Court of Appeals of Ohio, Seventh District, Noble
DANNY HARMON, et al. PLAINTIFFS-APPELLANTS
v.
CAPSTONE HOLDING CO., et al. DEFENDANTS-APPELLEES AND ECLIPSE RESOURCES-OHIO, LLC DEFENDANT-APPELLANT
Civil
Appeal from the Court of Common Pleas of Noble County, Ohio
Case No. 213-0048
For
Danny & Karen Harmon: Atty. Clifford N. Sickler
For
Capstone Holding Co.: Atty. Geoffrey B. Mosser, Law Offices
of Geoffrey B. Mosser, Atty. Michael D. Dortch Atty. Richard
R. Parsons Kravitz, Brown, & Dortch, LLC
For
Eclipse Resources-Ohio, LLC: Atty. Steven B. Silverman Babst,
Calland, Clements & Zomnir PC
Atty.
Matthew S. Casto Babst, Calland, Clements & Zomnir PC
BB&T Square
Hon.
Cheryl L. Waite Hon. Gene Donofrio Hon. Mary DeGenaro
OPINION
WAITE,
J.
{¶1}
Appellants Eclipse Resources Ohio, LLC ("Eclipse"),
and Danny and Karen Harmon, (collectively referred to as
"Appellants") appeal a February 18, 2014 Noble
County Common Pleas Court decision to grant summary judgment
in favor of Appellee Capstone Holding Co.
("Capstone"). Appellants collectively argue that
the trial court misapplied the 1989 Dormant Mineral Act
("DMA"). Pursuant to Corban v. Chesapeake
Exploration, LLC, __ Ohio St.3d __, 2016-Ohio-5796, __
N.E.3d__, and Albanese v. Batman, 148 Ohio St.3d 85,
2016-Ohio-5814, 68 N.E.3d 800, Appellants' arguments are
without merit and the judgment of the trial court is
affirmed.
Factual
and Procedural History
{¶2}
This appeal concerns the ownership of mineral rights beneath
73.059 acres of land located in Beaver Township, Noble
County. On October 28, 1971, Seaway Coal Company
("Seaway") conveyed the surface rights to Gilbert
and Beulah LaFever. Seaway reserved and excepted the mineral
rights through the following language: "EXCEPTING AND
RESERVING from the above described [property] all of the coal
of every vein and description and all other minerals, surface
or subsurface deposits, and oil and gas." (10/28/71
Deed) The deed was recorded on November 11, 1971.
{¶3}
On June 17, 1974, the LaFevers conveyed the surface rights to
J.C. and Sheryl LaFever. The deed referenced the Seaway
reservation and was recorded on August 27, 1974. On December
28, 1979, the LaFevers conveyed the surface rights to Michael
J. and Kathleen M. Billi. The Seaway reservation was again
referenced within the deed which was recorded on December 28,
1979. Seaway apparently dissolved its corporation sometime in
1979. On November 12, 1992, Seaway conveyed its interests to
R&F Coal Company ("R&F") who later became
Capstone.
{¶4}
On May 2, 1994, the Billis conveyed the surface rights to the
Harmons. The deed contained the Seaway reservation and was
recorded on May 3, 1994. The Harmons later learned that
Seaway had dissolved and, on August 25, 2008, served Seaway
with notice of intent to declare its mineral interests
abandoned pursuant to R.C. 5301.56(E)(1). Seaway failed to
respond. Consequently, on September 26, 2008, the Harmons
filed an affidavit of abandonment. On February 4, 2010, the
Harmons entered into an oil and gas lease with Oxford Oil
Company, who later became Eclipse. On January 12, 2012,
Capstone filed an affidavit to preserve its interests
pursuant to R.C. 5301.56(E)(2).
{¶5}
On March 22, 2013, the Harmons filed a declaratory judgment
and quiet title complaint against Capstone and Oxford Oil
Co./Eclipse. Both parties filed an answer and Capstone filed
a counterclaim asserting that the Harmons lacked standing to
file the complaint. On November 20, 2013, the Harmons filed a
motion for a judgment on the pleadings. On December 17, 2013,
Capstone filed a combined motion for summary judgment and
memorandum in opposition to the Harmons' motion. On
February 18, 2014, the trial court granted Capstone's
motion and denied the Harmons'. The trial court found
that none of the parties in the action held an interest in
the minerals. Instead, the court determined that pursuant to
the 1989 DMA, the Billis were the mineral interest holders.
The court alternatively ruled that if the 2006 DMA applied,
the Harmons still could not succeed in their action as they
failed to provide notice to interest holder of record in
accordance with R.C. 5301.56(E)(2). Both the Harmons and
Eclipse filed notices of appeal. Capstone filed a cross
appeal which it later voluntarily dismissed. The remaining
notices of appeal were consolidated.
Summary
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