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Pennsylvania Coal Co vs. Mahon et Al.

Pennsylvania Coal Co vs. Mahon et Al. - Risk now a danger...

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Econ 404 5/12/2009 rmf34 Pennsylvania Coal Co. vs. Mahon et Al. Judge(s): Justice Homes, Justice Brandeis Court: US Supreme Court (Location, Date): PA, Dec 1922 Plaintiff: Pennsylvania Coal Co. Case Summary: Mahon purchased property whose previous owner had sold the right to sub-surface mining to. He knew this and now his structures were in danger of collapsing. Coal company says too bad. Now Kohler act of 1921 says can’t mine if it will cause damage to human habitation buildings.
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Unformatted text preview: Risk now a danger, can’t give the coal company more than they purchased. Defense: Mahon et Al. Verdict: Mahon wins, in protecting the public from harm, there is no need to compensate for lost coal profit. Just the same as say growing drugs or producing illegal alcohol. This harms the property owner if he could be using his land to make money, still this harms the public and it is not compensated for. Law and Economics Notes:...
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