Mad Cow Oil Co. v. H&R Oil Properties, Inc.

2025 IL App (5th) 240895-U
CourtAppellate Court of Illinois
DecidedOctober 24, 2025
Docket5-24-0895
StatusUnpublished

This text of 2025 IL App (5th) 240895-U (Mad Cow Oil Co. v. H&R Oil Properties, Inc.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mad Cow Oil Co. v. H&R Oil Properties, Inc., 2025 IL App (5th) 240895-U (Ill. Ct. App. 2025).

Opinion

NOTICE 2025 IL App (5th) 240895-U NOTICE Decision filed 10/24/25. The This order was filed under text of this decision may be NO. 5-24-0895 Supreme Court Rule 23 and is changed or corrected prior to the filing of a Petition for not precedent except in the

Rehearing or the disposition of IN THE limited circumstances allowed the same. under Rule 23(e)(1). APPELLATE COURT OF ILLINOIS

FIFTH DISTRICT ______________________________________________________________________________

MAD COW OIL COMPANY, ) Appeal from the ) Circuit Court of Plaintiff-Appellant, ) Madison County. ) v. ) No. 23-CH-72 ) H&R OIL PROPERTIES, INC., ) PLAINS MARKETING, L.P., and ) UNKNOWN CLAIMANTS, ) Honorable ) Ronald J. Foster Jr., Defendant-Appellees. ) Judge, presiding. ________________________________________________________________________

JUSTICE CATES delivered the judgment of the court. Justice Boie concurred in the judgment. Justice Vaughan dissented.

ORDER

¶1 Held: The circuit court improperly took judicial notice of the documents that did not contain readily verifiable facts from sources of indisputable accuracy and the circuit court erred in dismissing the plaintiff’s complaint with prejudice based upon the court’s own interpretation of the content of those documents. The judgment is vacated and the cause is remanded for further proceedings.

¶2 The plaintiff, Mad Cow Oil Company, filed a complaint against the defendants, H&R Oil

Properties, Inc. (H&R), Plains Marketing, L.P. (Plains), and unknown claimants, arising from a

dispute over the ownership and the right to remove oil and gas from a 120-acre property located

in Madison County, Illinois. The circuit court granted the defendants’ motion to dismiss the

complaint with prejudice under section 2-615(a) of the Code of Civil Procedure (Code) (735 ILCS

5/2-615(a) (West 2022)). Mad Cow appealed. The central question for consideration is whether 1 the circuit court correctly relied on the use of judicial notice of documents to dismiss the plaintiff’s

complaint with prejudice. We conclude that the circuit court erred when it relied on and interpreted

documents that could not be verified and were not reliable. Accordingly, we vacate the judgment

of the circuit court and remand the case for further proceedings.

¶3 I. BACKGROUND

¶4 The pertinent facts are taken from the pleadings and exhibits in the record. On March 18,

2019, Madison County conveyed and quitclaimed certain mineral interests related to 120 acres of

property, located in St. Jacob Township, to Thomas Maag through a tax sale, and the quitclaim

deed was recorded the following day. On September 27, 2023, Maag executed a warranty deed

that purported to transfer all mineral interests related to the property, including oil and gas, to Mad

Cow. The warranty deed was recorded on September 28, 2023.

¶5 On October 10, 2023, Mad Cow filed a complaint against H&R, Plains, and unknown

claimants in the circuit court of Madison County. According to the general allegations in the

complaint, Mad Cow was the owner in possession of certain mineral interests related to the

property in Madison County, Illinois, comprising about 120 acres, described as:

“The South Half of the Southwest Quarter, and the Northwest Quarter of the Southwest Quarter, of Township 3 North, Range 6 West, of Section 27, in Saint Jacob Township, Madison County, Illinois, Parcel ID No. 05-1-33- 27-00-004.99M.”

Mad Cow further alleged that H&R was operating oil pumps, “producing 2 or more barrels of oil

per day,” on the property “without permission of, or payment to” Mad Cow, and that Plains had

been purchasing the crude oil from H&R “since at least January 1, 2019,” without paying Mad

Cow “or its predecessor in interest.” Mad Cow claimed that since January 1, 2019, “crude oil in

Illinois has had an average sale value of $73.00 per barrel.” Assuming production of two barrels

2 per day since January 1, 2019, Mad Cow claimed it had suffered at least $262,000 in damages,

representing the amount of oil removed from the property.

¶6 In count I of the complaint, Mad Cow sought an award of damages from H&R for the oil

removed from the property. In count II, Mad Cow sought a judgment against H&R and all

unknown claimants, seeking declaratory relief that Mad Cow was “the fee simple owner, to the

exclusion of all others,” of the mineral interests, including the oil and gas interests, in the property.

Counts III through IV were brought against Plains. In count III, Mad Cow alleged that Plains held

in escrow certain funds related to the oil production that belonged to Mad Cow. Mad Cow sought

an accounting of said funds along with an order directing Plains to remit said funds to Mad Cow.

In count IV, Mad Cow alleged that Plains breached its duty to keep accurate records of its oil

purchases, and that Mad Cow sustained damages because of the breach. In count V, Mad Cow

alleged that by taking possession of crude oil produced on the property, Plains committed a trespass

to Mad Cow’s property and that Mad Cow was thereby damaged.

¶7 H&R filed an answer and affirmative defenses. In its answer, H&R admitted that it had

“been operating oil wells on the property and, from time to time, had produced 2 or more barrels

of oil per day since January 1, 2019.” H&R also admitted that it had sold the oil to Plains since

January 1, 2019. H&R further admitted that the price of crude oil had an average sale value of $73

per barrel, as alleged by Mad Cow. H&R denied that it was liable to Mad Cow or that it owed any

money to Mad Cow. As affirmative defenses, H&R claimed that Mad Cow’s complaint failed to

state a claim on which relief could be granted and that Mad Cow’s claim was barred by the doctrine

of laches.

¶8 Plains filed a motion to dismiss the plaintiff’s complaint pursuant to section 2-615(a) of

the Code and attached various exhibits in support of the motion. Plains also filed a supporting

3 memorandum. Plains claimed that the complaint misrepresented the plaintiff’s ownership interest

in oil and gas rights on the property and failed to include necessary parties. Plains further claimed

that counts III through IV failed to state a claim for which relief could be granted.

¶9 Plains argued that on or around March 18, 2019, Maag had acquired a quitclaim deed from

Madison County (Ex. A1), and that the quitclaim deed indicated that the following property

interest was transferred:

“Mineral rights in the South 1/2 of the SW 1/4 and the NW 1/4 of the SW 1/4 of Section 27, T3N, R6W of the 3rd P.M., situated in the County of Madison and State of Illinois. Permanent Parcel No. 05-1-33-27-00-000-004.99M. Property address: Unknown Rd, St. Jacob, IL 62281.”

Plains further alleged that on or around September 28, 2023, Maag executed a warranty deed in

favor of Mad Cow (Ex. A2), and that the warranty deed indicated that the following property was

transferred:

“The South half of the southwest quarter, and the northwest quarter of the southwest quarter, of Township 3 North, Range 6 West, of Section 27, in Saint Jacob Township, Madison County, State of Illinois, comprising 120 acres, all mineral interest only, including oil and gas, along with right to remove same.”

¶ 10 Plains argued that when Madison County originally transferred the property to Maag, the

rights to oil and gas were not included within the “mineral interests” transferred, and that when

Maag transferred his interest in the property to Mad Cow, he attempted to add oil and gas which

Free access — add to your briefcase to read the full text and ask questions with AI

Related

AHRMA Exchange v. County Development Corp.
2026 IL App (5th) 231317-U (Appellate Court of Illinois, 2026)

Cite This Page — Counsel Stack

Bluebook (online)
2025 IL App (5th) 240895-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mad-cow-oil-co-v-hr-oil-properties-inc-illappct-2025.