ILNews

7th Circuit affirms judgment in mining case

Back to TopCommentsE-mailPrintBookmark and Share


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.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. All the lawyers involved in this don't add up to a hill of beans; mostly yes-men punching their tickets for future advancement. REMF types. Window dressing. Who in this mess was a real hero? the whistleblower that let the public know about the torture, whom the US sent to Jail. John Kyriakou. http://www.nytimes.com/2013/01/26/us/ex-officer-for-cia-is-sentenced-in-leak-case.html?_r=0 Now, considering that Torture is Illegal, considering that during Vietnam a soldier was court-martialed and imprisoned for waterboarding, why has the whistleblower gone to jail but none of the torturers have been held to account? It's amazing that Uncle Sam's sunk lower than Vietnam. But that's where we're at. An even more unjust and pointless war conducted in an even more bogus manner. this from npr: "On Jan. 21, 1968, The Washington Post ran a front-page photo of a U.S. soldier supervising the waterboarding of a captured North Vietnamese soldier. The caption said the technique induced "a flooding sense of suffocation and drowning, meant to make him talk." The picture led to an Army investigation and, two months later, the court martial of the soldier." Today, the US itself has become lawless.

  2. "Brain Damage" alright.... The lunatic is on the grass/ The lunatic is on the grass/ Remembering games and daisy chains and laughs/ Got to keep the loonies on the path.... The lunatic is in the hall/ The lunatics are in my hall/ The paper holds their folded faces to the floor/ And every day the paper boy brings more/ And if the dam breaks open many years too soon/ And if there is no room upon the hill/ And if your head explodes with dark forbodings too/ I'll see you on the dark side of the moon!!!

  3. It is amazing how selectively courts can read cases and how two very similar factpatterns can result in quite different renderings. I cited this very same argument in Brown v. Bowman, lost. I guess it is panel, panel, panel when one is on appeal. Sad thing is, I had Sykes. Same argument, she went the opposite. Her Rooker-Feldman jurisprudence is now decidedly unintelligible.

  4. November, 2014, I was charged with OWI/Endangering a person. I was not given a Breathalyzer test and the arresting officer did not believe that alcohol was in any way involved. I was self-overmedicated with prescription medications. I was taken to local hospital for blood draw to be sent to State Tox Lab. My attorney gave me a cookie-cutter plea which amounts to an ALCOHOL-related charge. Totally unacceptable!! HOW can I get my TOX report from the state lab???

  5. My mother got temporary guardianship of my children in 2012. my husband and I got divorced 2015 the judge ordered me to have full custody of all my children. Does this mean the temporary guardianship is over? I'm confused because my divorce papers say I have custody and he gets visits and i get to claim the kids every year on my taxes. So just wondered since I have in black and white that I have custody if I can go get my kids from my moms and not go to jail?

ADVERTISEMENT