Western Energy Corporation v. Stauffer
Western Energy Corporation appealed a district court judgment finding its quiet title action to be barred by applicable statutes of limitation and laches and awarding the mineral interests at issue to the Stauffers. In 1959, L.M. and C.S. Eckmann agreed to convey property to William and Ethel Stauffer through a contract for deed. The contract for deed included a reservation of the oil, gas, and other mineral rights in the property and described a five-year payment plan. After the payment plan concluded in 1964, the Eckmanns were to convey the property to the Stauffers by warranty deed. The warranty deed did not contain a mineral reservation, but stated that it was given "in fulfillment of a contract for deed issued on the 25th of May, 1959." Numerous conveyances, oil and gas leases, and similar transactions were completed by both the Eckmanns and Stauffers, as well as their successors in interest, between the execution of the warranty deed in 1959 and the filing of this quiet title action in 2016. Western Energy Corporation ("Western") obtained its interests in the subject minerals through mineral deeds executed in 1989 and 1990. The original parties to the warranty deed are all now deceased. Western filed this action to quiet title in 2016. Western and the Stauffers submitted stipulated facts to the district court. Although brought as a quiet title action, the relief requested was actually reformation of the warranty deed. The district court found reformation barred by the statutes of limitation as well as by the doctrine of laches. Further, the district court concluded the discrepancy between the contract for deed and the warranty deed was not enough to establish mutual mistake. Because it found that Western had not met its burden of proof to establish mutual mistake at the time of conveyance, the district court entered judgment quieting title of the minerals to the Stauffers. Finding no reversible error in the district court's judgment, the North Dakota Supreme Court affirmed. View "Western Energy Corporation v. Stauffer" on Justia Law
