Wendt v. Dickerson
Wendt v. Dickerson
Opinion
{¶ 1} Appellants appeal the June 2, 2017 and July 14, 2017 judgment entries of the Tuscarawas County Court of Common Pleas.
Facts & Procedural History
{¶ 2} In 1928, John R. Dickerson obtained full ownership interest in approximately 82 acres of real property located in Section 20 of Cadiz Township, in Harrison County. Approximately four years later, John R. Dickerson transferred one-half of the property to his wife, Marjorie I. Dickerson. John and Marjorie Dickerson divorced prior to the transfer. On December 17, 1952, John and Marjorie Dickerson jointly transferred their interest in the property to the Pittsburgh Consolidated Coal Company via a warranty deed; however John and Marjorie each retained a one-half interest in all of the oil and gas and the rights to drill and/or explore said oil and gas associated with the property. John and Marjorie transferred the rights to the property's surface, coal, and all other non-oil and gas minerals. Pursuant to the 1952 transaction, the mineral rights were severed from the surface estate.
{¶ 3} John Dickerson passed away on September 7, 1976. His mineral rights to the property were not included in his estate. Marjorie Dickerson passed away on August 24, 1994. Her estate was not probated at the time of her death. The sole heirs of John and Marjorie Dickerson are: Judith Dickerson, Mary Louise Foster, Elaine Harris, Claire Dickerson, Richard Dickerson, Robert Dickerson, Raymond Dickerson, Constance Clark, Deborah Snelson, Misty Engstrom, Ronald Dickerson, John Dickerson, and Wanda Dickerson ("the Dickersons").
{¶ 4} Pittsburgh Consolidated Coal strip-mined and reclaimed the property. In 1997, Pittsburgh Consolidated Coal sold the property to Neil Porter via a limited warranty deed. In 2006, Neil Porter sold the property to plaintiffs-appellants Christopher and Veronica Wendt ("the Wendts") via a survivorship deed. The deed to the property was recorded on April 21, 2006. The deed was subject to the reservation by, "John R. Dickerson and Marjorie I. Dickerson, their heirs and assigns for all of the oil and gas with the right to drill for in Warranty Deed filed for record December 17, 1952 in Volume 133, page 69, Deed Records."
{¶ 5} From 1952 to 2011, the Dickersons took no action related to their mineral rights to the property. In 2011, the Dickersons gave John L. Dickerson a power of attorney to deal with the inherited mineral rights on behalf of all the Dickerson heirs. On February 28, 2011, the Dickersons recorded two documents with the Harrison County Recorder's Office, each entitled, "Affidavit for Transfer of Real Estate Inherited." Each of the affidavits stated the purpose of the affidavit was to obtain a transfer of the above-described premises to the heirs at law of Marjorie/John Dickerson and lists the names, addresses, and portions inherited by each heir. Each affidavit states it transfers, by inheritance, the "undivided one-half interest in all oil and gas contained in and underlying the hereinafter described premises, together with the right to drill for, operate, produce, and market the same." In May of 2011, the Dickersons signed a lease with Chesapeake Exploration LLC for the mineral rights to the property. Chesapeake recorded the lease on November 2, 2011.
{¶ 6} During 2011, the Wendts also sought to lease their mineral rights to the property. The Wendts signed a mineral lease with Chesapeake in the spring of 2011. The lease failed because of the Dickersons' potential interest in the mineral rights.
{¶ 7} On October 11, 2011, the Wendts published a notification of abandonment in the Steubenville Herald-Star newspaper. On October 21, 2011, the Wendts recorded an affidavit of abandonment with the Harrison County Recorder's Office. The affidavit asserted the Wendts owned all the oil and gas rights by the automatic operation of R.C. 5301.56 and stated the "mineral interest previously owned by holders John and Marjorie Dickerson were deemed abandoned pursuant to O.R.C. 5301.56(B) from 1989 to 2006 and vested in the owner of the surface as of March 22, 1992." The Wendts executed a second lease with Chesapeake on October 31, 2011, but the lease was terminated due to the conflict in the mineral rights.
{¶ 8} On December 9, 2011, the Dickersons recorded two claims to preserve mineral interest regarding any mineral interests inherited from Marjorie and John Dickerson with the Harrison County Recorder's Office.
{¶ 9} On February 9, 2012, the Wendts filed a complaint against the Dickersons and Chesapeake Exploration LLC in the Tuscarawas County Court of Common Pleas. The complaint brought nine causes of action: declaratory judgment, quiet title, injunction, slander of title, unjust enrichment/quantum meruit, trespass, negligence/negligence per se, potential interference with business relationship, and constructive trust. The Wendts requested the trial court rule they were the lawful owners of the mineral rights. The Wendts argued that, pursuant to the 1989 version of the Dormant Mineral Act, the mineral rights merged with the surface estate no later than March 22, 1992. The Dickersons filed a counterclaim alleging slander of title and intentional interference with business relationships.
{¶ 10} The Wendts and Dickersons filed competing motions for summary judgment in December of 2012. The Wendts dismissed Chesapeake as a party defendant on January 8, 2013. The trial court granted the Wendts' motion for summary judgment as it pertained to their claim for declaratory judgment, quiet tile, and injunction. The trial court found the 1989 version of the Ohio Dormant Mineral Act ("ODMA") applied and, as such, the mineral rights merged with the surface estate on March 22, 1992. The Wendts were therefore the owners of the mineral rights underlying the surface estate. The trial court found there were genuine issues of material fact as to the Wendts' remaining claims.
{¶ 11} The trial court held a bench trial on the parties' remaining claims. The Wendts dismissed their claims for unjust enrichment and negligence. On January 15, 2014, the trial court issued its judgment entry that found the Wendts and Dickersons were not entitled to judgment on their remaining claims.
{¶ 12} The Dickersons appealed to this Court and raised two assignments of error. They argued that the trial court erred by finding the 1989 version of the ODMA applied to this case and erred in finding the 1989 ODMA was constitutionally applied. In
Wendt v. Dickerson
, 5th Dist. Tuscarawas No. 2014 AP 01 0003,
{¶ 13} The Dickersons appealed this Court's decision to the Ohio Supreme Court and asserted three propositions of law: (1) the 2006 version of the ODMA controls the vesting of title in a surface owner who did not make a claim for the mineral interests before the 2006 enactment; (2) the 1989 version of the ODMA did not provide mineral owners with the due process of law required under the state and federal constitution; and (3) the ODMA is not now and never was self-executing. The Ohio Supreme Court accepted the appeal, but held the case pending the resolution of several other cases already accepted by the Supreme Court.
{¶ 14} On September 15, 2016, the Ohio Supreme Court reversed this Court's opinion on the authority of
Corban v. Chesapeake Exploration, LLC
,
{¶ 15} Once the case was returned to the trial court, the trial court granted the Wendts' leave to file a motion for summary judgment relative to constitutional issues. Accordingly, both the Wendts and Dickersons filed motions for summary judgment and responses.
{¶ 16} The trial court issued a judgment entry on June 2, 2017. The trial court found that, in Corban , the Ohio Supreme Court concluded the 2006 version of the ODMA applies to all claims asserted after June 30, 2006 and that the Wendts did not assert their ODMA claims against the Dickersons until after June 30, 2006. Thus, pursuant to Corban , the 2006 version of the ODMA applies in this case. Further, that, pursuant to the majority opinion in Corban , the General Assembly modified only the method and procedure by which the right is recognized and protected and no vested, substantive right is altered. Accordingly, the Wendts' alleged property rights, including a cause of action, are not vested property rights. The trial court found the application of the 2006 ODMA to the Wendts in this case does not constitute the deprivation of the Wendts' property and is constitutional. The trial court overruled the Wendts' motion for summary judgment.
{¶ 17} The trial court issued a second judgment entry on July 14, 2017 on counts one, two, and three. The only issue the trial court addressed in this judgment entry was whether the Wendts could establish a claim to mineral rights under the 2006 ODMA. The trial court first found the Wendts' claim fails under the 2006 ODMA because the mineral rights they sought were not legally "dormant" as provided in the 2006 ODMA because they were subject to a "savings event" of R.C. 5301.56(B)(3) during the preceding twenty years, the two affidavits recorded on February 28, 2011 for the transfer of real estate inherited.
{¶ 18} The trial court next found the Wendts' claims fail under the 2006 ODMA because they did not comply with the notice requirement of the 2006 ODMA as there is no evidence in the record the Wendts ever attempted certified mail service or completed certified mail service before they served the Dickersons by publication.
{¶ 19} Finally, the trial court found the Wendts' claims fail in light of the Ohio Supreme Court's case of
Dodd v. Croskey
,
{¶ 20} The Wendts filed an appeal of the June 2 and July 14, 2017 judgment entries of the Tuscarawas County Court of Common Pleas and assign the following as error:
{¶ 21} "I. THE TRIAL COURT ERRED WHEN IT HELD THAT THE RIGHTS CONFERRED BY R.C. 5301.56 (IN EFFECT PRIOR TO JUNE 30, 2006) WERE NOT PROPERTY RIGHTS PROTECTED BY THE UNITED STATES CONSTITUTION.
{¶ 22} "II. THE TRIAL COURT ERRED WHEN IT HELD THAT THE SEVERED MINERAL INTEREST AT ISSUE WAS NOT SUBJECT TO JUDICIAL ABANDONMENT UNDER R.C. 5301.56(B) (IN EFFECT JUNE 30, 2006)."
Summary Judgment Standard
{¶ 23} Civil Rule 56(C) provides, in pertinent part:
Summary judgment shall be rendered forthwith if the pleadings, depositions, answers to interrogatories, written admissions, affidavits, transcripts of evidence, and written stipulations of fact, if any, timely filed in the action, show that there is no genuine issue of material fact and that the moving party is entitled to judgment as a matter of law. No evidence or stipulation may be considered except as stated in this rule. A summary judgment shall not be rendered unless it appears from the evidence or stipulation, and only from the evidence or stipulation, that reasonable minds can come to but one conclusion and that conclusion is adverse to the party against whom the motion for summary judgment is made, that party being entitled to have the evidence or stipulation construed mostly strongly in the party's favor. A summary judgment, interlocutory in character, may be rendered on the issue of liability alone although there is a genuine issue as to the amount of damages.
{¶ 24} A trial court should not enter a summary judgment if it appears a material fact is genuinely disputed, nor if, construing the allegations most favorably towards the non-moving party, reasonable minds could draw different conclusions from the undisputed facts.
Hounshell v. Am. States Ins. Co.
,
{¶ 25} When reviewing a trial court's decision to grant summary judgment, an appellate court applies the same standard used by the trial court.
Smiddy v. The Wedding Party, Inc.
,
{¶ 26} The party moving for summary judgment bears the initial burden of informing the trial court of the basis of the motion and identifying the portions of the record which demonstrate the absence of a genuine issue of fact on a material element of the non-moving party's claim.
Dresher v. Burt
,
I.
{¶ 27} In their first assignment of error, the Wendts contend the trial court erred when it held the rights conferred by the 1989 version of the ODMA were not property rights protected by the United States Constitution. Specifically, the Wendts argue they are entitled to have the 1989 ODMA conclusive presumption applied to the reservation confirmed in this litigation because this conclusive presumption and related accrued cause of action are property rights under the Fifth and Fourteenth Amendments to the U.S. Constitution, which cannot be taken without due process and constitute a taking. We disagree with appellants.
{¶ 28} First, a majority of the justices in the
Corban
case did not utilize the "conclusive presumption" analysis in their decision.
{¶ 29} Second, even if the Ohio Supreme Court did find the 1989 ODMA created a conclusive presumption, pursuant to the majority's rationale in
Corban
, the General Assembly did not divest a surface holder of a right to abandoned minerals accrued prior to June 30, 2006.
{¶ 30} The majority further stated, "as this court has recognized, evidentiary rules (such as the conclusive presumption established by the 1989 law) are procedural in nature, and therefore, changing them does not alter a vested substantive right."
{¶ 31} Further, the Ohio Supreme Court also reversed and remanded this case on the authority of its decision in
Walker v. Shondrick-Nau
,
{¶ 32} Walker filed a petition for a writ of certiorari with the Supreme Court of the United States. In his petition, Walker made the arguments advanced by the Wendts in this case. Walker argued the dormant mineral interest was abandoned and had vested in him on March 22, 1992, pursuant to the 1989 ODMA; that the 1989 ODMA was self-executing; and that the application of the 2006 ODMA to an already abandoned and vested dormant mineral interest was a violation of the due process clause of the federal constitution. In
Walker v. Shondrick-Nau
, --- U.S. ----,
{¶ 33} Additionally, in this case, even if the 1989 ODMA did confer upon the Wendts a substantive right in a conclusive evidentiary presumption, the Wendts due process rights were not violated because their property rights never vested. The Ohio Supreme Court has held that a right which is not absolute, "but is dependent for its existence upon the action or inaction of another is not basic or vested, and deprivation thereof does not constitute a deprivation of property" and if there is no deprivation of a vested property right, it is not necessary to discuss the question of due process.
Hatch v. Tipton
,
{¶ 34} The Wendts also argue their Fifth Amendment rights were violated as a taking occurred regarding their property rights when the ODMA was amended in 2006. We disagree. First, there was no federal or state taking when the 2006 ODMA went into effect, as the Ohio Supreme Court held in
Corban
that the 1989 ODMA did not operate automatically and was not self-executing; "rather, a surface owner seeking to merge those rights with the surface estate under the 1989 law was required to commence a quiet title action seeking a decree that the dormant mineral interest was deemed abandoned."
Corban v. Chesapeake Exploration, LLC
,
{¶ 35} Further, though some courts have concluded that a cause of action is property within the meaning of the Takings Clause, the Ohio Supreme Court has held a statute that is not destructive of vested property rights and merely modifies a remedial right is constitutional and does not violate the Takings Clause.
Hatch v. Tipton
,
{¶ 36} Finally, the U.S. Supreme Court has held, "where courts merely clarify and elaborate property entitlements that were previously unclear, they cannot be said to have taken an established property right."
Stop the Beach Renourishment, Inc. v. Florida Dept. of Env. Protection
,
{¶ 37} Based on the foregoing, we find the trial court did not err in holding the 2006 version of the ODMA applies in this case; in finding the rights conferred by the 1989 version of the ODMA were not vested property rights protected by the United States Constitution; and in finding the application of the 2006 ODMA to the Wendts in this case does not constitute the deprivation of the Wendts property or due process and is constitutional. The Wendts' first assignment of error is overruled.
II.
{¶ 38} In their second assignment of error, the Wendts contend the trial court erred when it held the severed mineral interest at issue was not subject to judicial abandonment under the 2006 version of the ODMA. The Wendts argue since they filed an affidavit of abandonment, they served the notice, and because there was a lack of preserving event in the twenty (20) years before the notice, they are entitled to quiet title relief under the 2006 version of the ODMA.
{¶ 39} The parties dispute whether the Wendts fully complied with the 2006 ODMA notice procedures and whether the affidavits for transfer of real estate inherited filed in 2011 qualify as a savings event under R.C. 5301.56(B)(3)(a). The Dickersons argue that the Wendts' notice of abandonment should not have been served by publication or without explaining why service could not have been made by certified mail. The Wendts contend since the Dickersons admit to receiving actual notice of the filing of the notice of abandonment, any service error they made was harmless. The Dickersons contend the affidavits for transfer of real estate inherited were filed eight months prior to the notice of abandonment and they constitute a "title transaction" under R.C. 5301.47(F) and thus qualify as a "savings event" under R.C. 5301.56(B)(3)(a). The Wendts argue the affidavits of real estate inherited were not valid title transactions because they incorrectly describe the next-of-kin. However, we find neither of these issues to be dispositive in this case.
{¶ 40} Even if the Wendts fully complied with the 2006 ODMA notice requirements and even if the affidavits of real estate inherited do not qualify as a savings event under R.C. 5301.56(B)(3)(a), the Wendts' second assignment of error fails in light of several rulings from the Ohio Supreme Court, as the Dickersons timely filed claims to preserve in accordance with R.C. 5301.56(H)(1)(a).
{¶ 41} The Wendts do not dispute the Dickersons timely recorded two Claims to Preserve Mineral Interests with the Harrison County Recorder in response to their notice; they instead argue that they may seek judicial confirmation of the conclusive presumption of abandonment, regardless of the filing of the claims to preserve, as there was no preserving event in the twenty (20) years prior to their serving of the notice. We find this argument fails pursuant to the rulings from the Ohio Supreme Court in Dodd v. Croskey , Walker v. Shondrick-Nau , and Farnsworth v. Burkhart.
{¶ 42} In
Dodd v. Croskey
,
{¶ 43} Like the Wendts in this case, the appellants in
Dodd
argued that, in order to preclude abandonment, the 2006 ODMA requires evidence that a savings event occurred in the 20-year window prior to the surface owner's notice of intent to declare mineral interests abandoned and thus a mineral interest holder's claim to preserve that is filed after the surface owner's notice does not preclude the mineral rights from being deemed abandoned if no saving event occurred within the preceding twenty years.
{¶ 44} The Ohio Supreme Court stated, "nothing in the act states that a claim to preserve filed under R.C. 5301.56(H)(1)(a) must refer to a saving event" that occurred within the preceding 20 years.
{¶ 45} The Ohio Supreme Court analyzed the facts of
Dodd
in light of their holding. The mineral interest holder in
Dodd
did not file his affidavit in the 20 years preceding the notice of intent to declare the mineral interests abandoned and he did not identify a saving event in the 20 years preceding the notice.
{¶ 46} The Supreme Court reaffirmed the holding in
Dodd
in
Walker v. Shondrick-Nau
,
{¶ 47} The Supreme Court again reiterated its position in its denial of a motion for reconsideration in
Farnsworth v. Burkhart
,
{¶ 48} In this case, the Wendts published a notification of abandonment on October 11, 2011 and, on October 21, 2011, recorded an affidavit of abandonment with the Harrison County Recorder's Office. The affidavit stated the mineral interests previously owned by holders John and Marjorie Dickerson were deemed abandoned pursuant to R.C. 5301.56(B) from 1989 to 2006 and vested in the owner of the surface as of March 22, 1992.
{¶ 49} On December 9, 2011, the Dickersons recorded two claims to preserve mineral interest regarding any mineral interests inherited from Marjorie Dickerson and John Dickerson with the Harrison County Recorder's Office. Pursuant to R.C. 5301.56(C), a claim to preserve must: (1) state the nature of the mineral interest claimed and any recording information upon which the claim is based; (2) comply with R.C. 5301.52 ; and (3) state the holder does not intend to abandon, but instead to preserve, the holder's rights in the mineral interest. See also
Dodd v. Croskey
,
{¶ 50} R.C. 5301.52 provides the claim should: (1) be in the form of an affidavit; (2) state the nature of the claim being preserved and the names and addresses of the persons for whose benefit the notice is being filed; (3) contain an accurate and full description of all land affected by the notice in particular terms, except that if the claim is founded upon a recorded instrument the description may be the same as in the recorded instrument; (4) state the name of each record owner of the land affected by the notice, together with the recording information of the instrument by which each record owner acquired title to the land; and (5) be made by any person who has knowledge of the relevant facts.
{¶ 51} The claims to preserve in this case are factually analogous to those filed in
Dodd
and
Walker
. See also
M & H Partnership v. Hines
, 7th Dist.,
{¶ 52} Here, the claims to preserve are in the form of an affidavit; state the mineral interests claimed; list the recording information upon which the claim is based (1952 deed); list the names and addresses of the persons for whose benefit the notice is being filed as they include a list of the Dickerson heirs and each of their addresses; contain a full and accurate description of the land affected by the notice by including detailed information about each tract of land; state the name of each record owner of the land affected by the notice and the recording information by stating the Wendts are the current record owners of the land, referencing the deed through which the Wendts acquired the land, and including the specific language contained in the surface deed; are made by a person who has knowledge of the relevant facts as they state the person making the claim "has knowledge of the relevant facts set out above"; and state the "claimant, as holder of such minerals, does not intend to abandon same, but, instead, intends to preserve its rights in such interest." Further, the claims to preserve were filed in the county recorder's office. R.C. 5301.56(H)(1). Finally, the Dickersons filed their claims within sixty (60) days from the date the notice was published, as they filed their claims fifty-nine days after the surface owners published the notice. R.C. 5301.56(H)(1). The claims to preserve comply with R.C. 5301.56(C) and R.C. 5301.56(H) and thus preserve the rights of all the mineral-interest holders in the land.
{¶ 53} Accordingly, even if there was no savings or preserving event of record in the twenty (20) years prior to the Wendts' serving of the notice and the Wendts properly served the notice pursuant to the 2006 ODMA, the binding case law of the Ohio Supreme court is controlling in this case such that the Dickersons preserved their rights by filing timely claims to preserve that comply with both R.C. 5301.56(H)(1) and R.C. 5301.56(C). Thus, the trial court did not err when it held the severed mineral interests at issue were not subject to judicial abandonment under R.C. 5301.56 and when it found title to the subject mineral rights in question should be quieted in favor of the Dickersons. The Wendts' second assignment of error is overruled.
{¶ 54} Based on the foregoing, appellants' assignments of error are overruled. The June 2, 2017 and July 14, 2017 judgment entries of the Tuscarawas County Court of Common Pleas are affirmed.
Hoffman, J., and Wise, Earle, J., concur
Reference
- Full Case Name
- Christopher WENDT, Et Al., Plaintiffs-Appellants v. Judith DICKERSON, Et Al., Defendants-Appellees
- Cited By
- 8 cases
- Status
- Published
- Syllabus
- Oil & Gas