Richards v. Hillgas

2020 Ohio 4717
CourtOhio Court of Appeals
DecidedSeptember 30, 2020
Docket19 HA 0008
StatusPublished
Cited by1 cases

This text of 2020 Ohio 4717 (Richards v. Hillgas) 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
Richards v. Hillgas, 2020 Ohio 4717 (Ohio Ct. App. 2020).

Opinion

[Cite as Richards v. Hillgas, 2020-Ohio-4717.]

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

VIKKI RICHARDS ET AL.,

Plaintiffs-Appellees,

v.

RALPH EUGENE HILLGAS ET AL., LOWER VALLEY FARM LLC.,

ERIC PETROLEUM CORPORATION,

Defendants-Appellants.

OPINION AND JUDGMENT ENTRY Case No. 19 HA 0008

Civil Appeal from the Court of Common Pleas of Harrison County, Ohio Case No. CVH-2011-0105

BEFORE: Gene Donofrio, Carol Ann Robb, David A. D’Apolito, Judges.

JUDGMENT: Appeal Affirmed/Cross Appeal Reversed

Atty. Peter Lusenhop, Atty. Ilya Batikov, Vorys, Sater, Seymour and Pease LLP., 52 East Gay Street, Columbus, Ohio 43216, for Plaintiffs-Appellees/Cross Appellees, (Vikki Richards et al.) and –2–

Atty. Mark Beetham, 146 South Main Street, Cadiz, Ohio 43907, for Defendants- Appellees, (Ralph Eugene Hilligas et al.) and

Atty. David Butz, Atty. Gregory Watts, Atty. Matthew Onest, Krugliak, Wilkins, Griffiths & Dougherty, 4775 Munson Street, NW, Canton, Ohio 44735, for Plaintiff/Defendant- Intervenor-Appellant, (Lower Valley Farm, LLC.) and

Atty. Thomas Hill, 6075 Silica Road, Suite A, Austintown, Ohio 44515, for Defendant- Intervenor/Counter & Cross-Claimant-Cross-Appellant, (Eric Petroleum Corporation).

Dated: September 30, 2020

Donofrio, J.

{¶1} Defendant-appellant, Lower Valley Farm, LLC (LVF), appeals the judgment of the Harrison County Common Pleas Court granting summary judgment in favor of plaintiffs-cross-defendants-appellees, Vikki Richards and Timothy Maloney. Defendant-cross-appellant, Eric Petroleum Corporation (EPC), cross-appeals the same award of summary judgment in favor of Richards and Maloney. {¶2} This case concerns the oil and gas rights to approximately 300 acres of real property in Shortcreek and Green Townships in Harrison County, Ohio (the property). The property is divided into seven tracts (Tracts One through Seven respectively) with different parties contending that they own the associated oil and gas rights with the different tracts. The oil and gas rights to four of the tracts (Tracts One, Three, Four, and Five) are at issue in this appeal. LVF and Richards and Maloney dispute the ownership of the oil and gas rights to Tracts One and Three while EPC claims ownership of the oil and gas rights to Tract Five and the majority of Tract Four. The oil and gas rights to the other three tracts (Tracts Two, Six, and Seven) have been resolved and no party challenges their resolution on appeal. {¶3} Several of the relevant facts to this appeal have been previously set forth in this court’s decision in Richards v. Hilligas, 7th Dist. Harrison No. 14 HA 0002, 2017- Ohio-4277.

Case No. 19 HA 0008 –3–

On February 1, 1923, George A. and Lorain Hilligas conveyed the surface rights to property located in Shortcreek Township, Harrison County to Kehota Mining Co. * * * The Hilligases reserved the mineral interests in the land through the following language:

EXCEPTING AND RESERVING unto said Grantors, the heirs and assigns, all the oil and gas within and under said above described premises with the right of removing same, together with all rights and privileges necessary for drilling and operating on said premises for the purpose of removing and marketing said oil and gas.

(2/1/1923 Deed.) The deed was recorded on May 29, 1923. Sometime thereafter, Lorain Hilligas died and her one-half interest transferred as follows: one-third to her surviving husband, George; one-third to her son, Paul Hilligas; and one-third to her daughter, Agnes Newberry.

On August 31, 1967, Paul died. His interest was transferred to his surviving spouse, Co–Appellee Wilma Matusik. Agnes died sometime thereafter and her interest was transferred to her husband, Gene A. Newberry. On Gene's death, the interest was transferred to the Hilligas heirs: Jill D. Dickerson, Kay J. Schlafer, Beth Newberry Backus, Church Builders Plus, Inc., Anderson University, Church of God Ministries, Inc., and Park Place Church of God, Inc. Each heir except for the religious institutions received a one- eighth interest. The various religious institutions split a one-eighth interest.

On July 25, 2001, Edward L. Seleski obtained the surface rights to the property. This deed was recorded on August 20, 2001. On August 6, 2001, the Estate of Edward Seleski transferred the surface rights to Michael H. and Cheryl A. Wilt. Their deed was recorded on August 20, 2001. On December 11, 2001, the Estate of Edward Seleski recorded a deed which transferred a one-half interest in the minerals to a group of Seleski heirs. On the same date, the estate conveyed a one-half interest to the remaining Seleski heirs in a separate deed. The Wilts later conveyed the property to

Case No. 19 HA 0008 –4–

Co–Appellees Richards and Maloney through three separate deeds recorded May 26, 2006, July 20, 2005, and May 24, 2004. The deeds included the Hilligas reservation and an apparent reservation by the Seleski heirs.

On October 19, 2011, Richards and Maloney filed a complaint seeking quiet title or, alternatively, partition against the Hilligas heirs (Ralph Eugene Hilligas, Beth Newberry Backus, Kay Schlafer, and Jill Dickerson). The trial court later ordered Richards and Maloney to add the following Hilligas heirs as codefendants: Wilma Matusik, Church Builders Plus Inc., Anderson University, Church of God Ministries Inc., and Park Place Church of God. On June 14, 2012, Richards and Maloney filed an amended complaint to include these parties as codefendants. On August 16, 2012, the Hilligas heirs filed an answer and a counterclaim. The parties completed discovery.

On August 21, 2013, the Seleski heirs transferred their interests to Lower Valley, an LLC comprised of Seleski heirs. On October 9, 2013, one month before the dispositive motion deadline, Lower Valley filed a motion to intervene pursuant to Civ.R. 24. Lower Valley argued that the Hilligas heirs abandoned their interests pursuant to the 1989 DMA and that those interests vested in Edward Seleski. As such, the LLC is the actual mineral interest holder, because its mineral interests were acquired from the Estate of Edward L. Seleski. After holding a hearing, the trial court denied Lower Valley's motion to intervene.

Id. at ¶ 2-6. {¶4} LVF appealed asserting the trial court erred in denying its motion to intervene. Id. at ¶ 9-10. We reversed the trial court’s judgment, permitted LVF to intervene, and remanded the matter for further proceedings. Id. at ¶ 19. {¶5} Upon remand, EPC filed a motion to intervene. EPC asserted that it owned certain oil and gas rights to the property. The trial court granted EPC’s motion and EPC was permitted to intervene.

Case No. 19 HA 0008 –5–

{¶6} EPC filed an answer to LVF’s complaint, an amended answer to LVF’s complaint, a counterclaim against LVF, and a cross-claim against Richards and Maloney. EPC asserted that it held an interest in the shallow rights of oil and gas in 118.88 acres of the property through an oil and gas lease with nonparty Bedway Land and Minerals Company (Bedway). LVF asserted that it owned the majority of the oil and gas rights EPC claimed to own while Richards and Maloney asserted that they owned the remainder. Richards and Maloney filed an answer to EPC’s cross-claim. {¶7} EPC and LVF eventually settled all claims between them. The trial court memorialized EPC’s and LVF’s settlement in an agreed judgment entry dated October 3, 2018. The trial court held that EPC had the superior claim to ownership of the oil and gas rights disputed by EPC and LVF. Per EPC’s lease with Bedway, EPC was only entitled to the shallow rights. This judgment entry did not settle the dispute between EPC and Richards and Maloney or the dispute between Richards and Maloney and LVF.

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Bluebook (online)
2020 Ohio 4717, Counsel Stack Legal Research, https://law.counselstack.com/opinion/richards-v-hillgas-ohioctapp-2020.