Northern Forests II, Inc. v. Keta Realty Co.
130 A.3d 19
| Pa. Super. Ct. | 2015Background
- Northern Forests II, Inc. (NF) bought ~3,665 acres in 1987 and filed a quiet-title action in December 1988 against five named defendants and their "heirs and assigns," claiming subsurface (oil/gas/mineral) rights by adverse possession.
- NF sought and obtained court permission for service by publication based on a one-sentence attorney affidavit; publications notified only the five named defendants and their "successors and assigns," but did not identify then-record subsurface owners (Moore, Yates, Proctor heirs).
- A default judgment was entered in 1989. Over the following decades, third parties leased and transacted based on that judgment.
- In 2012–2013 several successors in interest (energy companies) filed petitions to strike the 1989 judgment, arguing (inter alia) that indispensable parties were omitted and Rule 430 service-by-publication requirements were not satisfied.
- The trial court struck the 1989 judgment as void for lack of jurisdiction (insufficient service and failure to join indispensable parties), allowed NF to file an amended complaint, then sustained multiple defendants’ preliminary objections and dismissed NF’s amended complaint for failure to state a claim.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was the 1989 default/q.t. judgment properly stricken? | NF/Ultra: affidavit deficiency was technical; long reliance, laches, estoppel and equities should prevent striking the judgment. | Petitioners: judgment void on face of record due to lack of proper Rule 430(a) investigation and omission of indispensable parties. | Court: Affirmed striking — judgment void ab initio for facial jurisdictional defects (no proper service; indispensable parties omitted). |
| Does an affidavit naming a predecessor plus "heirs and assigns" suffice to notify successors in interest? | NF: naming predecessor + "heirs and assigns" should bind successors. | Petitioners: naming predecessor and generic heirs does not reasonably notify specific successors; successors must be named/joined. | Held: Generic reference is insufficient; successors must be individually identifiable/joined when claims affect their rights. |
| Can a decades-old quiet-title judgment create adverse possession or cure service/joinder defects by reliance? | NF/Ultra: long-standing, relied-upon judgment and extensive third-party reliance should bar striking; judgment should support adverse-possession claim. | Petitioners: void judgments have no legal effect; age and reliance cannot validate a void judgment. | Held: Void judgment has no force; age/reliance do not cure jurisdictional defects; cannot be used to establish adverse possession. |
| Did NF state plausible adverse-possession claims in amended complaint (tacking or judgment-based)? | NF: either tacking/adverse possession predating 1988 or title via the 1989 judgment suffices; equitable doctrines apply. | Defendants: deed to NF did not convey subsurface; no visible/actual possession (drilling, production) alleged; void judgment cannot be basis. | Held: Demurrer sustained — Count I fails (no conveyance/privity/tacking for subsurface); Count II fails (judgment cannot supply visible/notorious possession and is void); Count III (declaratory relief) fails accordingly. |
Key Cases Cited
- Koresko & Associates, P.C. v. Farley, 826 A.2d 6 (Pa. Super. 2003) (standard of review for striking a judgment)
- Osprey Portfolio, LLC v. Izett, 32 A.3d 793 (Pa. Super. 2011) (petition to strike requires a fatal defect on the face of the record)
- DeCoatsworth v. Jones, 639 A.2d 792 (Pa. 1994) (lack of jurisdiction is basis to strike judgment when evident on face)
- Sabella v. Appalachian Dev. Corp., 103 A.3d 83 (Pa. Super. 2014) (failure to join indispensable parties implicates jurisdiction)
- Hartzfeld v. Green Glen Corp., 552 A.2d 306 (Pa. Super. 1989) (in quiet-title actions all who claim title must be joined)
- Sisson v. Stanley, 109 A.3d 265 (Pa. Super. 2015) (Rule 430 affidavit must show due diligence; service by publication is extraordinary)
- Myers v. Mooney Aircraft, Inc., 240 A.2d 505 (Pa. 1968) (distinguishing when defects appear off the record and remedy is petition to open rather than strike)
- Baylor v. Soska, 658 A.2d 743 (Pa. 1995) (limitations on tacking for adverse possession when predecessor’s conveyance fails to describe the disputed tract)
- First Seneca Bank v. Greenville Distributing Co., 533 A.2d 157 (Pa. Super. 1987) (void judgments are legal nullities and produce no legal consequences)