xto-energy-inc-and-tommy-j-madewell-patricia-madewell-violet-joyce ( 2011 )

COURT OF APPEALS
SECOND DISTRICT OF TEXAS
FORT WORTH
NO. 02-09-00299-CV
XTO ENERGY INC., TOMMY J. APPELLANTS
MADEWELL, PATRICIA
MADEWELL, VIOLET JOYCE
RENFRO KIVIMAKI, GARY W.
YOUNT, SHIRLEY K. STEPHENS,
GREGORY DOYLE MOSELEY,
SHARLET YVONNE HOLAMON,
VIOLA D‘ANN MADEWELL, NASA
ENERGY CORPORATION, EDITH
MADEWELL MCCURRIN, TOMMY
ROESSLER, DEBBIE MADEWELL,
THE UNKNOWN HEIRS OF
ARTHUR FRED MADEWELL,
THE UNKNOWN HEIRS OF GENE
ROESSLER, THE UNKNOWN
HEIRS OF W.R. MADEWELL,
MATILDA JONES MADEWELL,
AND PAULA SIMON MADEWELL
V.
LEONARD NIKOLAI AND SANDY APPELLEES
NIKOLAI
AND
LEONARD NIKOLAI AND SANDY APPELLANTS
NIKOLAI
V.
XTO ENERGY INC., TOMMY J. APPELLEES
MADEWELL, PATRICIA
MADEWELL, VIOLET JOYCE
RENFRO KIVIMAKI, GARY W.
YOUNT, SHIRLEY K. STEPHENS,
GREGORY DOYLE MOSELEY,
SHARLET YVONNE HOLAMON,
VIOLA D‘ANN MADEWELL, NASA
ENERGY CORPORATION, EDITH
MADEWELL MCCURRIN, TOMMY
ROESSLER, DEBBIE MADEWELL,
THE UNKNOWN HEIRS OF
ARTHUR FRED MADEWELL,
THE UNKNOWN HEIRS OF GENE
ROESSLER, THE UNKNOWN
HEIRS OF W.R. MADEWELL,
MATILDA JONES MADEWELL,
PAULA SIMON MADEWELL,
WINNIFRED M. IMBODEN,
ESTATE OF OUILDA MARIE
MADEWELL BAIRD (DECEASED),
WILSON OIL & GAS COMPANY,
SHERON LANELLE MITCHELL,
MATTHEW KIRK MILLER,
PATRICIA SUE MCNEW FINCH,
DEBRA KAY MYRICK, WILLIAM
JAY MCNEW, WANDA ANN
TUBBS, BEVERLY ANN MCNEW
THOMPSON, PETE MITCHELL,
GLENNES GEROME LANGFORD,
WILLIAM DON MADEWELL,
NORMAN EDGAR MCNEW, AND
BEVERLY E. MCNEW SMITHIE
2
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FROM THE 367TH DISTRICT COURT OF DENTON COUNTY
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OPINION
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In three issues, the appellants that are listed above, other than Leonard
and Sandy Nikolai, argue that the trial court erred by denying their motions for
summary judgment and by granting the Nikolais‘ motion for summary judgment.1
The Nikolais contend that the trial court‘s summary judgment decision on the
merits of their title and declaratory judgment claims was proper, but they argue in
three issues that the trial court erred by not granting summary judgment on
additional grounds, by making erroneous rulings on their objections to XTO‘s
summary judgment evidence, and by failing to award attorney‘s fees. We affirm
in part, reverse and render in part, and reverse and remand in part.
Background Facts
In 1882, Albert Shields ostensibly conveyed the following land to William
Pippin through a deed (the ―Shields Deed‖):
1
All of the appellants, except the Nikolais, have adopted or restated the
arguments made by XTO Energy Inc. (XTO). See Tex. R. App. P. 9.7. Where
appropriate, to increase the readability of this opinion, we will use ―appellants‖
and ―XTO‖ interchangeably to refer to the parties whose positions are adverse to
the Nikolais‘ positions.
3
92½ acres of land situated in the County of Denton and 8 miles
South of the city of Denton and being a part of the J.L. Rose 160
acre survey[2] beginning at a pile of Rock in the south B line of 160
acre survey made for Richard Knight dec‘d 450 varas[3] East from
his S.W. corner, from which a Post Oak brs North 38° W. 4½ varas[.]
Thence west passing said Knight‘s S.W. corner 1418 varas to a
stake in the . . . East B. line of a 320 acre survey made for William
Gibson from which Post oak brs North 42° W. 20 varas. Post oak
bears South 55° W. 8½ varas on the said line 637 varas to a Post
oak blazed on four sides, from which a Post oak bears North 41½°
East 6 varas Post Oak bears S. 72° E. 6½ varas. Thence East 1418
varas, a stake from which a post oak brs S 32° East 14 var[a]s a
Post oak brs north 20° E. 5¼[.] Thence North 637 varas to the place
of beginning, to contain 92½ acres of the East end of said 160 acre
survey.
In 1904, W.R. and Matilda Madewell signed a deed (the ―Madewell Deed‖) that
purported to convey land that was adjacent to the property subject to the Shields
Deed. The Madewell Deed described the land that the Madewells attempted to
convey to J.L. Goff as
all that certain lot track or parcel of land in Denton County Texas,
and being all that part of the JL Rose 160 acre preemption survey
lying west of 92½ acres off the East part of said survey deeded to
Wm Pippin by Albert Shields on Nov 28th 1882, the part here
conveyed being 67½ acres more or less of land off the west part of
said Rose survey.[4] It being expressly understood that grantors
reserve any and all minerals that may be in said land as well as the
right to mine same, said grantors being responsible to grantees for
2
The J.L. Rose survey was prepared in the 1850s, and it was patented in
1862.
3
In Texas, one vara is equal to 33.33 inches. City of Carrollton v. Duncan,
742 S.W.2d 70, 71 n.1 (Tex. App.—Fort Worth 1987, no writ).
4
Thus, it is clear that the Shields Deed and the Madewell Deed intended to
convey different parts of the 160 acres of land described by the J.L. Rose survey.
4
any damage done to said lands by reason of mining on same.
[Emphasis added.]
In 1922, Lon and Pearla Speer conveyed the same 67½ acre tract to E.M.
Madewell (through the ―Speer Deed‖).5 The Speer Deed recited, ―It is thoroughly
understood that the Mineral Rights upon this tract of land are not transferred by
this instrument, same having been retained by W.R. Madewell in deed to J.L.
Goff said deed dated Oct. 5 1904, recorded in . . . Deed Records of Denton
County, Texas.‖ In 1953, E.M. and Essie Madewell conveyed the same land to
W.V. and Elizabeth Pippin. In 1971, the Pippins deeded the land to James
Brockie (through the ―Pippin Deed‖). In its description of the property that was
being transferred, the Pippin Deed expressly relied on the Speer Deed, which the
Speers had executed almost fifty years earlier. The next year, Brockie conveyed
the land to Rodney A. Williams (through the ―Brockie Deed‖). The Brockie Deed
also relied on the Speer Deed.
In 1981, Williams conveyed 36.653 acres out of the same land to Leonard
Nikolai (through the ―Williams Deed‖). The Williams Deed described the property
being conveyed as a part of land ―described in a deed from [Brockie] to [Williams]
on the 11th day of February, 1972.‖ The contract by which Leonard bought the
property stated, ―Purchaser to receive all oil, gas, coal[,] and mineral rights on the
5
Goff and his wife transferred the land to W.A. Johnson in 1917; Johnson
and his wife conveyed it to Z.W. Smith in 1921; and Smith and his wife
transferred it to Lon A. Speer in 1922.
5
property described herein.‖6 Leonard subsequently conveyed an undivided one-
half interest in the 36.653 acres to Sandy.7
According to the Nikolais‘ pleading, in 2004, XTO contacted the Nikolais to
express an interest in entering a lease concerning the minerals under the
Nikolais‘ land. In 2005, however, XTO told the Nikolais that XTO had discovered
the mineral reservation in the Madewell Deed and that the Nikolais did not own
the minerals. In March 2007, a representative of Joint Resources Company
(JRC) appeared on the Nikolais‘ property and informed them that JRC had a
lease on the property‘s minerals and intended to drill a gas well there. In April
2007, JRC‘s attorney gave the company a title opinion stating that several
individuals other than the Nikolais owned or had legally enforceable interests in
the mineral estate on the property. The next month, the Nikolais‘ attorney sent
6
The Nikolais state that they purchased the property in reliance upon
representations by the seller and their title insurance company that the property
included both the surface and the minerals.
7
The Nikolais recognize that they are ―assigns of the grantee of the
Madewell Deed.‖ To summarize, the conveyances of the Nikolais‘ surface estate
occurred by way of the Madewell Deed (to Goff) in 1904, deeds that successively
transferred the land from Goff to the Speers between 1904 and 1922, the Speer
Deed (to E.M. Madewell) in 1922, a deed from E.M. and Essie Madewell to the
Pippins in 1953, the Pippin Deed to Brockie in 1971, the Brockie Deed to
Williams in 1972, the Williams Deed to Leonard Nikolai in 1981, and a deed from
Leonard to Sandy in 1987. The exact acreage of the land conveyed differs
between some of the deeds in the Nikolais‘ chain of title, but XTO‘s expert said
that such discrepancies are common when surveyors examine land using
different methods or technologies. The Nikolais do not contend on appeal that
the discrepancies in the amount of acreage conveyed affect the validity of the
mineral reservation in the Madewell Deed.
6
an e-mail to JRC to explain the Nikolais‘ contention that they owned the mineral
estate and to warn the company that if it drilled a well on the property, the
Nikolais could seek legal action. JRC responded to the Nikolais‘ e-mail by
sending the Nikolais‘ attorney a letter that stated in part that the company was
disturbed to learn, after months of attempting to accommodate
Mr. Nikolai with an acceptable surface use agreement before
exercising its legal right to drill a well on the oil and gas leases it
owns, that Mr. Nikolai is now claiming to own not just the surface of
the Subject Land, but the minerals as well, and accordingly is also
claiming . . . that the actual mineral owners of the minerals under the
Subject Land, after being treated as owning the minerals by all
persons in the chain of title to this property for over 100 years, own
nothing.
Mr. Nikolai‘s claims are false. . . .
....
Mr. Nikolai, by his unfounded claims, is slandering our client‘s
title to its oil and gas leases, which leases our client is currently
attempting to sell . . . .
XTO, which apparently acquired the leases from JRC, agreed with JRC‘s position
that the Nikolais do not own the minerals.8
In November 2007, the Nikolais sued XTO to quiet title, alleging that XTO‘s
leases were invalid. They asked the trial court to declare that they owned, in fee
8
XTO‘s brief states that the company obtained ―numerous oil and gas
leases‖ from the other appellants in this appeal, who are ―successors-in-title to
the Madewell Reservation.‖ The Nikolais refer to appellants as the purported
heirs and assigns of W.R. Madewell. XTO admits that it has drilled a producing
well on the Nikolais‘ land, and the Nikolais contend that XTO has damaged the
land in various ways. The Nikolais‘ third amended petition sought relief based on
a common law trespass claim. The trial court severed this claim, however, so the
claim is not subject to this appeal.
7
simple and without reservations, the 36.653 acre tract because Leonard had
acquired the property through a warranty deed, and the Nikolais had exclusively
possessed the property since 1981.9 The Nikolais also contended that the
Shields Deed and Madewell Deed were void for inadequately describing the
property that they attempted to convey (therefore, the Nikolais asked the trial
court to declare void a deed that is in their chain of title). Thus, the Nikolais
argued that the mineral reservation contained in the Madewell Deed was
ineffective and that their surface and mineral estates remained unsevered until
Leonard acquired the land.10
XTO filed an answer that contained a general denial. Later, XTO filed a
motion to abate and compel the joinder of other parties who allegedly had legal
interests in the minerals beneath the Nikolais‘ land.
After the Nikolais amended their petition to add several defendants, some
of the parties listed above filed answers. XTO amended its answer to raise two
counterclaims: a suit to quiet title and an action under the UDJA that asked the
9
―Fee simple title is an estate over which the owner has unlimited power of
disposition in perpetuity without condition or limitation.‖ Hawkins v. Ehler, 100
S.W.3d 534, 548 (Tex. App.—Fort Worth 2003, no pet.). While the Nikolais‘
original petition sought declaratory relief generally, their third amended petition,
which was their live pleading at the time of the trial court‘s summary judgment
decision, expressly invoked the Uniform Declaratory Judgments Act (UDJA).
See Tex. Civ. Prac. & Rem. Code Ann. §§ 37.001–.011 (West 2008).
10
The Nikolais sued the other parties listed above at later times. They also
brought various claims against their title company, and those claims remain
pending in a Denton County district court.
8
trial court to declare the validity of the Madewell Deed. XTO also contended that
the Nikolais‘ claims were barred by estoppel. The trial court appointed an
attorney ad litem, Scott Alagood, for parties who had been served by publication
but had not answered the Nikolais‘ amended petition.
XTO eventually filed a motion for summary judgment on the Nikolais‘
claims and on its own counterclaims on the grounds that the mineral reservation
in the Madewell Deed satisfies the statute of frauds and the statement about the
reservation in the Speer Deed, which is in the Nikolais‘ chain of title, estops them
from denying the validity of the reservation. XTO‘s expert, Rickey Lynn Hickman
(a registered professional land surveyor), opined in an affidavit that the Madewell
Deed‘s description, when considered with the J.L. Rose survey and the Shields
Deed (both of which preceded the Madewell Deed and were expressly
referenced within that deed), allowed the property that it attempted to convey to
be identified with reasonable certainty. Hickman located the ―pile of rocks‖
mentioned in the J.L. Rose survey.
The Nikolais likewise filed a motion for summary judgment, contending that
the Madewell Deed is void because it fails to comply with the statute of frauds,
that there was never a valid mineral reservation, and that the surface and mineral
estates therefore have remained unsevered. The Nikolais attached excerpts
from Hickman‘s deposition to cast doubt on his determination that the Madewell
9
Deed describes identifiable property. In the deposition, Hickman said, among
other things, that
although he opined in his report that the ―East boundary of the [Shields
Deed‘s] 92½ acre tract is equal to the entire length of the East boundary of
the 160 acre J.L. Rose Survey,‖ the Shields Deed does not explicitly state
that the land it conveys matches the entire east boundary of the survey or
that it conveys land in the east half of the survey; instead, it says only that
the 92½ acres are in the ―east end‖ of the 160 acres described by the
survey;
it is mathematically possible to fit 92-and-a-half acres onto the ―east end‖
of the survey without necessarily using the entire east line of the survey;
and
his opinion, therefore, that the 1882 Shields Deed provides a complete
description of the property it conveys depends on also fitting the property
described in the 1904 Madewell Deed into the 160-acre survey.
The Nikolais also filed a response to appellants‘ motions for summary
judgment; the response listed several objections to the evidence that appellants
had presented. XTO‘s reply to the Nikolais‘ response addressed some of the
Nikolais‘ evidentiary contentions. The trial court sustained some of the
objections and overruled others.11
11
For example, the court sustained the Nikolais‘ objections to the
admission of the Madewell Deed to the extent that XTO relied on the deed to aid
in identifying the property described by the preceding Shields Deed, the
admission of deeds executed later than the Madewell Deed and Shields Deed to
the extent that they were offered to support the sufficiency of those two deeds,
and part of one page of Hickman‘s affidavit that concerned his composition of
worksheet plats based on deeds executed after the Shields Deed and Madewell
Deed. The trial court also sustained objections to the entirety of some motions
for summary judgment of parties opposing the Nikolais because the motions
were untimely filed. See Tex. R. Civ. P. 166a(c) (―Except on leave of court, with
notice to opposing counsel, the motion and any supporting affidavits shall be filed
and served at least twenty-one days before the time specified for hearing.‖).
10
The trial court announced that it would grant the Nikolais‘ summary
judgment motion and deny appellants‘ summary judgment motions. Before the
trial court signed its judgment, XTO argued that the Nikolais were not entitled to
attorney‘s fees because the Nikolais had, in effect, prevailed on a trespass to try
title claim for which attorney‘s fees are unavailable, even though they had pled a
related claim under the UDJA, in which fees are generally authorized. In the trial
court‘s final judgment, it decreed, in summary, that (1) the Shields Deed and
Madewell Deed (including the mineral reservation) are void under the statute of
frauds; (2) the Nikolais ―are the rightful owners of the Property in fee simple,
including both the surface and mineral estate, pursuant to their Warranty Deed‖
(the 1981 deed from Williams to Leonard); and (3) only the Nikolais have
authority to lease the minerals on the property. [Emphasis added.] The trial
court denied the Nikolais‘ claim for attorney‘s fees.
Our Standard for Reviewing Summary Judgments
In a summary judgment case, the issue on appeal is whether the movant
met the summary judgment burden by establishing that no genuine issue of
material fact exists and that the movant is entitled to judgment as a matter of law.
Tex. R. Civ. P. 166a(c); Mann Frankfort Stein & Lipp Advisors, Inc. v. Fielding,
289 S.W.3d 844, 848 (Tex. 2009). We review a summary judgment de novo.
Travelers Ins. Co. v. Joachim, 315 S.W.3d 860, 862 (Tex. 2010).
11
We take as true all evidence favorable to the nonmovant, and we indulge
every reasonable inference and resolve any doubts in the nonmovant‘s favor.
20801, Inc. v. Parker, 249 S.W.3d 392, 399 (Tex. 2008); Provident Life &
Accident Ins. Co. v. Knott, 128 S.W.3d 211, 215 (Tex. 2003). We consider the
evidence presented in the light most favorable to the nonmovant, crediting
evidence favorable to the nonmovant if reasonable jurors could and disregarding
evidence contrary to the nonmovant unless reasonable jurors could not. Mann
Frankfort, 289 S.W.3d at 848. We must consider whether reasonable and fair-
minded jurors could differ in their conclusions in light of all of the evidence
presented. See Wal-Mart Stores, Inc. v. Spates, 186 S.W.3d 566, 568 (Tex.
2006); City of Keller v. Wilson, 168 S.W.3d 802, 822–24 (Tex. 2005).
The summary judgment motion should be granted if the movant conclusively
proves all essential elements of the movant‘s cause of action or affirmative
defense as a matter of law. See Chau v. Riddle, 254 S.W.3d 453, 455 (Tex.
2008); City of Houston v. Clear Creek Basin Auth., 589 S.W.2d 671, 678 (Tex.
1979).
When both parties move for summary judgment and the trial court grants
one motion and denies the other, the reviewing court should review both parties‘
summary judgment evidence and determine all questions presented. Mann
Frankfort, 289 S.W.3d at 848; see Myrad Props., Inc. v. Lasalle Bank Nat’l Ass’n,
300 S.W.3d 746, 753 (Tex. 2009). The reviewing court should render the
12
judgment that the trial court should have rendered. Mann Frankfort, 289 S.W.3d
at 848.
Estoppel by Deed
XTO sought summary judgment on the Nikolais‘ claims on the ground that
the Nikolais were estopped by a deed in their chain of title from denying the
validity of the mineral reservation. In its second issue, XTO contends that the
trial court erred by denying its motion for summary judgment that was based on
its affirmative defense of estoppel by deed. See Gutierrez v. Rodriguez, 30
S.W.3d 558, 560 (Tex. App.—Texarkana 2000, no pet.) (describing estoppel by
deed as an affirmative defense).
―The law does not lightly disregard the delivery of a deed and the recitals
therein.‖ Jones v. Jones, 181 S.W.2d 988, 991 (Tex. Civ. App.—Dallas 1944,
writ ref‘d w.o.m.); see Simonds v. Stanolind Oil & Gas Co., 134 Tex. 332, 345,
114 S.W.2d 226, 234 (1938) (―A recital of one deed, in another, binds the parties,
and those who claim under them by matters subsequent.‖). Therefore, ―all
parties to a deed are bound by the recitals therein, which operate as an estoppel,
working on the interest in the land if it be a deed of conveyance, and binding both
parties and privies; privies in blood, privies in estate, and privies in law.‖
Freeman v. Stephens Prod. Co., 171 S.W.3d 651, 654 (Tex. App.—Corpus
Christi 2005, pet. denied) (quoting Wallace v. Pruitt, 1 Tex. Civ. App. 231, 234,
20 S.W. 728, 728–29 (Houston 1892, no writ)); see Angell v. Bailey, 225 S.W.3d
13
834, 841–42 (Tex. App.—El Paso 2007, no pet.) (―Estoppel by deed . . .
precludes parties to a valid instrument from denying its force and effect.
Although estoppel by deed operates most commonly against a grantor, a grantee
is similarly a party to the deed and bound by the recitals, reservations, and
exceptions therein.‖) (citation omitted); Moore v. Energy States, Inc., 71 S.W.3d
796, 800 (Tex. App.—Eastland 2002, pet. denied) (―[T]he deed conveying the
land from the Johnstons to Sears stated that the public road ‗lies immediately
south‘ of the railroad right-of-way. Thus, the Johnstons and their successors in
interest are estopped from denying that the public road lies immediately south of
the railroad right-of-way . . . .‖).
A ―recital‖ in a deed is a ―statement . . . that is used to explain the reasons
upon which the transaction is based. The recital of facts binds both the parties to
the deed and their privies.‖ Angell, 225 S.W.3d at 842 (citation omitted); see also
Westland Oil Dev. Corp. v. Gulf Oil Corp., 637 S.W.2d 903, 908 (Tex. 1982) (―It is
well settled that ‗a purchaser is bound by every recital, reference and reservation
contained in or fairly disclosed by any instrument which forms an essential link in
the chain of title under which he claims.‘‖); Williams v. Hardie, 85 Tex. 499, 506,
22 S.W. 399, 401 (1893) (―A recital or allegation in a deed . . . which is certain in
its terms, and relevant to the matter in hand, will . . . be conclusive between the
parties in any controversy growing out of . . . the transaction in which it was
executed.‖); Kimbro v. Hamilton, 28 Tex. 560, 567 (1866) (explaining that a
14
recital in a deed ―is not offered as secondary but as primary evidence, which
cannot be averred against, and which forms a muniment of title‖). ―The doctrine
of an estoppel by deed is . . . founded upon the theory that the parties have
contracted upon the basis of the recited facts.‖ Williams, 85 Tex. at 506, 22 S.W.
at 401.
Estoppel by deed precludes parties from alleging title ―in derogation of the
deed [or] deny[ing] the truth of any material fact asserted in it.‖ Surtees v.
Hobson, 4 S.W.2d 245, 246 (Tex. Civ. App.—El Paso 1928), aff’d, 13 S.W.2d
345 (Tex. Comm‘n App. 1929). The doctrine of estoppel by deed is of ―universal
recognition.‖ Woldert v. Skelly Oil Co., 202 S.W.2d 706, 709 (Tex. Civ. App.—
Texarkana 1947, writ ref‘d n.r.e.). The doctrine does not validate something that
is otherwise invalid; rather, it figuratively ―closes the mouth of the complainant.‖
See Spence v. State Nat’l Bank of El Paso, 5 S.W.2d 754, 756 (Tex. Comm‘n
App. 1928).
Seventy years ago, in Greene v. White, the Texas Supreme Court resolved
a dispute about the ownership of minerals contained within a 133-acre tract in
Cass County. 137 Tex. 361, 364, 153 S.W.2d 575, 577 (1941) (op. on reh‘g).
Greene had executed a deed in 1910 that purported to transfer a surface estate
to Alex Garrett but to reserve the minerals in Greene‘s favor. Id. at 365, 153
S.W.2d at 578. Garrett later claimed to own the minerals by adverse possession.
15
Id. Among other issues in the case, the supreme court considered the effect of
the deed on the ownership of the minerals:
What effect is to be given to the deed from F. M. Greene to
Alex Garrett, executed March 2, 1910? . . . The deed contains the
following reservation: ‗It is agreed and understood that the pine
timber 8 inches in diameter and larger, and that all minerals on and
under said land, is reserved in this conveyance and remains the
property of the said F. M. Greene. By mineral is meant all oil, gas,
coal, lignite, glass, sand, iron ore and all other minerals of every kind
and description‘. . . .
While Alex Garrett did not sign the deed, he was a party to it
as grantee . . . . The terms, provisions and obligations of the deed
are in our opinion . . . binding upon both of the parties to it.
The instrument is contractual in nature, representing and setting
forth the agreement of the grantor and the grantee as to what the
interests, rights and obligations of said parties shall thereafter be
with respect to the land. . . .
The general rule is that the grantee in a deed accepted by him
is a party to the deed, even though he does not sign it, and that he is
concluded by recitals in the deed and by reservations contained
therein in favor of the grantor. ‗The obligations undertaken by the
parties to a deed are binding contractually; and where the
conveyance is by way of deed poll—that is, one executed by the
grantor alone—obligations are enforceable against the grantee by
virtue of his acceptance of the deed.‘ . . . The recitals which give the
surface estate to Garrett and reserve the mineral estate to Greene
are . . . contractual. The[y] define the character and extent of the
ownership and interests of the parties in the land affected by the
deed.
It is held that the recital of one deed in another binds the
parties to the deed containing the recital, and those who claim under
them, and may take the place of a deed and thus form a muniment
of title.
....
The argument is made that the deed from Greene to Garrett
neither conveyed the surface to Garrett nor reserved the minerals to
16
Greene, because Greene had no title either to the land or to the
minerals, the title being in Garrett by virtue of adverse possession
and the land not being in [a specified] survey. . . . [T]he question
presented is not whether Greene had good title and conveyed good
title to the surface to Garrett and reserved or excepted to himself
good title to the minerals. It is: Are the parties to the deed and
those claiming under them bound, as between themselves, by the
recitals and provisions of the deed?
....
. . . [S]ince the parties to the Greene-Garrett deed are bound
by the terms of their contract, it was not necessary, in order to make
the reservation in the deed effective in favor of Greene and those
holding under him and against Garrett and those holding under him,
that good title to the land be shown in Greene at the time when the
deed was executed. The deed, as between the parties to it, having
worked a severance of the mineral estate from the surface estate,
such possession of the surface as was exercised by Garrett, and
those claiming under him, after the execution of the deed was not
adverse possession of the minerals.
Id. at 374–79, 153 S.W.2d at 583–85 (emphasis added) (citations omitted).
More recently, in Angell, the El Paso Court of Appeals considered the
effect of a 1936 deed that recited that it was conveying 320 acres ―save and
except,‖ among other tracts, a ten-acre tract that had been conveyed to Jack
Ellison and a two-acre tract ―sold to S.A. Bailey.‖ 225 S.W.3d at 837. There
were no recorded deeds related to the Ellison or Bailey tracts, and neither Ellison
nor Bailey ever made use of the property. Id. at 838. Angell, the granddaughter
of E.D. Warner, the 1936 deed‘s grantee, brought suit to remove a cloud on the
property‘s title created by the Ellison and Bailey interests, but the trial court ruled
that Angell was estopped to deny Ellison‘s and Bailey‘s titles. Id. at 837–38.
On appeal, Angell contended that the exceptions were void for lack of a sufficient
17
description and that the twelve acres had passed to her grandfather. Id. at 838.
The El Paso court disagreed, reasoning,
While the exceptions listed in the E.D. Warner deed did not
create (or convey) any interest in the property which Bailey and/or
Jack Ellison did not already possess, the exceptions are still
effective to prevent Angell from denying their existence. ―Estoppel
by deed stands for the general proposition that ‗all parties to a deed
are bound by the recitals therein, which operate as an estoppel,
working on the interest in the land if it be a deed of conveyance, and
binding both parties and privies; privies in blood, privies in estate,
and privies in law.‘‖ . . .
....
The E.D. Warner deed unambiguously recites that, within the
southeastern-most forty acres of the land covered thereby, ten acres
had previously been conveyed to Jack Ellison and two acres had
been previously . . . conveyed to Bailey. Angell is a decedent of the
grantee in the deed, privy to its language by her family relationship
to both the grantors and the grantee. She is bound by the recitals,
just as her grandfather was. There has been no argument that this
deed is invalid in any way. The deed recites that the exceptions
were made because the acres had already been transferred to the
parties referenced, including Jack Ellison and Bailey. Angell is
estopped to deny the truth of the recitals in the instrument and
therefore cannot deny the Jack Ellison and Bailey interests.
Id. at 841–42 (emphasis added) (citations and footnotes omitted).
The Nikolais‘ chain of title, by which the trial court determined that they
owned the surface and mineral estates in their tract, contains the Speer Deed,
which recites, ―It is thoroughly understood that the Mineral Rights upon this tract
of land are not transferred by this instrument, same having been retained by
W.R. Madewell in deed to J.L. Goff said deed dated Oct. 5 1904, recorded in . . .
Deed Records of Denton County, Texas.‖ Two other deeds in the Nikolais‘ chain
18
of title, the Pippin Deed and the Brockie Deed, rely on the Speer Deed in their
descriptions of the conveyed property. The Nikolais recognize that ―[r]ecitals in a
deed of particular facts constitute prima facie proof of those facts.‖ ―[W]here a
deed refers to another deed, or a map, or a survey, it has the effect to
incorporate such deed, map or survey into the description, the same as if copied
into the deed itself, and what is therein described will pass.‖ Brown v. Chambers,
63 Tex. 131, 135 (1885); see Dixon v. Amoco Prod. Co., 150 S.W.3d 191, 194
(Tex. App.—Tyler 2004, pet. denied) (―[I]t is a well settled rule of law that in the
construction of written instruments, all instruments in a chain of title, when
referred to in a deed . . . will be read into it.‖); Klein v. Humble Oil & Ref. Co., 67
S.W.2d 911, 918–19 (Tex. Civ. App.—Beaumont 1934) (holding that a lease‘s
reference to a deed incorporated the deed into the lease and into the description
of the property), aff’d, 126 Tex. 450, 86 S.W.2d 1077 (1935).
Thus, for the reasons explained in the cases cited above, we conclude that
the Nikolais, who are in privity with E.M. Madewell (the grantee of the Speer
Deed),12 Pippin, and Brockie, and who claim title under the deeds involving those
parties, are bound by the recitation of the mineral reservation in the Speer Deed
and are estopped from denying it.
We recognize that estoppel by deed ―is the product of a good and valid
deed.‖ Masgas v. Anderson, 310 S.W.3d 567, 571 (Tex. App.—Eastland 2010,
12
The successive conveyances of property establish privity. See Inwood
N. Homeowners’ Ass’n, Inc. v. Harris, 736 S.W.2d 632, 635 (Tex. 1987).
19
pet. denied) (citing Angell, 225 S.W.3d at 842). The Nikolais argue that estoppel
by deed cannot apply here because the Madewell Deed is void for lack of a
sufficient description of the land it conveys. The Nikolais rely, in part, on a case
in which our supreme court held that estoppel by deed did not apply to an
instrument that was signed in blank, without including any description of the
property that the instrument related to. See Republic Nat’l Bank of Dallas v.
Stetson, 390 S.W.2d 257, 260–61 (Tex. 1965). But XTO did not base its
estoppel by deed defense on the Madewell Deed. Rather, XTO based its
defense on the subsequent deeds described above, in particular the Speer Deed,
and the Nikolais never challenged the sufficiency of the property descriptions in
those deeds.
For all of these reasons, we sustain XTO‘s second issue, and we hold that
the trial court erred by granting summary judgment for the Nikolais on their quiet
title and UDJA claims. Likewise, we hold that the trial court erred by denying
XTO‘s motion for summary judgment on its estoppel by deed defense.
Because we hold that the Nikolais are estopped from denying the mineral
reservation that is recited by deeds in their chain of title, we need not decide
whether the trial court correctly ruled that the Madewell Deed and Shields Deed
are void for containing legally insufficient descriptions of the property that they
conveyed under the statute of frauds. See Greene, 137 Tex. at 376, 153 S.W.2d
at 584 (―[T]he question presented is not whether Greene had good title and
20
conveyed good title . . . . It is: Are the parties to the deed and those claiming
under them bound, as between themselves, by the recitals and provisions of the
deed?‖) (emphasis added). Thus, we do not need to decide whether the trial
court erred by denying XTO‘s motion for summary judgment on its counterclaim
that sought a declaration of the validity of the Madewell Deed for purposes of
showing that the Nikolais did not own the mineral estate to the property.
Although XTO labeled its other counterclaim as a suit to ―quiet title,‖ XTO has not
sought a judgment regarding the status of its own title.13 Instead, XTO asked the
trial court to decree only that the Nikolais did not own the mineral estate beneath
their property.14 Our holding regarding XTO‘s estoppel by deed defense resolves
13
Generally, a plaintiff in a suit to quiet title must ―prove, as a matter of law,
right, title, or ownership in himself with sufficient certainty to enable the court to
see that he has a right of ownership and that the alleged adverse claim is a cloud
on the title that equity will remove.‖ Hahn v. Love, 321 S.W.3d 517, 531 (Tex.
App.—Houston [1st Dist.] 2009, pet. denied). During oral argument, XTO‘s
counsel, speaking on behalf of all appellants, stated that XTO did not seek to
have ownership or title rendered to itself as a result of this suit.
14
The Nikolais contend that neither XTO nor the other appellants produced
evidence in the trial court of their interest in the mineral estate that flows from the
reservation that the Speer Deed recognized. For reasons stated below, we
disagree, although we recognize that the evidence was not attached to a
summary judgment motion or response. We note that the Nikolais brought
appellants into this litigation through their pleadings, recognizing that appellants
asserted an interest that was contrary to the Nikolais‘ claims. Although the
Nikolais concisely contend that appellants‘ alleged failure to prove an ownership
interest in the disputed minerals means that they may not have standing, the
Nikolais have not cited authority establishing that appellants were required to
prove their own title to raise an estoppel by deed defense to the Nikolais‘ claims
against them. Cf. State & Cnty. Mut. Fire Ins. Co. ex rel. S. United Gen. Agency
of Tex. v. Walker, 228 S.W.3d 404, 406, 412 (Tex. App.—Fort Worth 2007, no
pet.) (holding that by joining a defendant in a UDJA action, the plaintiff waived
21
that issue, so we need not address whether XTO would otherwise be entitled to
relief on the elements of a quiet title claim.15
Since the Nikolais cannot deny the reservation, we conclude that the
dispute about the original validity of the reservation based on the 1904 Madewell
Deed, which relates to XTO‘s first and third issues, is moot.16 See Tex. R. App.
P. 47.1; Doe v. Tex. Ass’n of Sch. Bds., Inc., 283 S.W.3d 451, 464–65 (Tex.
App.—Fort Worth 2009, pet. denied). We overrule XTO‘s first and third issues on
that basis.
The Nikolais’ Issues
Adverse possession and prior possession
In their first issue, the Nikolais argue that the trial court erred by not
granting summary judgment on the ground of title by adverse possession or prior
possession. XTO contends in part that the Nikolais did not provide any evidence
of these claims because its objection to Leonard Nikolai‘s affidavit should have
been sustained. We agree.
any argument that the defendant did not have standing to challenge the plaintiff‘s
claims).
15
Therefore, nothing in this opinion should be construed as an adjudication
of the validity of appellants‘ interest, if any, in the minerals underneath the
Nikolais‘ land.
16
Although the Nikolais attacked the validity of the Madewell Deed to
contend that its mineral reservation was ineffective, no party has directly
challenged the Nikolais‘ ownership of their surface state, which is chained to that
deed.
22
Leonard‘s affidavit stated, ―I have read Plaintiffs’ Motion for Summary
Judgment and Plaintiffs’ Second Amended Petition and attest that all facts
recited therein are true and correct to the best of my knowledge . . . .‖
The Nikolais‘ brief indicates that they rely solely on this statement as evidence for
their adverse possession and prior possession claims. XTO objected to the
statement on the grounds that it ―constitute[d] an inadmissible conclusory
statement that [was] not supported by any other factual statements in Mr.
Nikolai‘s Affidavit,‖ but the trial court overruled that objection.
In its opening brief, XTO stated, ―To the extent the subject of XTO‘s
objection [to Leonard‘s affidavit] may be introduced by the Appellees, the trial
court erred in overruling XTO‘s objection, and XTO reurges its objection before
this Court.‖ The Nikolais then argued as part of their appeal, in their opening
brief, that the trial court erred by not granting summary judgment on their adverse
possession and prior possession claims, and the Nikolais expressly relied on
Leonard‘s affidavit in that argument. XTO expressly contended in response that
the trial court erred by overruling its objection to Leonard‘s affidavit. Contrary to
the Nikolais‘ assertion in their reply brief, therefore, we conclude that we may
properly consider XTO‘s objection. Moreover, contrary to the Nikolais‘
contention, a party is not required, under rule of appellate procedure 25.1(d), to
list every interlocutory order in a notice of appeal to appeal the ruling on that
23
order. See Tex. R. App. P. 25.1(d); Gunnerman v. Basic Capital Mgmt., Inc., 106
S.W.3d 821, 824–25 (Tex. App.—Dallas 2003, pet. denied).
We review a trial court‘s evidentiary rulings related to a motion for
summary judgment for an abuse of discretion. Reynolds v. Murphy, 188 S.W.3d
252, 259 (Tex. App.—Fort Worth 2006, pet. denied) (op. on reh‘g), cert. denied,
549 U.S. 1281 (2007). Many cases state that pleadings and motions for
summary judgment are not competent summary judgment evidence, even if they
are sworn to or verified within the pleading or motion. See, e.g., Hidalgo v. Sur.
Sav. & Loan Ass’n, 462 S.W.2d 540, 545 (Tex. 1971); Garner v. Long, 106
S.W.3d 260, 268 (Tex. App.—Fort Worth 2003, no pet.); Campbell v. Fort Worth
Bank & Trust, 705 S.W.2d 400, 402 (Tex. App.—Fort Worth 1986, no writ).
We cannot conceive any logical reason, therefore, to conclude that the facts
contained in such pleadings and motions should be competent evidence if they
are sworn to or verified by a different, independent document, such as an
affidavit. See Keenan v. Gibraltar Sav. Ass’n, 754 S.W.2d 392, 394 (Tex. App.—
Houston [14th Dist.] 1988, no writ); Loomis v. City of Dallas, 472 S.W.2d 809,
811 (Tex. Civ. App.—Dallas 1971, writ ref‘d n.r.e.) (―An affidavit which simply
adopts the pleadings in a case is insufficient either to support or defeat a motion
for summary judgment.‖) (citing Duffard v. City of Corpus Christi, 332 S.W.2d
447, 449 (Tex. Civ. App.—San Antonio 1960, no writ)); see also Tex. R. Civ. P.
166a(f) (stating that a summary judgment affidavit ―shall set forth such facts as
24
would be admissible in evidence‖). We hold that the trial court abused its
discretion by overruling XTO‘s objection to Leonard‘s affidavit because, as
asserted in the trial court by XTO, the affidavit was not supported by its own
factual statements but instead impermissibly relied on facts contained in a
pleading and a motion. We conclude, therefore, that the Nikolais did not present
any competent evidence to support their adverse possession or prior possession
claims.
Moreover, regardless of whether the Nikolais properly presented evidence
on those claims, our holding above that the Nikolais are estopped from denying
the validity of the mineral reservation forecloses the Nikolais‘ contention that they
adversely possessed the minerals. Adverse possession is an ―actual and visible
appropriation of real property, commenced and continued under a claim of right
that is inconsistent with and is hostile to the claim of another person.‖ Tex. Civ.
Prac. & Rem. Code Ann. § 16.021(1) (West 2002); see Turner v. Mullins, 162
S.W.3d 356, 367 (Tex. App.—Fort Worth 2005, no pet.) (explaining that the
possession ―must be actual, visible, continuous, notorious, distinct, hostile, and of
such character as to indicate unmistakably an assertion of a claim of exclusive
ownership in the occupant‖). ―Where minerals have been severed, the surface
owner cannot claim adverse possession of the minerals by possession of the
surface, but he must take actual possession of the minerals for the statutory
period.‖ Smoot v. Woods, 363 S.W.2d 798, 801 (Tex. Civ. App.—Fort Worth
25
1962, writ ref‘d n.r.e.); see Natural Gas Pipeline Co. of Am. v. Pool, 124 S.W.3d
188, 193 (Tex. 2003) (―[C]ourts across the country including Texas courts have
said that in order to mature title by limitations to a mineral estate, actual
possession of the minerals must occur. In the case of oil and gas, that means
drilling and production of oil or gas.‖) (citations and footnotes omitted).
The Nikolais conceded in their second amended petition that they have
never leased the mineral rights on their property and that prior to the facts
relevant to this suit, ―no one ha[d] ever taken any action to excavate, drill for, or
produce any oil, gas, or other minerals in the Property.‖ The Nikolais did not
present evidence contradicting this concession. Thus, they cannot establish that
they adversely possessed the mineral estate.
For all of these reasons, we overrule the Nikolais‘ first issue.
Rulings on evidentiary objections
In their second issue, the Nikolais argue that the trial court made several
erroneous rulings on their objections to XTO‘s summary judgment evidence.
The rulings that the Nikolais challenge, however, would not affect our disposition
of the appeal under the reasons set forth in this opinion even if we were to hold
that the trial court erred by making the rulings.17 Thus, we overrule the Nikolais‘
second issue as moot. See Tex. R. App. P. 47.1; Doe, 283 S.W.3d at 464–65.
17
For example, the Nikolais argued in the trial court that deeds executed
after the Madewell Deed were inadmissible to show that the Madewell Deed
contained an adequate property description. As stated, however, we need not
address the adequacy of the Madewell Deed‘s property description.
26
The Nikolais’ request for attorney’s fees
In their third issue, the Nikolais argue that the trial court erred by denying
their request for an award of attorney‘s fees. The Nikolais contend that they
were entitled to recover attorney‘s fees under the UDJA. See Tex. Civ. Prac. &
Rem. Code Ann. § 37.009 (―In any proceeding under this chapter, the court may
award costs and reasonable and necessary attorney‘s fees as are equitable and
just.‖). In XTO‘s motion for entry of a final judgment, it contended that as a
matter of law, the Nikolais were not entitled to attorney‘s fees because although
they had pled a claim under the UDJA, they had essentially brought a trespass to
try title suit. The trial court did not specify its reason for denying fees.
Contrary to the Nikolais‘ argument, we conclude that XTO preserved its
objection to the Nikolais‘ recovery of attorney‘s fees by filing the motion for entry
of a final judgment (which contained a section titled, ―Motion to Deny Attorney‘s
Fees‖) and by contending in a later hearing that the Nikolais were not entitled to
such fees. XTO filed the motion at a time when the trial court had not ruled on
the attorney‘s fees issue. See Tex. R. App. P. 33.1(a); cf. Krabbe v. Anadarko
Petroleum Corp., 46 S.W.3d 308, 320–21 (Tex. App.—Amarillo 2001, pet.
denied) (holding that an appellant waived an objection to the award of attorney‘s
fees under the UDJA because the appellant did not urge in the trial court that the
appellee could not recover the fees on the ground that the suit was, in substance,
a trespass to try title suit). We also note that during the hearing on XTO‘s motion
27
for entry of a final judgment, XTO stated that it had withdrawn any claim for
attorney‘s fees.
Section 22.001 of the property code ―expressly provides that it is ‗the
method for determining title to . . . real property.‘‖ Martin v. Amerman, 133
S.W.3d 262, 267 (Tex. 2004); see Tex. Prop. Code Ann. § 22.001(a) (West
2000). In a case similar to this appeal, we recently explained,
A declaration under the UDJA is appropriate ―to settle and
afford relief from uncertainty and insecurity with respect to rights,
status, and other legal relations.‖ However, a party may not recover
attorneys‘ fees under the UDJA when the only issues, aside from
attorneys‘ fees, concern clearing of title or trespass to try title. ―Any
suit that involves a dispute over the title to land is, in effect, an action
in trespass to try title, whatever its form.‖ Because a claim for
declaratory relief is ―merely incidental to the title issues,‖ the UDJA
will not supplant a suit to quiet title by allowing attorneys‘ fees under
such circumstances.
Here, Poag brought a declaratory action seeking to ―quiet title
and/or acquire title to property.‖ In his prayer, Poag sought a
judgment ―[d]eclaring that the oil and gas lease executed by
Defendant [Flories] is invalid and unenforceable, ordering it removed
from the title of the properties made the subject of this litigation, and
quieting title in [Poag]‖.
In substance, Poag‘s claim for declaratory relief is a claim to
quiet title. Although Poag couches his declaratory action in terms of
a request for a declaration, everything he requests of the court is
necessary to, and a component of, the ultimate relief he seeks,
which is to clear the title on the two tracts of land he purchased from
Anson. When the essence of the suit is in trespass to try title,
attorneys‘ fees are not recoverable. Thus, as a matter of law, Flories
was not entitled to an award of attorneys‘ fees under the UDJA.
Poag v. Flories, 317 S.W.3d 820, 828–29 (Tex. App.—Fort Worth 2010, pet.
denied) (citations omitted); see Martin, 133 S.W.3d at 267 (holding that a dispute
28
regarding the boundary of property was a trespass to try title suit, which
foreclosed the plaintiffs‘ ability to collect attorney‘s fees under the UDJA);
cf. Roberson v. City of Austin, 157 S.W.3d 130, 136–37 (Tex. App.—Austin 2005,
pet. denied) (holding that a dispute over an easement was not a trespass to try
title claim and could therefore be brought under the UDJA because an easement
is a nonpossessory property interest).18
The Nikolais‘ second amended petition asked the trial court to decree that
they were the ―rightful owners of the Property in fee simple, including both the
surface and mineral estate.‖ The trial court‘s judgment declared the Nikolais as
the owners and stated that the ―cloud on [their] title created by [appellants‘] claim
to the mineral estate is removed and quieted.‖ And the Nikolais have recognized
on appeal that their suit is based primarily on their claim for legal title.
Thus, under our reasoning in Poag, although this suit concerns the validity of a
deed, which may otherwise be a proper subject for a UDJA claim, we are
compelled to hold that the essence of the Nikolais‘ suit was to obtain a
declaration of title and that, as a matter of law, they were not entitled to attorney‘s
fees under the UDJA. 317 S.W.3d at 828–29; see also Aguillera v. John G. &
Marie Stella Kenedy Mem’l Found., 162 S.W.3d 689, 697–98 (Tex. App.—
Corpus Christi 2005, pet. denied) (holding that attorney‘s fees were unavailable
18
―A mineral fee owner has a possessory estate in the land. As such he
has the exclusive power to lease the land to another for mineral development or
to develop the minerals himself.‖ Dearing Inc. v. Spiller, 824 S.W.2d 728, 732
(Tex. App.—Fort Worth 1992, writ denied).
29
because although the suit concerned the validity of a land document, it was
ultimately a title dispute); Hawk v. E.K. Arledge, Inc., 107 S.W.3d 79, 84 (Tex.
App.—Eastland 2003, pet. denied) (―The reality in this lawsuit is that it involves
the issue of title. Attorney‘s fees are not recoverable when the real essence of
the suit is one in trespass to try title.‖).
XTO also contended in the trial court that the Nikolais were not entitled to
fees because they were neither reasonable nor necessary under the UDJA in this
case. XTO argued that its ―role in this case was simply defending its record title
to interests it expended great sums of money to develop. Whether XTO
ultimately prevailed, it would be inequitable and unjust to punish XTO for simply
defending its interests against [the Nikolais‘] claims.‖ Finally, XTO opined that
the mistake ―that put the parties in their current positions was that of [the
Nikolais‘] title company,‖ which the Nikolais have sued.
When a statute states that a trial court ―may‖ award attorney‘s fees, such
an award is reviewable for an abuse of discretion. Smith v. McCarthy, 195
S.W.3d 301, 304 (Tex. App.—Fort Worth 2006, pet. denied) (op. on reh‘g);
see Street v. Skipper, 887 S.W.2d 78, 83 (Tex. App.—Fort Worth 1994, writ
denied). To determine whether a trial court abused its discretion, we must
decide whether the trial court acted without reference to any guiding rules or
principles; in other words, we must decide whether the act was arbitrary or
unreasonable. Cire v. Cummings, 134 S.W.3d 835, 838–39 (Tex. 2004).
30
We cannot conclude that a trial court abused its discretion merely because we
would have ruled differently in the same circumstances. E.I. du Pont de
Nemours & Co. v. Robinson, 923 S.W.2d 549, 558 (Tex. 1995).
For the reasons argued by XTO in its motion for entry of a final judgment,
we hold that the trial court could have reasonably concluded that requiring XTO
to pay the Nikolais‘ attorney‘s fees was not equitable or just even though the trial
court ultimately concluded that the Nikolais owned the minerals associated with
their property. Thus, for those reasons, and in light of our conclusion that deeds
in the Nikolais‘ chain of title estop them from succeeding on their quiet title or
UDJA claims, we hold that even if the Nikolais‘ request for attorney‘s fees was
not precluded as a matter of law, the trial court did not abuse its discretion in
denying an award of attorney‘s fees.
We overrule the Nikolais‘ third issue.
The Effect of Our Decisions Explained Above on the Other Appellants and
Appellees and on all of the Trial Court Defendants
The parties whose interests are aligned with XTO have responded to the
Nikolais‘ suit in the trial court and on appeal in different ways. Specifically,
XTO Energy Inc. answered the Nikolais‘ suit by filing a general denial,
asserting the affirmative defense of estoppel by deed, and asserting
counterclaims for declaratory judgment and to quiet title (which asked for a
decree that the Nikolais do not have a claim to the mineral estate in their
property);
eight individual defendants, who were all represented by Ronald Holman
(the ―Holman Defendants‖) responded to the suit in the same way as XTO;
31
NASA Energy Corporation and an individual defendant filed general
denials and raised statute of limitations affirmative defenses but did not
raise estoppel by deed defenses;
some individual defendants only generally denied the Nikolais‘ claims, and
other defendants did not expressly answer the claims;
XTO Energy Inc. and the Holman Defendants sought summary judgment
on their estoppel by deed affirmative defenses;
some defendants, including defendants represented by Alagood (the
―Alagood Defendants‖) who had not pled estoppel by deed, attempted to
join other motions for summary judgment by the parties who had pled the
defense;19 and
only some of the defendants in the trial court appealed the trial court‘s
judgment.
Based on these facts, the Nikolais argue that we should affirm the trial
court‘s judgment at least as to the defendants who failed to appeal or properly
respond to the Nikolais‘ claims in the trial court. In a typical case, we would
agree. XTO contends, however, that because the claims of all of the defendants
are interwoven and dependent, we should reverse the trial court‘s judgment as to
all parties.
As explained by the supreme court,
While it is generally the rule that non-appealing parties are
excluded from relief upon appeal,[20] this court has held that reversal
19
The trial court sustained the Nikolais‘ objections to some of the joinders
on the grounds that they were not timely filed and that they were not affirmative
requests for summary judgment.
20
See Tex. R. App. P. 25.1(c) (―The appellate court may not grant a party
who does not file a notice of appeal more favorable relief than did the trial court
except for just cause.‖).
32
of a trial court order may extend to non-appealing parties ―when the
rights of the appealing parties are so interwoven or dependent on
each other as to require a reversal of the entire judgment.‖ Plas-
Tex, Inc. v. U.S. Steel Corp., 772 S.W.2d 442, 446 (Tex. 1989)
(citing Turner, Collie & Braden v. Brookhollow, Inc., 642 S.W.2d 160,
166 (Tex. 1982)). This exception to the general rule is applied on a
case-by-case basis.
Ex parte Elliot, 815 S.W.2d 251, 251–52 (Tex. 1991) (reversing an expunction
order as to a district clerk and sheriff although only the district attorney appealed
the order).
Based on evidence submitted in the trial court, the rights of the defendants
with respect to the minerals located on the Nikolais‘ land appear to be interwoven
and dependent. In XTO‘s motion to abate, it alleged that the parties later added
to the lawsuit by the Nikolais‘ first amended petition were lessors that executed
oil and gas leases in favor of XTO or XTO‘s predecessors in interest,
nonoperating working interest owners of the minerals on the property subject to
the suit, persons claiming to have a nonparticipating royalty interest in the
minerals, and unleased alleged owners of the minerals that the Nikolais claimed
to own. In essence, XTO asked the trial court to join all parties who could claim
to have an interest in the minerals at issue that was inconsistent with the
Nikolais‘ claim of ownership. See Tex. R. Civ. P. 39(a). XTO referred to these
parties collectively as the ―Madewell Parties,‖ and XTO attached an affidavit to its
motion (by Ryan Skelly, an XTO landman) that recites that each of the Madewell
Parties ―own[s] an interest in the mineral estate beneath the surface estate
owned by Leonard and Sandy Nikolai.‖
33
It would seem to be unreasonable and chaotic for the Nikolais to be
estopped from denying the mineral reservation as to some of the Madewell
Parties, and therefore have no rights to execute a mineral lease or otherwise
claim any interest in any of the minerals as related to those parties, but not
estopped as to the others, and therefore nonetheless have the ability to take
these actions. Similarly, it would be inconsistent and unworkable for the Nikolais
to have obtained rights to the minerals by adverse possession or prior
possession as to some parties but not as to others. It is also reasonable to infer
from Skelly‘s affidavit and other parts of the record that affirming the trial court‘s
judgment as to nonappealing defendants would affect XTO‘s interest through
leases that have been executed by those defendants.21
To provide the appealing and prevailing parties with ―full and effective
relief,‖ therefore, we conclude that we must reverse the entire judgment as to all
of the defendants in the trial court. See Turner, 642 S.W.3d at 166 (reversing an
entire judgment because the ―possibility of . . . inconsistent results is intolerable‖).
21
A common oil or gas lease creates in the lessee a fee simple
determinable interest in the mineral estate, while the lessor retains a possibility of
reverter. Jupiter Oil Co. v. Snow, 819 S.W.2d 466, 468 (Tex. 1991).
34
Alagood’s Request for Attorney’s Fees
In July 2009, the trial court signed an agreed order that approved payment
of $12,070.33 for ad litem fees to Alagood. The fees were taxed as a cost
against XTO Energy Inc. The order, however, did not provide for appellate fees
for Alagood. A year later, during the pendency of this appeal, Alagood filed an
application in the trial court to be paid $21,163.64 in additional fees and
expenses that related to appellate representation of his clients. The trial court
dismissed the application for want of jurisdiction. Alagood sought to appeal from
the dismissal.
In response, on September 21, 2010, we issued an order indicating that
we would remand the appellate fee issue to the trial court upon resolution of this
appeal. See Cahill v. Lyda, 826 S.W.2d 932, 933 (Tex. 1992) (remanding a case
to the trial court for the limited purpose of determining the reasonable attorney‘s
fees and expenses of the attorney ad litem for his services on appeal). Under
the rationale stated in that order, we will remand this case to the trial court so that
the trial court may determine reasonable attorney‘s fees for Alagood and which
party the fees should be taxed against. See id.; Harris Cnty. Children’s
Protective Servs. v. Olvera, 971 S.W.2d 172, 176 (Tex. App.—Houston [14th
Dist.] 1998, pet. denied) (op. on reh‘g) (agreeing that Cahill authorizes an
appellate court to remand the issue of ad litem appellate attorney‘s fees).
35
Conclusion
Based on our conclusions that the trial court erred by granting the Nikolais‘
motion for summary judgment and by denying XTO‘s motion for summary
judgment, we reverse the trial court‘s judgment with respect to the court‘s
determinations that (1) the mineral estate of the property was never validly
reserved or severed from the surface estate, (2) a mineral lease on the property
may only be made by the Nikolais, (3) the Nikolais are the owners of the property
in fee simple, including both the surface and mineral estate, pursuant to their
warranty deed, and (4) the cloud on the Nikolais‘ title created by appellants‘ claim
to the mineral estate is removed and quieted. We render judgment, instead, in
favor of all of the trial court defendants that the Nikolais are estopped by deed
from claiming that they own any interest in the minerals beneath the surface of
their property. We also affirm the trial court‘s judgment to the extent that it
denied the Nikolais‘ claim for attorney‘s fees, and we remand this case to the trial
court for the limited purpose of resolving issues related to Alagood‘s ad litem
attorney‘s fees.
TERRIE LIVINGSTON
CHIEF JUSTICE
PANEL: LIVINGSTON, C.J.; DAUPHINOT and MCCOY, JJ.
DELIVERED: August 30, 2011
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