Walker v. Shondrick-Nau (Slip Opinion)

2016 Ohio 5793, 74 N.E.3d 427, 149 Ohio St. 3d 282
CourtOhio Supreme Court
DecidedSeptember 15, 2016
Docket2014-0803
StatusPublished
Cited by33 cases

This text of 2016 Ohio 5793 (Walker v. Shondrick-Nau (Slip Opinion)) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Walker v. Shondrick-Nau (Slip Opinion), 2016 Ohio 5793, 74 N.E.3d 427, 149 Ohio St. 3d 282 (Ohio 2016).

Opinions

O’Connor, C J.

{¶ 1} In this appeal, we are asked to apply Ohio’s Dormant Mineral Act, R.C. 5301.56, to determine the ownership of certain mineral rights. Based on Corban v. Chesapeake Exploration, L.L.C., 149 Ohio St.3d 512, 2016-Ohio-5796, 76 N.E.3d 1089, the Dormant Mineral Act as amended in 2006 applies in this case. And based on Dodd v. Croskey, 143 Ohio St.3d 293, 2015-Ohio-2362, 37 N.E.3d 147, the owner of the severed mineral estate preserved his rights. Accordingly, we reverse the judgment of the Seventh District Court of Appeals.

Relevant Background

{¶ 2} John Noon acquired the subject real property in Noble County, including the mineral rights underlying the surface, by a deed recorded in 1965. The same year, Noon transferred the surface estate by quitclaim deed but reserved his rights to the coal, oil, gas, and other minerals underlying the surface (“1965 Deed”). Specifically, the deed reservation stated as follows:

Excepting and reserving to the Grantor, his heirs, successors and assigns, all coal, oil and gas and all other minerals underlying the premises [283]*283together with all the easements, rights and privileges therein which Grantor, his heirs, successors or assigns, in his or their sole discretion, may deem necessary, desirable or convenient, in order to remove said coal, oil, gas and other minerals by any method now employed or hereafter developed, including strip mining methods, from said premises and also to reclaim as required, or permitted by law, said premises and any other premises now or hereafter owned, leased or operated upon by Grantor, his heirs, successors and assigns. * * * •
The coal, oil, gas and other minerals so reserved may be removed, and the rights and privileges so reserved may be exercised by the Grantor, his heirs, successors and assigns, without any liability * * *.
Grantor also excepts and reserves unto himself, his heirs, successors and assigns, the ownership of a certain Coal Lease between John R. Noon and Alice J. Noon, as Lessors, and Union Carbide Corporation, as Lessee, dated as of December 22, 1964 * * *.

{¶ 3} In 1970 and 1977, the surface estate was again transferred, and the recorded deeds that conveyed the property contained the following exception of mineral rights:

This Deed is subject to the prior exception and reservation contained in the Deed to the Grantors herein, From JOHN R. NOON, dated July 26, 1965 and recorded in Volume 123, at Page 404 of the Deed Records of Noble County * * *.

{¶ 4} In addition to specifically referring to the 1965 Deed, the deeds restated the 1965 Deed’s reservation language in its entirety, expressly covering “all coal, oil and gas and all other minerals underlying the premises.”

{¶ 5} In 2009, appellee, Jon D. Walker Jr., acquired certain parcels of the property by a fiduciary deed and a general warranty deed, each executed in Arizona and recorded in Noble County, Ohio. Each deed expressly noted that it was prepared without a title examination and made no warranty or guarantee regarding the state of its title. Each deed contained general language of exception that the transfer was subject to restrictions of record, and the fiduciary deed conveying the bulk of the property stated that the transfer was subject to all reservations of record. But the deeds transferring the property to Walker did not specifically refer to the 1965' Deed, which reserved the mineral rights in Noon.

[284]*284{¶ 6} It is clear that at some point, however, Walker became aware of the 1965 Deed, because he specifically referred to that deed and the reservation of mineral rights when, in November 2011, he sent a “Notice of Abandonment of Mineral Interest pursuant to Ohio Rev. Code § 5301.56” to Noon at his last known address in St. Clairsville, Ohio. That notice referred to the 1965 Deed and stated that the notice related to the mineral interest reserved by Noon in the recorded deed.

{¶ 7} After sending the notice to Noon, Walker filed an Affidavit of Abandonment of Mineral Interest in January 2012 in the county recorder’s office.1 In response, Noon filed in the county recorder’s office an Affidavit and Claim to Preserve Mineral Interests, which stated that he was the owner of oil, gas, coal, and other minerals and other rights reserved in the 1965 Deed and that he had “no intention to abandon” the mineral interests.

{¶ 8} In April 2012, Walker filed a declaratory-judgment action against Noon, seeking to quiet title to the mineral interest. Walker alleged that by operation of the 1989 version of Ohio’s Dormant Mineral Act, former R.C. 5301.56, Sub.S.B. No. 223, 142 Ohio Laws, Part I, 981, effective March 22, 1989, the mineral interest merged with the surface estate no later than March 22, 1992,2 meaning that the surface and mineral estates had merged before he purchased the property in 2009. Walker requested judgment quieting title to the property, including the mineral estate, in his name and canceling any reservations or leases adverse to his interests.

{¶ 9} Noon moved for summary judgment and asserted that his mineral interest was preserved regardless of whether the 1989 version of the Dormant Mineral Act or the 2006 version of the Dormant Mineral Act, 2006 Sub.H.B. No. 288, applied. Walker also moved for summary judgment and contended that because the 1989 Dormant Mineral Act was self-executing, an automatic merger of the surface and mineral estates occurred in 1992.

{¶ 10} The trial court granted summary judgment in favor of Walker.

{¶ 11} The Seventh District Court of Appeals affirmed. The appellate court agreed that the “mere mention of the mineral interest reservation in the 1970 and 1977 deeds did not make the mineral interest ‘the subject of the title transactions” in order for those deeds to constitute a title-transaction saving event under [285]*285the 1989 or the 2006 version of the Dormant Mineral Act.3 2014-Ohio-1499, 2014 WL 1407942, ¶ 27. The appellate court also concluded that the 1989 version of the act was self-executing and because there had been no saving events, the mineral interest was reunited in the surface estate on March 22, 1992. Id. at ¶ 39. Thus, Noon no longer held an interest in the mineral estate when he filed his claim to preserve the mineral rights in response to Walker’s notice of abandonment.

{¶ 12} The appellate court declined to consider whether the application of the 1989 version of the Dormant Mineral Act was an unconstitutional retroactive application of substantive law, because Noon had not raised this constitutional argument below. 2014-Ohio-1499, 2014 WL 1407942, ¶ 55-57.

{¶ 13} Noon died while the case was pending in the court of appeals. His daughter, Patricia J. Shondrick-Nau, as executor of Noon’s estate and successor trustee of the John R. Noon Trust, was substituted as the appellant. Prior to that time, Shondrick-Nau participated in the proceedings as her father’s attorney-in-fact.

{¶ 14} We accepted Shondrick-Nau’s discretionary appeal on six propositions relating to the application of Ohio’s Dormant Mineral Act:

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Bluebook (online)
2016 Ohio 5793, 74 N.E.3d 427, 149 Ohio St. 3d 282, Counsel Stack Legal Research, https://law.counselstack.com/opinion/walker-v-shondrick-nau-slip-opinion-ohio-2016.