Peevyhouse v. Garland Coal Mining Co.

Facts

Plaintiffs owned a farm containing coal deposits. In November 1954, Plaintiffs leased their farm to Defendant for coal mining purposes for five years. As part of the terms of their lease, Defendant agreed to perform certain restorative and remedial actions to the farm property at the end of their lease. The cost of the work to Defendant was estimated at approximately $29,000. Defendant commenced strip mining of the property, but failed to perform the remedial work at the conclusion of the lease. Plaintiffs brought suit seeking damages of $25,000. At trial, the judge held for Plaintiffs and directed the jury to award damages by considering the cost of performance of the work agreed to by Defendant, as well as the total “diminution in value” of Plaintiffs’ property due to Defendant’s failure to perform the restorative work. The trial court established that the remedial work would cost more than $29,000.00 and that the value of the farm would increase by $300.00. The jury awarded Plaintiffs $5,000 in damages; an amount greater than the total value of the farm even if the remedial work had been done. The parties appealed.