Spires v. Oxford Mining Co.

116 N.E.3d 717, 2018 Ohio 2769
CourtCourt of Appeals of Ohio, Seventh District, Belmont County
DecidedJune 25, 2018
DocketNo. 17 BE 0002
StatusPublished
Cited by12 cases

This text of 116 N.E.3d 717 (Spires v. Oxford Mining Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Ohio, Seventh District, Belmont County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Spires v. Oxford Mining Co., 116 N.E.3d 717, 2018 Ohio 2769 (Ohio Super. Ct. 2018).

Opinion

BARTLETT, J.

{¶ 1} Defendant-Appellant Oxford Mining Co., LLC ("Oxford Mining"), appeals the separate judgment entries of the Belmont County Court of Common Pleas awarding punitive damages in the amount of $200,000.00, and attorney's fees, expert witness fees, and office expenses in the amount of $168,421.65 to Plaintiffs-Appellees, Karl and Brenda Spires, following the bench trial in this bifurcated negligence action. (10/3/16 J.E., 12/20/16 J.E. respectively.) Oxford Mining also appeals the trial court's denial of its motion in limine to exclude testimony regarding Oxford Mining's falsification of soil content reports to the Environmental Protection Agency ("EPA") memorialized in the judgment entry on punitive damages. For the following reasons, we affirm the judgment entries of the trial court.

{¶ 2} Prior to the bench trial on punitive damages, a jury awarded $100,000.00 in compensatory damages to the Spires on their negligence claim, which was based on the dewatering of the pond on their property, as well as related structural damage to their dock and residence and ecological damage, resulting from coal mining conducted by Oxford Mining on an adjacent property. The judgment on the verdict has been satisfied in full and is not the subject of this appeal.

*720I. Facts and Procedural History

{¶ 3} The Spires purchased a fourteen-acre property in 1990, which includes 68% of a pond that bordered a five hundred and seventy-six acre mining site in Flushing, Ohio proposed by Oxford Mining in 2001. Oxford Mining declared its intent to strip mine two hundred and twenty-seven acres of Meigs # 9 coal and a three-acre island of Waynesburg # 11 coal, and to auger mine an additional one hundred and eleven acres.

{¶ 4} The Spires' pond was previously a strip mining pit that immediately filled with water in 1972 when another mining company set off charges and inadvertently breached an abandoned and inundated deep underground mine. It was never determined whether the mine that was breached was identified on the 1926 deep mine map employed by the mining company in 1972 or was another mine that was not properly mapped.

{¶ 5} Because of Oxford Mining's desire to mine within five hundred feet of a mapped deep mine, the company was required to submit a mine avoidance plan. The plan called for test drilling to begin when mining approached one hundred feet of a mapped mine.

{¶ 6} Due to the manner in which the Spires' pond was created, Oxford Mining's reliance on the same 1926 deep mine map employed in 1972, and the proximity of the proposed mining to both the pond and a mapped deep mine roughly 200 to 300 feet from the pond, the Spires objected to the mining permit sought by Oxford Mining through the Ohio Department of Natural Resources, Division of Mineral Resources Management ("ONDR"). The Spires fought the issuance of the permit from the initial hearing at the township hall, through the administrative process, all the way to an appeal before this Court.

{¶ 7} In Spires v. Division of Mineral Resources Management , 7th Dist. No. 06BE54, 2007-Ohio-5038, 2007 WL 2781266, the Spires sought denial of the requested permit in its then form, or, in the alternative, that a modification be made to expand the test drilling parameters to within five hundred feet of a mapped underground mine to ameliorate the inaccuracies in the 1926 deep mine map. Following a thorough examination of the facts presented, we concluded that the Commission's decision to grant the permit was not arbitrary, capricious, or inconsistent with law. Id. at ¶ 59.

{¶ 8} The Commission based its decision on the fact that only a three acre ridge in the northeast corner near the pond was being stripped, and that the remainder of the corner was only being auger mined; however, it recognized that the permit covered the entire parcel of land regardless of Oxford Mining's current plan. The Commission reasoned that the mine avoidance plan designed by Oxford Mining was an adequate safeguard against unanticipated mine intrusion, citing the drill testing plan, the blasting program, and the direction of movement across the land. The Commission dismissed the creation of the Spires' pond in 1972 as a single anomaly which did not invalidate the 1926 deep mine map. Finally, the Commission opined that even if Oxford Mining were to intercept an inundated deep mine, it was likely that the pond would not be dewatered or that the dewatering would be temporary. Id. at ¶¶ 17-18.

{¶ 9} The state permit contained regulations and guidelines delineating both the authorized types of mining (surface, highway, auger) as well as the acceptable locations for the various types of mining on the property. The permit contained specific mine avoidance drill plan regulations and authorized auger mining only in certain *721locations. In addition to the restrictions set forth in the permit, the Mine Safety and Health Administration ("MSHA") also provided a ground control map for the avoidance of underground abandoned mines.

{¶ 10} On December 27, 2010, Oxford Mining hit a void in a 250 by 250 foot pit with 80 foot walls ("Flushing pit No. 3") that resulted in the dewatering of the Spires' pond, as well as property damage to the dock and other structures. Neither party proved the actual nature of the void at trial, only that it was unmapped.

{¶ 11} In addition to the highwall mining foreman, Richard Dessicker, four other employees of Oxford Mining were in Flushing pit No. 3 when water from the Spires' pond flooded the pit. Two men were working on loaders and two men were working on the highwall mining machine. No one was injured, however the employee's pants and boots were soaked. (Wallace and Dessicker Tr., pp. 57-61, Trial Tr., pp. 176-179.)

{¶ 12} Despite federal regulations that require notification to the MSHA within fifteen minutes of an "inundation", more than an hour passed while machinery and equipment were removed from the pit. (Wallace and Dessicker Tr., pp. 61-64.) Upon receipt of the incident report, the MSHA issued an order to stop all business in the pit. (Trial Tr., pp. 54-55.) According to William Alloway, Oxford Mining's safety manager, the dewatering of the Spires' pond did not constitute an "inundation" because workers were still able to work in the pit. (Trial Tr., p. 72-73.)

{¶ 13} When the stop work order was lifted, Oxford Mining immediately began working to plug the holes and the pond was restored to its original water level within six weeks. (Wallace and Dessicker Tr., pp. 38-40.) Despite expert testimony that the dewatering caused hundreds of thousands of dollars of property damage to the dock and the residence, as well as millions of dollars of loss of fish and damage to the eco-system, the jury awarded the Spires compensatory damages in the amount of $100,000.00.

{¶ 14} Oxford Mining was cited by the MSHA for failing to follow the ground control plan, as it ignored drilling requirements in advance of auger mining. However, the MSHA inspector found that the likelihood of injury was not significant or substantial, despite Oxford Mining's deviation from the plan. The MSHA inspector characterized Oxford Mining's conduct as "low negligence." (Trial Tr., p. 299-304.)

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Bluebook (online)
116 N.E.3d 717, 2018 Ohio 2769, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spires-v-oxford-mining-co-ohctapp7belmont-2018.