Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-ared-1_15-cv-00071/USCOURTS-ared-1_15-cv-00071-2/pdf.json

Parties Involved:
Karen McShane
Plaintiff
Kathy Roberts
Plaintiff
Unimin Corporation
Defendant

Document Text:

IN THE UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF ARKANSAS

BATESVILLE DIVISION

KATHY ROBERTS and PLAINTIFFS

KAREN MCSHANE

 

v. NO. 1:15CV00071 JLH

UNIMIN CORPORATION DEFENDANT

CERTIFICATION ORDER

This Court certifies to the Supreme Court of Arkansas a question of law that may be

determinative of this case and as to which this Court finds that there is no controlling precedent in

the decisions of the Supreme Court of Arkansas.

I.

QUESTION OF LAW TO BE ANSWERED

Does Arkansas law allow a lessor to terminate a lease at will when the lease term continues

after a term of years “and as long thereafter as mining and/or mining operations are prosecuted on

said above described lands and siliceous material are hauled, transported over, across, or under said

above described lands, and siliceous materials are shipped from Lessee’s mill or mills [. . .]”?

II.

FACTS RELEVANT TO THE QUESTION

Pursuant to Rule 6-8(c)(2), the parties agree upon the following statement of facts relevant

to the question.

On March 1, 1961, a Lease Agreement was entered into between Silica Products Company,

Inc. as “Lessee” and S. B. Hinkle, Oma Collier, Watt McKinney, J.A. Cotten, D. G. Brown, Ray

Williamson, and Ida E. Williamson as “Lessors” (hereinafter “the 1961 lease”). Plaintiffs Kathy

Roberts and Karen McShane (“Plaintiffs”) are assignees of the 1961 lease. Defendant Unimin

Case 1:15-cv-00071-JLH Document 70 Filed 04/25/16 Page 1 of 4
(“Defendant” or “Unimin”) is the successor-in-interest to Silica Products Company, Inc., the original

lessee. Unimin conducts mining and mining operations in the Guion, Arkansas area, including on

property that is the subject of the 1961 lease. 

Page 4 of the 1961 lease states the following term: 

TO HAVE AND TO HOLD the above described lands unto the Lessee and to its

successors and assigns for and during the term beginning the 1st day of March, 1961

and ending the 31st day of January, 2007, and as long thereafter as mining and/or

mining operations are prosecuted on said above described lands and/or siliceous

materials are hauled, transported over, across or under said above described lands,

and siliceous materials are shipped from Lessee’s mill or mills, subject, however, to

the provisions hereinafter set out. 

Page 4 of the 1961 lease includes a list of “mining operations” for purposes of the 1961

lease, which are described as follows: 

For the purpose of mining, quarrying and/or milling and preparing for market, and

selling, shipping and/or otherwise disposing of siliceous materials from the above

described lands, constructing such mills, buildings, and other permanent

improvements of whatever nature deemed desirable by Lessee on said above

described lands, storing and/or stockpiling siliceous and other materials on said

above described lands, constructing, reconstructing and maintaining on, over and

across said above described lands of roads, tracks, and rights-of-way of whatever

nature from time to time and for the purpose of hauling and transporting over, across

and under the above described lands siliceous materials mined from the above

described lands or mined from other lands owned or leased by Lessee to its mill site

or sites, or to other locations on said above described lands. 

The lease also contains a provision with specified events of default.

Plaintiffs seek a declaratory judgment that the 1961 lease is terminable at will, claiming its

term is indefinite. Defendant maintains that the 1961 lease cannot be terminated at will because it

is either a valid determinable lease or determinable fee. 

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Case 1:15-cv-00071-JLH Document 70 Filed 04/25/16 Page 2 of 4
III.

COMMENT BY THE UNITED STATES DISTRICT COURT

It appears that this issue is one of first impression in Arkansas. Outside of the mineral lease

context, the Arkansas Supreme Court has held that a lease for an indefinite term creates a tenancy

from month to month. Coley v. Westbrook, 206 Ark. 1111, 1115, 178 S.W.2d 991, 992-93 (1944). 

In the mineral lease context, the Arkansas Supreme Court has addressed leases that were similar,

but not identical, to the lease at issue here. In none of those cases, however, was the issue whether

the lease was terminable at will. See, for example, Mooney v. Gantt, 219 Ark. 485, 243 S.W.2d 9

(1951) (the plaintiffs argued that the lease lacked mutuality of obligation and consideration, not that

the lease was for an indefinite term); Bodcaw Oil Co. v. Atlantic Refining Co., 217 Ark. 50, 228

S.W.2d 626 (1950) (the issue was whether the term – “for so long as oil and gas, or either of them,

is being produced from the other lands” – was sufficient consideration to support an agreement).

IV.

REFORMULATION OF THE QUESTION

The United States District Court hereby acknowledges that the Supreme Court of Arkansas,

acting as the receiving court, may reformulate the question presented.

V.

COUNSEL OF RECORD AND PARTIES

The attorneys of record in the case pending before this Court are as follows. 

Attorneys for the Plaintiffs, Kathy Roberts and Karen McShane:

Benjamin R. Askew, pro hac vice

John G. Simon 

Kevin M. Carnie, Jr., pro hac vice

THE SIMON LAW FIRM, P.C.

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Case 1:15-cv-00071-JLH Document 70 Filed 04/25/16 Page 3 of 4
800 Market Street

Suite 1700

St. Louis, MO 63101

314-241-2929

Fax: 314-241-2029

baskew@simonlawpc.com

jsimon@simonlawpc.com

kcarnie@simonlawpc.com

Attorneys for the Defendant, Unimin Corporation:

Robert D. Stroud

Barrett S. Moore

BLAIR & STROUD

P. O. Box 2135

Batesville, AR 72503

870-793-8350

Fax: 870-793-3989

rds@blastlaw.com

bsm@blastlaw.com

VI.

The Clerk of the Court is hereby directed to forward this Certification Order to the Supreme

Court of Arkansas under his official seal.

IT IS SO ORDERED this 25th day of April, 2016.

 

J. LEON HOLMES

UNITED STATES DISTRICT JUDGE

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