Henderson v. Stalder

2024 Ohio 3037, 249 N.E.3d 841
CourtOhio Court of Appeals
DecidedAugust 9, 2024
Docket23 MO 0017
StatusPublished

This text of 2024 Ohio 3037 (Henderson v. Stalder) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Henderson v. Stalder, 2024 Ohio 3037, 249 N.E.3d 841 (Ohio Ct. App. 2024).

Opinion

[Cite as Henderson v. Stalder, 2024-Ohio-3037.]

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

STEVEN C. HENDERSON ET AL.,

Plaintiffs-Appellees,

v.

STANLEY STALDER ET AL.,

Defendants-Appellees,

ALLAN HENDERSON ET AL.,

Defendants-Appellants.

OPINION AND JUDGMENT ENTRY Case No. 23 MO 0017

Civil Appeal from the Court of Common Pleas of Monroe County, Ohio Case No. 2022-175

BEFORE: Mark A. Hanni, Cheryl L. Waite, Carol Ann Robb, Judges.

JUDGMENT: Reversed and Remanded.

Atty. Andrew P. Lycans, Critchfield, Critchfield & Johnson, Ltd., for Plaintiffs-Appellees and

Atty. Craig E. Sweeney and Atty. Zachary D. Eddy, Taft, Stettinius & Hollister, LLP, for Defendants-Appellees and –2–

Atty. Brent A. Barnes and Atty. Jack F. Willems, Geiger, Teeple, Robinson & McElwee, PLCC, for Defendants-Appellants.

Dated: August 9, 2024

HANNI, J.

{¶1} Defendants-Appellants, Allan and Roseanne Henderson, appeal from a Monroe County Common Pleas Court judgment granting summary judgment in favor of Defendants/Cross-claimants/Counterclaimants-Appellees, Stanley and Marcia Stalder, on a complaint filed by Plaintiffs, Steven C. Henderson, John D. Henderson, and Patricia J. Henderson, for declaratory judgment and to quiet title as to a certain oil and gas interest. Because the Stalders did not fully comply with the Dormant Mineral Act (DMA) in having the oil and gas interest at issue declared abandoned and vested in them as the surface owners, the trial court’s judgment is reversed and the matter is remanded. {¶2} This case concerns the ownership of the oil and gas rights underlying approximately 15.669 acres of property in Monroe County (the Property). {¶3} In 1910, S.W. and Aura Egger reserved one-half of all coal, oil, and gas underlying the Property (Egger Reservation) in a warranty deed to Caroline Snider and the heirs of August Snider:

Excepting and reserving all timber on said lands together with the right of way for the purpose of removing the same for the period of 2 years from the date hereof. Also excepting the one-half of all coal, oil and gas in and underlying said premises.

(June 2, 2023 Joint Motion for Summary Judgment, Ex. A). The Egger Reservation created the Egger Interest underlying the Property. Appellants, Allan and Roseanne Henderson (the Henderson Appellants), and Plaintiffs, Steven Henderson, John Henderson, and Patricia Henderson (the Henderson Plaintiffs), now claim title to the Egger Interest. {¶4} Appellees, the Stalders (the Stalders), are the current surface owners of the Property. Prior to the Stalders’ ownership, the Property was owned by Appellee Stanley Stalder and his brother Richard Stalder.

Case No. 23 MO 0017 –3–

{¶5} Stanley and Richard were approached by oil and gas companies regarding leasing the oil and gas rights underlying the Property. It was then that Stanley and Richard discovered the Egger Reservation. {¶6} Stanley and Richard hired an attorney to aid in their effort to have the Egger Interest deemed abandoned and vested in the surface under the DMA. The attorney hired Knight Research, Ltd. to perform title research. Jessica Wielitzka performed the title research. She prepared two title reports that outlined the chain of title to the Property and the Egger Reservation. {¶7} After searching the Monroe County public records and finding no heirs, Wielitzka conducted additional internet research. Wielitzka’s research revealed that “Virginia” Egger Henderson may have been an heir to the Eggers. It was determined that “Virginia” was actually “Vivian” Egger Henderson. The Henderson Appellants and Henderson Plaintiffs are Vivian’s nieces/nephews through marriage. A potential address was identified for Vivian in Portage County. Stanley and Richard attempted service via certified mail at that address on June 15, 2014. However, the address was actually for property previously owned by the Henderson Appellants. The certified mail was returned. On June 27, 2014, Stanley and Richard served notice on the Eggers and their heirs and assigns by publication in The Monroe County Beacon. This notice gave any potential holders until July 26, 2014, to file a claim to preserve or an affidavit identifying a savings event. {¶8} By August 18, 2014, no mineral interest holder had filed a claim to preserve or an affidavit identifying a savings event. Stanley and Richard subsequently filed an Affidavit of Abandonment pursuant to the DMA. {¶9} By September 29, 2014, still no mineral interest holder had filed a claim to preserve or an affidavit identifying a savings event. Stanley and Richard then recorded a Notice of Failure to File on September 20, 2014, indicating the Egger Interest was deemed abandoned and vested in Stanley and Richard. The Stalders have since entered into oil and gas leases for the premises. {¶10} On June 24, 2022, the Henderson Plaintiffs filed a complaint for declaratory judgment and to quiet title to the mineral interest. They claimed the abandonment process was ineffective and they are the rightful owners of the oil and gas interest. The Stalders

Case No. 23 MO 0017 –4–

filed an answer, counterclaim (against the Henderson Plaintiffs), and cross-claim (against the Henderson Appellants) raising claims under the DMA and the Marketable Title Act (MTA) for declaratory judgment and to quiet title. The parties then filed competing motions for summary judgment. {¶11} On September 18, 2023, the trial court granted summary judgment in favor of the Stalders on all claims. It found that all material facts were matters of public record. The court determined that Richard and Stanley undertook reasonable diligence to locate any mineral interest holders before resorting to notice by publication. Therefore, the court found the abandonment was proper and granted summary judgment in favor of the Stalders on all claims, counterclaims, and cross-claims. {¶12} The Henderson Appellants filed a timely notice of appeal on October 17, 2023. They now raise three assignments of error for our review. {¶13} An appellate court reviews a summary judgment ruling de novo. Comer v. Risko, 2005-Ohio-4559, ¶ 8. Thus, we shall apply the same test as the trial court in determining whether summary judgment was proper. {¶14} A court may grant summary judgment only when (1) no genuine issue of material fact exists; (2) the moving party is entitled to judgment as a matter of law; and (3) the evidence can only produce a finding that is contrary to the non-moving party. Mercer v. Halmbacher, 2015-Ohio-4167, ¶ 8 (9th Dist.); Civ.R. 56(C). The initial burden is on the party moving for summary judgment to demonstrate the absence of a genuine issue of material fact as to the essential elements of the case with evidence of the type listed in Civ.R. 56(C). Dresher v. Burt, 75 Ohio St.3d 280, 292 (1996). A “material fact” depends on the substantive law of the claim being litigated. Hoyt, Inc. v. Gordon & Assoc., Inc., 104 Ohio App.3d 598, 603 (8th Dist.1995), citing Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247-248 (1986). {¶15} “[T]he moving party bears the initial responsibility of informing the trial court of the basis for the motion, and identifying those portions of the record which demonstrate the absence of a genuine issue of fact on a material element of the nonmoving party's claim.” Dresher, 75 Ohio St.3d at 296. The trial court's decision must be based upon “the pleadings, depositions, answers to interrogatories, written admissions, affidavits,

Case No. 23 MO 0017 –5–

transcripts of evidence, and written stipulations of fact, if any, timely filed in the action.” Civ.R. 56(C).

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Bluebook (online)
2024 Ohio 3037, 249 N.E.3d 841, Counsel Stack Legal Research, https://law.counselstack.com/opinion/henderson-v-stalder-ohioctapp-2024.