Haseman v. Orman

660 N.E.2d 1041, 1996 Ind. App. LEXIS 21, 1996 WL 18477
CourtIndiana Court of Appeals
DecidedJanuary 22, 1996
Docket11A01-9411-CV-357
StatusPublished
Cited by2 cases

This text of 660 N.E.2d 1041 (Haseman v. Orman) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Haseman v. Orman, 660 N.E.2d 1041, 1996 Ind. App. LEXIS 21, 1996 WL 18477 (Ind. Ct. App. 1996).

Opinions

OPINION

BAKER, Judge.

Appellant-defendant William F. Haseman appeals the trial court's judgment in favor of appellees-plaintiffs Paul E. Orman, Patricia Orman, Keith Jones, Paula Jones, and James G. Orman (collectively Ormans). Specifically, Haseman argues the trial court erred in finding him, as the owner and lessor of mineral rights, strictly liable for damages caused by the lessee of those rights to surface property owned by the Ormans.

FACTS

Haseman and the Andrew Humphreys Inter-vivos Trust 1 are the owners of a vein of coal underlying 246.70 acres in Greene County, Indiana. The Ormans are the owners of surface rights to approximately 6.5 acres of the land over the coal vein, on which they have built three houses. Through a series of leases, Haseman 2 leased his rights to the coal to Fuel, Inc., a leasing corporation for Coal, Inc.3 In return, Haseman was to receive royalties from any coal mined.

The leases between Haseman and Fuel, Inc. provided in part that Fuel, Inc. had the authority to remove all of Haseman's coal by subterranean methods. The leases required Fuel, Inc. to keep records of all coal mined, removed and sold, and gave Haseman the right to inspect these records. The leases also required Fuel, Inc. to conduct its mining operations in compliance with the regulations and laws of Indiana and the United States. Additionally, Fuel, Inc. was required to carry insurance for workers' compensation, bodily injury, and property damage, and to defend and hold Haseman harmless for any claims arising out of mining operations conducted under the lease.

Before mining, Coal, Inc. sought the necessary permits, which did not allow for mining of the land under the Ormans' homes. Pursuant to its permit and the Indiana Surface Mining Control and Reclamation Act,4 Coal, Inc. was required to mine within its permit and to maintain a 50-foot barrier from all surface structures. During 1985, however, Coal, Inc. began mining beyond its permit and extended its operations to include the coal beneath the Ormans' land. In 1987, the Ormans began to notice structural problems with their homes and depressions in their real estate. Thereafter, the Ormans filed suit against Haseman and Coal, Inc. After a bench trial, the trial court entered findings of fact and conclusions of law. Specifically, the trial court found that the Ormans' structural problems were caused by underground mine subsidence resulting from the removal of coal [1044]*1044from beneath their homes. Further, the trial court found that Haseman and Coal, Inc. had breached their absolute duty to provide surface owners with subjacent support. Accordingly, the trial court awarded the Ormans $40,610.00 in damages. The trial court denied the Ormans' request for punitive damages, but did find Coal, Inc. liable for costs and attorney fees in the amount of $27,-825.14.

DISCUSSION AND DECISION

Haseman presents one issue for review: whether the trial court erred in finding him strictly liable for the damage caused to the Ormans' surface property.5 Specifically, Haseman argues that as a passive lessor, he should not be held liable for the mining errors made by Coal, Inc.

Initially, we note our standard of review. When the trial court enters findings of fact and conclusions of law pursuant to a party's request under Ind.Trial Rule 52(A), our standard of review is limited. We first determine whether the evidence presented supports the findings and then whether the findings support the judgment. Vanderburgh County Bd. of Commissioners v. Rittenhouse (1991), Ind.App., 575 N.E.2d 663, 665, trans. denied. We will reverse the judgment only if it is clearly erroneous, meaning unsupported by the factual findings and the conclusions based on those findings. Id. Findings of fact are clearly erroneous when the record lacks any facts or reasonable inferences to support them. Id. When determining whether the findings or judgment are clearly erroneous, we consider only the evidence most favorable to the judgment and the reasonable inferences flowing from that evidence. Id. As always, we refuse to reweigh the evidence or reassess witness eredi-bility. Id. at 666.

In the instant case, Haseman does not challenge the trial court's findings of fact. Rather, he argues that the trial court's finding that he was the owner and lessor of mineral rights is not sufficient to support its conclusion that he was strictly liable as a matter of law.

The trial court concluded that an absolute duty exists on the part of the owners of mineral rights to provide subjacent support for the owners of surface rights. Record at 232-83. In support of this conclusion, the trial court cited Paull v. Island Coal Co. (1909), 44 Ind.App. 218, 88 N.E. 959. Paull, however, does not support the imposition of strict lability on mineral rights owners who leased the right to mine the minerals to another party, and who merely passively participated in mining operations. In Pawll, the court found that surface owners have an absolute right to have sufficient natural or artificial support to sustain the surface of their land, and that:

if the owner of the mines removes them entirely, so that injury results from a subsidence of the soil, he will be liable for resulting damages, no matter how carefully or skillfully he has conducted his mining operations.... This right of subjacent support is absolute. It is independent of the question of negligence.

Id. at 222, 88 N.E. at 960. We believe the proper interpretation of Paull is one that is consistent with the Restatement Second of Torts § 820, which provides:

(1) One who withdraws the naturally necessary subjacent support of land in another's possession or the support that has been substituted for the natural necessary support is subject to liability for a subsidence of the land of the other that was naturally dependent upon the support withdrawn.

Comment (g) to the Restatement clarifies who is to be liable under the section:

The person liable under the rule stated in this Subsection is the actor who withdraws the naturally necessary support. It is immaterial whether, in respect to the supporting land, the actor is owner, possessor, licensee or trespasser. The owner or possessor of this land is not Hable under the [1045]*1045rule stated in this Section unless he was an actor in the withdrawal of support.

Restatement 2d of Torts, § 820; Thus, we refuse to impose strict lability on mineral owners who do not participate in the removal of the minerals, and we hold that the trial court erroneously determined that Haseman was strictly liable to the Ormans for the damage to their land.

Our decision that strict Hability is inapplicable in this situation is based upon the nature of strict liability. In torts, the loss is placed on the party whose conduct caused the harm. See Dan B. Dobbs, Robert E. Keeton & David G. Owen, Prosser & Keaton on Torts § 2 (5th Ed.1984) (the tort-feasor usually is held liable for acting with an intention that the law treats as unjustified, or acting in a way that departs from a reasonable standard of care).

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Related

Haseman v. Orman
680 N.E.2d 531 (Indiana Supreme Court, 1997)
Haseman v. Orman
660 N.E.2d 1041 (Indiana Court of Appeals, 1996)

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Bluebook (online)
660 N.E.2d 1041, 1996 Ind. App. LEXIS 21, 1996 WL 18477, Counsel Stack Legal Research, https://law.counselstack.com/opinion/haseman-v-orman-indctapp-1996.