Cain Ridge Beef Farm, L.L.C. v. Fisher
2020 Ohio 4727
| Ohio Ct. App. | 2020Background
- In 1907 Henry and Mary Strauch reserved one-half of the oil and gas under a 113.13‑acre tract when they deeded the property; Henry’s interest later passed to Strauch heirs in 1944.
- Between 1977 and 2005 Mark and Terri Milosavljevic acquired surface and one‑half mineral rights to ~95.383 acres and leased the property to CNX in 2012.
- On November 12, 2014 the Milosavljevics conveyed the surface to Cain Ridge Beef Farm, LLC; the Milosavljevics are Cain Ridge’s sole members.
- In late 2014–early 2015 the Milosavljevics (through counsel) searched title records, unsuccessfully attempted certified‑mail service on identified heirs, published a notice of intent to abandon the severed mineral interest, and filed an affidavit of abandonment and a notice of failure to file — each document naming the Milosavljevics as the surface owners.
- Appellants (other Strauch descendants) later tried to lease their claimed reservation interest. Appellees sued for declaratory judgment and to quiet title; the trial court granted summary judgment for appellees.
- The Seventh District reversed, holding the ODMA abandonment filings were defective because they were not filed by the legal surface owner (Cain Ridge), and entered summary judgment for appellants.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to sue | Milosavljevics (as Cain Ridge’s sole members) and Cain Ridge have a real interest and thus standing | Appellants: Milosavljevics lacked standing when they initiated abandonment because they were not the legal surface owner; Cain Ridge lacked standing because it did not initiate filings | Court: All appellees had standing at commencement (Cain Ridge owned surface; Milosavljevics are its sole members) — standing upheld |
| Whether ODMA requires the surface owner to file abandonment documents | Appellees: Substantial compliance OK; Milosavljevics effectively acted for Cain Ridge because they control the LLC | Appellants: ODMA repeatedly requires the surface owner to file; documents naming non‑owner are defective | Court: ODMA language requires filings by the surface owner; documents listing Milosavljevics (not Cain Ridge) failed to comply — filings defective; reversal granted |
| Whether the substantial‑compliance principle (as in Paul and Jefferis) permits filings by LLC members instead of the LLC | Appellees: Prior Seventh District decisions allow substantial compliance where members complete filings | Appellants: Those cases are inapposite; statutory text is mandatory | Court: Declined to apply those precedents here; statutory requirement that the surface owner file is controlling |
| Whether appellees conducted reasonable diligence/search before publishing notice | Appellees: Counsel’s title search and service attempts were reasonable | Appellants: Search/service were inadequate so publication was improper | Court: Did not reach/resolved as moot after finding statutory defect in who filed the documents |
Key Cases Cited
- State ex rel. Dallman v. Court of Common Pleas, 35 Ohio St.2d 176, 298 N.E.2d 515 (Ohio 1973) (standing requires a real interest to invoke common‑pleas jurisdiction)
- Federal Home Loan Mortgage Corp. v. Schwartzwald, 134 Ohio St.3d 13, 979 N.E.2d 1214 (Ohio 2012) (standing is determined as of commencement of suit)
- Lujan v. Defenders of Wildlife, 504 U.S. 555 (U.S. 1992) (principles governing constitutional standing)
- Dresher v. Burt, 75 Ohio St.3d 280, 662 N.E.2d 264 (Ohio 1996) (summary‑judgment burden shifting framework)
- Welco Industries, Inc. v. Applied Cos., 67 Ohio St.3d 344, 617 N.E.2d 1129 (Ohio 1993) (trial courts should award summary judgment with caution)