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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. The is an unsigned editorial masquerading as a news story. Almost everyone quoted was biased in favor of letting all illegal immigrants remain in the U.S. (Ignoring that Obama deported 3.5 million in 8 years). For some reason Obama enforcing part of the immigration laws was O.K. but Trump enforcing additional parts is terrible. I have listed to press conferences and explanations of the Homeland Security memos and I gather from them that less than 1 million will be targeted for deportation, the "dreamers" will be left alone and illegals arriving in the last two years -- especially those arriving very recently -- will be subject to deportation but after the criminals. This will not substantially affect the GDP negatively, especially as it will take place over a number of years. I personally think this is a rational approach to the illegal immigration problem. It may cause Congress to finally pass new immigration laws rationalizing the whole immigration situation.

  2. Mr. Straw, I hope you prevail in the fight. Please show us fellow American's that there is a way to fight the corrupted justice system and make them an example that you and others will not be treated unfairly. I hope you the best and good luck....

  3. @ President Snow - Nah, why try to fix something that ain't broken??? You do make an excellent point. I am sure some Mickey or Minnie Mouse will take Ruckers seat, I wonder how his retirement planning is coming along???

  4. Can someone please explain why Judge Barnes, Judge Mathias and Chief Judge Vaidik thought it was OK to re weigh the evidence blatantly knowing that by doing so was against the rules and went ahead and voted in favor of the father? I would love to ask them WHY??? I would also like to ask the three Supreme Justices why they thought it was OK too.

  5. How nice, on the day of my car accident on the way to work at the Indiana Supreme Court. Unlike the others, I did not steal any money or do ANYTHING unethical whatsoever. I am suing the Indiana Supreme Court and appealed the failure of the district court in SDIN to protect me. I am suing the federal judge because she failed to protect me and her abandonment of jurisdiction leaves her open to lawsuits because she stripped herself of immunity. I am a candidate for Indiana Supreme Court justice, and they imposed just enough sanction so that I am made ineligible. I am asking the 7th Circuit to remove all of them and appoint me as the new Chief Justice of Indiana. That's what they get for dishonoring my sacrifice and and violating the ADA in about 50 different ways.

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