Wilson vs. Beck Energy (Columbiana County, Ohio) assignment without consent

I do not have any connection to this case, but I thought I would post it to keep this group informed.  It was reported in the Salem News today that Nathan Wilson of Hanoverton, Ohio has filed a lawsuit against Beck Energy for assignment of a lease without written consent of Lessor.  Case number is 2013 CV 00140 in Columbiana County, Ohio:  http://www.ccclerk.org/case_access.htm

He is being represented by attorney ROBERT L GUEHL.  A google search says that he is currently with the Burton Law firm in Dayton, but he used to be the Law Director of the city of Salem.

That is all the info I have at this time.  If I learn more, I will post later.

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Permalink Reply by J.D on February 27, 2013 at 4:38am

Fang,

You might want to check on the court decision filed in Washington County this week, Harding vs. Virco. It was a written consent issue. 

Permalink Reply by J.D on February 27, 2013 at 4:53am

A voided assignment. No mention of "may not be unreasonably withheld" in the original lease, and royalties had been paid and accepted after the assignment occurred.

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on February 27, 2013 at 4:42am

There is very, very little case law in Ohio about this subject.  The outcome of cases like this will shape the face of the industry for decades. 

Permalink Reply by searcherone on February 27, 2013 at 12:00pm

J. D.

To which company did Virco assign the lease?  Interesting that royalty had been paid and accepted.  Do you know the time of events in case?   One o&g lawyer always advised me NOT to cash the check as that was a form of acceptance.

Permalink Reply by J.D on February 27, 2013 at 12:29pm
It was an assignment from Carlton Oil to Virco from July 2011. I believe the suit was filed last summer and royalties had been accepted. Virco has since been sold to Triad Hunter.
0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on February 27, 2013 at 5:31pm

Cashing the check is a sign of acceptance, but most contracts only require the Lessee to tender payment.  Once they've paid you their end is covered.

Permalink Reply by J.D on February 28, 2013 at 1:34am
I believe the best thing anyone can do is have an attorney review their lease for it's specific terms, especially older leases. In this case, royalties were paid after the assignment - however the breach of contract wasn't discovered until approximately 9 months after the assignment occurred. The court also did not buy the argument that signing a w-9 amounted to written consent.
Permalink Reply by Bob Guehl on October 28, 2014 at 10:19am

Wilson v Beck resulted in a ruling by Judge Washam in favor of landowner. Vacated ruling, settled. Bigger case along same lines (lack of landowners' consent to assign - Patriot Energy) resolved recently at mediation.

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