The disruption caused by a search for oil

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3. One of the very first cases I read in contracts class was

Peevyhouse v Garland Coal & Mining Co. It’s a 1962 case out of Oklahoma. The Peevyhouses leased the coal mining rights on their farm to Garland Coal with the understanding that Garland would put the farm back the way it was before the mining. They didn’t, and the Peevyhouses sued for damages.

Experts testified that it would cost $29,000 for the remedial work, more than the value of the farm if the mining had never been done. The jury awarded $5000 — the difference between the value of the farm before the mining, and what it was worth afterwards.

I have no idea where he came up with this, but my law professor said “old lady Peevyhouse” (his words, not mine) would not have signed the lease if she thought she wouldn’t be able to sit on her front porch and look at her jonquils after Garland left.