4 Quarters, L.L.C. v. Hunter

2021 Ohio 3586
Ohio Court of Appeals·Decided September 30, 2021·No. 20 BE 0035·Published·Cited by 3 cases

Opinion

IN THE COURT OF APPEALS OF OHIO SEVENTH APPELLATE DISTRICT BELMONT COUNTY

4 QUARTERS, LLC,

Plaintiff-Appellee,

v.

C. H. HUNTER, HIS UNKNOWN HEIRS,DEVISEES, SPOUSES, EXECUTORS, ADMINISTRATORS, RELICTS, NEXT OF KIN, AND ASSIGNS, et al.,

Defendant-Appellant.

OPINION AND JUDGMENT ENTRY Case No. 20 BE 0035

Civil Appeal from the

Court of Common Pleas of Belmont County, Ohio Case No. 19 CV 299

BEFORE:

Cheryl L. Waite, Carol Ann Robb, David A. D’Apolito, Judges.

JUDGMENT:

Affirmed.

Atty. Ryan M. Regel, Yoss Law Office, LLC, P.O. Box 270, 122 North Main Street, Woodsfield, Ohio 43793, for Plaintiff-Appellee

Atty. Nils Peter Johnson, Johnson & Johnson, 12 West Main Street, Canfield, Ohio 44406, for Defendant-Appellant.

Dated: September 30, 2021

WAITE, J.

{¶1} Appellant C.H. Ruble appeals a November 6, 2020 Belmont County decision to deny his Civ.R. 60(B) motion. This action stems from a complaint involving the Marketable Title Act (“MTA”) on which the trial court granted default judgment in favor of Appellee Four Quarters. Appellant contends that the trial court lacked personal jurisdiction because Appellee did not attempt service of the complaint by either certified or regular mail and failed to exercise reasonable due diligence in locating potential heirs to an oil and gas interest before serving the complaint by publication. Appellant also argues the court erroneously determined that no meritorious defense had been presented as to the underlying MTA claim. For the reasons provided, Appellant’s arguments are without merit and the judgment of the trial court is affirmed.

Factual and Procedural History

{¶2} On May 6, 1922, C.H. Hunter and Edna McCleery Hunter deeded 78.9 acres of land located in York Township, Belmont County to Edward and Mary C. Carpenter. Within the deed, the Hunters reserved the following interest: “[t]here is also reserved from this conveyance one-half of all oil and gas that may ever be found in paying quantities: provided, however, that said parties of the second part have full authority to lease said land for oil or gas purposes and are entitled to all rentals that may be received for same.” (9/2/20 Defendant’s Reply, Exh. B.) The term “second part” refers to the

Carpenters. Although not used in this section, the Hunters are later referred to as the parties of the “first part.” In essence, the language affords the Carpenters the right to enter into an oil and gas lease and retain one-half of the royalties. If the Carpenters elected to sign such lease, the clause appears to reserve the remaining one-half interest in the royalties in favor of the Hunters.

{¶3} On August 2, 2019, Appellee obtained the surface rights to the property.

On August 5, 2019, Appellee filed a complaint under the MTA seeking to extinguish the Hunter interest and reunite the surface and mineral interests. The complaint named the Hunters and any potential heirs as defendants. Appellee, unable to locate the Hunters or any possible heirs, filed a motion with the trial court requesting permission to serve the complaint by publication in accordance with Civ.R. 4.4. The court granted the motion and Appellee served the complaint by publication. No answer was filed. On October 29, 2019, the trial court granted Appellee’s motion for default judgment.

{¶4} On October 11, 2019, Appellant received a letter at his residence in Florida from Long Pointe Energy LLC informing him of the Hunter interest. (7/9/20 Ruble Aff.) Appellant claims to be the sole heir to the Hunter interest, however, he has not specified his relationship to the Hunters. Appellant averred in an affidavit that he did not learn of the lawsuit initiated by Appellee until March 26, 2020 when EQT Production Company informed him of the action, that default judgment had been granted, and that the royalties had been disbursed to Appellee.

{¶5} Appellant took no official action until July 21, 2020, nine months after learning of the Hunter interest and four months after learning of the lawsuit. On that date, Appellant filed a Civ.R. 60(B) motion to vacate the October 29, 2019 judgment. In the

motion Appellant alleges he had been negotiating oil and gas leases before learning of the lawsuit. However, the Hunter interest reserved only the right to receive royalties, not the right to enter into an oil and gas lease. The Hunter interest granted the Carpenters “full authority to lease said land for oil or gas purposes” and merely reserved for the Hunters “one-half of all oil and gas that may ever be found in paying quantities.” (9/2/20 Defendant’s Reply, Exh. B.)

{¶6} Regardless, Appellant argued that the trial court erroneously permitted Appellee to serve notice of the complaint by publication when neither service by certified mail nor regular mail was attempted. In his reply to the motion for relief from judgment, Appellant argued that Appellee failed to search for Hunter heirs in Marshall County, West Virginia, where the deed was notarized. Thus, Appellant claims that Appellee failed to exercise reasonable due diligence before serving the complaint by publication. As to the merits of the underlying action, Appellant argued that the Hunter interest included words of inheritance, and was not limited to a life estate in the original grantors. Appellant also argued that the DMA, as the more specific statute, controls this action and not the MTA.

{¶7} On November 2, 2020, the trial court held a hearing. On November 6, 2020, the court denied Appellant’s Civ.R. 60(B) motion in a detailed judgment entry. Citing this Court’s decisions in recent DMA cases, the court determined that Appellee had exercised reasonable due diligence in attempting to locate the Hunter heirs by searching the Belmont County deed records, lease records, and probate records. Thus, the court found that it had personal jurisdiction over the matter. Although Appellant learned of the Hunter interest before default judgment had been granted and had learned of the default judgment almost four months before filing the instant action, the court did give Appellant

the benefit of the doubt as to the timeliness of the motion due to the COVID 19 pandemic. However, on the remaining elements of Civ.R. 60(B), the court found that Appellant failed to present any defense against extinguishment, particularly “as to the status of the root of title instrument, the ensuing greater than forty year lack of activity, and the consequent extinguishment of the Hunter Interest.” (11/6/20 J.E.) The court acknowledged that Appellant need not definitively prove his case at this stage, but determined that Appellant failed to present any defense with sufficient specificity to allow the necessary review. It is from this entry that Appellant timely appeals.

ASSIGNMENT OF ERROR NO. 1

The Trial Court Erred by Authorizing Service by Publication in Violation of Ohio Civil Rule 4 4.

ASSIGNMENT OF ERROR NO. 2

The Trial Court Abused its Discretion by not Vacating a Default Judgment Unsupported by Personal Jurisdiction.

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4 Quarters, L.L.C. v. Hunter, 2021 Ohio 3586 (Ohio Ct. App. 2021).

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