Pavlik v. Consolidation Coal Co.

456 F.2d 378 (1972)

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Nature of the Case

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Facts

An easement was granted for a pipeline for transportation of coal slurry. The consideration for the easement was $995 and $75 in attorney fees. The pipeline that carried the coal was built at a cost of $14,500,000 and was in successful operation from its construction date in 1957 until 1963. In 1963, Consolidated and Cleveland Electric Illuminating Company entered into a supplemental agreement whereby the pipeline was to be placed in an inactive state. Consolidated was to get $105,097 per month for the life of the original 15-year contract under the obligation to maintain the pipeline in a standby position. Consolidated and Pavlik signed additional agreements after termination of the operation of the pipeline and Consolidated paid small sums for each agreement. Eventually, the pipeline was no longer used to carry coal, and Pavlik gave notice of the Defeasance clause in the deed, and after the one year passed, Pavlik (P) sued to have the easement terminated. Consolidation (D) removed the case to federal court. The District Court held that the easement was not terminated. P appealed.