Court Opinion

ID: 9745298
Source: CourtListenerOpinion
Date Created: 2023-08-26 22:47:29.422441+00
Date Added: 2024-06-11T07:24:58.793043
License: Public Domain

JUSTICE LUND, dissenting: After vacillating over construction of the lease, I have come to the conclusion that we are mistaken in determining that “abandonment” was a question of fact. The lease charged the lessee with removing and selling “the greatest amount of sand, gravel or limestone.” The property was to be worked “as steadily and continuously as the market *** will permit.” The lease was executed on June 4, 1969, and the working and mining then commenced, but stopped in 1974. In March 1984, there was notice of intention to mine in that year, but no mining occurred. Section 3(d.) of the lease gave only the owners the option of declaring abandonment, after there had been abandonment for one year. On November 27, 1984, the owners notified lessees of termination of the lease, and abandonment was listed as the reason for termination. By considering the lease as a whole, it is apparent that while quarterly “advances” were made, the anticipated income was to be on a royalty basis. The greater the production, the higher the income to the owners. While a minimum was provided on a quarterly basis, the owners were not required to indefinitely accept the minimum payment and could, if there was abandonment, at their option, terminate the lease. What is abandonment under a lease of this type? I suggest it is directly connected with the work process which provides the maximum potential income, i.e., the royalty income. If there is no attempt to remove sand, gravel, and limestone for a period over one year then, absent a lack of a market, abandonment should occur. Was there an absence of a market? This operation was shut down, except for maintenance and draining, for 11 years, during which time lessees were mining an adjoining acreage. A market must have existed to justify the mining on this adjoining acreage. The abandonment occurred, in my opinion, as a matter of law because the quarry was not worked. It was not then worked for “the greatest amount of sand, gravel or limestone.” To suggest that pumping water and other maintenance defeats a finding of abandonment, in light of the said express purpose of the lease, is, in my opinion, unreasonable. The only issue, in my view, is whether the acceptance of the December 29, 1984, $5,000 “advance” was a waiver of the abandonment. Did this waive over 10 years of mining inactivity? Consider the defense of acquiescence or estoppel. The very terms of the lease (a long-term lease) provide the owners an option to terminate because of abandonment. This right is unlimited as to time, and the lease quarterly “advances” shall be borne by the lessee to and including the final date of declared abandonment. Because the $5,000 payments are due to the date of the declaration of abandonment, no right to defeat the termination by estoppel should exist. Because of provisions in the lease giving the owners the option of terminating the lease at any time there is abandonment, even though it may have occurred and continued from years before, this case is different than Steven W. Barrick & Associates (147 Ill. App. 3d at 620, 498 N.E.2d at 742), where the court stated: “What the lessor may not do, however, is consistently accept rent from a problem tenant without objection, warning, or comment, and then attempt to forfeit the lease based on his prior behavior.” “The acceptance of rent, even after a notice to quit has been given, is not itself a waiver, but merely evidence to be considered in connection with all the circumstances.” 24 Ill. L. & Prac. Landlord and Tenant §241 (1980), citing Glad-Nan Corp., 29 Ill. App. 2d 363, 173 N.E.2d 521. If remanded, the only issue on retrial would be, in my opinion, whether the acceptance of the December 1984 payment was a waiver of the termination. In light of the owner’s continued insistence on termination after the December 1984 payment, I would determine, in this case, that no waiver took place.