1. Pennsylvania Coal Co. v. Mahon, (1922)
2. Facts: The coal company deeded the surface land above a mine to Mahon’s predecessors in title. The deed expressly reserves the right to remove all of the coal udner the land, and puts the risk of loss of the surface property on the grantee. However, a local statute forbids the mining of coal in such a way as to harm a structure used as a dwelling.
3. Procedural Posture: Mahon brings an action in equity to enjoin the coal company from mining under his house in such a way as to weaken its support.
4. Issue: Whether the local statute is a valid exercise of the state’s police power, or is an unconstitutional taking under the 5th amendment as incorporated through the 14th amendment and applied to the states.
5. Holding: Unconstitutional taking.
6. Majority Reasoning: The question of whether a regulation is a valid exercise of the police power or an unconstitutional taking depends on the particular facts. The property being protected here is private property belonging to a single citizen, in which there is no public nuisance if it is destroyed. The law is not justified as a protection of personal safety. The contract itself provided notice of the risks, and the grantee still contracted. Since coal rights are worthless if the coal can not be mined, preventing their mining is a taking because it is tantamount to destroying it. If the police power of the states is allowed to abridge the contract rights of parties, it will continue until private property disappears completely. In general, while property may be regulated to a certain extent, if regulation goes too far, it will be recognized as a taking. The loss should not fall on the coal company who provided for this very risk contractually. If the state wants more protection for its citizens, it can pay for it.
7. Dissent Reasoning: A restriction imposed to protect the public health, safety or morals from danger is not a taking. The restriction here is merely the prohibition of a noxious use. Just because a few private citizens are enriched does not make the law non-public. If the mining were to set free noxious gas, there would be no question that the state could prohibit it for the safety of the citizens, without paying the miner.
