Karst-Robbins Coal Co. v. Arch of Kentucky, Inc.

964 S.W.2d 419, 1997 Ky. App. LEXIS 112, 1997 WL 706598
CourtCourt of Appeals of Kentucky
DecidedNovember 14, 1997
Docket95-CA-3445-MR, 95-CA-3446-MR
StatusPublished
Cited by6 cases

This text of 964 S.W.2d 419 (Karst-Robbins Coal Co. v. Arch of Kentucky, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Karst-Robbins Coal Co. v. Arch of Kentucky, Inc., 964 S.W.2d 419, 1997 Ky. App. LEXIS 112, 1997 WL 706598 (Ky. Ct. App. 1997).

Opinion

OPINION

GUDGEL, Judge.

This is an appeal and cross appeal from a judgment entered by the Harlan Circuit Court in a tort action for damages stemming from certain coal mining operations. Appellants/eross-appellees Karst-Robbins Coal Company, Inc., Brenda Faye Coal Sales Company, Inc., Edward W. Karst, Brenda Faye Karst and Aletha Karst (hereinafter collectively referred to as Karst) contend that the trial court erred (1) by finding that a clause in a 1926 deed absolved appel-lees/cross-appellants Arch of Kentucky, Inc. and Ark Land Company (hereinafter collectively referred to as Arch) from liability for damages stemming from certain underground coal mining operations, (2) by directing a verdict as to Karst’s claim that Arch conducted its mining operations in an arbitrary, wanton, malicious, or grossly negligent manner, (3) by failing to permit a jury to determine whether Arch conducted its mining operations in an oppressive manner, (4) by directing a verdict as to Karst’s claim for punitive damages, (5) by submitting Karst’s equipment damage claim under a comparative negligence standard, and (6) by failing to allow Karst to establish its damages claim for lost coal through certain nontraditional methods. On cross appeal, Arch contends that the court erred by submitting Karst’s equipment damage claim to the jury. We disagree with all of Karst’s contentions on direct appeal, but we agree with Arch’s contention on cross appeal. Hence, we affirm as to the direct appeal, and reverse and remand as to the cross appeal.

This action principally concerns the parties’ rights and liabilities under the provisions of a particular deed. Specifically, a deed was executed on December 18,1926, by Arch’s predecessor in title, United States Coal and Coke Company (a subsidiary of U.S. Steel Corporation, hereinafter referred to as U.S. Steel), in favor of Karst’s predecessor in title, Harlan Splint Land Company. The deed conveyed to Harlan Splint approximately 1,720 acres of land and the coal located thereunder in the “Harlan seam.” The deed included the following exception:

[Tjhere is hereby expressly reserved to the party of the first part, its successors and assigns, and not conveyed by it, all the coal and every vein and seam thereof; lying below water level of Clover Fork of Cumberland River, located in, on and under the hereinabove described boundary, together with all the usual mining privileges necessary or conveniant [sic] for the party of the first part to have in the mining of said reserved coal ... with the right in said party of the first part to enter upon said lands to drill and operate and mine said coal so reserved as aforesaid, together with the right to enter upon said lands, use and operate the same and the surface thereof *422 and to make use of and divert water courses thereon in any and every manner that may be deemed necessary or convenient for the mining or removing therefrom or otherwise utilizing said coal so reserved as aforesaid, and for the transportation therefrom of coal mined from said coal so reserved, and to transport and convey through the lands hereby conveyed any coal mined from said veins or seams so reserved ... also the right to remove coal from said seams so reserved without leaving any support for the overlying strata and without liability for injury or damage which may result from the breaking of said strata, and the right to deposit coal, slate, and other refuse upon the surface of said lands hereby conveyed in the mining of said coal so reserved. (Emphasis added.)
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It is distinctly agreed that the foregoing rights and immunities reserved by and vested in, the party of the first part, and its assigns, are subject to the limitation that during the period party of the second part or its assigns shall be operating the coal not reserved, such rights and immunities shall not be exercised in such manner as to interfere with surface improvements of the party of the second part or its assigns, except by subsidence, if same shall be caused by mining operations but after such operations shall have been finally concluded, such rights and immunities shall be no longer subject to the foregoing limitation.

Harlan Splint subsequently entered into certain leases affecting the coal acquired pursuant to the 1926 deed, and the lessee and its successor conducted mining operations on the property until 1958. In 1974, Karst purchased Harlan Splint’s property rights to the remaining coal and the surface, and it conducted additional mining operations until 1990.

Meanwhile, prior to 1974, U.S. Steel opened its mine No. 37 and began underground mining operations in the Harlan seam on property located adjacent to that purchased by Karst. After these mine entries “squeezed” out, experts recommended that further mining should be conducted by utilizing modem longwall mining techniques. By 1982, longwall mining equipment was purchased and installed, and mining operations resumed. In 1984, Arch purchased U.S. Steel’s interests in the properties and operations, including the coal reserved in the 1926 deed beneath the Karst property. Due to certain geological problems, Arch was forced to mine toward the Karst property more quickly than was originally planned and, instead of reaching that property in 1991, Arch commenced longwall mining operations under it in December 1987. Those operations were completed by 1991.

Karst subsequently filed a tort action against Arch, seeking compensatory and punitive damages stemming from the fact that Arch’s mining activities beneath the Karst property not only rendered the remaining Karst coal inaccessible and unminable, but also destroyed certain mining equipment. A jury trial on the merits was conducted in 1993, by which time the court had ruled that Arch had a right to utilize modern longwall mining techniques under the Karst property, and that any claims for damages to other coal seams and the surface were expressly waived by the 1926 deed. Thus, the only issue before the jury was whether Arch had conducted its mining operations in an arbitrary, wanton, malicious, or grossly negligent manner. At the conclusion of the trial, the court directed a verdict in favor of Arch as to Karst’s claim for lost coal, but it submitted Karst’s claim for destroyed equipment to the jury under a comparative negligence instruction. The jury found that Arch was fifty percent at fault in regard to the equipment loss, and the court awarded Karst a judgment against Arch in the amount of $290,370. This appeal and cross appeal followed.

First, Karst contends in a two-pronged argument on direct appeal that the court erred by finding that the clause waiving liability for damages, as set forth in the 1926 deed, operates to absolve Arch of strict liability for damages caused by its longwall mining activities and by its removal of the subja-cent support beneath the Karst property. Karst argues that Section 19(2) of the Kentucky Constitution, as ratified by the voters *423 in 1988, applies to the 1926 deed so as to limit application of its damages liability waiver clause to mining activities conducted by the room and pillar method of mining, which was the method commonly in use for underground mining purposes in 1926. Alternatively, Karst argues that the court erred by failing to find that the damages liability waiver clause was not intended to include damages caused by modem longwall mining techniques.

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Cite This Page — Counsel Stack

Bluebook (online)
964 S.W.2d 419, 1997 Ky. App. LEXIS 112, 1997 WL 706598, Counsel Stack Legal Research, https://law.counselstack.com/opinion/karst-robbins-coal-co-v-arch-of-kentucky-inc-kyctapp-1997.