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George W. Clay, Iv and Dana Clay, Husband and Wife Louis Oswald, Iii, Trustee of the Oswald Family Trust, Dated April 27, 1998 Jonathan S. Roderick, Trustee of the Jonathan S. Roderick Living Trust, Dated February 8, 2007 Alma L. Tisher and Kelly B. Tisher, Wife and Husband Linda L. Connell L-K-E Investments, a Texas Company Steven A. Tofte, Successor Trustee of the Edwin A. Tofte Mineral Trust, Dated July 31, 1995 Joe W. King, Trustee for the Joe W. King Revocable Living Trust Dated December 1, 1995 Robert L. Ostlund Mary Sue Ostlund Van Newkirk Pollie Ann Ostlund Madden Welfelt Interests, Llc, a Texas Company Mcmahon Energy Partners, Limited Partnership, a Colorado Limited Partnership Tofte Energy Partners, Limited Partnership, a Wyoming Limited Partnership Hess Corporation, Successor In Interest To American Oil and Gas, Inc., a Colorado Corporation Converse County Land and Minerals, Llc, a Wyoming Limited Liability Company John O. Bullington John L. Hoppe, Jr. and Ward F. Hoppe, as Co-Trustees of the John L. Hoppe Revocable Trust Dated February 26, 1998 and Pumpkin Buttes, Llc, a Wyoming Company v. Mountain Valley Mineral Limited Partnership
2015 WY 84
Wyo.
2015
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Background

  • Patents (1914–15) reserved coal and conveyed mineral interests to multiple parties in Converse County, Wyoming.
  • By 1975, Sims had acquired most surface interests and reserved mineral interests; Walters, Shepherd, Hoppes, Energetics hold remaining minerals.
  • Sims began acquiring surface titles in 1974–75 and reserved minerals; mineral owners included Walters (60%), Shepherd/Hoppes (20%), Energetics (20%).
  • In 1976, Sims filed a quiet title action seeking to adjudicate adverse claims and to quiet title to the property; Energetics was not named as a defendant.
  • The district court entered a 1976 default judgment in Sims’ favor, declaring plaintiffs’ title and that defendants had no right, title, or estate in the property; Energetics’ 20% mineral interest was not affected.
  • Mountain Valley later acquired Sims’ minerals and leased them; Clays’ predecessors continued to convey/lease mineral interests despite the 1976 judgment.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether res judicata bars Clays’ mineral claims Clays contend 1976 decree addressed surface only District court held mineral interests included in decree Yes; res judicata applies to bar mineral claims
Whether laches bars Clays’ claim given 1976 decree Clays argue Mountains Valley waited to assert rights Sims acted promptly to quiet title; laches not applicable No; laches not applicable under facts

Key Cases Cited

  • Wyo. Med. Center, Inc. v. Wyo. Ins. Guar. Ass’n, 2010 WY 21 (Wy. 2010) (restates res judicata framework for identical parties and issues)
  • Spitzer v. Spitzer, 777 P.2d 587 (Wyo. 1989) (default judgment admissions; effect on later issues)
  • Cross v. Bd. of Land Comm’rs, 50 Wyo. 181, 58 P.2d 423 (Wy. 1936) (possession of surface vs. mineral estate in adverse possession)
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Case Details

Case Name: George W. Clay, Iv and Dana Clay, Husband and Wife Louis Oswald, Iii, Trustee of the Oswald Family Trust, Dated April 27, 1998 Jonathan S. Roderick, Trustee of the Jonathan S. Roderick Living Trust, Dated February 8, 2007 Alma L. Tisher and Kelly B. Tisher, Wife and Husband Linda L. Connell L-K-E Investments, a Texas Company Steven A. Tofte, Successor Trustee of the Edwin A. Tofte Mineral Trust, Dated July 31, 1995 Joe W. King, Trustee for the Joe W. King Revocable Living Trust Dated December 1, 1995 Robert L. Ostlund Mary Sue Ostlund Van Newkirk Pollie Ann Ostlund Madden Welfelt Interests, Llc, a Texas Company Mcmahon Energy Partners, Limited Partnership, a Colorado Limited Partnership Tofte Energy Partners, Limited Partnership, a Wyoming Limited Partnership Hess Corporation, Successor In Interest To American Oil and Gas, Inc., a Colorado Corporation Converse County Land and Minerals, Llc, a Wyoming Limited Liability Company John O. Bullington John L. Hoppe, Jr. and Ward F. Hoppe, as Co-Trustees of the John L. Hoppe Revocable Trust Dated February 26, 1998 and Pumpkin Buttes, Llc, a Wyoming Company v. Mountain Valley Mineral Limited Partnership
Court Name: Wyoming Supreme Court
Date Published: Jun 11, 2015
Citation: 2015 WY 84
Docket Number: S-14-0197
Court Abbreviation: Wyo.