Wacker Oil, Inc. v. LoneTree Energy, Inc.

459 N.W.2d 381, 113 Oil & Gas Rep. 325, 1990 N.D. LEXIS 163, 1990 WL 108801
CourtNorth Dakota Supreme Court
DecidedJuly 31, 1990
DocketCiv. 890394
StatusPublished
Cited by16 cases

This text of 459 N.W.2d 381 (Wacker Oil, Inc. v. LoneTree Energy, Inc.) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wacker Oil, Inc. v. LoneTree Energy, Inc., 459 N.W.2d 381, 113 Oil & Gas Rep. 325, 1990 N.D. LEXIS 163, 1990 WL 108801 (N.D. 1990).

Opinion

LEVINE, Justice.

LoneTree Energy, Inc. and Nodana Petroleum Corporation appeal from a district court summary judgment quieting title in Wacker Oil Inc., to the leasehold estate in oil and gas on certain land in Bottineau County. We affirm.

Ellen and Edwin Koehler were divorced in California in 1977. Ellen and Edwin entered into a property settlement agreement providing, in part, that each was to receive one-half of the mineral rights in certain real estate in Bottineau County in North Dakota. The property agreement was incorporated into the California divorce decree, which also ordered the parties to execute conveyances to effectuate the various property transfers ordered therein. At the time this divorce judgment was entered, neither Ellen nor Edwin owned, or had ever owned, the mineral rights in question. The mineral rights were owned by Ellen’s mother.

Ellen’s mother died in 1979, leaving Ellen as her sole heir. Ellen received the mineral rights through her mother’s estate by deed dated July 30, 1982.

Edwin remarried in 1977. He died on October 19, 1981, leaving as heirs his second wife and four children from his marriage to Ellen.

On March 20, 1982, Ellen signed a stipulation to allow correction of the legal description of the mineral interests in the divorce judgment. The divorce judgment' was accordingly amended to include an accurate description of the property.

In 1987, Ellen executed an oil and gas lease on the property to Valero Producing Company, which assigned the lease to Wacker. In early 1989, Edwin’s heirs executed leases of their interest in the proper *382 ty to LoneTree, which assigned the leases to Nodana.

Wacker commenced this quiet title action against LoneTree and Nodana, asserting that its lessor, Ellen, owned 100 percent of the mineral rights. LoneTree and Nodana answered and counterclaimed, asserting that title to 15/⅛ of the leasehold estate should be quieted in them, on the ground that its lessors, Edwin’s heirs, held title to ⅝ of the mineral estate. 1 On cross-motions for summary judgment, the district court quieted title to the leasehold estate in Wacker and determined that LoneTree and Nodana had no interest in the property.

LoneTree and Nodana raise numerous issues on appeal. Their primary argument is that the California divorce decree, which required a conveyance of a mere expectancy in the mineral interests, 2 was not void but merely voidable. They thus assert that Ellen’s action in stipulating to a correction of the judgment, after she had acquired an interest in the minerals through her mother’s estate, constituted a ratification of the divorce decree and a waiver by Ellen of any defects therein. Wacker responds that the California decree, which purports to transfer a mere expectancy, is a nullity and void, and therefore could not be ratified by Ellen. Wacker further asserts that, under North Dakota law, the California decree has no effect upon title to North Dakota real property.

The district court determined that the California decree was void and could not be ratified by Ellen’s subsequent actions. The court further held that the California decree had no effect upon title to real property in North Dakota. We agree that Lone-Tree and Nodana’s lessors acquired no title through the California decree. This issue is dispositive of the appeal, and we therefore find it unnecessary to address the remaining issues raised by the parties.

Our caselaw holds that a foreign divorce decree does not, of its own accord, affect title to real property in North Dakota. In Rozan v. Rozan, 129 N.W.2d 694 (N.D.1964), a California divorce decree purported to award a 65 percent interest in North Dakota real property to the wife, and the remaining 35 percent interest to the husband. In holding that the California decree was a nullity and not entitled to full faith and credit, we stated:

“It is settled in this State that a court decree or court judgment of another state in its determination of property rights may not directly affect or transfer title to real property situate in North Dakota, and the California decree, being in personam and adjudicating the equities of the litigants to lands situate in North Dakota, did not have the direct in rem operational effect of transferring title to real property, the situs of which is beyond the territorial jurisdiction of the California court of divorce. A decree or judgment of a court of another jurisdiction having such a purported consequence will not be accorded full faith and credit under Article IV, Section I, of the Constitution of the United States....
“However, authorities are in general agreement that the foreign court of adjudication, having the parties properly before it, may determine equities of those parties in real property situate in another state, and may order and compel conveyance of lands in another state and thus by an in personam decree indirectly affect such title, and it is the executed conveyance and not the decree which is operative upon such title.” Rozan, supra, 129 N.W.2d at 700. [Citations omitted.]

Because there had been no separate conveyance and the parties relied solely upon the direct in rem operational effect of the California decree to alter, transfer, and vest title, we concluded that there had been no effect upon the title. See Rozan, supra, 129 N.W.2d at 708.

*383 The California decree in this case requires the parties to execute conveyances, but Ellen never executed a conveyance of the minerals to Edwin. Apparently, no party has ever sought to enforce the judgment in California or North Dakota. Thus, LoneTree and Nodana rely solely upon the divorce decree 3 as the basis for their claim of title. However, as we made clear in Rozan, supra, it is the executed conveyance and not the decree itself which is operative upon title. Because no conveyance has ever been executed, Edwin never had title, Edwin’s heirs never received title, and LoneTree and Nodana, as Edwin’s heirs’ lessees, have received no title.

Our holding in Rozan suggests that a party may seek specific performance of a judicially created obligation to convey real property situated in North Dakota, and a decree of a court of this state ordering such a conveyance could be made self-executing. See Rule 70, N.D.R.Civ.P.; Ellison v. Ellison, 79 N.D. 46, 50, 54 N.W.2d 656, 659 (1952). Neither Edwin nor his heirs ever sought specific performance of Ellen’s obligation to convey. 4 See Rozan, supra, 129 N.W.2d at 708 (on rehearing). Nor has any party ever sought enforcement of the judgment in North Dakota.

This issue is further complicated by the fact that Edwin’s heirs and Ellen have not been included as parties, thereby rendering any determination in this action incomplete. 5

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Bluebook (online)
459 N.W.2d 381, 113 Oil & Gas Rep. 325, 1990 N.D. LEXIS 163, 1990 WL 108801, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wacker-oil-inc-v-lonetree-energy-inc-nd-1990.