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BK Builders, Ltd. v. E. Ohio Gas
2014 Ohio 3850
Ohio Ct. App.
2014
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Background

  • BK Builders, Ltd. and Renner appeal a trial-court summary judgment granting relief to East Ohio Gas on declaratory judgment claims about subsurface oil and gas rights underlying real property.
  • The dispute centers on ownership of subsurface mineral interests and whether Marketable Title Act effects give BK standing.
  • Renner transferred ownership to the Tammy Trust in Oct 2012, after initial ownership by the Terry R. Renner Revocable Trust.
  • BK and Renner filed an amended complaint in Jan 2013; the trial court held Renner lacked standing and granted summary judgment.
  • The appellate court remanded for further consideration of Marketable Title Act effects and held BK’s standing issue requires remand, while affirming in part and reversing in part.
  • The court ultimately affirmed some aspects of the judgment and reversed/remanded others based on standing and Marketable Title Act questions.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Did Renner have standing when the first amended complaint was filed? Renner had standing via the Trust ownership at filing Renner no longer owned the parcels when amended complaint filed Renner lacked standing; amended complaint substituted changed party ownership
Did BK have standing to pursue declaratory relief regarding subsurface rights? BK relied on Marketable Title Act to show standing Marketable Title Act did not create BK standing Remanded; disputed Marketable Title Act effects require trial court determination
Was summary judgment proper given Marketable Title Act issues? Marketable Title Act issues affect ownership and standing Act does not support BK ownership Remand permitted to resolve Marketable Title Act applicability
Should the trial court’s ruling be affirmed or reversed with respect to standing and ownership? Partial reversal for BK standing; partial affirmation Affirm as to standing determinations Affirmed in part, reversed in part; remanded for Marketable Title Act proceedings

Key Cases Cited

  • State ex rel. Zimmerman v. Tompkins, 75 Ohio St.3d 447 (Ohio 1996) (standard of review for Civ.R.56 and public records)
  • Ohio Pyro, Inc. v. Ohio Dept. of Commerce, 115 Ohio St.3d 375 (Ohio 2007) (standing and declaratory relief standards)
  • Moore v. City of Middletown, 133 Ohio St.3d 55 (Ohio 2012) (standing and declaratory relief considerations)
  • Steiner v. Steiner, 85 Ohio App.3d 513 (Ohio Ct. App. 4th Dist. 1993) (amended complaint substitutes for original pleading)
  • Rhea v. Federer, 2014-Ohio-1979 (2nd Dist. Clark) (standing; breadth of declaratory-relief statutes)
Read the full case

Case Details

Case Name: BK Builders, Ltd. v. E. Ohio Gas
Court Name: Ohio Court of Appeals
Date Published: Sep 2, 2014
Citation: 2014 Ohio 3850
Docket Number: 2013CA00210
Court Abbreviation: Ohio Ct. App.