Oehmig v. Johnson
Oehmig v. Johnson
Opinion
The opinion of December 17, 1993, is withdrawn and this opinion is substituted therefor.
The plaintiff sued to quiet title to the mineral rights as to a certain tract of land. The issues on this appeal are whether the trial court properly held that the Grove Act, §
The facts in this case are undisputed. In 1912, W.G. Oehmig owned the surface and mineral rights to 80 acres of land in Tuscaloosa County ("the property").1 On September 12, 1912, Oehmig conveyed the property to American Lumber and Export Company (ALEC) by a deed in he which expressly reserved the mineral rights.2 The deed is properly recorded in the probate office of Tuscaloosa County in Deed Book 93 at page 301. On September 28, 1923, ALEC conveyed the property to John T. Bealle by a deed that also expressly reserved the mineral rights.3 This deed is recorded in the probate office of Tuscaloosa County in Deed Book 147 at page 295. On December 8, 1938, Bealle delivered to Harvey C. Johnson a warranty deed purporting to convey the property in fee simple without any reservation or exclusion of mineral rights. This deed is recorded in the probate office of Tuscaloosa County in Deed Book 192 at page 287. Harvey C. Johnson died in February 1990 after filing this action to quiet title, and his son, Harvey C. Johnson, Jr., was properly substituted as the party plaintiff.
From 1920 to 1989 the property was assessed for ad valorem taxes in fee simple, with no separate assessment for mineral rights, successively by ALEC, John T. Bealle, and Harvey C. Johnson during their periods of ownership. In 1989, before this action was filed, the heirs of W.G. Oehmig ("the Oehmigs")4 filed mineral escape tax assessments for tax years 1983-1988 and paid ad valorem taxes on mineral rights for 1989. No minerals were ever extracted from the property by Harvey C. Johnson, his son, or any other party. This action was filed on November 17, 1989.
The case was tried without a jury on January 16, 1991. The trial court entered a judgment for the plaintiff Johnson. The Oehmigs' motion for a new trial was granted, and the judgment was vacated. The parties agreed to resubmit the case to the trial court with another judge now sitting because of the prior judge's retirement.5 The new judge considered the evidence presented at the prior trial, the pleadings, and the briefs of all *Page 848 parties.6 The court ruled that the mineral interests in the property belonged to the plaintiff Johnson, and it entered a judgment quieting his title to those interests.
The Oehmigs first challenge the trial court's holding that the Grove Act, §
Fitts v. Alexander,"(1) When the complainant is in the actual, peaceable possession of the lands.
"(2) When neither the complainant nor any other person is in the actual possession of the lands and complainant has held color of title to the lands, or interest so claimed, for a period of ten or more consecutive years next preceding the filing of the bill, and has paid taxes on the lands or interest during the whole of such period.
"(3) When neither the complainant nor any other person is in the actual possession of the lands and complainant, [and] those through whom he claims, have held color of title and paid taxes on the lands or interest so claimed for a period of ten or more consecutive years next preceding the filing of the bill.
"(4) When neither the complainant nor any other person is in the actual possession of the lands and complainant and those through whom he claims have paid taxes during the whole of such period of ten years on the lands or interest claimed, and no other person has paid taxes thereon during any part of said period."
Neither party is in "actual possession" of the mineral interests, because the minerals are still in the ground, but Johnson clearly has "color of title," because "color of title" is an instrument that on its face appears to transmit title or the right of possession, although in reality it may not.Black's Law Dictionary 266 (6th ed. 1990); Van Meter v. Grice,
The Oehmigs also challenge the trial court's application of the rule of repose. The *Page 849
trial court said that this rule "serves to bar recognition of the Oehmigs' record title, due to their total inactivity with respect to the same for 76 years, including their omission of the affirmative duty to assess and pay the ad valorem taxes thereon, and as between them and Johnson, title is due to be quieted in Johnson." The rule of repose "operates as an absolute bar to claims that are unasserted for 20 years."Boshell v. Keith,
Boshell, 418 So.2d at 91."This principle of repose or prescription is similar to a statute of limitations, but not dependent upon one, and broader in scope. Scott v. Scott,
202 Ala. 244 ,80 So. 82 (1918); Patterson v. Weaver,216 Ala. 686 ,114 So. 301 (1927). It is a doctrine that operates in addition to laches. Unlike laches, however, the only element of the rule of repose is time. It is not affected by the circumstances of the situation, by personal disabilities, or by whether prejudice has resulted or evidence [has been] obscured. Wilkerson v. Wilkerson,230 Ala. 567 ,161 So. 820 (1935); 30A C.J.S., Equity § 113 (1965), at p. 33."
The trial court found the facts in the instant case to be "quite analogous" to the facts of Shelton v. Wright,
Shelton involved two mineral deeds from the same grantor. In the instant case, Johnson's claim to the mineral rights arises from a deed purporting to convey all rights to the property from John T. Bealle to Johnson's father, when it is clear that John T. Bealle never had ownership of the mineral rights. The plaintiffs in Shelton assessed and paid ad valorem taxes on the mineral interests for more than 60 years, while the defendants paid nothing. The plaintiffs also were able to establish their claim under the provisions of the Grove Act. In this case, the plaintiff Johnson and his predecessors in interest did not separately assess the mineral rights and were not able to establish their claim under the Grove Act. While there was a genuine dispute as to who had legal title to the mineral rights in Shelton, it appeared that the plaintiffs had the better claim to legal title.7 In the instant case, the trial court found that "[c]learly, the Oehmigs have the better legal title to the disputed mineral interest." Also, Johnson is unable to conclusively establish title under the Grove Act because the Oehmigs paid taxes on the mineral interests before this action was filed. These differences distinguish Shelton from the instant case. Cf. Whitehead v. Hester,
Furthermore, the Oehmigs contend that another case,Buckelew v. Yawkey,
Buckelew, like Johnson in the present case, was a surface owner seeking to quiet title against the holders of the legal title to the mineral estate. This Court held inBuckelew that "the holder of legal title remains in constructive possession of the reserved [mineral] estate and rights, and that the possessor of the surface, claiming under conveyance evincing such severance, . . . does not acquire legal title to the minerals no matter how long his possession may continue." Buckelew,
"G.M. Heath is presumed to have occupied only the surface under his deed from the Tri-County Land Company and, said deed being of record, the complainants, who claim under a conveyance from the widow and heirs of Heath, were chargeable with notice of the character of estate which Heath held; and in the absence of notice to the holders of the legal title to the mineral interests, evinced by active exploitation of the minerals in and under said land, the occupancy of the surface is not adverse; and no matter how long continued, does not ripen into title, nor does the failure of the true owners to exercise the right of taking the minerals, or their failure to assess the land for taxes operate as a forfeiture or waiver of their legal title."Buckelew v. Yawkey,
A more recent case, Whitehead v. Hester,
The Oehmigs argue that the rule of repose does not apply to this case because the Oehmigs are the undisputed holders of legal title to the mineral rights in the property and because, they say, the rule of repose has never been used to transfer title out of an undisputed legal title holder into another. The Oehmigs contend that the rule of repose cannot affirmatively create title, but is only a defense against stale claims. The rule of repose is "a defensive matter" and "is unlike adverse possession, which affirmatively establishes title." Boshell v.Keith,
In this case, there was never any claim of which the Oehmigs should have been aware. The deed giving Johnson color of title under which he now brings this action was not recorded until 26 years after W.G. *Page 851 Oehmig had conveyed the surface rights and retained the mineral interests that are now in dispute. It was not the responsibility of the Oehmigs to continually check the title records to see if someone had purported to convey their mineral interests. The time for the rule of repose cannot run until there is at least constructive notice of a potential claim. Therefore, the trial court erred in applying the rule of repose to disseise the Oehmigs of their mineral interests in this case.
The Court recognizes that to allow Johnson to prevail in this action, under either the Grove Act or the rule of repose, would encourage the owners of mineral interests to assess and pay taxes on their interests, but we cannot do that. While we do not condone the nonpayment of ad valorem taxes, we must faithfully interpret and apply the laws as they exist. Although Johnson argues that it would be better public policy to quiet the title in him under the facts of this case, neither the statutes passed by the legislature nor the long-standing precedents of this Court allow this result. Furthermore, the state has an effective means of enforcing the tax laws through tax sales of property interests on which taxes have not been paid. See, e.g., Edmonson v. Colwell,
OPINION WITHDRAWN; OPINION SUBSTITUTED; APPLICATION OVERRULED; REVERSED AND REMANDED.
HORNSBY, C.J., and STEAGALL, INGRAM and COOK, JJ., concur.
SHORES, J., dissents.
Reference
- Full Case Name
- Frances Gertrude Oehmig v. Harvey C. Johnson, Jr.
- Cited By
- 17 cases
- Status
- Published