Bennett v. Hebener
Oregon Court of Appeals
643 P.2d 393 (1982)
- Written by Miller Jozwiak, JD
Facts
Audrey Bennett (plaintiff) owned a tract of land. Robert Hebener (defendant) held a mineral lease interest in the tract, which gave him the right to remove gravel from a gravel pit. Under the terms of the lease, Hebener was obligated to pay Bennett a royalty per cubic yard of gravel mined. The lease also imposed a minimum annual payment of $100. Under the terms of the lease, if Hebener violated any of the “terms or covenants” of the lease, Bennett would have the right to expel Hebener from the land. Over the more than two decades that Hebener held an interest in the property, Hebener often paid only the minimum $100 rent. Indeed, in some years Hebener had no mining equipment on the property, and one year he produced enough gravel to total only 15 cents in royalties. There was evidence of a strong market for the particular gravel on the property. In response to Hebener’s failures to develop the mine, Bennett sued Hebener. Bennett claimed that Hebener failed to reasonably pursue the gravel-mining operation. The trial court sided with Bennett, concluding that Hebener had failed to develop the mine in the way a reasonable person would. Consistent with the lease, the trial court ordered that Bennett could repossess the property. Hebener appealed.
Rule of Law
Issue
Holding and Reasoning (Thornton, J.)
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