Spring Creek Ranch, LLC v. Svenberg

Two property owners conveyed an interest in the surface of the property and half the oil and gas rights under the land to another party. The deed, publicly recorded, reserved the other half of the oil and gas rights. After several additional conveyances, Victor Uttke obtained the surface interest and one-half interest in the mineral rights. Under North Dakota law, if a mineral interest was unused for 20 or more years, the surface owner could seek to claim the mineral interest by following certain publication requirements. Uttke filed an affidavit claiming he had made unsuccessful efforts to locate the original property owners, including Zoulia Svenberg, who had the other half-interest in the mineral rights. Spring Creek Ranch, LLC (Spring Creek) (plaintiff), of which Uttke was the president, then filed an action to quiet title in the remaining one-half mineral interest. Eventually, the trial court entered a default judgment in favor of Spring Creek, concluding that there had been diligent but unsuccessful efforts to locate the remaining mineral-interest holders. Successors to the original two property owners (defendants) then filed a motion to vacate the default judgment. The successors claimed that they had not received notice of the action and that they had a meritorious defense that would entitle them to the one-half interest in the mineral rights. That motion was granted, and Spring Creek eventually moved for summary judgment that it was entitled to the mineral rights based on Uttke’s efforts. The trial court granted the motion, and the successors appealed.