Nolt v. TS Calkins & Associates, LP
96 A.3d 1042
Pa. Super. Ct.2014Background
- 77-acre Bradford County property at issue; Cullen transferred land to Patrick and Karen Cullen but deed recorded in Sullivan County
- Oil and gas lease signed Jan 2006 by Cullen and Calkins for 98-acre parcel encompassing the Property; lease recorded July 2006 in Bradford County
- Calkins assigned lease to Anadarko in Nov 2006; Anadarko later assigned 50% to Chesapeake in Oct 2008
- Joseph Cullen deeded property to Patrick and Karen in Bradford County Jan 2007; Nolts later purchased portions of the land in 2007 and 2008
- Nolts filed quiet title action in 2009; central issue whether lease is governed by Landlord and Tenant Act or general statute of frauds and due diligence by Calkins; trial court granted summary judgment for Appellees
- On appeal, Nolts seek reversal arguing lease invalid under statute of frauds and improper due diligence; court affirms the grant of summary judgment for Appellees
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does the oil and gas lease fall under the Landlord and Tenant Act or the general statute of frauds? | Nolts argue lease is a LTA lease requiring both parties' signatures | Appellees contend it is a transfer of realty subject to the general statute of frauds | General statute of frauds applies; lease not void for lack of lessee signature |
| Was Calkins' acquisition of the lease title supported by due diligence? | Nolts contend due diligence required broader search and inquiry | Appellees argue Bradford records and owner/posessor inquiry satisfied due diligence | Calkins' due diligence met legal standard; no title defect shown |
| Did inactivity during the primary term cause expiration of the lease? | Nolts argue lease expired due to no production | Appellees did not raise this issue below; waiver on appeal | waived; not addressed on merits |
Key Cases Cited
- McCausland v. Wagner, 78 A.3d 1093 (Pa.Super.2013) (oil and gas leases treated as property interests, not landlord/tenant)
- Szymanowski v. Brace, 987 A.2d 717 (Pa.Super.2009) (oil and gas lease as transfer of real property subject to Statute of Frauds)
- Daset Mining Corp. v. Industrial Fuels Corp., 473 A.2d 584 (Pa.Super.1984) (oil and gas leases involve conveyance of mineral rights)
- Hutchison v. Sunbeam Coal, 513 Pa. 192, 519 A.2d 385 (Pa.1986) (lease as conveyance of property interest, not simple lease)
- T.W. Phillips Gas & Oil Co. v. Jedlicka, 42 A.3d 261 (Pa.2012) (explains QA of estate type in oil and gas context)
- Trowbridge v. McCaigue, 992 A.2d 199 (Pa.Super.2010) (statute of frauds; writing required for transfer of ownership interests)
- Lund v. Heinrich, 410 Pa.343, 189 A.2d 581 (Pa.1963) (duty to investigate title includes records and possessor inquiry)
- Lesnick v. Chartiers Natural Gas Co., 889 A.2d 1282 (Pa.Super.2005) (recorded deeds give constructive notice to subsequent purchasers)
- In re Good's Estate, 182 A.2d 721 (Pa.1962) (inchoate nature of oil and gas rights; not vested as leasehold)
- Stockdale v. Sellers, 157 A.2d 30 (Pa.1931) (relevant to Statute of Frauds and real property interests)