Michael Schoene v. McElroy Coal Company
705 F. App'x 145
| 4th Cir. | 2017Background
- 1902 deed severed coal rights and included a broad waiver: the coal owner could mine “without leaving any support for the overlying stratas and without liability for any injury which may result to the surface from the breaking of said strata.”
- McElroy Coal used longwall mining in 2012, causing subsidence that materially damaged the Schoenes’ residence and surface estate.
- Schoenes sued in state court asserting a common-law loss-of-support claim; McElroy removed to federal court and Schoenes added statutory claims under the West Virginia Surface Coal Mining and Reclamation Act (the Act) and the federal Surface Mining Act.
- District court refused to enforce the 1902 waiver as to modern longwall mining (holding parties must have contemplated the mining method at severance), allowed statutory claims for damages (not just injunctive relief), and awarded combined damages (repair costs, land repair, and $25,000 for annoyance/inconvenience).
- McElroy appealed; the Fourth Circuit certified several questions to the West Virginia Supreme Court of Appeals about (1) enforceability of the waiver against common-law loss-of-support claims, (2) whether the Act authorizes damages or only injunctive relief, (3) measure and types of recoverable damages under the Act, and (4) which party elects remedy under the Act’s regulations when parties disagree.
Issues
| Issue | Plaintiff's Argument (Schoene) | Defendant's Argument (McElroy) | Held/Disposition (Fourth Circuit) |
|---|---|---|---|
| 1. Does 1902 deed waiver bar a common-law loss-of-support claim? | Waiver should not preclude relief because parties did not and could not have contemplated longwall mining and its subsidence effects. | Waiver language is broad and historically enforced; it bars common-law support claims. | Circuit certified the question to the West Virginia Supreme Court of Appeals for resolution. |
| 2. Does the Act authorize suits for damages or only injunctive relief? | The Act permits "an action for damages" for injured persons; damages beyond injunctive relief are available. | The Act only authorizes injunctive relief or statutory enforcement; not a standalone damages remedy for subsidence absent violation. | Circuit certified the statutory question to the West Virginia court. |
| 3. If damages available under the Act, what measure and types are recoverable? | Recoverable damages include repair costs, diminution in value, and compensation for annoyance, inconvenience, emotional distress, and loss of use. | Damages (if any) are limited to diminution in value; repair-cost awards and non-economic damages are not authorized. | Circuit certified these measurement and scope questions to the state court. |
| 4. Who elects remedy under the Act’s regulation when parties disagree (repair vs. diminution)? | Election should favor the surface owner; leaving election to the operator would defeat surface-owner protection. | Regulation silence and analogous federal guidance indicate the operator elects the remedy. | Circuit certified the question of which party elects and the governing standard to the West Virginia court. |
Key Cases Cited
- Rose v. Oneida Coal Co., 375 S.E.2d 814 (W. Va. 1988) (upholding broad deed waivers of support)
- Continental Coal Co. v. Connellsville By-Product Coal Co., 138 S.E. 737 (W. Va. 1927) (earlier authority enforcing coal-waiver language)
- Griffin v. Fairmont Coal Co., 53 S.E. 24 (W. Va. 1905) (historical support-waiver precedent)
- Schultz v. Consolidation Coal Co., 475 S.E.2d 467 (W. Va. 1996) (state decision enforcing similar waivers)
- Smerdell v. Consolidation Coal Co., 806 F. Supp. 1278 (N.D. W. Va. 1992) (federal decision enforcing waiver language)
- Cogar v. Sommerville, 379 S.E.2d 764 (W. Va. 1989) (refusing enforcement of contract waiver inconsistent with later statutory rights)
- Brown v. Crozer Coal & Land Co., 107 S.E.2d 777 (W. Va. 1959) (waiver invalidated where mining method causing damage was not within parties’ contemplation)
- W. Va.-Pittsburgh Coal Co. v. Strong, 42 S.E.2d 46 (W. Va. 1947) (similar non-enforcement where later mining methods changed risk profile)
- Bragg v. W. Va. Coal Ass’n, 248 F.3d 275 (4th Cir. 2001) (federal/state statutory interplay under Surface Mining Act)