OPINION & ORDER
I. INTRODUCTION
This matter is before the Court on Defendant and Third-Party Plaintiff Beck Energy Corporation’s (“Beck”) Renewed Motion to Dismiss (Doc. 76) against Intervenor-Plaintiff Transact Partners International, LLC’s (“Transact”) First Amended Complaint (Doc. 61). Pursuant to Fed. R.Civ.P. 12(b)(6), Beck moves to dismiss Transact’s Second through Seventh Causes of Action. In addition, also before the Court is Plaintiff and Third-Party Defendant Wellington Resource Group’s (“Wellington”) Motion for Oral Argument on Beck’s above-mentioned Motion to Dismiss (Doc. 98), as well as Transact’s Motion for Leave to File Notice of Supplemental Authority Instanter (Doc. 139) regarding this same Motion to Dismiss. For the reasons stated below, Beck’s Motion to Dismiss is hereby GRANTED IN PART AND DENIED IN PART; Wellington’s Motion for Oral Argument is hereby DENIED as moot; and Transact’s Motion for Leave to File Notice of Supplemental Authority Instanter is hereby DENIED as moot.
II. PROCEDURAL POSTURE
This case originated with a suit brought in diversity jurisdiction by Wellington against Beck, alleging breach of contract and unjust enrichment / quantum meruit. Shortly after the casе began, Transact sought and was granted leave to intervene,
III. STATEMENT OF FACTS
Given the number of parties involved, as well as the voluminous filings, multiple competing versions of the events of this case have been presented to this Court. For the purposes of this Motion to Dismiss, however, this Court accepts as true the facts as pleaded by non-movant Transact in its First Amended Complaint (Doc. 61).
This story began, from Transact’s point of view, in October 2010, when it was approached by representatives of Wellington, and shown the assets owned by Wellington’s client, Beck. (Transact’s Amended Cmplt., Doc. 61 at ¶ 7). The “Beck Assets” included oil and gas leases, oil and gas wells, and related assets, in Monroe, Belmont, and Nobel Counties in Ohio. Id. at ¶ 8. Transact agreed to enter into a co-brokerage agreement with Wellington, whereby Transact would utilize its expertise and knowledge of industry contacts to find interested purchasers of the Beck Assets and put them in contact with Beck, and in return receive 2% of the total transaction price in compensation, if Transact was successful in “presenting a ready, willing and able purchaser, and [if] such purchaser in fact eomplete[d] the purchase of [the Beck Assets].” Id. at ¶¶ 8-12. Before entering into the co-brokerage agreement, Transact asked Wellington to reduce its agreement with Beck to writing; Wellington represented that it had done so in late January 2011 (though Wellington and Beck in fact executed their written contract on February 28, 2011). Id. at ¶¶ 10-11. Under the terms оf this contract, Wellington agreed to provide Beck “with prospective purchasers for oil and gas leases to which Beck possessed the oil and gas rights.” Id. at ¶ 11 (quoting Wellington’s Amended Complaint, Doc. 31, at ¶ 18). Transact and Wellington executed their co-brokerage agreement on January 31, 2011. Id. at ¶ 11.
In April 2011, Brian Reilly, principal of Transact, spoke with several oil and gas industry contacts regarding the Beck Assets, including representatives of XTO Energy, Inc. (“XTO”). Id. at ¶ 13. Mr. Reilly also marketеd the Beck Assets to Eclipse Energy (“Eclipse”), which led to a meeting between Beck principal, Raymond Beck, and Eclipse. Id. at ¶ 14. During
Ultimately, no deal was reached between Beck and Eclipse, but in June 2011, Mr. Reilly again contacted representatives of XTO, at which time XTO expressed its interest in the Beck Assets. Id. at ¶ 20. A phone conference was held in July 2011 betweеn representatives of XTO and Wellington, which led to several more meetings and telephone conferences between Mr. Beck and representatives of Wellington and XTO. Id. at ¶¶ 20-21.
In August and September 2011, Mr. Reilly sought information from Wellington concerning the Beck-XTO negotiations, at which time he was informed that Mr. Beck had requested that all communications run through Wellington. Id. at ¶ 22. Several weeks later, Wellington informed Transact that it too had been shut out of the Beck-XTO negotiations. Id. аt ¶ 23. In November 2011, Beck and XTO executed a purchase and sale agreement for the Beck Assets, and in December Beck executed two Assignments and Bills of Sale, conveying the Beck oil and gas leases and related properties. The purchase price paid by XTO was $84,961,346.00. Id. at ¶¶ 24-26.
In January 2012, when Transact inquired as to when Beck would pay Wellington, and thus Wellington would pay Transact its 2%, Mr. Reilly was informed that Wellington would not pay. Id. at ¶ 28. Mr. Reilly spoke to Wellington’s attorney, who informed him that Wellington did not consider Transact’s сlaims to be “valid,” and invited Transact instead to demand a “nominal sum” in payment. Id.
Wellington commenced this action against Beck on February 1, 2012 (Doc. 1). Transact moved to intervene on March 14 (Doc. 9), and filed its Third Party Complaint on July 23 (Doc. 46), and its Amended Complaint on September 25, 2012 (Doc. 61). One month later, Beck filed the present motion to dismiss Counts Two through Seven of Transact’s Amended Complaint (Doc. 76).
IV. STANDARD OF REVIEW
Federal Rule of Civil Procedure 12(b)(6) allows for a case to be dismissed for “failure to state a claim upon which relief can be granted.” Such a motion “is a test of the plaintiffs cause of action as stated in the complaint, not a challenge to the plaintiffs factual allegations.” Golden v. City of Columbus, 404 F.3d 950, 958-59 (6th Cir.2005). Thus, the Court must construe the complaint in the light most favorable to the non-moving party. Total Benefits Planning Agency, Inc. v. Anthem Blue Cross & Blue Shield,
V. ANALYSIS
Beck raises two objections to Transact’s claims. First, Beck moves to dismiss Transact’s causes of actions against it aris
Because federal jurisdiction in this case is premised on diversity, the Court applies Ohio substantive law. Savedoff v. Access Grp., Inc.,
A. Breach of Contract Claims
A claim for breach of contract under Ohio law requires that a claimant prove: (1) the existence of a contract; (2) performance by the plaintiff; (3) breach by the defendant; and (4) damage or loss to the plaintiff. Savedoff,
For its part, Transact insists that it never intended to assert a breach of contract claim against Beck. (Transact’s Opp. to Beck’s Motion to Dismiss, Doc. 85 at 5). If so, it is difficult to understand what Transact intended when it incorporated into its Complaint not only the factual allegations found in Wellington’s Amended Complaint, but also all five Counts asserted by Wellington against Beck — including, presumably, Counts I, II, and V 0f Wellington’s Amended Complaint, each for breach of contract. {See Doc. 61 at ¶ 47) (“Transact is entitled to assert its own rights with regard to all of the causes of action asserted against Beck in Wellington’s Amended Complaint”). To the extent that Transact asserts claims against Beck under the doctrines of unjust enrichment and quantum meruit, such claims sound in equity, not contract, and are not challenged by Beck in this portion of its Motion to Dismiss. But as Beck correctly points out, Transact has offered no allegations that a contract ever existed between it and Beck. Without а contract, there can be no breach. Shampton v. Springboro,
B. Real Estate Claims
The bulk of Beck’s argument challenges the ability of Transact to recover, either in law or equity, on the grounds that Transact is not a licensed real estate broker in Ohio. Beck’s argument proceeds, at core, in four steps: (1) oil and gas leases are included within the meaning of “real es
The Court does not agree. Oil and gas leases are not “real estate” under Ohio law. Bеck’s tidy argumentation, focused as it is on statutory language, ignores the fact that, in practice, oil and gas leases have not historically been considered interests in land in Ohio. A thorough survey of Ohio case law leaves this Court convinced that the Ohio Supreme Court, if given the occasion to rule on this issue today, would so hold.
In its previous review and analysis of these cases, this Court reasoned that, in Ohio, “oil and gas leases ... are not leases as that term is traditionally used”; instead, “Ohio сourts appear to recognize that such leases create a license to enter upon the land for the purpose of exploring and drilling for oil and gas.” In re Frederick Petroleum Corp.,
Indeed, from the earliest cases on this issue, Ohio courts have treated oil and gas leases as different from an interest in real property. In Ohio Oil Co. v. Toledo, Findley & Springfield RR Co., 2 Ohio C.D. 505 (C.C.Ohio 1889), for example, the Circuit Court of Ohio, applying Ohio law, held that oil and gas leases “[are] not a right in the land as such, but a right to enter upon the land.” Similarly, in Herrington v. Wood,
More recently, however, the Ohio Supreme Court again considered the status of oil and gas leases, while deciding whether such leases must be recorded under Ohio law, and found that a grant of “all the oil and gas in and under” a tract of land, as well as “the right and privilege of operating upon said premises ... for the obtaining of such oil and gas,” was not a grant of real property. Back v. Ohio Fuel Gas Co.,
[possession of oil and gas, having as they do a migratory character, can be acquired only be severing them from the land under which they lie, and in effect the instrument of conveyance in the instant case is no more than a license to effect such severance. The very sale of oil and gas, separate and apart from the real estate surface, constitutes, in law, a constructive severance such as occurs in the case of sale of standing timber or growing crops.
Id. at 867.
Given this Court’s conclusion in Frederick, and the Ohio Supreme Court’s decision in Back, it remains only for the Court to survey more recent cases to determine whether Ohio law has changed in the years since. It is this Court’s opinion that the Ohio Supreme Court would still hold that oil and gas leases are not part of the real estate in Ohio.
Three cases demand the Court’s attention. First, in Colucy v. D & H Coal Co.,
Relying solely on Colucy, the Northern District of Ohio, in a case also involving classification as a real estate broker, announced that the definition of “real estate” in Ohio “has been held to include mineral rights, specifiсally rights to coal, oil and gas.” Binder v. Trinity OG Land Dev. & Exploration, LLC, No. 4:11-CV-02621,
Finally, in Maverick Oil & Gas, Inc. v. Barberton City School Dist. Bd. of Ed.,
Moreover, this Court’s conclusion here accords both with recent legislative action in Ohio, as well as the law of other jurisdictions with more substantial bodies of oil and gas law.
In addition, this Court also finds persuasive the decisions of other states with a more extensive history of oil and gas рroduction. In Oklahoma, for example, an oil and gas lease merely “constitutes a right to search for and capture [oil and gas],” not an interest in real property. Halliburton Oil Producing Co. v. Grothaus,
In essence, this Court reaffirms its prior conclusion in Frederick, where it stated that “Ohio courts, if given the opportunity to do so, would characterize the property interests involved [here] as being like or similar to the interest recognized under Oklahoma law,” and common to many oil-рroducing states, and hold that oil and gas leases are not a grant of real property.
VI. CONCLUSION
For the foregoing reasons, Beck’s Motion to Dismiss (Doc. 76) is hereby GRANTED IN PART AND DENIED IN PART. As a result of this Order, Wellington’s Motion for Oral Argument and Transact’s Motion for Leave to File Notice of Supplemental Authority Instanter (Doc.
IT IS SO ORDERED.
Notes
. Meanwhile, Intervenor Marcellus Shale Land Acquisition Group, LLC ("MSLAG”), sought and was granted leave to intеrvene, and in turn filed claims against Beck. Beck moved to dismiss, in a motion also pending before this Court (but not currently sub judice). Beck's Motion to Dismiss is resolved in a parallel Opinion and Order. Transact then filed cross-claims against MSLAG, which MSLAG moved to dismiss; MSLAG's motion awaits resolution by this Court.
. § 4735.01(B) provides that " '[r]eal estate’ includes leaseholds as well as any and every interest or estate in land situated in this state, whether corporeal or incorporeal, whether freehold or nonfreehold, and the improvements on the land, but does not include cemetery interment rights.”
. § 4735.01(A) provides, in relevant part, that “ '[r]eal estate broker' includes any person, partnership, association, limited liability company, limited liability partnership, or corporation, foreign or domestic, who for another, ..., and who for a fee, commission, or other valuable consideration, or with the intention, or in the expectation, or upon the promise of receiving оr collecting a fee, commission, or other valuable consideration ... (1) Sells, exchanges, purchases, rents, or leases, or negotiates the sale, exchange, purchase, rental, or leasing of any real estate; (2) Offers, attempts, or agrees to negotiate the sale, exchange, purchase, rental, or leasing of any real estate; (3) Lists, or offers, attempts, or agrees to list, or auctions, or offers, attempts, or agrees to auсtion, any real estate;
. § 4735.01(H) provides that "[a]ny person, partnership, association, limited liability company, limited liability partnership, or corporation, who, for another, in consideration of compensation, by fee, commission, salary, or otherwise, or with the intention, in the expectation, or upon the promise of receiving or collecting a fee, does, or offers, attempts, or agrees to engage in, any single act or transaction contained in the definition of a real estate broker, whether an act is an incidental part of a transaction, or the entire transaction, shall be constituted a real estate broker or real estate salesperson under this chapter.”
. § 4735.02(A) provides, in relevant part, that "Except [when an out-of-state broker partners with a broker licensed in Ohio], no person, partnership, association, limited liability company, limited liability partnership, or cоrporation shall act as a real estate broker or real estate salesperson, or advertise or assume to act as such, without first being licensed as provided in this chapter.”
. § 4735.21(A) provides, in relevant part, that "[n]o right of action shall accrue to any person, partnership, association, or corporation for the collection of compensation for the performance of the acts mentioned in section 4735.01 of the Revised Code, without alleging and proving that such person, partnership, association, or corporation was licensed as a real estate broker or foreign real estate dealer.”
. See El Camino Res. Ltd. v. Huntington Nat. Bank,
. See Wade v. Bethesda Hospital,
