the-unknown-stockholders-of-the-km-van-zandt-land-company-and-the-unknown ( 2008 )


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  •                          COURT OF APPEALS
    SECOND DISTRICT OF TEXAS
    FORT WORTH
    NO. 2-06-294-CV
    THE UNKNOWN STOCKHOLDERS                               APPELLANTS
    OF THE K.M. VAN ZANDT LAND
    COMPANY AND THE UNKNOWN
    HEIRS, SUCCESSORS, AND
    ASSIGNS OF THE UNKNOWN
    STOCKHOLDERS OF THE K.M.
    VAN ZANDT LAND COMPANY
    AND EDMUND P. CRANZ AND
    NEIL L. VAN ZANDT
    V.
    WHITEHEAD EQUITIES, JV.;                                APPELLEES
    JAGEE REAL PROPERTIES, L.P.;
    GARVIEW PARTNERS, L.P.;
    SPOKANE VENTURES, LTD., INC.;
    NONA, INC.; WILL ED WADLEY;
    AND FPA FOUNDATION
    ------------
    FROM THE 67TH DISTRICT COURT OF TARRANT COUNTY
    ------------
    MEMORANDUM OPINION 1
    1
    … See T EX. R. A PP. P. 47.4.
    ------------
    Appellants, the unknown stockholders of the K.M. Van Zandt Land
    Company (“the Land Company”) and the unknown heirs, successors, and
    assigns of the unknown stockholders (“the Unknown Heirs”), and Edmund P.
    Cranz and Neil L. Van Zandt (“the Cranz Appellants”), challenge the summary
    judgment granted for Appellees Whitehead Equities, JV.; Jagee Real Properties,
    L.P.; Garview Partners, L.V.; Spokane Ventures, Ltd., Inc.; Nona, Inc.; Will Ed
    Wadley; and FPA Foundation. In one broad issue, the Unknown Heirs contend
    that the trial court erred by granting summary judgment for Appellees. The
    Cranz Appellants bring two issues, arguing that the trial court erred by granting
    summary judgment and by granting Appellees’ peremptory motion to strike
    Appellants’ request for class certification. Because we hold that the trial court
    did not err by granting summary judgment, we affirm.
    I. F ACTS AND P ROCEDURAL H ISTORY
    In the early part of the twentieth century, the Land Company dedicated
    several additions, divided into lots, around the West Seventh Street area of Fort
    Worth (“the subdivisions”) and conveyed the real property under deeds
    containing restrictions against, among other things, the sale of alcohol on the
    conveyed property (“the Van Zandt deeds”). The restrictions state,
    This conveyance is however made upon the following condition
    and limitations: That if . . . intoxicating liquor shall ever be sold
    2
    upon said premises or any part thereof, then . . . the said premises
    hereby conveyed shall thereupon immediately revert to the grantor
    herein and its legal representatives, and the estate hereby granted
    shall thereupon terminate.
    The Land Company formally dissolved in 1947.
    Appellees own tracts of land in Fort Worth that were conveyed to them
    by deeds containing these provisions. Appellees filed suit seeking a declaratory
    judgment that the restrictions in the deeds are invalid and unenforceable and to
    have the trial court remove the encumbrance from the title to the property.
    Prior to the instant suit, some other property owners in the same area who held
    land under deeds from the Land Company with these restrictions had brought
    suit against the corporation, its directors, or its unknown shareholders to set
    aside the reversionary rights (as Appellants call them) or restrictive covenants
    (as characterized by Appellees) relating to their properties. In each of those
    cases, either the plaintiffs obtained a post-answer default judgment, or the
    parties settled, with the defendants agreeing to the removal of the restrictions.
    In at least one case, the trial court granted summary judgment for the plaintiffs,
    setting aside the “restrictive covenants, conditions subsequent, and reverter
    clauses” contained in the plaintiffs’ deeds.       But the summary judgment
    evidence here does not include the pleadings in that case, and so we cannot
    3
    say whether the restrictions at issue or the summary judgment grounds
    asserted in that case were the same as those here.
    Appellees moved for summary judgment on six grounds: (1) there are no
    persons or entities with a right to enforce the restrictions; (2) Appellants are
    collaterally estopped from contesting Appellees’ claims concerning the invalidity
    and unenforceability of the restrictions; (3) the restrictions are unenforceable
    due to Appellants’ waiver and abandonment of the restrictions; (4) Appellants
    are prevented from enforcing the restrictions due to the changed conditions that
    make it impractical and inequitable to enforce the restrictions; (5) the
    restrictions in question are barred by the rule against perpetuities; and (6) the
    restrictions, if left in place, act as an impermissible restraint on the alienation
    of the real property in question. The trial court granted summary judgment
    without specifying the grounds.
    II. S TANDARD OF R EVIEW
    A plaintiff is entitled to summary judgment on a cause of action if it
    conclusively proves all essential elements of the claim. 2 When reviewing a
    summary judgment, we take as true all evidence favorable to the nonmovant,
    and we indulge every reasonable inference and resolve any doubts in the
    2
    … See T EX. R. C IV. P. 166a(a), (c); MMP, Ltd. v. Jones, 
    710 S.W.2d 59
    ,
    60 (Tex. 1986).
    4
    nonmovant’s favor. 3 The summary judgment will be affirmed only if the record
    establishes that the movant has conclusively proved all essential elements of
    the movant’s cause of action or defense as a matter of law. 4
    III. A NALYSIS
    In the Unknown Heirs’ sole issue and the Cranz Appellants’ first issue,
    they contend that the trial court erred by finding that the deed restrictions
    created restrictive covenants and by granting summary judgment on the ground
    that there are no persons or entities with a right to enforce the restrictions. We
    hold that the trial court did not err by granting summary judgment regardless
    of whether the restrictions are characterized as restrictive covenants or
    reversionary interests.
    A court may refuse to enforce a restrictive covenant where the parties
    entitled to enforce it have acquiesced “in such substantial violations within the
    restricted area as to amount to an abandonment of the covenant or a waiver of
    the right to enforce it” or where “there has been such a change of conditions
    in the restricted area or surrounding it that it is no longer possible to secure in
    3
    … IHS Cedars Treatment Ctr. of DeSoto, Tex., Inc. v. Mason, 
    143 S.W.3d 794
    , 798 (Tex. 2004).
    4
    … City of Houston v. Clear Creek Basin Auth., 
    589 S.W.2d 671
    , 678
    (Tex. 1979).
    5
    a substantial degree the benefits sought to be realized through the covenant.” 5
    In this case, Appellees introduced thousands of pages of summary judgment
    evidence, including evidence relating to the character of the neighborhood. This
    evidence includes a report from the Fort Worth Planning Department that
    identifies West Seventh Street as a commercial corridor that the city wishes to
    revitalize and finds that the corridor is an area “characterized by predominantly
    commercial land uses,” including restaurants. Appellees’ evidence also includes
    a newspaper article, two affidavits, alcoholic beverage receipts from the Texas
    Comptroller of Public Accounts, and mixed beverage permits and wine and beer
    retailer permits, which, when taken together, indicate that there are over
    twenty businesses in and around the vicinity of Appellees’ property that are
    openly selling alcoholic beverages, at least twelve of which are on property
    conveyed by the Land Company by deeds containing the same restrictions as
    those at issue here.   Appellees also introduced evidence of past trial court
    judgments setting aside the Van Zandt restrictions on at least fifteen lots in and
    around the vicinity of Appellees’ property. This evidence shows that Appellees’
    property is located in an area of predominantly commercial land use where the
    alcohol restrictions have been violated openly and never judicially enforced. It
    5
    … Cowling v. Colligan, 
    158 Tex. 458
    , 461–62, 
    312 S.W.2d 943
    , 945
    (1958).
    6
    is no longer possible to realize whatever benefits the grantor had hoped to
    receive or to impart to grantees by preventing the sale of alcohol in the area
    because alcohol is being sold throughout the area, and due to the restrictions
    having been previously declared unenforceable on a number of lots throughout
    the Van Zandt subdivisions, it is no longer possible for the area to be one where
    the sale of alcohol is prohibited uniformly across the vicinity by restrictive
    covenants.
    Appellants cite Hemphill v. Cayce 6 in support of their arguments that the
    restrictions should not be held unenforceable due to changed conditions or
    waiver and abandonment. We do not find that case controlling. That case
    addressed when a court should refuse to enforce a covenant restricting property
    to residential use and held that the presence of some businesses in or near the
    area is not enough to render the area unsuitable for residential purposes absent
    some radical change in the vicinity.7 That holding does not affect our decision
    in this case where the restrictions at issue are against the sale of alcohol, not
    commercial use, and where change in the vicinity (to one where alcohol is sold)
    6
    … 
    197 S.W.2d 137
    , 141 (Tex. Civ. App.—Fort Worth 1946, no writ).
    7
    … 
    Id. at 140–41.
    7
    is neither trivial nor so far removed from Appellees’ property so as not to affect
    it.
    Finally, although the Cranz Appellants state in their brief that the affidavit
    of Neil Van Zandt “creates a fact issue regarding the relevant conditions,” they
    do not explain how the affidavit raises a fact issue as to the sale of alcohol in
    the area. Van Zandt states in his affidavit that he is familiar with the property
    “made the subject of” this suit and that “[t]o the best of [his] knowledge none
    has ever been used for the sale of alcohol.” This vague statement does not
    address the specific, controverting summary judgment evidence of Appellees
    and does not mention at all the sale of alcohol in the area on other properties
    not owned by Appellees. We hold that the trial court did not err to the extent
    that it granted summary judgment on the ground that if the restrictions in the
    Van Zandt deeds are restrictive covenants, they are unenforceable.
    To the extent that the restrictions can be construed as creating
    reversionary rights, the trial court also did not err by granting summary
    judgment for Appellees. Appellants argue that the restrictions create rights of
    reentry that were distributed to the Land Company’s shareholders upon
    dissolution of the corporation, and therefore they, as former shareholders or
    heirs of former shareholders, may enforce those rights. The question before
    this court is not whether a right of reentry is a property right that would be
    8
    distributed to a company’s shareholders upon dissolution of the company; the
    question is whether the grantor in this case (the Land Company) intended to
    create a right of reentry that would be enforceable by its shareholders after its
    dissolution. We hold that it did not.
    We initially note that if the Land Company had intended to convey either
    an estate on condition subsequent or a determinable fee subject to a conditional
    limitation,8 the deeds are unclear as to which was intended in that the deeds
    contain some language that has been held to create a condition subsequent as
    well as some language traditionally held to create a limitation.9    The Texas
    Supreme Court has held that where a deed creates doubt as to whether the
    grantor intended a limitation or a condition subsequent, the deed should be
    construed as creating a condition subsequent,10 and so if the deeds create
    8
    … See Field v. Shaw, 
    535 S.W.2d 3
    , 5 (Tex. Civ. App.—Amarillo 1976,
    no writ) (“A conditional limitation exists when the estate is limited by the
    happening of an event which, when it occurs, terminates the estate without the
    necessity of reentry. A condition subsequent designates an event which, when
    it happens, gives the grantor the right to terminate the estate by reentry.”);
    James v. Dalhart Consol. ISD, 
    254 S.W.2d 826
    , 829 (Tex. Civ. App.—Amarillo
    1952, writ ref’d) (defining a “determinable fee” as “an estate which could
    remain forever or which could terminate on the happening of the contingency
    limiting the estate” and noting that “[a]lthough the whole estate was in the
    grantee or owner, the possibility of reverter remained in the grantor”).
    9
    … Lawyers Trust Co. v. City of Houston, 359 S.W .2d 887, 890 (Tex.
    1962).
    10
    … 
    Id. 9 reversionary
    interests, the interests are rights of reentry upon breach of
    condition subsequent. And we agree with Appellants that language similar to
    that of the Van Zandt deeds has sometimes been determined to impart a
    condition subsequent, although the law in this area is not clear or consistent.11
    But the law does not favor forfeiture provisions or restrictions on the use
    of conveyed property.12 We construe deeds as a whole, 13 keeping in mind that
    the parties to a deed “intend every clause to have some effect and in some
    …
    11
    See 
    id. (construing as
    a condition subsequent a provision in a deed that
    if conveyed property ceased to be used for its designated purpose, title to the
    property would vest in the grantor); Stevens v. Galveston, H. & S.A. Ry. Co.,
    
    212 S.W. 639
    , 644–45 (Tex. Comm’n. App. 1919, judgm’t adopted). But see,
    e.g., Ragland v. Overton, 
    44 S.W.2d 768
    , 771 (Tex. Civ. App.— Amarillo
    1931, no writ) (treating a restriction similar to that of the Van Zandt deeds as
    importing a restrictive covenant).
    …
    12
    Wichita Falls Grain Co. v. Taylor Foundry Co., 
    649 S.W.2d 798
    , 800
    (Tex. App.—Fort Worth 1983, writ ref’d n.r.e.) (“It is well settled that the law
    does not favor forfeitures, that a deed will be construed to avoid a forfeiture if
    possible, and that forfeiture provisions will be construed most strongly against
    the grantor.”), Knight v. Chicago Corp., 
    183 S.W.2d 666
    , 671 (Tex. Civ.
    App.—San Antonio 1944), aff’d, 
    144 Tex. 98
    , 
    188 S.W.2d 564
    (1945); see
    also Hearne v. Bradshaw, 
    158 Tex. 453
    , 456, 
    312 S.W.2d 948
    , 951 (1958)
    (“Conditions subsequent are not favored by the courts.”).
    13
    … Bennett v. Tarrant County Water Control & Improvement Dist. No.
    One, 
    894 S.W.2d 441
    , 446 (Tex. App.—Fort Worth 1995, writ denied) (“In
    seeking to ascertain the intention of the parties, the court must attempt to
    harmonize all parts of the deed.”).
    10
    measure to evidence their agreement.” 1 4      Deed restrictions and forfeiture
    clauses are strictly construed against the grantor, and any doubts as to the
    intentions of the grantor will be resolved in favor of the grantee and “the free
    and unrestricted use of the premises.” 15
    For example, the Texas Commission of Appeals, faced with construing
    language appearing to create a condition subsequent, held that the grantor
    intended by the condition to increase the value of his other property in the area
    and that therefore the condition only endured until the grantor’s purpose had
    been met; thus, when the grantor owned no more property that would benefit
    from the condition, the grantor could no longer enforce the condition. 16 One
    court of appeals held that a provision similar to the one in the Van Zandt deeds
    did not inure to the benefit of the grantors’ heir and could not be enforced by
    14
    … Altman v. Blake, 
    712 S.W.2d 117
    , 118 (Tex. 1986).
    …
    15
    
    Ragland, 44 S.W.2d at 771
    ; see also 
    Stevens, 212 S.W. at 644
    (noting
    that because forfeitures are not favored, language ordinarily used to create a
    condition subsequent is strictly construed against the grantor).
    16
    … See 
    Stevens, 212 S.W. at 645
    (holding that where the grantors in the
    deeds at issue did not appear to have had any interest in the conditions
    expressed in the deeds other than the enhancement in value of their other
    property that would result from the compliance with the conditions, and where
    the grantors had subsequently conveyed all their other property that was
    expected to benefit from the conditions, the grantors had no interest in further
    compliance with the conditions), Maddox v. Adair, 
    66 S.W. 811
    , 813–14 (Tex.
    Civ. App.—Dallas 1901, writ ref’d) (same).
    11
    the heir when the conveyance said only that upon breach of the condition, the
    property would revert to the grantors.17 It has also been held that where a
    restrictive clause states that the deed would become null and void if the deed’s
    condition was breached by the “grantee, his heirs[,] or legal representatives,”
    because the clause omitted the word “assigns,” any breach by an assignee of
    the grantee would not cause a reversion.18
    The deeds in this case state that upon breach of the deed restrictions, the
    property conveyed would revert to “the grantor herein and its legal
    representatives.” The term “legal representative” has no fixed meaning in the
    law, but Texas case law suggests that the term refers to “one who is a party
    substitute or one who can sue on another’s behalf” or “one who succeeds to
    a party’s legal rights, by reason of death, or the operation of law.” 19 Texas
    statutes in some cases define when a person may act for another as a legal
    representative. 20 Under the common law, “when there is nothing in the context
    17
    … Daggett v. City of Fort Worth, 
    177 S.W. 222
    , 223 (Tex. Civ.
    App.—Amarillo 1915, no writ).
    18
    … 
    Ragland, 44 S.W.2d at 771
    .
    …
    19
    McMahan v. Greenwood, 
    108 S.W.3d 467
    ,   488–89     (Tex.
    App.—Houston [14th Dist.] 2003, pet. denied).
    20
    … See, e.g., T EX. R EV. C IV. S TAT. A NN . art. 1302-2.06 (Vernon 2003)
    (stating that a domestic entity may in some cases bring suit against its
    12
    to control its meaning, its primary and ordinary meaning is ‘executors and
    administrators.’” 21
    Courts generally distinguish between a person acting in his own right and
    one acting as the legal representative of another.22 Although the term may be
    construed more broadly where it appears a broader construction was
    intended,23 in this case, we must resolve any doubt about the grantor’s
    intention against the grantor.    A corporation’s shareholders may, in some
    managerial officials either by acting directly or through “a receiver, trustee, or
    other legal representative”) (emphasis added); T EX. P ROP. C ODE A NN. § 54.006
    (Vernon 2007) (distress warrant may be applied for by a person to whom rent
    is payable under a lease or by the person’s “agent, attorney, assign, or other
    legal representative”) (emphasis added); T EX. L AB. C ODE A NN. § 503.071
    (Vernon 2006) (stating that the attorney general is the legal representative of
    the institutions of the University of Texas System and may bring and defend all
    suits necessary to carry out the purposes of that chapter of the labor code);
    T EX. W ATER C ODE A NN. § 26.022(c) (Vernon 2008) (with respect to notice of
    hearings, “[i]f the party is not an individual, the notice may be given to any
    officer, agent, or legal representative of the party”).
    21
    … 
    McMahan, 108 S.W.3d at 487
    –88; see also Newton v. Newton, 
    77 Tex. 508
    , 511, 
    14 S.W. 157
    , 158 (1890) (“Executors, administrators, and, if
    there be neither, the heirs, are the legal representatives of a deceased person”).
    22
    … See, e.g., Hanover Ins. Co. v. Hoch, 
    469 S.W.2d 717
    , 724 (Tex. Civ.
    App.—Corpus Christi 1971, writ ref’d n.r.e.) (holding that the Dead Man’s
    Statute did not exclude testimony as to conversations with the decedent where
    the third-party defendants were sued in their individual capacities and not as
    legal representatives of the decedent’s estate).
    23
    … 
    McMahan, 108 S.W.3d at 491
    (noting that the “primary meaning of
    the term ‘legal representatives’ would, of course, yield to a context which
    clearly showed a different meaning was intended”).
    13
    circumstances, represent the corporation, but in that case, the shareholders act
    for the corporation and not themselves. 24 Former shareholders of a corporation,
    after that corporation’s dissolution and period of winding up, do not represent
    the corporation.25 Thus, if the Land Company had intended the right of reentry
    to pass to and be enforceable by its former shareholders after dissolution, it
    would have made such intention clear, for example, by the use of the term
    “successors” or “shareholders upon dissolution.” 26 We hold that the term “legal
    representatives,” as used in the Van Zandt deeds, does not include Appellants.
    Further, although the restriction in each deed states that it is binding on
    the grantee and any of his heirs, legal representatives, and assigns thereafter,
    24
    … See, e.g., El T. Mexican Rests., Inc. v. Bacon, 
    921 S.W.2d 247
    , 251,
    253 (Tex. App.—Houston [1st Dist.] 1995, writ denied) (noting that if a
    corporation’s charter has been forfeited, title to the corporations’ assets is
    bifurcated, with beneficial title in the shareholders, and in that case, a
    shareholder may sue on the corporation’s behalf, as the corporation’s
    representative, but it may not sue to recover individually).
    25
    … See Sugg v. Smith, 
    205 S.W. 363
    , 370 (Tex. Civ. App.—Austin
    1918, writ ref’d) (“[W]hen corporations die or cease to exist they have no heirs
    who inherit their property or their rights. Their assets belong to the stockholders
    . . .; [but] the stockholders do not constitute the corporation or its legal
    representative further than is necessary for the protection of their rights as
    stockholders.”) (emphasis added).
    26
    … Anderson v. New Prop. Owners’ Ass’n of Newport, Inc., 
    122 S.W.3d 378
    , 385–86 (Tex. App.—Texarkana 2003, pet. denied) (discussing deed
    restrictions filed by the corporation developing a subdivision, which the
    corporation had provided would “inure to the benefit of the Corporation, its
    successors and assigns”) (emphasis added).
    14
    the deed does not use such terms as “successors” 27 and “assigns” in describing
    to whom the estate would revert upon breach of the condition, even though
    some of the deeds by which the Land Company conveyed property in the Van
    Zandt subdivisions were executed after it was judicially determined that in
    Texas, rights of reentry are assignable, 28 and even though a dissolved
    corporation’s successors can be its shareholders.29 We think it relevant that the
    list of those against whom the restriction would run included not just the
    27
    … See El T. Mexican Rests., 
    Inc., 921 S.W.2d at 253
    , n.10 (stating
    that, had the sole shareholder of a corporation dissolved the corporation, he
    would have “properly acquired both its assets and its liabilities” and become the
    corporation’s successor in interest); C HRISTOPHER G USTAVUS T IEDEMAN & E DWARD
    J OSEPH W HITE , T HE A MERICAN L AW OF R EAL P ROPERTY § 30 (1906) (“And if the
    conveyance be to a corporation the word ‘successors’ takes the place of
    ‘heirs,’ since a corporation cannot have heirs.”).
    28
    … Perry v. Smith, 
    231 S.W. 340
    , 344 (Tex. Comm’n App. 1921,
    judgm’t adopted).
    29
    … Compare El T. Mexican Rests., 
    Inc, 921 S.W.2d at 253
    –54 (stating
    that if the corporation at issue had been dissolved, its sole shareholder would
    have been the corporation’s successor in interest, but because the shareholder
    had not yet dissolved the corporation, the shareholder was not a successor in
    interest); and T EX. B US. C ORP. A CT A NN. art. 5.06 (Vernon 2003) (stating that
    when two corporations merge, the surviving or new corporation owns the
    property of the merged corporations, unless the property is otherwise provided
    for in the plan of merger), and Int’l Ass’n of Machinists, Lodge No. 6 v. Falstaff
    Brewing Corp., 
    328 S.W.2d 778
    , 781 (Tex. Civ. App.—Houston 1959, no writ)
    (holding that as applied to corporations, the term “successor” “does not
    ordinarily connote an assignee, but is normally used in respect to corporate
    entities, . . . and does not contemplate acquisition by ordinary purchase from
    another corporation, and, in respect to natural persons, is apt and appropriate
    term to designate one to whom property descends or estate of decedent”).
    15
    grantee but all those that could take from the grantee, but the list of those to
    whom the property could revert was much more limited.30 Under the language
    of the deeds, Appellants only hold the rights of reentry from the deeds in this
    case if they are “the grantor” or “its legal representatives.” Appellants are
    clearly not the Land Company, and we have already held that they are not its
    “legal representatives.”
    Construing the deed as a whole, and resolving any doubt against the
    grantor and in favor of the grantee and the free and unrestricted use of the
    property, we hold that the restriction was intended to benefit the Land
    Company only while it continued in existence, engaging in the business of
    selling real estate, and was not intended to exist perpetually for the benefit of
    its former stockholders and their heirs. The Land Company has been dissolved
    and its affairs wound up, and Appellants are not entitled to enforce the
    restrictions.
    Appellants argue that reversionary rights may be devised, conveyed, or
    assigned and that when the company dissolved, the reversionary rights in this
    30
    … See Dilbeck v. Bill Gaynier, Inc., 
    368 S.W.2d 804
    , 808 (Tex. Civ.
    App.—Dallas 1963, writ ref’d n.r.e.) (stating that the court did not believe that
    the appellant grantors contemplated forfeiture of the conveyed property and
    noting that “[i]f appellants had any such intention it could easily have been
    expressed in the deed” and that “[i]ts omission, while not controlling, is
    significant”).
    16
    case were distributed to the shareholders as a matter of law. The fact that a
    right of reentry may be devised, conveyed, or assigned does not compel a
    holding that, in this case, the grantor intended to create a right of reentry that
    would be inherited, conveyed, or assigned or that Appellants now hold that
    right.    Appellants point to summary judgment evidence of a probate court
    judgment stating that reversionary rights were vested as a matter of law in the
    shareholders of the Land Company upon the company’s dissolution.             That
    judgment does not set forth the deed language creating the reversionary rights
    at issue in that case, so even if the probate court was correct that a right of
    reentry passes to shareholders upon a company’s dissolution, it is not relevant
    to a determination in this case of whether the grantor intended the right of
    reentry to be enforceable by its successors. And we note that the language of
    that probate judgment indicates that the condition related to whether the
    property at issue was used for school purposes.
    Similarly, Appellants argue that the deeds did not have to state that the
    property would revert to the grantor or its “heirs” because corporations do not
    have “heirs”; but even if the word “heirs” is not required to make valid a right
    of reentry in a deed from a corporation, because the language of the deed
    17
    shows no intention to allow successors to hold or enforce that right, we will
    not create one. 31
    Finally, Appellants argue that Appellees have judicially admitted that
    Appellants are successors to the rights of reentry. They base their argument
    on the fact that Appellees argued that Appellants are collaterally estopped by
    earlier judgments “because they are successors in interest who derived their
    claims either through the [Land] Company . . . or earlier unknown heirs and
    stockholders.” Again, even if Appellants are correct that Appellees judicially
    admitted that Appellants are the successors in interest to the Land Company,
    that does not require a holding that Appellants hold rights of reentry to
    Appellees’ property that they are entitled to enforce or that the Land Company
    intended for its successors to hold such rights. We have held that the Land
    Company’s deeds evidence no such intention. We therefore hold that the trial
    court could have properly granted summary judgment on the ground that
    Appellants do not have a right to enforce the restrictions. We overrule the
    Unknown Heirs’ sole issue and the Cranz Appellants’ first issue on the ground
    31
    … See Gladewater County Line ISD v. Hughes, 
    59 S.W.2d 351
    , 354
    (Tex. Civ. App.—Texarkana 1933), aff’d, 
    124 Tex. 190
    , 
    76 S.W.2d 471
    (1934) (“[A] deed will not be construed to create an estate on condition or
    limitation unless language is used which . . . , from their own force, imports a
    condition or limitation or the intent of the grantor to make a conditional estate
    is otherwise clearly and unequivocally indicated.”).
    18
    that Appellants are not entitled to enforce the deed restrictions, and we do not
    reach Appellants’ other arguments with respect to the deed restrictions. 32
    In their second issue, the Cranz Appellants’s assert that the trial court
    erred by granting Appellees’s motion to strike the Cranz Appellants’ request for
    class certification. Because we have held that the trial court did not err by
    granting summary judgment for Appellees, we overrule this issue as moot.33
    IV. Conclusion
    Having overruled Appellants’ issues, we affirm the trial court’s judgment.
    LEE ANN DAUPHINOT
    JUSTICE
    PANEL B:       DAUPHINOT, HOLMAN, and GARDNER, JJ.
    DELIVERED: June 19, 2008
    32
    … See T EX. R. A PP. P. 47.1.
    33
    … See 
    id. 19
    

Document Info

Docket Number: 02-06-00294-CV

Filed Date: 6/19/2008

Precedential Status: Precedential

Modified Date: 2/1/2016

Authorities (22)

Hanover Insurance Company v. Hoch , 1971 Tex. App. LEXIS 2471 ( 1971 )

Bennett v. TARRANT CTY WATER CONTROL , 894 S.W.2d 441 ( 1995 )

IHS CEDARS TREATMENT CTR OF DESOTO, TEXAS, INC. v. Mason , 143 S.W.3d 794 ( 2004 )

McMahan v. Greenwood , 2003 Tex. App. LEXIS 4662 ( 2003 )

MMP, Ltd. v. Jones , 29 Tex. Sup. Ct. J. 381 ( 1986 )

City of Houston v. Clear Creek Basin Authority , 23 Tex. Sup. Ct. J. 7 ( 1979 )

Hemphill v. Cayce , 1946 Tex. App. LEXIS 574 ( 1946 )

Sugg v. Smith , 1918 Tex. App. LEXIS 765 ( 1918 )

Cowling v. Colligan , 158 Tex. 458 ( 1958 )

James v. Dalhart Consol. Independent School Dist. , 1952 Tex. App. LEXIS 2296 ( 1952 )

Gladewater County Line Independent School Dist. v. Hughes , 1933 Tex. App. LEXIS 580 ( 1933 )

Knight v. Chicago Corp. , 1944 Tex. App. LEXIS 945 ( 1944 )

Knight v. Chicago Corp. , 144 Tex. 98 ( 1945 )

International Ass'n of MacHinists, Lodge No. 6 v. Falstaff ... , 1959 Tex. App. LEXIS 2152 ( 1959 )

Dilbeck v. Bill Gaynier, Inc. , 1963 Tex. App. LEXIS 2422 ( 1963 )

Field v. Shaw , 1976 Tex. App. LEXIS 2557 ( 1976 )

Wichita Falls Grain Co. v. Taylor Foundry Co. , 649 S.W.2d 798 ( 1983 )

El T. Mexican Restaurants, Inc. v. Bacon , 921 S.W.2d 247 ( 1996 )

Anderson v. New Property Owners' Ass'n of Newport, Inc. , 2003 Tex. App. LEXIS 10129 ( 2003 )

Hearne v. Bradshaw , 312 S.W.2d 948 ( 1958 )

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