Dethloff v. Zeigler Coal Co.

In 1945, a landowner leased the mineral rights to remove the coal from under the land to a lessee. The tract was surrounded by other tracts that were under similar, if not identical, leases. The agreement contained a habendum clause, which provided that the lease would continue for a term of 25 years or for as long thereafter as the lessee deemed necessary to remove all the coal from the land. Approximately 20 years later, Phillip and Dorothy Dethloff (plaintiffs) obtained ownership in the land. On the twenty-fifth anniversary of the lease, the Dethloffs’ attorney informed the Zeigler Coal Company (Zeigler) (defendant), which by that time had become the lessee on the lease, that the lease had expired by its own terms and that the Dethloffs were open to renegotiating the lease. By that time, no coal had ever been removed from the property. Zeigler did not respond to the renegotiation offers. Instead, 31 years after the original lease was executed, Zeigler began mining operations. The Dethloffs demanded that Zeigler stop mining. But Zeigler continued mining until all the coal was removed. In response, the Dethloffs brought various claims against Zeigler. Zeigler claimed (among other things) that the habendum clause allowed it to mine the coal at its discretion. The matter went to trial, and a jury sided with the Dethloffs. The appellate court largely affirmed, with the exception of the trial court’s holding (instead of having the jury decide) that Zeigler was a bad-faith trespasser as a matter of law. The appellate court held that the trespass issue should have been submitted to the jury. Both parties appealed.