Leavell v. Illinois Department of Natural Resources

600 F.3d 798, 178 Oil & Gas Rep. 393, 2010 U.S. App. LEXIS 7120, 2010 WL 1292720
CourtCourt of Appeals for the Seventh Circuit
DecidedApril 6, 2010
Docket09-2590
StatusPublished
Cited by84 cases

This text of 600 F.3d 798 (Leavell v. Illinois Department of Natural Resources) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Leavell v. Illinois Department of Natural Resources, 600 F.3d 798, 178 Oil & Gas Rep. 393, 2010 U.S. App. LEXIS 7120, 2010 WL 1292720 (7th Cir. 2010).

Opinion

RIPPLE, Circuit Judge.

Eva Lovene Leavell, individually and as the administratrix of the estate of her deceased husband, Daniel Leavell, instituted this action against the Illinois Department of Resources (“Department”) and several oil companies. Ms. Leavell asserted, among other issues, a procedural due process claim and sought injunctive relief to prevent the Department and its officers from plugging oil wells owned by various members of the Leavell family and from transferring control over wells to the defendant oil companies. The Department, its separately named officers and the company defendants moved to dismiss the various counts on a variety of grounds, including that some of the counts failed to state a claim upon which relief could be granted. On April 7, 2009, the district court granted the motions and dismissed all of the counts. Ms. Leavell’s subsequent motion for reconsideration also was denied. Ms. Leavell now appeals the dismissal of her due process claim set forth in Count VIII of the amended complaint. For the reasons set forth in the following opinion, we affirm the judgment of the district court.

I

BACKGROUND

A. Facts 1

Members of the Leavell family were owners or lessees of hundreds of oil wells in counties across southern Illinois. Ms. Leavell and her now-deceased husband, Daniel, apparently were the primary owners or lessees of the wells. Their son, Stanley Leavell, operated the wells. Ms. Leavell was the primary permit holder for many of the wells.

At some point in the year 2000, the Department, specifically its Office of Mines and Minerals, sought to revoke the per *801 mits that it had granted to Ms. Leavell and also sought to plug many of her wells because it believed that those wells had been abandoned. On January 24, 2000, the Department notified Ms. Leavell by certified mail that the Department intended to hold a hearing on February 10, 2000, to determine whether certain wells had been abandoned and, thus, whether they should be plugged (Proceeding # AW-00-037). The letter was sent to Ms. Leavell’s address, which was on record with the State; a certified mail receipt was returned to the Department confirming that the letter had been delivered. On February 10, 2000, Ms. Leavell did not appear for the hearing (“the 2000 hearing”). Proceeding in her absence, the Department determined that the wells at issue were abandoned and also determined that the wells should be plugged.

In January 2001, the Department identified approximately 100 additional wells that it deemed abandoned and sought to have plugged. The Department attempted to notify Ms. Leavell of a hearing by certified mail, but the notice was returned; consequently, the Department sent notice by regular mail. On February 14, 2001, the Department held the hearing (“the 2001 hearing”) concerning the additional 100 wells (Proceeding # AW-01-030). Again, Ms. Leavell did not appear, and again, after receiving evidence, the Department determined that the wells had been abandoned and directed that the wells be plugged. On April 16, 2001, Ms. Leavell received notice of this determination.

On April 26, 2001, Ms. Leavell filed suit in Illinois circuit court (Case No. 01-MR-4) seeking a declaration that the Department’s administrative decision following the 2001 hearing violated state and federal law because the Department had failed to provide notice of the hearing. The circuit court granted the Department’s motion to dismiss for improper service of process. However, the Illinois appellate court reversed and remanded. The appellate court ruled that the circuit court should have reached the merits of Ms. Leavell’s claim that the Department’s notice of the hearing was insufficient. See In re Abandonment of Wells Located in Illinois by Eva Lovene Leavell, 343 Ill.App.3d 303, 277 Ill.Dec. 537, 796 N.E.2d 623, 627-28 (2003).

Over the next several years, the Department continued to evaluate and adjudicate whether other Leavell mines had been abandoned, whether they should be plugged, and whether the permits to those mines should be transferred to other individuals or firms. These hearings spawned new allegations of lack of statutory notice that resulted in additional suits being brought by Ms. Leavell in Illinois state court. In these actions, the circuit courts ruled in the Department’s favor; the actions were consolidated for appeal; and the judgments of the circuit courts were affirmed by the Appellate Court of Illinois. See Leavell v. Dep’t of Natural Res., No. 5-08-0298, 2010 WL 609083 (Ill.App.Ct. Jan. 19, 2010).

On February 26, 2008, the Department held another hearing concerning one well, for which Daniel held the permit (Proceeding # AW-08-009). The Department sent a certified letter to Daniel notifying him about the hearing. However, by this time, Daniel had died. According to the complaint, no representative of Daniel or his estate received notice of the hearing, these parties did not appear and the hearing proceeded in absentia (the “2008 hearing”). After the hearing, the Department determined that the well at issue had been abandoned and ordered that it be plugged. Ms. Leavell, as administratrix of the estate of Daniel Leavell, did not challenge this *802 ruling through any subsequent state administrative or judicial proceeding.

B. District Court Proceedings

On May 6, 2008, Ms. Leavell 2 initiated the present action in the district court. On September 3, 2008, she filed an amended complaint that alleged, among other issues, that the Department violated Daniel’s due process rights by failing to provide him with sufficient notice of the 2008 hearing.

The Department moved to dismiss. Specifically, it contended that Count VIII failed to state a claim upon which relief may be granted. See R.39 at 12. The Department argued that Ms. Leavell’s allegations focused on the failure of Department employees to provide proper notice before the 2008 hearing. The Department acknowledged that,

[although a State usually must provide a hearing before it deprives a person of property, it does not have to do so where providing a predeprivation hearing is impossible. Zinermon v. Burch, 494 U.S. 113, 128, 110 S.Ct. 975, 108 L.Ed.2d 100 (1990). Where the deprivation is the result of a state actor’s random and unauthorized conduct, a post>deprivation remedy is the only remedy a State can be expected to provide because the loss is not the result of an established state procedure, and therefore the State cannot predict precisely when the loss will occur. Id. at 128-29, 110 S.Ct. 975. When a procedural due process claim is based on the random and unauthorized conduct of a state actor and state law remedies are available, a plaintiff must either avail himself of the state law remedy or show that the available remedy is inadequate. Doherty v. City of Chicago,

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600 F.3d 798, 178 Oil & Gas Rep. 393, 2010 U.S. App. LEXIS 7120, 2010 WL 1292720, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leavell-v-illinois-department-of-natural-resources-ca7-2010.