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COA rules for first time on retroactivity of Mineral Lapse Act

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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.

 

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  1. Well, maybe it's because they are unelected, and, they have a tendency to strike down laws by elected officials from all over the country. When you have been taught that "Democracy" is something almost sacred, then, you will have a tendency to frown on such imperious conduct. Lawyers get acculturated in law school into thinking that this is the very essence of high minded government, but to people who are more heavily than King George ever did, they may not like it. Thanks for the information.

  2. I pd for a bankruptcy years ago with Mr Stiles and just this week received a garnishment from my pay! He never filed it even though he told me he would! Don't let this guy practice law ever again!!!

  3. Excellent initiative on the part of the AG. Thankfully someone takes action against predators taking advantage of people who have already been through the wringer. Well done!

  4. Conour will never turn these funds over to his defrauded clients. He tearfully told the court, and his daughters dutifully pledged in interviews, that his first priority is to repay every dime of the money he stole from his clients. Judge Young bought it, much to the chagrin of Conour’s victims. Why would Conour need the $2,262 anyway? Taxpayers are now supporting him, paying for his housing, utilities, food, healthcare, and clothing. If Conour puts the money anywhere but in the restitution fund, he’s proved, once again, what a con artist he continues to be and that he has never had any intention of repaying his clients. Judge Young will be proven wrong... again; Conour has no remorse and the Judge is one of the many conned.

  5. Pass Legislation to require guilty defendants to pay for the costs of lab work, etc as part of court costs...

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