Sims v. Oak Grove Resources, LLC

171 F. Supp. 3d 1240, 2016 WL 1046282, 2016 U.S. Dist. LEXIS 33581
CourtDistrict Court, N.D. Alabama
DecidedMarch 16, 2016
DocketCase No. 2:14-cv-00878-KOB
StatusPublished

This text of 171 F. Supp. 3d 1240 (Sims v. Oak Grove Resources, LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sims v. Oak Grove Resources, LLC, 171 F. Supp. 3d 1240, 2016 WL 1046282, 2016 U.S. Dist. LEXIS 33581 (N.D. Ala. 2016).

Opinion

MEMORANDUM OPINION

KARON OWEN BOWDRE, CHIEF UNITED STATES DISTRICT JUDGE

This matter is before the court on Defendant Cliffs Natural Resources, Inc.’s Motion to Dismiss. (Doc. 45).

Plaintiffs are a group of homeowners who allege that mining activities conducted by Defendants Cliffs Natural Resources, Inc. (“Cliffs”) and Oak Grove Resources, LLC (“Oak Grove”) caused damage to their properties. (Amended Complaint, Doc. 42). Defendant Cliffs argues that Plaintiffs’ claims against it are due to be dismissed because Alabama law provides that the Plaintiffs exclusive remedy is to seek relief from the mining operator per-mittee, who it contends is Oak Grove, not itself. For the reasons stated in this Memorandum Opinion, the court will GRANT IN PART and DENY IN PART Cliffs’ Motion to Dismiss.

I. Procedural Background

Plaintiffs originally filed suit in the Circuit Court of Jefferson County, Alabama, against Defendants Cliffs Resources, Inc.; Cliffs Mining Services, Inc.; Cliffs North American Coal, LLC; Oak Grove Resources, LLC; Oak Grove Land Company, LLC; and U.S. Steel Mining Company. (Doc. 1-1). The Defendants removed the action to this court on May 12, 2014 based on the court’s diversity jurisdiction under 28 U.S.C. § 1332. (Doc. 1). The court dismissed Defendant U.S. Steel Mining Company from the action on June 17, 2014. (Doc. 17). Thereafter, the court stayed the case from July 28, 2014 to July 13, 2015 to allow the effects of the subsurface mining operations to settle, so that the parties could adequately assess the extent of the damages caused by the mining. (Docs. 22 & 37). After the court lifted the stay, the Plaintiffs moved to voluntarily dismiss all of the Defendants except for Oak Grove Resources, LLC, and to amend their Complaint to add as a Defendant Cliffs Natural Resources, Inc. (Docs. 39 & 40). The court granted Plaintiffs’ Motions and allowed them to amend their Complaint, leaving only Oak Grove Resources, LLC, and Cliffs Natural Resources, Inc. as defendants in this suit. (Doc. 41). The Plaintiffs filed their Amended Complaint on September 1, 2015, and Defendant Cliffs Natural Resources filed the Motion to Dismiss that is the subject of this Opinion on October 13, 2015. (Docs. 42 & 45).

II. Facts

Each of the Plaintiffs own a home and real property located in Bessemer, Jeffer[1244]*1244son County, Alabama. (Amended Complaint, Doc. 42, ¶¶ 2-8). Plaintiffs allege that the Defendants’ long wall mining activities 1 in the area around and underneath the Plaintiffs’ homes caused damages to their properties. (Id., ¶). Plaintiffs contend that both Cliffs and Oak Grove knew or should have known that the mining operations in question were going to cause great damage to Plaintiffs’ homes. (Id., ¶ 13). Plaintiffs bring claims for negligence and/or strict liability; wanton, intentional, and willful conduct; nuisance; trespass; and fraud, deceit, and suppression of material fact. Plaintiffs claim that they have incurred, and will continue to incur, damages to their homes and property, a decrease in the value of their property, expenses for repairing their homes and property, substantial annoyance and inconvenience, mental and emotional anguish and distress, and the loss of use and enjoyment of their home and property. (Id., ¶¶ 20, 24, 27, 31, 35).

Plaintiffs repeatedly acknowledge that Oak Grove, not Cliffs, conducted the actual mining operations in question. (See, e.g., Id., ¶ 15 (“Defendant Oak Grove Resources began long wall mining....”), ¶ 16 (“Defendant Oak Grove Resources’ long wall mining....”), ¶ 19 (“Plaintiffs’ damages and continuing damages are a direct and proximate result of the abnormally dangerous activity conducted by Defendant Oak Grove Resources....)). Plaintiffs, however, allege that Cliffs directed Oak Grove to conduct the mining operations. (Id., ¶ 12 (“Defendant Cliffs Natural Resources directed Defendant Oak Grove to obtain a mining permit, and to conduct operations....), ¶ 20 (“Defendant Oak Grove Resources’ mining operation, as directed by Defendant Cliffs Natural Resources-”)). Thus, the sole question addressed in this Opinion is whether Plaintiffs have stated a viable claim against Cliffs where Cliffs was not the mine operator, but merely directed another entity to conduct mining operations, which caused damage to the Plaintiffs’ property.

III. Legal Standard

A Rule 12(b)(6) motion to dismiss attacks the legal sufficiency of the complaint. Generally, the Federal Rules of Civil Procedure require only that the complaint provide “ ‘a short and plain statement of the claim’ that will give the defendant fair notice of what the plaintiff’s claim is and the grounds upon which it rests.” Conley v. Gibson, 355 U.S. 41, 47, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957) (quoting Fed. R. Civ. P. 8(a)). A plaintiff must provide the grounds of his entitlement, but Rule 8 generally does not require “detailed factual allegations.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007) (quoting Conley, 355 U.S. at 47, 78 S.Ct. 99). It does, however, “demand[] more than an unadorned, the-defendant-unlawfully-harmed-me accusation.” Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009). Pleadings that contain nothing more than “a formulaic recitation of the elements of a cause of action” do not meet Rule 8 standards nor do pleadings suffice that are based merely upon “labels or conclusions” or “naked assertions” without supporting factual allegations. Twombly, 550 U.S. at 555, 557, 127 S.Ct. 1955.

[1245]*1245The Supreme Court explained that “[t]o survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’ ” Iqbal, 556 U.S. at 678, 129 S.Ct. 1937 (quoting and explaining its decision in Twombly, 550 U.S. at 570, 127 S.Ct. 1955). To be plausible on its face, the claim must contain enough facts that “allow[] the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Iqbal, 556 U.S. at 678, 129 S.Ct. 1937. Although “[t]he plausibility standard is not akin to a ‘probability requirement,’ ” the complaint must demonstrate- “more than a sheer possibility that a defendant has acted unlawfully.” Id. “Where a complaint pleads facts that are merely consistent with a defendant’s liability, it ‘stops short of the line between possibility and plausibility of entitlement to relief.’ ” Id. (quoting Twombly, 550 U.S. at 557, 127 S.Ct. 1955).

The Supreme Court has identified “two working principles” for the district court to use in applying the facial plausibility standard.

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Related

Caminetti v. United States
242 U.S. 470 (Supreme Court, 1917)
Conley v. Gibson
355 U.S. 41 (Supreme Court, 1957)
United States v. Ron Pair Enterprises, Inc.
489 U.S. 235 (Supreme Court, 1989)
Hallstrom v. Tillamook County
493 U.S. 20 (Supreme Court, 1990)
Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)

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Bluebook (online)
171 F. Supp. 3d 1240, 2016 WL 1046282, 2016 U.S. Dist. LEXIS 33581, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sims-v-oak-grove-resources-llc-alnd-2016.