2018 Ohio 1034
Ohio Ct. App.2018Background
- In 1952 John and Marjorie Dickerson reserved one-half of oil and gas rights (severing minerals) when conveying surface and other minerals to a coal company; those mineral rights later descended to the Dickerson heirs.
- Surface owners Christopher and Veronica Wendt acquired the surface estate in 2006; their deed referenced the 1952 reservation.
- In 2011 the Dickerson heirs recorded affidavits of inheritance and signed a lease with Chesapeake; the Wendts published and recorded a notice/affidavit of abandonment and attempted to lease the minerals the same year.
- Wendts sued in 2012 seeking declaratory relief/quiet title under Ohio’s Dormant Mineral Act (ODMA); initial rulings applied the 1989 ODMA and awarded Wendts relief, but the Ohio Supreme Court later clarified governing law.
- On remand the trial court applied the 2006 ODMA (per Corban/Walker), held the 2006 act’s procedural changes were constitutional, found the Dickersons timely filed claims to preserve, and quieted title to the minerals in favor of the Dickersons.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether rights under the 1989 ODMA were vested property protected by Due Process/Takings clauses | Wendt: 1989 ODMA created a conclusive presumption and accrued cause of action (property) that cannot be retroactively altered without violating the Fifth and Fourteenth Amendments | Dickerson: Corban/Walker control; 1989 ODMA was not self-executing and 2006 amendments changed procedure not vested rights | Court: 2006 ODMA applies; 1989 conclusive presumption is procedural/evidentiary and did not create vested property rights; no unconstitutional taking or due process violation |
| Whether the mineral interest was judicially abandoned under the 2006 ODMA so Wendts could quiet title | Wendt: they complied with abandonment notice and no saving event occurred in prior 20 years, so minerals vested to surface owner | Dickerson: they timely filed R.C. 5301.56(C)/(H) claims to preserve within 60 days and thus preserved rights; claims are sufficient even without a prior 20-year saving event | Court: Dickersons’ timely claims to preserve satisfied ODMA requirements (per Dodd/Walker/Farnsworth) and precluded abandonment; title quieted in favor of Dickersons |
Key Cases Cited
- Corban v. Chesapeake Exploration, LLC, 149 Ohio St.3d 512 (Ohio 2016) (held the 2006 ODMA applies to claims after June 30, 2006 and characterized 1989 ODMA as non-self-executing, altering procedure not vested rights)
- Walker v. Shondrick-Nau, 149 Ohio St.3d 282 (Ohio 2016) (reaffirmed Corban: timely claims after 2006 are governed by 2006 ODMA and claims to preserve can preclude abandonment)
- Dodd v. Croskey, 143 Ohio St.3d 293 (Ohio 2015) (held a claim to preserve filed within 60 days after notice is sufficient to prevent mineral interests from being deemed abandoned)
- Farnsworth v. Burkhart, 147 Ohio St.3d 1439 (Ohio 2016) (denial of reconsideration reinforcing Dodd/Corban framework on claims to preserve)
- Hatch v. Tipton, 131 Ohio St. 364 (Ohio 1936) (statute that modifies only remedial procedures and does not destroy vested property rights is constitutional)
- Stop the Beach Renourishment, Inc. v. Florida Dept. of Env. Protection, 560 U.S. 702 (U.S. 2010) (takings analysis protects property rights as defined by state law; clarifications of uncertain rights are not takings)
