Davis v. Nokomis Quarry, Inc.
Illinois Appellate Court
397 N.E.2d 216 (1979)
- Written by Miller Jozwiak, JD
Facts
Hubert Davis and other landowners (collectively, landowners) (plaintiffs) owned a tract of land to which several companies (defendants) had a mineral lease interest. Under the terms of the lease, the companies were required to pay minimum annual rent or royalties based on the minerals produced. The lease had an initial term of one year and went from year to year thereafter. The minimum royalties were due each year until the lease terminated. There was no obligation for the companies to begin operations. The lease allowed the companies, however, to terminate by March 1 every year, and the landowners could terminate on 30 days’ notice if the companies defaulted on their payments. The lease did not contain language of perpetuity (i.e., terms such as “forever” or “for all time”). The landowners sent a notice of intention to terminate the lease to the companies and stopped accepting the companies’ rent payments. The companies, however, claimed that the lease was perpetual and could not be terminated so long as they met their payment obligations. The landowners sued, and the trial court sided with the companies, concluding that the lease was indeed perpetual. The landowners appealed.
Rule of Law
Issue
Holding and Reasoning (Karns, J.)
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