Rolla v. Tank
| Decision Date | 02 October 2013 |
| Docket Number | No. 20130035.,20130035. |
| Citation | 2013 ND 175,837 N.W.2d 907 |
| Parties | Debbora ROLLA, Personal Representative of the Estate of George Tank, deceased, Plaintiff and Appellee v. Greggory G. TANK and all other persons unknown claiming any estate or interest in, or lien or encumbrance upon, the property described in the Complaint, Defendants. Greggory G. Tank, Appellant. |
| Court | North Dakota Supreme Court |
OPINION TEXT STARTS HERE
Bryan L. Van Grinsven, Minot, N.D., for plaintiff and appellee.
H. Malcolm Pippin (argued) and Heather M. Sporrer (on brief), Williston, N.D., for defendant and appellant.
[¶ 1] Greggory Tank appealed from a judgment quieting title to certain McKenzie County oil, gas and mineral interests in Debbora Rolla, the personal representative of the estate of George Tank. Because the district court did not err in ruling the challenged quitclaim deeds reserved mineral interests in George Tank and reserved in him a life estate in the surface only, we affirm.
[¶ 2] George Tank, the father of Rolla, Greggory Tank and four other surviving children, owned property in McKenzie County which he farmed, ranched and used for commercial purposes. Greggory Tank stayed on the farm and worked with his parents. After his wife died, George Tank executed two quitclaim deeds in December 2007 and March 2008 conveying his interest in part of his property to Greggory Tank. The only difference between the two deeds is the March 2008 deed corrected the description of the property conveyed. Both deeds, captioned “(Life Estate Reserved),” contained the following reservation clauses:
EXCEPTING and RESERVING to the Grantor, his successors and assigns, all oil, gas and other minerals now owned by Grantor, including coal, in and under the above-described land, or any part thereof, together with the right of ingress and egress and the use of so much of the surface of the land as is reasonably necessary for the purposes of exploring for, mining, drilling, excavating, operating, developing, storing, handling, transporting and marketing such minerals. Sand, gravel and clay shall be considered part of the surface.
FURTHER EXCEPTING and RESERVING to the Grantor, the full use, control, income and possession of the described property, including without limitation, the right to lease and receive the bonuses, rentals and royalties therefrom, without liability for depletion or waste, for and during Grantor's natural life.
[¶ 3] After George Tank died in June 2008, ConocoPhillips, who apparently operates a well on the premises, ceased making production payments on the mineral estate covered by the quitclaim deeds because its title attorneys determined Greggory Tank owned the minerals. Rolla, as personal representative of the estate, brought this quiet title action to determine who owned the mineral interests in the subject property. Both parties filed motions for summary judgment. Rolla argued the deeds conveyed the surface interest in the property to Greggory Tank subject to a life estate in George Tank and reserved to George Tank the entire mineral interests rather than a life estate in the minerals. Greggory Tank argued the deeds reserved to George Tank a life estate in both the mineral interests and the surface interests. The district court determined the deeds were ambiguous, denied the motions, and ordered the parties to proceed to trial. Following a bench trial, in which several persons testified, the court quieted title to the property in Rolla, reasoning:
The Court finds that the testimony presented shows that George's intent was consistent with Plaintiff's position, that being that George intended to reserve a life estate in the surface and wanted to reserve the mineral rights on lands with no current well to the children other than Defendant, and intended that Defendant would receive the surface and mineral rights on lands with a current well, and surface on lands with no well.
The court also resolved other issues between the parties which are not challenged on appeal.
[¶ 4] Greggory Tank argues the district court erred in ruling George Tank reserved the mineral interests and only conveyed to him a remainderman interest in the surface of the subject property.
[¶ 5] In Nichols v. Goughnour, 2012 ND 178, ¶ 12, 820 N.W.2d 740, we said:
The primary purpose in construing a deed is to ascertain and effectuate the grantor's intent. Mueller v. Stangeland, 340 N.W.2d 450, 452 (N.D.1983). “However, deeds that convey mineral interests are subject to general rules governing contract interpretation, and we construe contracts to give effect to the parties' mutual intentions.” Gawryluk v. Poynter, 2002 ND 205, ¶ 8, 654 N.W.2d 400 (citations omitted). “When the language of a deed is plain and unambiguous and the parties' intentions can be ascertained from the writing alone, extrinsic evidence is inadmissible to alter, vary, explain, or change the deed.” Id. at ¶ 9. “If a contract is ambiguous, extrinsic evidence may be considered to clarify the parties' intentions.” Id. “A contract is ambiguous when rational arguments can be made for different interpretations.” Id. “Whether a contract is ambiguous is a question of law for the court to decide.” Id. “On appeal, we independently review a contract to determine if it is ambiguous.” Id.
Resolution of an ambiguity in a contract by extrinsic evidence is a finding of fact subject to review under the clearly erroneous standard of N.D.R.Civ.P. 52(a). In re Estate of Zimmerman, 1998 ND 116, ¶ 13, 579 N.W.2d 591. A finding of fact is clearly erroneous if it is induced by an erroneous view of the law, if there is no evidence to support it, or if, on the entire evidence, we are left with a definite and firm conviction a mistake has been made. Brigham Oil and Gas, L.P. v. Lario Oil & Gas Co., 2011 ND 154, ¶ 32, 801 N.W.2d 677.
[¶ 6] Greggory Tank argues the district court's decision is erroneous because the quitclaim deeds “unambiguously reserved the mineral interests for George Tank's natural life and upon his death are owned by Greggory Tank as the remainderman.”
[¶ 7] We agree the quitclaim deeds are unambiguous, but we conclude the deeds unambiguously reserved in George Tank only a life estate in the surfaceof the subject property, not the “oil, gas and other minerals.” Greggory Tank relies on the caption on the deeds, “(Life Estate Reserved),” to support his argument that George Tank reserved a life estate in the oil, gas and other minerals. However, we must construe deeds to attempt to give effect to every clause, sentence and provision. Valley Honey Co., LLC v. Graves, 2003 ND 125, ¶ 12, 666 N.W.2d 453;N.D.C.C. § 9–07–06. Moreover, a caption on a deed “is of no effect where the conveyance is clear.” Clark v. CSX Transp., Inc., 737 N.E.2d 752, 763 (Ind.Ct.App.2000), and cases cited therein. This is simply an application of the principle that “ ‘[i]f a conflict exists between a specific provision and a general provision in a contract, the specific provision qualifies the general provision.’ ” Kortum v. Johnson, 2008 ND 154, ¶ 44, 755 N.W.2d 432 (quoting Oakes Farming Ass'n. v. Martinson Bros., 318 N.W.2d 897, 908 (N.D.1982)).
[¶ 8] In the first reservation paragraph, George Tank reserved “to the Grantor, his successors and assigns, all oil, gas and other minerals now owned by Grantor, including coal, in and under the above-described land.” The second reservation paragraph begins with the word “FURTHER.” “Further” is a “comparative” term defined as “in addition” and “going or extending beyond what exists.” Webster's Third New International Dictionary 924 (2002). Use of the word “FURTHER” to begin the second paragraph therefore alerts the reader that a distinction is being drawn. The second reservation paragraph does not mention “oil, gas and other minerals” or “successors and assigns,” but reserves “to the Grantor, the full use, control, income and possession of the described property, ... for and during Grantor's natural life.” The second reservation paragraph can only refer to a life estate in the surface of the property because George Tank reserved to himself in the preceding paragraph the ...
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