Cartersville Ranch, LLC v. Dellinger
295 Ga. 195
Ga.2014Background
- Cartersville Ranch owns surface rights to ~211 acres in Land Lot 270, Bartow County; a 1918 deed from W.C. Satterfield reserved ores/minerals and a proviso about use/payment for the west half.
- The reserved mineral rights passed by testamentary succession through the Satterfield line to James R. Dellinger, Jr.; an Executor’s Deed (1983) described the interest as "mineral interest and mining privileges in 155 acres, more or less, of Lot 270."
- Cartersville Ranch sued for declaratory relief asserting: (1) the 1983 description was too indefinite to convey minerals; (2) the 1918 proviso violated the rule against perpetuities, voiding the reservation; and (3) mineral rights had lapsed under OCGA § 44-5-168 for nonuse/nonpayment of taxes.
- Dellinger admitted succession, asserted ownership of the reserved mineral rights, and presented evidence he personally paid ad valorem taxes on the mineral rights for many years (including 2010–2012).
- The trial court granted cross-summary judgment to Dellinger, denying Cartersville Ranch’s cross-motion; on appeal, the Supreme Court affirmed and dismissed Dellinger’s cross-appeal as moot.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Dellinger holds an enforceable interest in the reserved mineral rights | 1983 Executor’s Deed description ("155 acres, more or less") is too vague to convey minerals | Dellinger’s interest derived from devise and executor assent; title vested by testamentary succession and estate administration | Court: Dellinger has legally enforceable interest as devisee/co-executor; summary judgment for Dellinger affirmed |
| Whether the 1918 proviso violates the rule against perpetuities and voids the mineral reservation | Proviso creates an indefinite purchase option, violating perpetuities; entire reservation therefore void by infectious invalidity | Proviso is a nonessential penalty clause limited to west half; invalid portion severable; equitable reformation available | Court: Proviso (if problematic) does not infect whole reservation; reservation stands; reformation permissible |
| Whether mineral rights lapsed under OCGA § 44-5-168 for nonuse/nonpayment of taxes | Dellinger failed to file tax returns and county records credited taxes to estate; rights therefore lapsed | Dellinger actually paid the assessed ad valorem taxes on the mineral rights for the requisite period | Court: Payment of assessed ad valorem taxes defeats lapse claim; summary judgment for Dellinger |
| Evidentiary exclusion of Dellinger’s late affidavits (cross-appeal) | Trial court erred in excluding affidavits supporting summary judgment | Cross-appeal moot because substantive judgment affirmed | Court: Cross-appeal dismissed as moot |
Key Cases Cited
- Shekhawat v. Jones, 293 Ga. 468 (2013) (standard for de novo review on summary judgment)
- Georgia-Pacific, LLC v. Fields, 293 Ga. 499 (2013) (pleading admissions are admissions in judicio)
- Strickland v. CMCR Investments, LLC, 279 Ga. 112 (2005) (description of less than all acreage in a land lot may be insufficient)
- Milner v. Bivens, 255 Ga. 49 (1985) (severability of invalid purchase option from valid mineral reservation)
- Hayes v. Howell, 251 Ga. 580 (1983) (purpose and scope of Georgia’s Mineral Lapse Statute)
- Dubbers-Albrecht v. Nathan, 257 Ga. 111 (1987) (burden on mineral-owner to show payment of taxes on summary judgment)
- Walker v. Bogle, 244 Ga. 439 (1979) (rule against perpetuities and analysis of contingent interests)