraud upon the part of defendant. No such charge is made in plaintiff’s statement. That fraud is never, to be presumed, but must always be proved, is so familiar a statement of the law, as to need no citation of authority. True it is that fraud may be shown by circumstantial evidence but it cannot be presumed. In the present case there is nothing to indicate fraudulent purpose or act of any kind, upon the part of the defendant. This court said in Hagy v. Poike, 160 Pa. 522: “Alleged fraud must be established either by di
The fourth assignment of error is to the affirmance of plaintiff’s ninth point, which permitted the jury to find, in connection with other enumerated facts, that the agreement provided that the well was to be gauged in the 3-inch tubing. It was stipulated in the lease that the well should be “gauged in the casing in which completed.” As we read the testimony of all of defendant’s expert witnesses they agree that the 6%-inch casing was the last string of pipe through which the well was drilled, and that the 3-inch tubing was the small string of pipe put in after the well was completed. The construction of the lease was for the court and not for the jury. There was no evidence to support the ninth point, and it should have been refused.
The third, fourth and twelfth assignments of error are sustained, and the judgment is reversed, with a venire facias de novo.
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- Assumpsit — Oil and gas leases — Rentals—Fraud—Charge to jury —Erroneous charge — Construction of written instrument — Court and jury. 1. While it is true that fraud may be shown by circumstantial evidence, it is well settled that fraud is never to be presumed but must always be proved, and the jury should not be allowed to find the existence of fraud in the absence of allegation or evidence of its existence. 2. The construction of a written contract is for the court, not the jury and it is error to leave to the jury a question involving the construction of such a contract, when there is no disputed question of fact relating thereto. 3. In an action of assumpsit to recover the amount of rental alleged to be due under an oil and gas lease, wherein it was provided that the rental, which was to be based on the pressure of gas, was to be ascertained by gauging the well in the casing in which it was completed, it appeared that a 6%-inch casing was in use at the completion of the well, and that thereafter an iron tubing of 3-inch diameter was run through the casing to protect it from excessive pressure. There was no charge of fraud in plaintifi’s statement and nothing to indicate fraudulent act or purpose of any kind on the part of the defendant. The court instructed the jury that if the putting in of the 3-inch tubing was a fraud and intended for the purpose of taking an undue advantage, then it could not succeed, and the jury should not accept it. Held, that such instruction was error. 4. In such a case where there is evidence that by taking the pressure in a 3-inch tubing and using a well known mathematical formula, the practical equivalent could be obtained for the pressure in the 6%-inch casing, it is a question of fact for the jury whether the insertion of the 3-inch tubing inside the 6%-inch casing, made it impossible to ascertain, within the meaning of the contract, what the pressure was in the latter.