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7th Circuit affirms judgment in mining case

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In a case involving a “richly ambiguous” 1903 deed and a mining company’s claims to “all the coals,” the 7th Circuit Court of Appeals affirmed a District Court’s judgment for defendant landowners.

At issue in American Land Holdings of Indiana, LLC, et al. v. Stanley Jobe, et al., and William Boyd Alexander, Nos. 09-3151 and 09-3265, was whether the affiliates of Peabody Energy Corp. could strip mine 62 acres of farmland in Sullivan County on which there are farmhouses and other buildings. Peabody already was strip mining all of the land around these 62 acres. According to a 1903 deed, Peabody could mine “all the coals” on those acres and could damage 5 acres of that land without having to pay for the damage. The deed said no coal could be removed from under any dwelling on the land. The deed also said it could acquire the portions of the surface for $30 an acre, but removal of the surface for purposes unrelated to underground mining isn’t authorized, unless it is under “all the coals.”

Peabody wants the land because it believes there is $50 million worth of coal under the 62 acres. It claims if it can’t strip mine the land, then it will lose out on a lot of coal.

The District Court deemed the 1903 deed ambiguous when referring to “all the coals” and strip mining the land, and it used extrinsic evidence to rule in favor of the defendants. In 1903, there was no strip mining in Sullivan County and the method hadn’t even started until 1904 with the construction of the Panama Canal. Strip mining didn’t come to Sullivan County until around the 1920s. That’s why the judge ruled that “all the coals” only refers to underground mining, a common practice in effect at the time the deed was executed.

The 7th Circuit agreed the deed was ambiguous and that it didn’t include strip mining. The Circuit Court also disagreed with Peabody’s argument that the deed gave it the option to buy the land for $30 an acre.

“The deed we have said permits the purchase of the surface only as may be necessary for mining operations underground. The grant of that option is the grant of an appurtenant right that Peabody can exercise at any time,” wrote Judge Richard Posner. “If the right were not appurtenant to Peabody’s (limited) mining right – if it were a right to build a ferris wheel on the defendants’ land – then it would be subject to the rule against perpetuities. But it is not a right to strip the surface.”

Peabody wants to get the land for the original $30 an acre, but with $50 million worth of coal under the land, it will have to pay the defendants a good deal more, the Circuit Court concluded.

“Because strip mining is a more valuable use of the defendants’ land than farming and home occupying, our decision will not prevent the land from being put to its most valuable use, which is indeed for strip mining,” wrote Judge Richard Posner. “It will simply affect the terms on which Peabody acquires the right to strip mine the land.”

The judges also denied William Boyd Alexander’s cross appeal because he is seeking to defend the judgment on alternative grounds to the District judge’s decision.
 

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  1. Good riddance to this dangerous activist judge

  2. What is the one thing the Hoosier legal status quo hates more than a whistleblower? A lawyer whistleblower taking on the system man to man. That must never be rewarded, must always, always, always be punished, lest the whole rotten tree be felled.

  3. I want to post this to keep this tread alive and hope more of David's former clients might come forward. In my case, this coward of a man represented me from June 2014 for a couple of months before I fired him. I knew something was wrong when he blatantly lied about what he had advised me in my contentious and unfortunate divorce trial. His impact on the proceedings cast a very long shadow and continues to impact me after a lengthy 19 month divorce. I would join a class action suit.

  4. The dispute in LB Indiana regarding lake front property rights is typical of most beach communities along our Great Lakes. Simply put, communication to non owners when visiting the lakefront would be beneficial. The Great Lakes are designated navigational waters (including shorelines). The high-water mark signifies the area one is able to navigate. This means you can walk, run, skip, etc. along the shores. You can't however loiter, camp, sunbath in front of someones property. Informational signs may be helpful to owners and visitors. Our Great Lakes are a treasure that should be enjoyed by all. PS We should all be concerned that the Long Beach, Indiana community is on septic systems.

  5. Dear Fan, let me help you correct the title to your post. "ACLU is [Left] most of the time" will render it accurate. Just google it if you doubt that I am, err, "right" about this: "By the mid-1930s, Roger Nash Baldwin had carved out a well-established reputation as America’s foremost civil libertarian. He was, at the same time, one of the nation’s leading figures in left-of-center circles. Founder and long time director of the American Civil Liberties Union, Baldwin was a firm Popular Fronter who believed that forces on the left side of the political spectrum should unite to ward off the threat posed by right-wing aggressors and to advance progressive causes. Baldwin’s expansive civil liberties perspective, coupled with his determined belief in the need for sweeping socioeconomic change, sometimes resulted in contradictory and controversial pronouncements. That made him something of a lightning rod for those who painted the ACLU with a red brush." http://www.harvardsquarelibrary.org/biographies/roger-baldwin-2/ "[George Soros underwrites the ACLU' which It supports open borders, has rushed to the defense of suspected terrorists and their abettors, and appointed former New Left terrorist Bernardine Dohrn to its Advisory Board." http://www.discoverthenetworks.org/viewSubCategory.asp?id=1237 "The creation of non-profit law firms ushered in an era of progressive public interest firms modeled after already established like the National Association for the Advancement of Colored People ("NAACP") and the American Civil Liberties Union ("ACLU") to advance progressive causes from the environmental protection to consumer advocacy." https://en.wikipedia.org/wiki/Cause_lawyering

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