Hardale Investment Company v. State, Unpublished Decision (4-14-2000)

CourtOhio Court of Appeals
DecidedApril 14, 2000
DocketCase No. 98-BA-40.
StatusUnpublished

This text of Hardale Investment Company v. State, Unpublished Decision (4-14-2000) (Hardale Investment Company v. State, Unpublished Decision (4-14-2000)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hardale Investment Company v. State, Unpublished Decision (4-14-2000), (Ohio Ct. App. 2000).

Opinion

OPINION
Respondent-appellant, the Ohio Department of Natural Resources appeals from the decision of the Belmont County Court of Common Pleas issuing a writ of mandamus ordering it to commence appropriation proceedings for the acquisition of Riviera Bowling Lanes owned by relators-appellees, Hardale Investment Co., Dale Michaels, and Harry Mowder.

In the early 1960's, the Riviera Bowling Lanes (Riviera) was constructed in front of the entrance to an abandoned coal mine in Bellaire, Ohio. According to the evidence adduced at trial, Dale Michaels and Harry Mowder, joint owners of Hardale Investment Co. (Hardale) purchased Riviera in June of 1978. From the time of the purchase, appellees received occasional complaints about odors emanating from different places in the building. However, in February of 1985 appellees received numerous complaints from patrons and employees that fumes were causing headaches and dizziness.

As a result of these complaints, appellees called the Columbia Gas Company. An employee from the gas company discovered that methane gas was being emitted from the opening to the mine. At this point the testimony is in conflict. According to Michaels, the gas company employee telephoned Michael Wallace, the fire chief for the City of Bellaire Fire Department, who arrived at the building approximately an hour later. Michaels testified that upon arrival Chief Wallace informed him that he had contacted the Ohio Department of Natural Resources (ODNR) and that it would be sending people to take air readings inside the building. The following morning ODNR employees arrived and went through the building testing the air.

According to Michaels, sometime in late February 1985 he was informed by Hal Miller of ODNR that the results of the testing had revealed a methane gas problem. Miller also apparently told Michaels that ODNR would be able to remedy the problem, but that they would have to declare the problem an emergency. In addition, Miller stated that ODNR would seek assistance for the project from the Office of Surface Mines (OSM), a division of the United States Department of the Interior. Michaels also claimed that he was asked by ODNR to voluntarily close the building down in the meantime, to which he responded that he would not.

Michaels further testified that on March 6, 1985 he received a phone call from Chief Wallace who stated that he was coming to the building to show Michaels a letter he had received from ODNR. Michaels called his attorney at the time, John Malik, who arrived at the building at about the same time as Chief Wallace. According to Michaels, Chief Wallace showed the letter to Michaels and Malik, and asked them to read the first paragraph in which ODNR had classified the methane gas problem as an emergency situation. Michaels stated that Chief Wallace then asked him to voluntarily close the building or face closure by order of the Fire Department. Upon the advice of Malik, Michaels refused to voluntarily close the building and the following day Chief Wallace returned to the building and posted a Fire Department citation ordering the building closed until the hazard was corrected.

Much of the foregoing testimony was disputed at trial. Testifying on behalf of ODNR, Chief Wallace testified that Michaels had requested that the Fire Department order the building closed in order to present a claim under his business interruption insurance coverage. According to Chief Wallace, Michaels explained to him that if he were to voluntarily close the building he would be unable to seek compensation under his insurance policy. Chief Wallace stated that after discussions with the city law director, he issued the citation based on sections of the Ohio Fire Code dealing with the elimination of dangerous or hazardous conditions.

Both parties agree that work was undertaken to fix the gas problem. According to Michaels, the actual work was done by contractors hired by OSM. However, Michaels claimed that during the time that the work was being carried out he was informed by representatives of ODNR that he was not allowed in the building, and that if he did enter he would be arrested.

Michaels claimed that the work was completed sometime in the summer of 1986, but that ODNR informed him that there was some disagreement between ODNR and OSM as to whether the problem had been successfully remedied. According to Michaels, after the work was completed he was again instructed by ODNR that he could not enter the building.

Terry Dalton, an employee of OSM testified in more detail concerning the work undertaken to remedy the methane gas problem. According to Dalton, OSM was notified of the problem by ODNR, Michaels, and the Bellaire Fire Department. Dalton testified that ODNR's only involvement with the project was the initial referral to OSM and the provision of background eligibility information needed in order to determine if the project was suitable for federal emergency status. Dalton also introduced a letter from Hardale to OSM, dated February 18, 1985, in which Hardale requested that OSM purchase Riviera rather than take corrective measures to remedy the problem.

Dalton also explained that the project was conducted pursuant to Section 410 of the Surface Mining Control and Reclamation Act of 1977 (SMCRA), a federal statute that grants authority to the Secretary of the Interior to expend federal funds in the abatement of problems associated with the adverse effects of coal mining practices.

According to Dalton, OSM asked Hardale to sign a hold harmless agreement indemnifying OSM prior to the commencement of work. Hardale, apparently upon the advice of counsel, refused to do so because of concerns over their business interruption insurance coverage. Dalton testified that Hardale requested OSM enter the property to effectuate repairs under the police powers contained under Section 410 of SMCRA. OSM agreed, apparently because the arrangement called for a friendly use of the police powers. According to Dalton, had Hardale been opposed to the use of the police powers, OSM would not have conducted the project at all. Dalton clarified that OSM had not closed Riviera, but had simply received a right of entry to conduct the repairs.

Robert Baker, the program manager with the Division of Mines and Reclamation of ODNR, testified that besides making initial referrals and providing eligibility information to OSM, ODNR had no involvement in the conduct of emergency projects, and had not ordered the closing of Riviera. Baker further testified that ODNR has never closed a building in order to conduct a reclamation project, that ODNR has no authority to close buildings, and that ODNR had had no involvement with the day to day activities of the project carried out at Riviera.

In May of 1985, Hardale filed a complaint against City Insurance Co., seeking coverage under a business interruption policy. In the complaint, Hardale alleged that Riviera had been closed on March 6, 1985, because of a dangerous methane gas problem and at the request of the insurance company in order to prevent an "increase of the hazard." In an opinion and decision dated December 31, 1985, Judge Charles Knapp stated that Riviera had been closed and posted by the chief of the Bellaire Fire Department, and granted summary judgment in favor of Hardale. In a subsequent entry, both parties stipulated that the case was settled and dismissed.

In May 1988, Hardale filed a federal tort claim against the United States for damages incurred through negligent repairs to Riviera. The claim specifically alleged that the contractors had been hired by OSM. The claim was denied on September 13, 1988 and was not appealed by Hardale.

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Bluebook (online)
Hardale Investment Company v. State, Unpublished Decision (4-14-2000), Counsel Stack Legal Research, https://law.counselstack.com/opinion/hardale-investment-company-v-state-unpublished-decision-4-14-2000-ohioctapp-2000.