Eastwood Lands, Inc. v. U.S. Steel Corp.

417 So. 2d 164, 1982 Ala. LEXIS 3293
CourtSupreme Court of Alabama
DecidedJuly 23, 1982
Docket80-241
StatusPublished
Cited by11 cases

This text of 417 So. 2d 164 (Eastwood Lands, Inc. v. U.S. Steel Corp.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Eastwood Lands, Inc. v. U.S. Steel Corp., 417 So. 2d 164, 1982 Ala. LEXIS 3293 (Ala. 1982).

Opinions

The trial court entered the following opinion and order in this case:

OPINION AND ORDER
"This case has been submitted for decision by this Court on the Motion for Summary Judgment filed by the defendant United States Steel Corporation (`U.S. Steel').

"Plaintiff, Eastwood Lands, Inc., a corporation (`Eastwood') is the owner of a parcel of land (hereafter referred to as the `Shopping Center Property'), containing approximately 1.43 acres and located in southwest quarter of the southwest quarter of Section 28, Township 16 South, Range 4 West, in Jefferson County.

"All of the Shopping Center Property was originally owned by Tennessee Land Company. In 1938, Tennessee Land Company conveyed two tracts of land which included the Shopping Center Property to two separate sets of purchasers.

"According to the recorded deeds, Robert L. Smith purchased one tract consisting of 7.84 acres for the purchase price of $450, and Roy V. and Clara Bell Shell purchased the other tract consisting of 8.58 acres for the purchase price of $500.

"In both deeds, Tennessee Land Company retained for itself or Tennessee Coal, Iron Railroad Company, or their respective successors, the right to mine and remove coal and other minerals from the land without leaving support necessary for sustaining the surface of the land or for preventing damage thereto.

"Both deeds also provided that no right of action for damages on account of injuries to the land or any improvements on the land conveyed, resulting from mining operations should ever accrue to or be asserted by the purchasers or their successors in title and that `this condition shall constitute a covenant running with the land against the Grantee and all persons, firms or corporations holding under or through said Grantee.'

"These two deeds were duly recorded in the Probate Office of Jefferson County, Alabama, and therefore constituted notice to all persons of the mineral interest excepted from the conveyances and of the rights reserved to Tennessee Land Company and Tennessee Coal, Iron Railroad Company.

"Since Eastwood's title extends from the above two deeds executed by Tennessee Land Company, Eastwood was itself on notice of these rights. In addition, two of the deeds in Eastwood's chain of title recite that the conveyance of the property described *Page 166 in each of the deeds is `subject to all mineral, mining and damages rights, they being retained by the Tennessee Coal, Iron Railroad Company.'

"One deed naming Eastwood as grantee states, `minerals and mining rights and privileges are excepted.'

"In its complaint, Eastwood makes claim against U.S. Steel for damages, stating in substance that Eastwood has constructed a shopping center on the Shopping Center Property and that as a result of the mining operations conducted under the surface of the Shopping Center Property by U.S. Steel, the surface of the same was caused to subside, on and subsequent to August 13, 1979, causing the buildings comprising the shopping center to collapse, break and tear apart rendering them uninhabitable.

"In a second count of the complaint, Eastwood alleges that U.S. Steel negligently conducted such mining operations thereby causing the damages already described.

"As grounds in support of its Motion for Summary Judgment, U.S. Steel first presents evidence, not contradicted, that it is the successor to Tennessee Land Company and Tennessee Coal, Iron Railroad Company, and that the provisions in the original deeds from Tennessee Land Company, giving it the right to mine coal and other minerals and releasing it from all damages thereby resulting, bars Eastwood from any recovery in this case.

"In Pennsylvania Coal Company v. Mahon, 260 U.S. 393, [43 S.Ct. 158, 67 L.Ed. 322] (1922), a statute (the Kohler Act) enacted by the Pennsylvania legislature prohibited the mining of coal in such a way as to cause the subsidence of any structure used as a human habitation. Pennsylvania Coal Company nevertheless gave notice of its intent to mine under dwellings in a Pennsylvania town without complying with the requirements of the statute.

"A number of persons then brought suit to prevent the Company from mining under their property in such a way as to remove the supports and cause a subsidence of the surface. They argued that the statute was a valid exercise of the state police power for the purpose of protecting the safety of its people. However, the U.S. Supreme Court reversed the decision in favor of the individual owners, holding that the Pennsylvania statute was unconstitutional, being a deprivation of the Company's property without due process.

"Justice Holmes, speaking for the majority of the Court, stated in his opinion:

`. . . The deed conveys the surface, but in express terms reserves the right to remove all coal under the same, and the Grantee takes the premises with a risk, and waives all claim for damages that may arise from mining out the coal.

* * * * * *

`. . . It is our opinion that the act cannot be sustained as an exercise of the police power, so far as it affects the mining of coal under streets or cities in places where the right to mine such coal has been reserved. As said in a Pennsylvania case: "For practical purposes, the right to coal consists in the right to mine it." Com. ex rel. Keator v. Clearview Coal Co., 256 Pa. 328, 331, L.R.A. 1917 E., 672,100 A. 820. What makes the right to mine coal valuable is that it can be exercised with profit. To make it commercially impracticable to mine certain coal has very nearly the same effect for constitutional purposes as appropriating or destroying it. Thus we think that we are warranted in assuming that the statute does.

`The rights of the public in a street purchased or laid out by eminent domain are those that it had paid for. If in any case its representatives have been so short sighted as to acquire only surface rights, without the right of support, we see no more authority for supplying the latter without compensation than there was for taking the right of way in the first place, and refusing to pay for it because the public wanted it very much. . . .'

*Page 167 "In Republic Steel Corp. v. Payne, 272 Ala. 483,132 So.2d 581 (1961), Republic conveyed a parcel of land by deed containing a broad release quite similar to the lease involved in the present case, barring any cause of action by the grantees, or their successors, arising from operations by Republic on its remaining land adjacent to the parcel conveyed. The plaintiffs, who were lessees of the persons purchasing the property from Republic, brought suit against Republic for injuries allegedly suffered by them as a result of inhaling smoke, fumes, and gases emanating from a rock pile maintained by Republic on its adjacent land. Reversing a judgment in favor of the plaintiffs, the Alabama Supreme Court stated:

`An owner of property in fee can dispose of it with such a restriction imposed and (except by eminent domain) could not be compelled to sell it on any other terms.

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Eastwood Lands, Inc. v. U.S. Steel Corp.
417 So. 2d 164 (Supreme Court of Alabama, 1982)

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Bluebook (online)
417 So. 2d 164, 1982 Ala. LEXIS 3293, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eastwood-lands-inc-v-us-steel-corp-ala-1982.