Keta Gas & Oil Co. v. Proctor, T.

Superior Court of Pennsylvania·Decided December 6, 2019·No. 1975 MDA 2018·Unpublished

Opinion

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37

KETA GAS & OIL COMPANY, A : IN THE SUPERIOR COURT OF PENNSYLVANIA CORPORATION, : PENNSYLVANIA FORMERLY KETA REALTY COMPANY :

:

:

v. :

:

:

THOMAS E. PROCTOR, JAMES H. : No. 1975 MDA 2018 PROCTOR, THOMAS E. PROCTOR, : JR., ANNE PROCTOR RICE, EMILY : PROCTOR MANDELL, LYDIA W. : THACHER, AUGUSTA PROCTOR, : ELLEN O. PROCTOR, SARAH JOSLIN, : ABEL H. PROCTOR AND : MASSACHUSETTS GENERAL : HOSPITAL, HEIRS LEGATEES AND : DEVISEES UNDER THE WILL OF : THOMAS E. PROCTOR, AND ALL : PERSONS CLAIMING UNDER OR : THROUGH THE ABOVE, AND : BRINKER HUNTING CLUB, A NON- : PROFIT CORPORATION :

:

:

v. :

:

:

ANADARKO E&P ONSHORE, LLC, : SOUTHWESTERN ENERGY : PRODUCTION COMPANY, AND : INTERNATIONAL DEVELOPMENT : CORPORATION :

:

:

APPEAL OF: TRUSTEES OF THE : THOMAS E. PROCTOR HEIRS TRUST : AND TRUSTEES OF THE MARGARET : O.F. PROCTOR TRUST :

Appeal from the Order Entered October 23, 2018

In the Court of Common Pleas of Lycoming County Civil Division at No(s): CV-1950-000571-QT

BEFORE: GANTMAN, P.J.E., McLAUGHLIN, J., and FORD ELLIOTT, P.J.E. MEMORANDUM BY McLAUGHLIN, J.: FILED DECEMBER 06, 2019 Appellants, Trustees of the Thomas E. Proctor Trust and Trustees of the Margaret O.F. Proctor Trust (“Proctor”) appeal the trial court’s order granting the motions for summary judgment filed by Southwestern Energy Production Company (“SWN”), International Development Corporation (“IDC”), and Anadarko E & P Onshore LLC (“Anadarko”) (collectively “Appellees”). We affirm.

While the factual and procedural history of this case is extensive, we instantly provide the following relevant summary as gleaned from the trial court’s opinion and the certified record. In 1894, the Proctor family owned the surface and subsurface rights to vast amounts of unseated lands in Pennsylvania including the parcels identified as James Strawbridge Warrant 5665 (“W5665”), approximately 948 acres and James Strawbridge Warrant 5667 (“W5667”), approximately 1096 acres (collectively referred to as “the Warrants”) .

In 1894, Thomas Proctor and his wife conveyed their surface rights to the Warrants to Elk Tanning Company (“Elk”) but reserved the subsurface rights for themselves. In 1903, Elk conveyed the surface rights to the Warrants to Central PA Lumber Company (“CPLC”). In 1908, Calvin H. McCauley, Jr. purchased the Warrants at a tax sale (“1908 tax sale”), only to

turn around and sell both parcels back to CPLC in 1910. In 1913, CPLC conveyed its surface interest in W5667 to Four Mile Fish and Game Club (“Four Mile deed”) but purported to reserve the subsurface rights to Proctor. In 1921, CPLC conveyed its surface interest in W5665 to Lincoln Hunting and Fishing club but also purported to reserve the subsurface rights to Proctor (“Lincoln deed”). For purposes of the instant case, the specific language at issue in the Four Mile and Lincoln deeds is as follows:

EXCEPTING and RESERVING, NEVERTHELESS, unto Thomas E.

Proctor his heirs and assigns, All the natural gas, coal, coal oil, petroleum, marble and all minerals of every kind and character, in, upon or under the said lands hereinbefore mentioned and described, and every part thereof or which may at any time hereinafter be discovered … The above-mentioned minerals and mineral rights to be excepted and reserved as fully as said minerals and mineral rights were excepted and reserved in deed from Thomas E. Proctor and wife above recited.

In 1942, CPLC purported to convey the subsurface rights to the Warrants, along with other parcels, by quitclaim deed, to Keystone Tanning & Glue Company, who thereafter conveyed the same rights to Keta Realty Company (“Keta”), in 1950. Lincoln conveyed its surface rights to W5665 to Brinker Hunting Club (“Brinker”) in 1948.

In 1950, Keta filed a complaint to quiet title to the subsurface rights to the Warrants. In the 1950 complaint, Keta recited the chain of title to the Warrants, complete with references to the relevant deeds. Proctor and Brinker were among the named defendants to the complaint. The sheriff properly served Brinker with the complaint, but Proctor was served via publication

because Keta claimed to be unable to identify or locate the Proctor heirs. In any event, neither Proctor nor Brinker responded, and in March 1951 the court entered a default judgment (“1951 Default Judgment”) declaring, inter alia, Keta the owner of all subsurface rights to the Warrants. Successors in interest to Keta include Appellees. Trout Run Hunting and Fishing Club is the successor in interest to Brinker.

After the 1951 Default Judgment, the next judicial activity in this case occurred in 2014 and 2015 when Proctor’s various heirs filed petitions to strike/open the 1951 Default Judgment. The trial court denied Proctor’s petition to strike, finding that Keta’s 1950 complaint to quiet title was not deficient in regard to its description of the land and chain of title and that a defect did not appear on the face of the record. However, the trial court did issue an order to open the 1951 Default Judgment in 2015, finding that Keta had engaged in fraud in 1950 in order to obtain the judgment by claiming to be unaware of the Proctor heirs’ whereabouts. In essence, the court credited the allegation that Keta engaged in unsuccessful negotiations with Proctor to extinguish Proctor’s reserved subsurface rights and thereafter filed the quiet title complaint regarding the same rights.

After the trial court opened the 1951 Default Judgment in 2015, Appellees filed the instant motions for summary judgment averring that the 1951 Default Judgment should remain in place, while Proctor filed a response, raising a New Matter, seeking to reverse the 1951 Default Judgment. Finding that the 1908 tax sale extinguished Proctor’s subsurface rights, the trial court,

via the October 23, 2018 order, granted summary judgment in favor of Appellees, thereby affirming the 1951 Default Judgment.1 Proctor filed the instant timely appeal and raised the following issues for our review:

1. Did the Court err in striking [Proctor’s] additional facts and evidence, when Pennsylvania Civil Rule 1035.3(b) expressly provides that the non-moving party “may supplement the record” in responding to summary judgment?

2. Did the Court err in granting summary judgment, when the evidence showed that the property at issue was in fact “seated,” rendering an “unseated land” tax sale void?

3. Did the Court err in granting summary judgment, when the evidence showed that previously-severed subsurface interests were reported to county commissioners pursuant to the Act of March 28, 1806, P.L.

644, such that a tax sale would not convey the subsurface?

4. Did the Court err in granting summary judgment, when the evidence showed that the purported tax sale purchaser was an agent of the defaulting taxpayer, rendering the “purchase” a de facto redemption that restored the status quo ante?

5. Did the Court err in granting summary judgment, because appellees are bound by express reservations of subsurface rights in the deeds through which they claim title?

6. If the defaulting taxpayer failed to accurately report its interest in the property at issue for taxation, or pay taxes when due, do these

1 We note that after the trial court opened the 1951 Default Judgment in 2015, Trout Run filed a separate motion to strike the judgment in 2018. After hearing argument on the matter, the trial court dismissed Trout Run’s motion in the October 23, 2018 order and memorandum opinion here at issue. Trout Run has also filed an appeal from the trial court’s October 23, 2018 order, which is currently before this Court, listed under 1939 MDA 2018.

failures estop it and its successors from benefiting from these defaults?

7. Where the identities and whereabouts of property owners were known to taxing authorities, did an ensuing tax sale undertaken with no effort at individual notice violate the owners' Constitutional due process rights?

Proctor’s Br. at 3-4.

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