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    Property Keyed to Rabin

    Holmes v. Alabama Title Co.

    Facts

    In 1943, Woodward Iron Company sold the surface rights to the property in question to Patton, reserving for itself, its successors, assigns, licensees, and contractors the right to mine and remove minerals without liability for any damage that might occur to the surface land as a result of their mining activities. The recorded deed stated this covenant ran with the land.U.S. Steel Corporation (Defendant) took title in 1955 and mined the land from 1968 to 1975. The mine was abandoned and sealed in 1982. Holmes and 128 other landowners (Plaintiffs) purchased the surface plots between 1976 and 1981.The plaintiffs reported tremors and surface fractures on their land, and the U.S. Department of Interior determined that the ceiling of the mine had collapsed, which caused subsidence of the surface and damage to the land and appurtenant structures. The Plaintiffs’ obtained title insurance from Alabama Title Company (Defendant), which excluded coverage for all mineral and mining rights.

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    Holmes v. Alabama Title Co.