T.H. McElvain Oil & Gas Ltd. P'ship v. Benson-Montin-Greer Drilling Corp.

2017 NMSC 4
New Mexico Supreme Court·Decided October 20, 2016·No. 34,993 34,997·Published·Cited by 13 cases

Opinion

I attest to the accuracy and integrity of this document New Mexico Compilation Commission, Santa Fe, NM '00'05- 15:14:45 2017.02.02

IN THE SUPREME COURT OF THE STATE OF NEW MEXICO

Opinion Number: 2017-NMSC-004

Filing Date: October 20, 2016

Docket No. S-1-SC-34993

T.H. MCELVAIN OIL & GAS LIMITED PARTNERSHIP, a New Mexico limited partnership; KAREN ANN HANDLEY ANDERSON, an individual; SUSAN R. HANDLEY MCGREW, an individual; BILLIE L. PHILLIPS, an individual; BILLIE L. PHILLIPS RECOVERABLE TRUST DATED APRIL 23, 1996, BILLIE L. PHILLIPS Trustee; JUDY LYNN QUINT, an individual; RONALD CHARLES WEEBER, an individual; LUCILE ALICE NORTHCOTE TRUST DATED MAY 29, 1996, BILLIE L. PHILLIPS, Successor Trustee,

Plaintiffs-Respondents,

v.

GROUP I: BENSON-MONTIN-GREER DRILLING CORP., INC., a Delaware corporation; ELIZABETH JEANNE TURNER CALLOWAY, an individual; KELLY R. KINNEY, an individual; KATHERINE P. MILLER, an individual; RONALD MICHAEL MILLER, an individual; VICKIE ROANN MILLER, an individual; THOMAS R. MILLER, an individual; FRED E. TURNER, LLC, a Delaware limited liability company; JOHN LEE TURNER, an individual; LINDA VOITL a/k/a LINDA DAVIS, an individual; ESTATE OF WILLIAM G. WEBB, deceased, JOHN G. TAYLOR, independent executor,

Defendants-Petitioners,

GROUP II: CHERYL U. ADAMS, an individual; E’TWILA J. AXTELL, an individual; BP AMERICA PRODUCTION COMPANY, a Delaware corporation; COASTAL WATERS PETROLEUM COMPANY, INC., a Louisiana corporation; ENERGEN RESOURCES CORPORATION, an Alabama corporation; THE ESTATE OF ANNE B. LITTLE, FIRST SECURITY BANK OF NEW MEXICO, as personal representative; LANA GAY PHILLIPS, an individual; HENRIETTA SCHULTZ, an individual; THE FRANK AND HENRIETTA SCHULTZ REVOCABLE TRUST DATED JANUARY 2, 1990, HENRIETTA SCHULTZ, Trustee; SCHULTZ MANAGEMENT, LTD., a Texas limited partnership; J. GLENN TURNER, JR., LLC, a Delaware limited liability company; MARY FRANCES TURNER, JR. TRUST, JP MORGAN CHASE BANK, NA, Trustee,

Defendants,

1 GROUP III: ALL UNKNOWN CLAIMANTS OF INTEREST IN THE PREMISES ADVERSE TO THE PLAINTIFFS,

Defendants.

and

Docket No. S-1-SC-34997

T.H. MCELVAIN OIL & GAS LIMITED PARTNERSHIP, a New Mexico limited partnership; KAREN ANN HANDLEY ANDERSON, an individual; SUSAN R. HANDLEY MCGREW, an individual; BILLIE L. PHILLIPS, an individual; BILLIE L. PHILLIPS RECOVERABLE TRUST DATED APRIL 23, 1996, BILLIE L. PHILLIPS, Trustee; JUDY LYNN QUINT, an individual; RONALD CHARLES WEEBER, an individual; LUCILE ALICE NORTHCOTE TRUST DATED MAY 29, 1996, BILLIE L. PHILLIPS, Successor Trustee,

Plaintiffs-Respondents,

v.

GROUP I: BENSON-MONTIN-GREER DRILLING CORP., INC., a Delaware corporation; ELIZABETH JEANNE TURNER CALLOWAY, an individual; KELLY R. KINNEY, an individual; KATHERINE P. MILLER, an individual; RONALD MICHAEL MILLER, an individual; VICKIE ROANN MILLER, an individual; THOMAS R. MILLER, an individual; FRED E. TURNER, LLC, a Delaware limited liability company; JOHN LEE TURNER, an individual; LINDA VOITL a/k/a LINDA DAVIS, an individual; ESTATE OF WILLIAM G. WEBB, deceased, JOHN G. TAYLOR, independent executor,

Defendants,

GROUP II: CHERYL U. ADAMS, an individual; E’TWILA J. AXTELL, an individual; LANA GAY PHILLIPS, an individual;

Defendants-Petitioners,

and

BP AMERICA PRODUCTION COMPANY, a Delaware corporation; COASTAL WATERS PETROLEUM COMPANY, INC., a Louisiana corporation; ENERGEN RESOURCES CORPORATION, an Alabama corporation; THE ESTATE OF ANNE B. LITTLE, FIRST SECURITY BANK OF NEW MEXICO, as personal representative; HENRIETTA SCHULTZ, an individual; THE FRANK AND

2 HENRIETTA SCHULTZ REVOCABLE TRUST DATED JANUARY 2, 1990, HENRIETTA SCHULTZ, Trustee; SCHULTZ MANAGEMENT, LTD., a Texas limited partnership; J. GLENN TURNER, JR., LLC, a Delaware limited liability company; MARY FRANCES TURNER, JR. TRUST, JP MORGAN CHASE BANK, NA, Trustee,

Defendants,

GROUP III: ALL UNKNOWN CLAIMANTS OF INTEREST IN THE PREMISES ADVERSE TO THE PLAINTIFFS,

Defendants.

ORIGINAL PROCEEDING ON CERTIORARI John A. Dean, Jr., District Judge

Gallegos Law Firm, P.C. Jake Eugene Gallegos Michael J. Condon Santa Fe, NM

for Petitioners Group I

Miller Stratvert P.A. Dylan O’Reilly Luke Salganek Santa Fe, NM

for Petitioners Group II

Cuddy & McCarthy, LLP John F. McCarthy, Jr. Arturo L. Jaramillo Y. Jun Roh Santa Fe, NM

Nixon Shefrin Hensen Ogburn, P.C. Herbert A. Delap Greenwood Village, CO

for Respondents T.H. McElvain Oil & Gas Limited Partnership, et al.,

Carson Ryan LLC Joel M. Carson, III

3 Roswell, NM

for Amicus Curiae Landmen’s Association

OPINION

VIGIL, Justice.

I. INTRODUCTION

{1} The underlying claim giving rise to this controversy constitutes a collateral attack, requiring us to determine whether it is apparent on the face of a 1948 quiet title judgment that the district court, which entered said judgment, affirmatively lacked jurisdiction over certain parties because they were notified by publication. It is alleged that in the 1948 lawsuit such notice violated the Due Process Clause, depriving the district court of jurisdiction. Only when a party’s whereabouts are not reasonably ascertainable following diligent search and inquiry can constructive notice substitute for personal notice of suit. Here, constructive service of process by publication satisfied due process and established the 1948 district court’s personal jurisdiction. Therefore, the district court’s 1948 quiet title judgment was not void, and, accordingly, we reverse the judgment of the Court of Appeals.

II. BACKGROUND

{2} This opinion addresses the consolidated appeals of two groups of Defendants from a Court of Appeals ruling favorable to T.H. McElvain Oil & Gas Limited Partnership, et al. (Plaintiffs). See T.H. McElvain Oil & Gas Ltd. P’ship v. Benson-Montin-Greer Drilling Corp., 2015-NMCA-004, ¶ 55, 340 P.3d 1277. The identities of the numerous parties and undisputed facts underlying the case are as follows.

{3} In 1927 W.W. McEwan conveyed by general warranty deed fee-simple title in 160 acres of land in San Juan County, New Mexico (the Property) to Judson Wilson, Eva Wilson, and Mabel Wilson, as joint tenants with the right of survivorship. The Wilsons, according to that deed, were “of San Diego, California.” The following year, on August 16, 1928, the Wilsons executed a general warranty deed in San Diego, conveying the Property to David Miller, subject to the following reservation:

[E]xcepting and reserving to the grantors herein the oil and gas existing or found therein, with the right to enter on for prospecting or developing same, provided they must pay all damage to land or crops in prospecting or development.

{4} On March 14, 1931, David Miller conveyed by quitclaim deed his interest in the

4 Property to his brother, Thomas Miller.1 The quitclaim deed to Thomas Miller was silent as to any reservation clouding fee-simple title. Thomas Miller did not record the deed until April 29, 1937, after David Miller’s death. David Miller had also bequeathed his property in full to Thomas Miller.

{5} Judson Wilson died on May 16, 1929, and Eva Wilson died on December 17, 1944, leaving Mabel Wilson as the only surviving joint tenant from the original W.W. McEwan deed. Nothing in the record indicates that after 1928 Judson and Eva Wilson took any action regarding the Property.

{6} Mabel Wilson, the remaining joint tenant, lived in San Diego until her death in 1970. Mabel had married Charles Weeber prior to 1944, and thereafter went by her married name of Mabel W. Weeber. Following her death, Mabel’s estate was probated in the Superior Court for San Diego County.

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