Dundics v. Eric Petroleum Corp. (Slip Opinion)

2018 Ohio 3826, 120 N.E.3d 758, 155 Ohio St. 3d 192
CourtOhio Supreme Court
DecidedSeptember 25, 2018
Docket2017-0448
StatusPublished
Cited by3 cases

This text of 2018 Ohio 3826 (Dundics v. Eric Petroleum Corp. (Slip Opinion)) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dundics v. Eric Petroleum Corp. (Slip Opinion), 2018 Ohio 3826, 120 N.E.3d 758, 155 Ohio St. 3d 192 (Ohio 2018).

Opinion

O'Connor, C.J.

*193 {¶ 1} In this appeal, we address whether oil-and-gas land professionals, who help obtain oil-and-gas leases for oil-and-gas-development companies, must be licensed real-estate brokers when they engage in the activities described in R.C. 4735.01(A) with respect to oil-and-gas leases. More specifically, we address whether R.C. 4735.21 precludes a person who is not a licensed real-estate broker from bringing a cause of action to recover compensation allegedly owed for negotiating oil-and-gas leases. Because the plain language of R.C. 4735.01 does not exclude oil-and-gas land professionals or oil-and-gas leases from the relevant definitions set forth in the statute, we hold that appellants, Thomas Dundics and his company, IBIS Land Group, Ltd., engaged in activities that required a real-estate-broker license and are precluded *760 from bringing a cause of action to recover compensation for those activities. Therefore, we affirm the judgment of the Seventh District Court of Appeals affirming the trial court's dismissal of appellants' complaint.

FACTS AND PROCEDURAL BACKGROUND

{¶ 2} In 2014, appellants filed a complaint against appellees, Bruce E. Brocker and Eric Petroleum Corporation (collectively, "Eric Petroleum"). The complaint alleged that in 2010, Dundics met with Brocker "to discuss a venture of acquiring oil and gas leases" for Eric Petroleum, leading to an agreement by which "Dundics would find property owners, negotiate gas leases, and work with * * * Eric Petroleum to obtain executed gas leases." In exchange, Eric Petroleum would compensate appellants with a fixed payment for every leased acre and a percentage of the proceeds from working wells placed on the leased land. The complaint further alleged that Dundics was not required to be a licensed real-estate broker, because oil-and-gas leases are not transactions involving real estate. Because Eric Petroleum allegedly refused payment for certain leases for which appellants demanded payment, appellants sought compensatory and punitive damages for claims in breach of contract, conversion, fraud, unjust enrichment, and quantum meruit.

{¶ 3} Eric Petroleum moved to dismiss, arguing in part that the complaint failed to state a claim because it did not allege that Dundics was a licensed real-estate broker and R.C. 4735.21 precludes a person without a real-estate-broker *194 license from bringing a cause of action to recover compensation owed for certain real-estate activities.

{¶ 4} The trial court adopted a magistrate's recommendation to dismiss the complaint.

{¶ 5} The Seventh District affirmed, concluding that R.C. 4735.21 precludes recovery by appellants because oil-and-gas leases are real estate and therefore, negotiating oil-and-gas leases requires a real-estate-broker license.

{¶ 6} Appellants appealed to this court, and we accepted the following proposition of law for review:

Oil and gas land professionals, who help obtain oil and gas leases mostly for sophisticated oil and gas development businesses, should not be required to be licensed real estate brokers. Ohio's statutory licensing requirements for real estate brokers, set forth in R.C. 4735.01 et seq., were not intended to cover oil and gas land professionals, because they perform substantially different services than residential or commercial real estate agents and their activity is limited to a very small, specific area relative to real estate rights.

See 151 Ohio St.3d 1425 , 2017-Ohio-8371 , 84 N.E.3d 1063 .

ANALYSIS

{¶ 7} To interpret a statute, we must first consider its language to determine legislative intent. Provident Bank v. Wood , 36 Ohio St.2d 101 , 105, 304 N.E.2d 378 (1973). When a statute's meaning is clear and unambiguous, we apply the statute as written. Id. at 105-106, 304 N.E.2d 378 . We must give effect to the words used, refraining from inserting or deleting words. Cleveland Elec. Illum. Co. v. Cleveland , 37 Ohio St.3d 50 , 53-54, 524 N.E.2d 441 (1988).

*761 {¶ 8} Appellants argue that whether the term "real estate" as defined in R.C. 4735.01(B) includes oil-and-gas leases is ambiguous and that we should resolve that ambiguity by determining that activities involving oil-and-gas leases are exempt from the real-estate-broker license requirement.

{¶ 9} Under R.C. 4735.02(A), no one shall act as a real-estate broker without a license. R.C. 4735.01(A) defines "real estate broker" as any person or entity who, for compensation or other valuable consideration, performs certain activities, including negotiating the lease of real estate, holding one's self out as engaged in the business of leasing real estate, and "the procuring of prospects or the negotiation of any transaction * * * which does or is calculated to result in" the lease of real estate. Thus, to conduct any of these activities, a real-estate-broker *195 license is required. R.C. 4735.21 precludes a cause of action by someone seeking compensation for the activities described in R.C. 4735.01(A) without proof that the person is a licensed real-estate broker.

{¶ 10} The statute includes a broad definition of "real estate." Under R.C.

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Cite This Page — Counsel Stack

Bluebook (online)
2018 Ohio 3826, 120 N.E.3d 758, 155 Ohio St. 3d 192, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dundics-v-eric-petroleum-corp-slip-opinion-ohio-2018.