Knox v. Wilson

689 S.E.2d 829, 286 Ga. 474, 176 Oil & Gas Rep. 389, 2010 Fulton County D. Rep. 326, 2010 Ga. LEXIS 143
CourtSupreme Court of Georgia
DecidedFebruary 8, 2010
DocketS09A1490
StatusPublished
Cited by2 cases

This text of 689 S.E.2d 829 (Knox v. Wilson) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Knox v. Wilson, 689 S.E.2d 829, 286 Ga. 474, 176 Oil & Gas Rep. 389, 2010 Fulton County D. Rep. 326, 2010 Ga. LEXIS 143 (Ga. 2010).

Opinion

Hines, Justice.

This appeal concerns a tract of land held by the heirs of Emma Thomson; that tract has been subject to a one-half interest in the mineral rights in the land, now claimed by the heirs of L. G. Hardman, Jr. The Thomson heirs sought to extinguish the outstanding mineral interest under OCGA § 44-5-168, 1 and the Hardman heirs appeal from the trial court’s order on summary judgment extinguishing the one-half mineral interest.

*475 In 1922, the tract of land at issue was conveyed to L. G. Hardman, Sr., with the grantor reserving a one-half interest in the mineral rights. In 1939, Hardman’s son, L. G. Hardman, Jr., secured for himself the outstanding one-half mineral interest that had been reserved in 1922. In 1970, the Superior Court of White County construed various deeds and partitioned various real property held by members of the Hardman family, declaring, inter alia, that the tract at issue was the fee simple property of Emma Thomson, with the exception of the one-half interest in the mineral rights, which still belonged to L. G. Hardman, Jr., her brother.

L. G. Hardman, Jr., died in 1978; Emma Thomson died in 2007. In 2008, Caroline T. Wilson and James C. Thomson, Jr., individually and as personal representatives of the estate of Emma Thomson (collectively “Wilson”), brought this action against the heirs of L. G. Hardman, Jr., and all other persons claiming an interest in the mineral rights, seeking a declaration that the one-half mineral interest held by L. G. Hardman, Jr., under the 1970 court order, had reverted to Emma Thomson by operation of OCGA § 44-5-168. Shell Hardman Knox and other heirs of L. G. Hardman, Jr. (collectively “Knox”) answered, and contended that OCGA § 44-5-168 did not apply. The trial court granted Wilson’s motion for summary judgment.

1. Under OCGA § 44-5-168, “the owner of the mineral rights loses them by nonuse plus nonpayment of taxes, as opposed to losing such rights by adverse possession of the fee simple owner.” Fisch v. Randall Mill Corp., 262 Ga. 861, 861 (1) (426 SE2d 883) (1993) *476 (citation and punctuation omitted). Essentially, an owner of mineral rights allows his rights in the minerals to lapse when he fails to either work or attempt to work the mineral rights, or has failed to pay taxes upon them, for a period of seven years. See id.; Georgia Marble Co. v. Whitlock, 260 Ga. 350 (392 SE2d 881) (1990). It is undisputed that neither Knox, nor L. G. Hardman, Jr., before his death, paid any taxes on the one-half mineral interest at any time after the land became titled in Emma Thomson in 1970. Nor is there any evidence that there was any attempt to work the mineral rights during the seven years prior to suit being filed in 2008. 2

Nonetheless, Knox contends that OCGA § 44-5-168 does not apply to fractional mineral interests, asserting that the Code section’s reference in subsection (a) to “the mineral rights” (emphasis supplied) requires the interpretation that OCGA § 44-5-168 (a) applies only if the mineral rights have been severed from the fee and are held as a whole. However, no such limitation appears in the language of the statute, nor is one reasonably read into it. Rather, this Court has previously applied the statute when, as here, half of the mineral rights were retained by a grantor. Hayes v. Howell, 251 Ga. 580 (308 SE2d 170) (1983). And, the construction Knox proposes would frustrate the purposes of the statute. OCGA § 44-5-168 “serves dual purposes: to encourage the use of the state’s mineral resources and the collection of taxes, or to encourage the use of land free of interference by the holders of mineral rights who neither use nor pay taxes upon them.” Hayes, supra at 585 (2) (b). For this Court to insert the interpretation urged by Knox would allow indefinite interference with the use of the land by holders of fractional mineral rights, no matter how long they had let their rights remain idle. And, it would do so without doing anything to encourage either the use of mineral resources or the collection of taxes.

2. Knox contends that the trial court erred in failing to apply the doctrine of equitable estoppel. First, it is questionable that Knox ever asked for such relief in the trial court; Knox contends that such action was requested by Knox’s assertion of various equitable principles, but concedes that briefing and argument in the trial court did not use “the express words ‘equitable estoppel.’ ” In any event, Knox fails to present evidence justifying the application of the doctrine.

“In essence, estoppel requires an act on the part of one intended to influence the other, and detrimental reliance upon that act by the other. [Cit.]” Ward v. Morgan, 280 Ga. 569, 572 (3) (629 SE2d 230) *477 (2006). Knox contends that Emma Thomson had consistently recognized the existence of the one-half mineral interest held by L. G. Hardman, Jr., and later by Knox, and that such recognition warrants the application of the doctrine. Evidence pertinent to this claim is that Emma Thomson entered into a series of leases with Elmer D. Jackson for mineral extraction from the property, beginning sometime prior to 1978. In an exchange of letters that year, L. G. Hardman, Jr., inquired of Emma Thomson about the removal of gold from the property, and she replied that some had been removed, she held some, had not sold any, and half of what she held was Hardman’s “anytime.” Shell Hardman Knox, daughter of L. G. Hardman, Jr., averred that “[o]ver the years,” Emma Thomson delivered “vials of gold” to the wife, and later widow, of L. G. Hardman, Jr.

The last of Jackson’s mineral leases expired in 1994. In 2002, John B. Hardman, son of L. G. Hardman, Jr., asked Emma Thomson if a rock and gem shop that Jackson was operating on the property affected the mineral rights; she responded that Jackson’s wares did not come from the property, and confirmed that any minerals taken from the property would continue to be shared equally between her and L. G. Hardman, Jr.’s heirs.

Knox urges that this evidence shows the existence of an agreement between Emma Thomson and L. G. Hardman, Jr., and later his heirs, that she would have exclusive control over the property during her life, including its mineral rights. This evidence shows recognition on Emma Thomson’s part of the one-half interest in the mineral rights held by L. G. Hardman, Jr., and later his heirs, and an intention on Emma Thomson’s part to respect that ownership.

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Bluebook (online)
689 S.E.2d 829, 286 Ga. 474, 176 Oil & Gas Rep. 389, 2010 Fulton County D. Rep. 326, 2010 Ga. LEXIS 143, Counsel Stack Legal Research, https://law.counselstack.com/opinion/knox-v-wilson-ga-2010.