Herder Spring Hunting Club v. Keller
93 A.3d 465
| Pa. Super. Ct. | 2014Background
- The Eleanor Siddons Warrant (460 acres unseated land) was acquired at tax sale in 1894 by Harry and Anna Keller. In 1899 the Kellers deeded surface rights to others but expressly reserved all subsurface (mineral, oil, gas) rights.
- The Act of 1806 (72 P.S. § 5020-409) required holders of unseated land to notify county commissioners of acquisitions or changes so assessors could tax severed interests separately; failure to notify carried penalties and risk at tax sale.
- In 1935 the Centre County Treasurer bought the property at a tax sale for unpaid taxes; title passed to the County and in 1941 the County sold the property to Max Herr. The Kellers never informed commissioners of their 1899 reservation.
- Herder purchased the property from Herr’s estate in 1959 (deed in 1960) and its deed stated the conveyance was subject to exceptions in the chain of title; Herder later discovered the land contains shale with natural gas.
- Herder sued to quiet title asserting (1) the 1935 tax sale rejoined surface and subsurface—thus extinguishing the 1899 reservation—and (2) alternatively, adverse possession of the mineral rights. The trial court awarded subsurface fee simple to the Keller heirs; the appellate court reversed on the tax-sale issue.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a treasurer’s tax sale of unseated land that was previously horizontally severed (surface/subsurface) reunites the estates and conveys fee simple to the tax purchaser when the severance was not reported to county commissioners | Herder: the 1935 tax sale (and subsequent deeds) extinguished the 1899 subsurface reservation and conveyed fee simple subsurface to the tax-sale purchaser, now Herder | Keller heirs: the 1899 reservation was recorded; tax sale did not extinguish a recorded, severed subsurface estate; Herder knew of the reservation when purchasing in 1959 | Court held the duty to report severance to commissioners was not met; because the severance was never reported the property was taxed and sold as a whole, so the tax sale reunited the estates—summary judgment for Herder reversed in its favor on this issue |
| Whether Herder acquired subsurface rights by adverse possession | Herder asserted adverse possession over minerals (claimed >21 years) | Keller heirs opposed; trial court previously rejected adverse possession | Appellate court did not decide adverse possession claim (remanded on tax-sale issue); noted adverse-possession claim likely fails due to a gap in continuous possession records |
Key Cases Cited
- Morton v. Harris, 9 Watts 319 (Pa. 1840) (tax-sale presumptions and two-year limitation to challenge)
- Williston v. Colkett, 9 Pa. 38 (Pa. 1848) (owner’s duty under Act of 1806 to notify commissioners; failure can forfeit larger tract)
- Hutchinson v. Kline, 199 Pa. 564 (Pa. 1901) (unseated land taxed as a unit absent notice of severance; recorded severance not necessarily notice to assessors)
- Heft v. Gephart, 65 Pa. 510 (Pa. 1870) (unseated land is treated in reference to original warrants unless owner notifies otherwise)
- Bannard v. New York State Natural Gas Corp., 448 Pa. 239 (Pa. 1972) (assessment/sale of mineral rights cannot be collaterally attacked long after tax sale; owner must promptly seek relief)