ILNews

COA rules for first time on retroactivity of Mineral Lapse Act

Back to TopCommentsE-mailPrintBookmark and Share

The Indiana Court of Appeals has held that a portion of the Mineral Lapse Act is limited in its retroactive application to only the 20-year period immediately proceeding the Sept. 2, 1971, effective date of the Act.

The first impression issue arose in Richard J. Bond and Janet A. Bond, et al. v. Templeton Coal Company, Inc., 42A01-1209-PL-419, in which Richard and Janet Bond challenged the grant of summary judgment to Templeton Coal Co. on its complaint to quiet title to certain mineral interests. The Bonds owned the real property having underlying coal and other minerals that had been conveyed to Templeton in 1960 by way of a merger. The Bonds claimed that Templeton’s interests in the minerals lapsed under the Act due to nonuse for 20 or more consecutive years, so the Bonds were the proper owners under the law.

Indiana Code 32-23-10-2 says that any interest in minerals if unused for 20 years is extinguished, with ownership reverting to the owner of the interest out of which the interest in minerals was carved. A statement of claim under this section must be filed by the owner of the mineral interest before the end of the 20-year period.

The Bonds believed that based on a 35-year period of nonuse between 1929 and 1964, Templeton’s mineral interest lapsed, despite the fact it paid taxes on those interests from 1964 on, which constitutes a use under I.C. 32-23-10-3(a)(6).

The COA determined that based on the original language of the Act, there is some retroactivity to the statute, but not as far back as the Bonds would like. It determined that Section 2 is ambiguous and should be construed to limit the application to the 20 years immediately preceding the effective date of the Act.

“Indeed, the Bonds fail to consider that, at the time Templeton’s interests were not used, 1929-1964, that nonuse was wholly consistent with the common law,” Judge Edward Najam wrote, agreeing with the rationale laid out by the District Court in the Southern District of Indiana’s decision in Am. Land Holdings of Ind. LLC v. Jobe, 655 F. Supp. 2d 882, 890 (S.D. Ind. 2009). “Considering Section 2’s ambiguity, the rule to strictly construe acts in derogation of the common law, and the Act’s underlying purposes, we hold that Section 2 is limited in its retroactive application to only the twenty-year period immediately preceding the effective date of the Act, or September 2, 1951.”

The judges affirmed summary judgment for Templeton, agreeing that Templeton holds the record title to the mineral interests and that there has been no lapse of the mineral interests under the Act.

 

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
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Just an aside, but regardless of the outcome, I 'm proud of Judge William Hughes. He was the original magistrate on the Home place issue. He ruled for Home Place, and was primaried by Brainard for it. Their tool Poindexter failed to unseat Hughes, who won support for his honesty and courage throughout the county, and he was reelected Judge of Hamilton County's Superior Court. You can still stand for something and survive. Thanks, Judge Hughes!

  2. CCHP's real accomplishment is the 2015 law signed by Gov Pence that basically outlaws any annexation that is forced where a 65% majority of landowners in the affected area disagree. Regardless of whether HP wins or loses, the citizens of Indiana will not have another fiasco like this. The law Gov Pence signed is a direct result of this malgovernance.

  3. I gave tempparry guardship to a friend of my granddaughter in 2012. I went to prison. I had custody. My daughter went to prison to. We are out. My daughter gave me custody but can get her back. She was not order to give me custody . but now we want granddaughter back from friend. She's 14 now. What rights do we have

  4. This sure is not what most who value good governance consider the Rule of Law to entail: "In a letter dated March 2, which Brizzi forwarded to IBJ, the commission dismissed the grievance “on grounds that there is not reasonable cause to believe that you are guilty of misconduct.”" Yet two month later reasonable cause does exist? (Or is the commission forging ahead, the need for reasonable belief be damned? -- A seeming violation of the Rules of Profession Ethics on the part of the commission) Could the rule of law theory cause one to believe that an explanation is in order? Could it be that Hoosier attorneys live under Imperial Law (which is also a t-word that rhymes with infamy) in which the Platonic guardians can do no wrong and never owe the plebeian class any explanation for their powerful actions. (Might makes it right?) Could this be a case of politics directing the commission, as celebrated IU Mauer Professor (the late) Patrick Baude warned was happening 20 years ago in his controversial (whisteblowing) ethics lecture on a quite similar topic: http://www.repository.law.indiana.edu/cgi/viewcontent.cgi?article=1498&context=ilj

  5. I have a case presently pending cert review before the SCOTUS that reveals just how Indiana regulates the bar. I have been denied licensure for life for holding the wrong views and questioning the grand inquisitors as to their duties as to state and federal constitutional due process. True story: https://www.scribd.com/doc/299040839/2016Petitionforcert-to-SCOTUS Shorter, Amici brief serving to frame issue as misuse of govt licensure: https://www.scribd.com/doc/312841269/Thomas-More-Society-Amicus-Brown-v-Ind-Bd-of-Law-Examiners

ADVERTISEMENT