ConocoPhillips, Burlington Resources Oil & Gas Co., L.P., and Lois Strieber, Individually and as of the Estate of Jerry Strieber v. Ralph Wade Koopmann, Karen Marie Koenig, and Lorene H. Koopmann ( 2015 )


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  •                                                                                            ACCEPTED
    13-14-00402-CV
    THIRTEENTH COURT OF APPEALS
    CORPUS CHRISTI, TEXAS
    2/19/2015 9:11:26 PM
    ORAL ARGUMENT REQUESTED                  DORIAN RAMIREZ
    CLERK
    NO. 13-14-00402-CV
    In the Court of Appeals       FILED IN
    13th COURT OF APPEALS
    CORPUS CHRISTI/EDINBURG, TEXAS
    for the Thirteenth Judicial District   of Texas
    2/19/2015 9:11:26 PM
    at Corpus Christi-Edinburg Clerk
    DORIAN E. RAMIREZ
    CONOCOPHILLIPS COMPANY, BURLINGTON RESOURCES OIL &
    GAS CO., L.P.,
    Appellants/Cross-Appellees,
    AND LOIS STRIEBER, INDIVIDUALLY AND AS EXECUTRIX OF THE
    ESTATE OF JERRY STRIEBER,
    Appellants,
    v.
    RALPH WADE KOOPMANN, KAREN MARIE KOENIG,
    AND LORENE H. KOOPMANN,
    Appellees/Cross-Appellants.
    Appeal from the 24th Judicial District Court, Dewitt County, Texas
    Cause Number 12-07-22,354
    BURLINGTON CROSS-APPELLEES’ BRIEF
    Kevin D. Cullen                         Michael V. Powell
    State Bar No. 05208625                  State Bar No. 169204400
    kcullen@cullenlawfirm.com               mpowell@lockelord.com
    CULLEN, CARSNER, SEERDEN                Kirsten M. Castañeda
    & CULLEN, L.L.P.                         State Bar No. 00792401
    119 South Main Street                    kcastaneda@lockelord.com
    Victoria, Texas 77902                   Elizabeth L. Tiblets
    (361) 573-6318                           State Bar No. 24066194
    (361) 573-2603 (fax)                     etiblets@lockelord.com
    LOCKE LORD LLP
    2200 Ross Avenue, Suite 2200
    Dallas, Texas 75201-6776
    (214) 740-8000
    (214) 740-8800 (fax)
    Attorneys for Burlington Resources Oil & Gas Co., L.P. and ConocoPhillips Company
    TABLE OF CONTENTS
    Page
    TABLE OF CONTENTS.......................................................................................... ii
    INDEX OF AUTHORITIES.....................................................................................vi
    CROSS-ISSUES RESTATED...................................................................................x
    As to Koopmanns:
    1.      Texas Natural Resources Code §91.402 states royalty
    “payments may be withheld without interest…when there
    is…a dispute concerning title that would affect
    distribution of payments.”     Koopmanns brought a
    declaratory judgment claim based on their dispute with
    Strieber, Burlington, and ConocoPhillips over ownership
    of a defeasible term, non-participating royalty interest
    Strieber reserved from the Deed to Gilbert and Lorene
    Koopmann (“Strieber’s NPRI”).
    a.       Are Koopmanns’ claims for breach of contract,
    unjust enrichment, conversion, negligence, and
    negligence per se, seeking royalties attributable to
    Strieber's NPRI withheld during the ownership
    dispute, barred as a matter of law by the Texas
    Natural Resources Code?
    b.       Are Koopmanns’ claims for pre- and post-
    judgment interest on royalties attributable to
    Strieber’s NPRI barred as a matter of law by the
    Texas Natural Resources Code?
    2.      Burlington’s obligation to pay royalties for Strieber’s
    NPRI arises solely from its oil and gas lease with
    Koopmanns.
    a.       Does the economic loss rule bar Koopmanns’
    attempt to recover those royalty payments as
    ii
    TABLE OF CONTENTS (cont’d)
    Page
    damages, plus interest, for conversion, negligence,
    and negligence per se?
    b.       Does the oil and gas lease bar Koopmanns’ claims
    for unjust enrichment/money had and received
    seeking unpaid royalties and interest?
    3.       Does Texas law permit Koopmanns to bring a claim for
    conversion of unpaid royalty funds?
    4.       Does Texas law permit Koopmanns to bring claims for
    negligence and negligence per se based on a shut-in
    royalties payment on which Koopmanns did not rely and
    which their counsel promptly returned?
    5.       Did the trial court properly grant the take-nothing
    summary judgment?
    As to Strieber:
    Strieber asserted in a cross-claim that, if Koopmanns succeeded
    in obtaining a declaration of ownership rights under the Deed,
    then Burlington and ConocoPhillips breached a separate alleged
    oral contract between Strieber and Burlington or
    ConocoPhillips. After disposing of Koopmanns’ declaratory
    judgment claim by summary judgment, the trial court severed
    Strieber’s cross-claim. Did the trial court abuse its discretion in
    severing Strieber’s cross-claim?
    INTRODUCTION .....................................................................................................1
    STATEMENT OF FACTS ........................................................................................4
    A.       Different Parties’ Rights Are Governed by Different
    Alleged Agreements ..............................................................................4
    B.       The Parties Disputed Ownership of Strieber’s NPRI............................5
    iii
    TABLE OF CONTENTS (cont’d)
    Page
    C.       Koopmanns and Strieber Added Claims Distinct from
    Declaratory Relief .................................................................................6
    D.       The Trial Court Summarily Disposed of Koopmanns’
    Claims and Severed Strieber’s Cross-Claim .........................................7
    SUMMARY OF THE ARGUMENT ........................................................................8
    ARGUMENT .............................................................................................................9
    A.       The Trial Court Properly Granted Summary Judgment
    Against Koopmanns’ Non-Declaratory Claims ....................................9
    1.        Payments were withheld as authorized by statute,
    which prohibits interest...............................................................9
    2.        Additional independent grounds support summary
    judgment....................................................................................13
    a.       The economic loss rule bars the tort claims ...................13
    b.       Withheld royalty payments cannot be
    converted.........................................................................14
    c.       As a matter of law, the shut-in payment
    caused no damage ...........................................................15
    d.       The equitable claims are barred by contract...................16
    B.       The Trial Court Properly Severed Strieber’s Cross-Claim .................17
    1.        The claims are not “interwoven” ..............................................17
    2.        The summary declaratory judgment confirms
    severance was proper ................................................................21
    3.        Strieber cannot complain of alleged prejudice she
    invited........................................................................................23
    PRAYER ..................................................................................................................25
    iv
    TABLE OF CONTENTS (cont’d)
    Page
    CERTIFICATE OF COMPLIANCE.......................................................................27
    CERTIFICATE OF SERVICE ................................................................................28
    v
    INDEX OF AUTHORITIES
    Page(s)
    CASES
    Browning Oil Co. v. Luecke,
    
    38 S.W.3d 625
     (Tex. App.—Austin 2000, pet. denied) ...............................23, 24
    Cherokee Water Co. v. Forderhause,
    
    641 S.W.2d 522
     (Tex. 1982) ........................................................................34, 35
    Collin County v. Hixon Family P’ship, Ltd.,
    
    365 S.W.3d 860
     (Tex. App.—Dallas 2012, pets. denied) ..................................35
    Concord Oil Co. v. Pennzoil Exploration & Prod. Co.,
    
    966 S.W.2d 451
     (Tex. 1998) ............................................................22, 23, 24, 25
    Dixon v. State,
    
    808 S.W.2d 721
     (Tex. App.—Austin 1991, writ dism’d
    w.o.j.) ..................................................................................................................27
    Edwin M. Jones Oil Co. v. Pend Oreille Oil & Gas Co.,
    
    794 S.W.2d 442
     (Tex. App.—Corpus Christi 1990, writ
    denied).................................................................................................................22
    Excel Corp. v. Valdez,
    
    921 S.W.2d 444
     (Tex. App.—Corpus Christi 1996, orig.
    proceeding) .........................................................................................................35
    F.F.P. Operating Partners, L.P. v. Duenez,
    
    237 S.W.3d 680
     (Tex. 2007) ........................................................................31, 32
    Forderhause v. Cherokee Water Co.,
    
    623 S.W.2d 435
     (Tex. Civ. App.—Texarkana 1981), rev’d,
    
    641 S.W.2d 522
     (Tex. 1982) ..............................................................................34
    Fortune Prod. Co. v. Conoco, Inc.,
    
    52 S.W.3d 671
     (Tex. 2000).................................................................................28
    Garcia v. Willman,
    
    4 S.W.3d 307
     (Tex. App.—Corpus Christi 1999, no pet.) .................................34
    vi
    INDEX OF AUTHORITIES (cont’d)
    Page(s)
    Gore Oil Co. v. Roosth,
    
    158 S.W.3d 596
     (Tex. App.—Eastland 2005, no pet.).......................................23
    In re Greater McAllen Star Properties,
    
    444 S.W.3d 743
     (Tex. App.—Corpus Christi-Edinburg
    2014, no pet. hist.) ..............................................................................................36
    Guaranty Fed. Savs. Bank v. Horseshoe Operating Co.,
    
    793 S.W.2d 652
     (Tex. 1990) ..............................................................................29
    Harrison v. Bass Enters. Prod. Co.,
    
    888 S.W.2d 532
     (Tex. App.—Corpus Christi 1991, no writ) ............................26
    Headington Oil Co., L.P. v. White,
    
    287 S.W.3d 204
     (Tex. App.—Houston [14th Dist.] 2009, no
    pet.) ...............................................................................................................23, 24
    Henry S. Miller Mgmt. Corp. v. Houston State Assocs.,
    
    792 S.W.2d 128
     (Tex. App.—Houston [1st Dist.] 1990, writ
    denied).................................................................................................................36
    Howell v. Tex. Workers’ Compensation Comm’n,
    
    143 S.W.3d 416
     (Tex. App.—Austin 2004, pets. denied)..................................35
    Iron Mountain Bison Ranch, Inc. v. Easely Trailer Mfg., Inc.,
    
    42 S.W.3d 149
     (Tex. App.—Amarillo 2000, no pet.) ........................................28
    Jim Walter Homes, Inc. v. Reed,
    
    711 S.W.2d 617
     (Tex. 1986) ..............................................................................25
    Levetz v. Sutton,
    
    404 S.W.3d 798
     (Tex. App.—Dallas 2013, pet. denied)....................................33
    Livingston Oil Corp. v. Waggoner,
    
    273 S.W. 903
     (Tex. Civ. App.—Amarillo 1925, writ ref’d)..............................27
    McGuire v. Commercial Union Ins. Co.,
    
    431 S.W.2d 347
     (Tex. 1968) ..............................................................................34
    vii
    INDEX OF AUTHORITIES (cont’d)
    Page(s)
    In re McKillip-Odom,
    
    2007 WL 2045282
     (Tex. App.—Tyler July 18, 2007, orig.
    proceeding) (mem. op.).................................................................................32, 33
    Mitchell Energy Corp. v. Samson Resources Co.,
    
    80 F.3d 976
     (5th Cir. 1996) ..........................................................................26, 27
    Morgan v. Compugraphic Corp.,
    
    675 S.W.2d 729
     (Tex. 1984) ........................................................................30, 36
    Nabors Drilling, U.S.A., Inc. v. Escoto,
    
    288 S.W.3d 401
     (Tex. 2009) ..............................................................................28
    Newsome v. Charter Bank Colonial,
    
    940 S.W.2d 157
     (Tex. App.—Houston [14th Dist.] 1996,
    writ denied) .........................................................................................................27
    Protocol Tech. v. J.B. Grand Canyon Dairy,
    
    406 S.W.3d 609
     (Tex. App.—Eastland 2013, no pet.).......................................28
    RGV Healthcare Assocs., Inc. v. Estevis,
    
    294 S.W.3d 264
     (Tex. App.—Corpus Christi-Edinburg
    2009, pet. denied)................................................................................................35
    S.W. Bell Tel. Co. v. DeLanney,
    
    809 S.W.2d 493
     (Tex. 1991) ........................................................................25, 26
    Santana Natural Gas Corp. v. Hamon Operating Co.,
    
    954 S.W.2d 885
     (Tex. App.—Austin 1997, pet. denied) ...................................27
    Smith v. Tex. Farmers Ins. Co.,
    
    82 S.W.3d 580
     (Tex. App.—San Antonio 2002, pets.
    denied).................................................................................................................34
    State Dept. of Highways & Public Transp. v. Cotner,
    
    845 S.W.2d 818
     (Tex. 1993) ........................................................................32, 33
    Tex. Oil & Gas Corp. v. Vela,
    
    429 S.W.2d 866
     (Tex. 1968) ..............................................................................24
    viii
    INDEX OF AUTHORITIES (cont’d)
    Page(s)
    Union Gas Corp. v. Gisler,
    
    129 S.W.3d 145
     (Tex. App.—Corpus Christi-Edinburg
    2003, no pet.) ....................................................................................30, 31, 32, 33
    CONSTITUTION, STATUTES, AND RULES
    TEX. FIN. CODE §§304.002, 304.005........................................................................25
    TEX. NAT. RES. CODE §91.402 .................................................. 14, 21, 22, 23, 24, 25
    TEX. NAT. RES. CODE §91.402(a).............................................................................25
    TEX. NAT. RES. CODE §91.402(b) ................................................................21, 23, 24
    TEX. NAT. RES. CODE §91.402(d) ............................................................................21
    TEX. NAT. RES. CODE §91.403(a).............................................................................21
    TEX. NAT. RES. CODE §91.403(b) ............................................................................21
    TEX. R. APP. P. 43.4..................................................................................................37
    TEX. R. CIV. P. 40(a) ................................................................................................30
    ix
    CROSS-ISSUES RESTATED
    Cross-Issues as to Koopmanns:
    1.    Texas Natural Resources Code §91.402 states royalty “payments may
    be withheld without interest…when there is…a dispute concerning title that would
    affect distribution of payments.”    Cross-Appellants (“Koopmanns”) brought a
    declaratory judgment claim based on their dispute with Lois Strieber, Burlington
    Resources Oil & Gas Co., L.P. (“Burlington”), and ConocoPhillips Company
    (“ConocoPhillips”) over ownership of a defeasible term, non-participating royalty
    interest Strieber reserved from the Deed to Gilbert and Lorene Koopmann
    (“Strieber’s NPRI”). Until this ownership dispute is finally resolved, Burlington
    has placed in suspense the royalties attributable to Strieber’s NPRI. In an attempt
    to recover these royalties, as well as pre- and post-judgment interest thereon,
    Koopmanns brought claims for breach of contract against Burlington, unjust
    enrichment against ConocoPhillips, and conversion, negligence, and negligence
    per se against Burlington and ConocoPhillips. The trial court denied these claims
    through summary judgment.
    a.    Are Koopmanns’ claims for breach of contract, unjust enrichment,
    conversion, negligence, and negligence per se barred as a matter
    of law by the Texas Natural Resources Code?
    b.    Are Koopmanns’ claims for pre- and post-judgment interest on
    royalties attributable to Strieber’s NPRI barred as a matter of law
    by the Texas Natural Resources Code?
    x
    2.     Burlington’s obligation to pay royalties for Strieber’s NPRI arises
    solely from its oil and gas lease with Koopmanns.
    a.     Does the economic loss rule bar Koopmanns’ attempt to recover
    those royalty payments as damages, plus interest, for conversion,
    negligence, and negligence per se?
    b.     Does the oil and gas lease bar Koopmanns’ claim for unjust
    enrichment for unpaid royalties and interest?
    3.     Does Texas law permit Koopmanns to bring a claim for conversion of
    unpaid royalty funds?
    4.     Does Texas law permit Koopmanns to bring claims for negligence and
    negligence per se based on a shut-in royalties payment on which Koopmanns did
    not rely and which their counsel promptly returned?
    5.     Did the trial court properly grant the take-nothing summary
    judgment?
    Cross-Issue as to Strieber:
    Strieber asserted in a cross-claim that, if Koopmanns succeeded in obtaining
    a declaration of ownership rights under the Deed, then Burlington and
    ConocoPhillips breached a separate alleged oral contract between Strieber and
    Burlington or ConocoPhillips.       After disposing of Koopmanns’ declaratory
    judgment claim by summary judgment, the trial court severed Strieber’s cross-
    claim. Did the trial court abuse its discretion in severing Strieber’s cross-claim?
    xi
    INTRODUCTION
    Every side has found fault with the trial court’s judgment in this case. This
    appeal consists of three main components. The first component is addressed in
    Burlington and ConocoPhillips’ opening brief.       This Cross-Appellees’ Brief
    addresses the second and third components.
    (1)   Burlington, ConocoPhillips, and Strieber appeal the trial court’s
    summary judgment declaring Koopmanns own Strieber’s NPRI as of
    December 27, 2011;
    (2)   Koopmanns cross-appeal the trial court’s take-nothing summary
    judgment against their remaining claims, seeking royalties attributable
    to Strieber’s NPRI (the “NPRI royalties”) placed in suspense during
    the ownership dispute, as well as interest thereon; and
    (3)   Strieber also appeals the trial court’s order severing her cross-claim
    against Burlington and ConocoPhillips after granting Koopmanns
    summary declaratory judgment.
    Resolving these issues takes us step-by-step down a straightforward path.
    Well established legal principles light the way. Yet, Koopmanns—and even, at
    times, Strieber—attempt to complicate matters by injecting unsupported fact
    statements, irrelevant emotional pleas, and several abrupt reversals of positions
    they advocated below.
    Indeed, Koopmanns devote much of their brief to casting aspersions on
    Burlington and ConocoPhillips.       They imply, for example, some sort of
    skullduggery in Strieber’s conveyance of 60% of her NPRI to Burlington through a
    “secret” acquisition following months of “closed-door” meetings.       Koopmann-
    1
    XANT:Br. 8. Yet, the record shows the Royalty Deed conveying the interest was
    promptly and publicly filed in the county deed records, with no preceding
    negotiations, just 41 days after Strieber’s sons approached ConocoPhillips with an
    offer. 2CR:353, 376, 475-77. In addition to their lack of record support,1 these
    sorts of allegations are irrelevant to the claims denied by summary judgment,
    which are based on: (1) Burlington’s placing in suspense NPRI royalties during
    the ownership dispute; and (2) Burlington’s shut-in royalty payment.
    Moreover, Koopmanns’ characterization of that ownership dispute in their
    brief contrasts sharply with the position they used to garner a hefty attorneys’ fees
    award under the Declaratory Judgments Act. Below, they sought declarations on
    whether they or Strieber and Burlington own Strieber’s NPRI. In moving for DJA
    attorneys’ fees, Koopmanns declared this ownership dispute was “heated” and the
    heart of the case. 3CR:464. Koopmanns acknowledged the “complex” ownership
    dispute presented “[n]ovel and difficult legal questions” requiring hundreds of
    attorney work hours. 3CR:482.
    Nevertheless, on appeal, Koopmanns “vehemently contest” there is any
    “legitimate title dispute ….” Koopmann-XANT:Br. 23 (emphasis omitted). The
    reason for this abrupt about-face is simple: Texas Natural Resources Code section
    91.402 authorizes a payor to withhold royalty payments, without interest, when a
    1
    The Koopmanns’ record cites frequently do not support the associated statements.
    2
    dispute concerning title exists that would affect distribution of payments. All
    Koopmanns’ non-declaratory claims are based on NPRI royalties withheld during
    the “heated” and “complex” ownership dispute.          For this and other reasons
    discussed below, the trial court properly granted summary judgment against these
    claims.
    Strieber also performs an about-face in presenting her appellate issue against
    co-appellants Burlington and ConocoPhillips.         After the trial court granted
    Koopmanns declaratory relief (3CR:455-56), Burlington and ConocoPhillips
    moved to sever and stay Strieber’s cross-claim pending the declaratory judgment
    appeal.    3CR:686-87.      The cross-claim concerned purported terms of an
    independent alleged agreement by which Strieber assigned 60% of her NPRI to
    Burlington. Strieber opposed severance. However, in the alternative the cross-
    claim were severed, Strieber asked the trial court to deny the stay. The trial court
    severed the cross claim and denied the stay. Yet, on appeal, Strieber contends the
    severance is prejudicial because the cross-claim is not stayed. Strieber-ANT:Br. 5,
    7-8.
    Opinions by the Texas Supreme Court, this Court, and other courts of
    appeals confirm the trial court properly severed Strieber’s cross-claim. Moreover,
    even if Strieber could complain of relief the trial court granted at her request, she
    asks this Court to place her in the same situation she contends is “prejudicial:” to
    3
    require trial of her cross-claim before deciding whether the threshold declaratory
    judgment should be reversed. Strieber has not shown any abuse of discretion or
    harm to support the severance order’s reversal.
    STATEMENT OF FACTS
    Burlington and ConocoPhillips set forth below facts that are supported by
    the record, undisputed, and relevant to the cross-issues.
    A.    Different Parties’ Rights Are Governed by Different Alleged
    Agreements
    On December 27, 1996, Strieber conveyed the Tract to Gilbert and Lorene
    Koopmann. 2CR:323-25. In the Deed, Strieber reserved a defeasible term, non-
    participating royalty interest in one-half of the royalties from the Tract. 2CR:324.
    Strieber’s NPRI was reserved for a period of 15 years “and as long thereafter as
    there is production in paying or commercial quantities of oil, gas, or said other
    minerals from said land or lands pooled therewith.” Id. The Deed contained a
    saving clause defining circumstances under which it would be considered that
    production in paying or commercial quantities was being obtained by the Tract as
    of December 27, 2011. Id.
    Koopmanns’ interest in the Tract was leased to Hawke Enterprises,
    Burlington’s predecessor-in-interest.     2CR:332-38.       This Lease, whose term
    extends to October 22, 2012, governs payment of royalties to Koopmanns.
    1CR:284; 2CR:462-676.
    4
    On July 6, 2011, Strieber’s sons approached Burlington about possibly
    transferring a portion of Strieber’s NPRI. 2CR:353, 376. On August 16, 2011,
    Strieber and Burlington entered into a Royalty Deed assigning 60% of Strieber’s
    NPRI to Burlington. 2CR:475-77. Burlington promptly filed the Royalty Deed in
    county deed records. 2CR:477.
    Strieber alleges Burlington or ConocoPhillips orally promised that, in
    exchange for her assignment, Burlington or ConocoPhillips would drill multiple
    wells, beginning with a well drilled, completed, and producing by December 27,
    2011. Neither the Royalty Deed nor any other writing contains such promise.
    1CR:173-74.
    B.    The Parties Disputed Ownership of Strieber’s NPRI
    Ultimately, the parties disagreed whether Strieber’s NPRI terminated on
    December 27, 2011. Koopmanns claim it did, asserting they now own 100% of
    royalties from the Tract. 1CR:4, 10-11. Strieber, Burlington, and ConocoPhillips
    contend the Rule Against Perpetuities bars Koopmanns’ ownership claim.
    2CR:136-37, 192, 562-63. In addition, they contend Strieber’s NPRI continued in
    effect under the Deed. Id. The parties’ dispute had several effects.
    First, consistent with its position that Strieber’s NPRI continued in effect,
    Burlington sent Koopmanns a shut-in royalty payment in December 2011.
    1CR:287, 319; 3CR:660-61.       Contrary to Koopmanns’ unsupported assertions
    5
    (Koopmann-XANT:Br. 10-12), the undisputed evidence showed payment was made
    according to standard procedure, a precaution against later assertions it was
    necessary to preserve Strieber’s NPRI. 3CR:660-61. Koopmanns, consistent with
    their own position, “promptly rejected and returned” the payment.         1CR:229.
    Although Koopmanns alleged the payment was part of a “ruse,” they
    acknowledged in pleadings and depositions they did not rely on the payment, were
    not misled by it, and did not suffer any harm from it. 1CR:228-29; 3CR:639-41,
    642, 651-52.     Indeed, Ralph Koopmann testified “I kind of laughed at
    it…[b]ecause I knew it wasn’t right.” 3CR:640.
    Further, after Koopmanns informed Burlington they disputed ownership of
    Strieber’s NPRI, Burlington placed in suspense all royalties attributable to
    Strieber’s NPRI (i.e., one-half the royalties from the Tract) until the dispute is
    resolved. 1CR:231. Burlington issued a division order for the other, undisputed
    half of royalties, which have been paid to Koopmanns. See id.
    Finally, in 2012, Koopmanns filed suit for, inter alia, declarations under the
    Deed that Strieber’s NPRI terminated on December 27, 2011, and they own 100%
    of the royalties. 1CR:4, 10-11.
    C.    Koopmanns and Strieber Added Claims Distinct from Declaratory
    Relief
    Beyond their declaratory judgment claim, Koopmanns pursued claims
    against Burlington and ConocoPhillips for breach of contract, unjust enrichment,
    6
    conversion, and negligence/negligence per se based on withholding of NPRI
    royalties.2 1CR:239-53. In further support of the negligence/negligence per se
    (“negligence”) claims, Koopmanns also discussed Burlington’s shut-in royalty
    payment. 1CR:245, 251.
    Strieber later asserted a cross-claim against Burlington and ConocoPhillips.
    Strieber still denied Koopmanns owned the NPRI.                E.g., 2CR:562-63.
    Nonetheless, Strieber alleged, if Koopmanns prevailed, Burlington and
    ConocoPhillips breached a contract with her.3        2CR:5.    While Koopmanns’
    declaratory judgment claim centers on the 1996 Deed, Strieber’s contract claim
    centers on an alleged 2011 oral agreement with Burlington or ConocoPhillips.
    D.    The Trial Court Summarily Disposed of Koopmanns’ Claims and
    Severed Strieber’s Cross-Claim
    On competing motions, the trial court granted summary declaratory
    judgment for Koopmanns. 3CR:455; 4CR:517.
    Burlington and ConocoPhillips moved to sever and stay Strieber’s cross-
    claim pending appeal. 3CR:686, 698. Strieber opposed the severance, but also
    asked the trial court to deny a stay if severance were granted. 4CR:360, 369.
    2
    Koopmanns also asserted a tortious interference claim, which was dismissed as a
    matter of law. 4CR:483. They do not appeal the dismissal. Koopmann-XANT:Br.
    4.
    3
    Strieber pleaded, but later non-suited, a negligent misrepresentation cross-claim.
    2CR:5; 4CR:358.
    7
    The trial court granted a take-nothing summary judgment on Koopmanns’
    remaining claims and severed Strieber’s cross-claim. 4CR:482-83, 495. The trial
    court denied the stay, and the severed action was set for trial on March 2, 2015.
    See 4CR:495. However, the parties agreed to pass the trial setting, which has not
    been reset.
    The summary judgments and severance expressly merged into the final
    judgment. 4CR:519-21.
    SUMMARY OF THE ARGUMENT
    The ownership dispute over Strieber’s NPRI forms the heart of Koopmanns’
    claims. The parties starkly disagree, triggering the Texas Natural Resources Code
    provision allowing payors to withhold royalties without interest when a dispute
    concerning title would affect their distribution. This statute protects lessees from
    making duplicative payments to competing putative owners. As a matter of law,
    the statute bars Koopmanns’ claims based on placement of NPRI royalties in
    suspense. For this and other reasons, the trial court properly granted its take-
    nothing summary judgment.
    The trial court also properly severed Strieber’s cross-claim against
    Burlington and ConocoPhillips.      4CR:495.     Unlike Koopmanns’ declaratory
    judgment claim, the cross-claim asserted breach of a different contract allegedly
    formed between Strieber and either Burlington or ConocoPhillips.            2CR:4.
    8
    Furthermore, the cross-claim was severed after the threshold NPRI ownership
    question had been resolved by summary judgment. 2CR:5; 3CR:455, 495. The
    severance order falls well within the trial court’s discretion and should not be
    disturbed.
    ARGUMENT
    A.    The Trial Court Properly Granted Summary Judgment Against
    Koopmanns’ Non-Declaratory Claims
    1.     Payments were withheld as authorized by statute, which prohibits
    interest
    Koopmanns’ declaratory judgment claim highlights the parties’ vigorous
    dispute over ownership of Strieber’s NPRI.          Koopmanns’ other claims seek
    damages and interest based on withholding of NPRI royalties. However, the Texas
    Natural Resources Code provides that royalty “payments may be withheld without
    interest…when there is...a dispute concerning title that would affect distribution of
    payments.” TEX. NAT. RES. CODE §91.402(b). Consistent with this provision, the
    statutorily prescribed division order form states: “In the event of a claim or dispute
    that affects title to the division of interest credited herein, payor is authorized to
    withhold payments accruing to such interest, without interest unless otherwise
    required by applicable statute, until the claim or dispute is settled.” Id. §91.402(d).
    In addition, section 91.403(b) provides that the interest rate prescribed by section
    91.403(a) “does not apply where payments are withheld or suspended” under
    section 91.402.
    9
    As a matter of law, the Code bars Koopmanns’ non-declaratory claims. See
    id.; Edwin M. Jones Oil Co. v. Pend Oreille Oil & Gas Co., 
    794 S.W.2d 442
    , 450
    (Tex. App.—Corpus Christi 1990, writ denied) (holding a “title dispute” existed
    where lawsuit’s subject matter and evidence showed parties disputed royalty
    payments’ ownership). In an attempt to avoid the statute, Koopmanns argue the
    title dispute is not “legitimate.” Koopmann-XANT:Br. 26. Yet, in support of DJA
    attorneys’ fees below, Koopmanns argued “the heart of this case was the
    construction of a deed, including a heated dispute over whether a reserved term
    royalty interest held by [Strieber] expired on December 27, 2011.” 3CR:464.
    Koopmanns characterized their efforts to establish title as complex, requiring
    hundreds of attorney hours to address “novel and difficult legal questions” on title
    issues. 3CR:482. The trial court awarded Koopmanns $190,000 in DJA trial
    attorneys’ fees. 4CR:520-21. Having obtained this award based on a complicated
    title dispute, Koopmanns cannot now argue the title dispute was illegitimate.
    The dispute over who owns Strieber’s NPRI supports the right to withhold
    NPRI royalties, even pending appeal. For example, in Concord Oil Company v.
    Pennzoil Exploration and Production Company, 
    966 S.W.2d 451
    , 461 (Tex. 1998),
    two interest owners claimed the right to proceeds based on competing deed
    interpretations. The Supreme Court rejected Pennzoil’s interpretation and held
    10
    Concord was entitled to the proceeds Pennzoil had withheld.4                Id. at 459.
    Nevertheless, the Court also determined Pennzoil was statutorily entitled to
    withhold those proceeds until the Court resolved the title dispute. Id. at 461.
    Likewise, disagreement over the correct ownership percentages, which
    always affects the payor’s “ability to distribute” royalties, presents a legitimate title
    dispute. Headington Oil Co., L.P. v. White, 
    287 S.W.3d 204
    , 210, 212 (Tex.
    App.—Houston [14th Dist.] 2009, no pet.) Similarly, when parties dispute the
    amount of royalty interest held by a grantor’s successor under a deed, the title
    dispute triggers the statute.5 Id. at 210-11 (analogizing Gore Oil Co. v. Roosth,
    
    158 S.W.3d 596
     (Tex. App.—Eastland 2005, no pet.)).
    By contrast, cases in which courts have declined to apply section 91.402(b)
    typically involve deliberate contractual breaches not based upon disputed title.
    See, e.g., Browning Oil Co. v. Luecke, 
    38 S.W.3d 625
     (Tex. App.—Austin 2000,
    pet. denied). The Browning payor did not dispute the plaintiffs’ entitlement to
    royalties, but instead disagreed over how to calculate the payments. Id. at 632; see
    4
    Concord directly contradicts Koopmanns’ argument that section 91.402’s only
    purpose “is to extinguish a plaintiff’s/lessor’s right to recover prejudgment interest
    when the defendant/lessee obtains a favorable verdict.” Defendant/lessee Pennzoil
    lost, but still obtained section 91.402’s protections. Compare Koopmann-
    XANT:Br. 23-24 (emphasis added) with Concord, 966 S.W.2d at 461.
    5
    Koopmanns repeatedly assert section 91.402(b) does not provide safe harbor for a
    payor to withhold payments. Yet, the Headington court observed section 91.402’s
    very purpose is to “permit delays that result from legitimate title disputes.” 287
    S.W.3d at 210.
    11
    also Headington, 287 S.W.3d at 211 (distinguishing Browning as involving claims
    “not from disputes about the amount of the interest or who owned it”). Here, the
    situation is opposite Browning. The parties do not dispute how royalties should be
    calculated, but instead disagree over who is entitled to receive those payments, i.e.,
    a title dispute. See Headington, 287 S.W.3d at 212.
    Burlington’s partial ownership of Strieber’s NPRI does not remove section
    91.402’s protections. See Concord, 966 S.W.2d at 462. To the contrary, the
    Supreme Court expressly held section 91.402(b) applies equally when a payor
    “unsuccessfully asserts that it is entitled to some or all of the proceeds.” Id.
    Each of Koopmanns’ additional claims is based on Burlington’s and/or
    ConocoPhillips’ failure to pay, or exercise of dominion or control over, NPRI
    royalties. 1CR:239-53. Koopmanns’ contract claim alleges Burlington’s failure to
    pay NPRI royalties breached the Lease.6         The unjust enrichment/money had and
    received claim alleges ConocoPhillips retained possession and benefit of NPRI
    royalties. 1CR:241. The conversion claims allege Burlington and ConocoPhillips
    wrongfully exercised dominion and control over NPRI royalties. 1CR:243-44,
    247-48. The negligence claims are based on acts or omissions giving rise to the
    failure to pay NPRI royalties. 1CR:244-47, 251-52. And, the claims for pre- and
    6
    Although Koopmans contend the Code does not apply to contract claims, the only
    possible basis for an obligation to pay a lessor royalties—i.e., the payments that
    may be withheld under section 91.402—is an oil and gas lease. E.g., Tex. Oil &
    Gas Corp. v. Vela, 
    429 S.W.2d 866
    , 870 (Tex. 1968).
    12
    post-judgment interest seek to add interest to the amounts of withheld NPRI
    royalties.
    As a matter of law, section 91.402 authorized Burlington to withhold NPRI
    royalties, without penalty of interest.7 See Concord, 966 S.W.2d at 462. Equally,
    the statute extends to ConocoPhillips in administering Burlington’s leasehold
    obligations. Compare TEX. NAT. RES. CODE §91.402(a) (applying to any “payor”)
    with 3CR:681-82 (explaining ConocoPhillips’ role). The trial court’s take-nothing
    summary judgment should be affirmed.
    2.     Additional independent grounds support summary judgment
    a.   The economic loss rule bars the tort claims
    Independently of section 91.402, the economic loss rule bars Koopmanns’
    conversion and negligence claims. “When the injury is only the economic loss to
    the subject of a contract itself, the action sounds in contract alone.” Jim Walter
    Homes, Inc. v. Reed, 
    711 S.W.2d 617
    , 618 (Tex. 1986).           Moreover, when a
    defendant’s only duty arises from a contract whose benefit the plaintiff seeks to
    recover, there is no viable negligence claim. See S.W. Bell Tel. Co. v. DeLanney,
    
    809 S.W.2d 493
    , 495 (Tex. 1991).
    7
    Contrary to Koopmanns’ argument, the Finance Code does not support post-
    judgment interest. The final judgment is neither a “money judgment” nor based on
    a contract. Compare TEX. FIN. CODE §§304.002, 304.005 with 4CR:517-22.
    13
    Koopmanns’ tort claims are based on actions governed by the Lease.
    1CR:243-54. Any duties to properly inspect royalty-related documents, make
    proper royalty payments, or pay shut-in royalties arose under the Lease. Compare
    1CR:244-46, 251-53 with DeLanney, 809 S.W.2d at 495. Indeed, Koopmanns
    allege negligence through failure to “manage and administer the lease,” “execute
    the contract with the level of care” required, and cooperate “in the performance of
    the Lease/contract.” 1CR:244-45, 251-52 (emphasis added).
    Absent the Lease, Burlington and ConocoPhillips would have no obligation
    to pay royalties to Koopmanns, which are the only damages sought.               See
    DeLanney, 809 S.W.2d at 495.        As this Court has held, tort claims seeking
    recovery of unpaid royalties are barred by the rules articulated in DeLanney.
    Harrison v. Bass Enters. Prod. Co., 
    888 S.W.2d 532
    , 536 (Tex. App.—Corpus
    Christi 1991, no writ) (applying DeLanney where “the only damages Harrison
    claims are the unpaid royalties—the subject matter of the contract”).
    b.     Withheld royalty payments cannot be converted
    Under Texas law, money can be converted only when it takes the form of
    specific chattel, such as old coins, or “when the money is delivered to another
    party for safekeeping, the keeper claims no title, and the money is required and
    intended to be segregated, either substantially in the form in which it was received
    or as an intact fund.” Mitchell Energy Corp. v. Samson Resources Co., 
    80 F.3d 14
    976, 984 (5th Cir. 1996)8 (citing Dixon v. State, 
    808 S.W.2d 721
    , 723 (Tex. App.—
    Austin 1991, writ dism’d w.o.j.). An obligation requiring mere payment of money
    will not support a conversion claim. E.g., Newsome v. Charter Bank Colonial, 
    940 S.W.2d 157
    , 161 (Tex. App.—Houston [14th Dist.] 1996, writ denied).
    Koopmanns cite Livingston Oil Corp. v. Waggoner, 
    273 S.W. 903
     (Tex. Civ.
    App.—Amarillo 1925, writ ref’d), and Santana Natural Gas Corp. v. Hamon
    Operating Co., 
    954 S.W.2d 885
    , 892 (Tex. App.—Austin 1997, pet. denied), for
    the proposition that minerals brought to the surface and severed from real property
    can be converted.     However, Koopmanns’ conversion claim makes no such
    allegation, asserting instead the withholding of “royalty payments,” i.e., money
    payments. See, e.g., 1CR:243; Koopmann-XANT:Br. 20. As a matter of law, these
    payments cannot be converted. See Mitchell, 80 F.3d at 983; Newsome, 940
    S.W.2d at 161.
    c.      As a matter of law, the shut-in payment caused no damage
    In support of their negligence claims, Koopmanns point to both withheld
    royalties and Burlington’s shut-in royalty payment. In addition to establishing the
    early payment breached some duty (even though not prohibited by the Lease
    (1CR:273-79, 286-97)), Koopmanns must show the payment proximately caused
    8
    The Fifth Circuit examined Texas law and concluded “no conversion action lies”
    for working/royalty interest owners who complain they have not received royalties
    due. Mitchell, 80 F.3d at 983-84.
    15
    some damage. See Nabors Drilling, U.S.A., Inc. v. Escoto, 
    288 S.W.3d 401
    , 404
    (Tex. 2009). Although Koopmanns make unsupported allegations that the shut-in
    royalty payment was meant to fool them, they averred they were not fooled and,
    instead, “laughed” and immediately returned the payments. 3CR:639-41, 642,
    651-52. As a matter of law, the payments did not proximately cause any damages.
    d.     The equitable claims are barred by contract
    Koopmanns’ equitable claims for unjust enrichment and money had and
    received also fail as a matter of law because an express contract covers the
    disputed issue. See Fortune Prod. Co. v. Conoco, Inc., 
    52 S.W.3d 671
    , 683-84
    (Tex. 2000). Koopmanns’ equitable claims are based on the failure to pay NPRI
    royalties. Any obligation to make royalty payments to Koopmanns is governed by
    the Lease. The Lease’s bar against equitable claims regarding withheld royalty
    payments applies equally to Burlington as a contracting party and ConocoPhillips
    as a third party administering the Lease. See Protocol Tech. v. J.B. Grand Canyon
    Dairy, 
    406 S.W.3d 609
    , 614 (Tex. App.—Eastland 2013, no pet.); Iron Mountain
    Bison Ranch, Inc. v. Easely Trailer Mfg., Inc., 
    42 S.W.3d 149
    , 160 (Tex. App.—
    Amarillo 2000, no pet.).
    For each of the reasons set forth above, the trial court properly granted take-
    nothing summary judgment against Koopmanns’ non-declaratory claims.
    16
    B.    The Trial Court Properly Severed Strieber’s Cross-Claim
    A claim is properly severable if: (1) the controversy involves multiple
    claims; (2) the severed claim could be the proper subject of a lawsuit if asserted
    independently; and (3) the severed claim is not so interwoven with the remaining
    action that they involve the same facts and issues. Guaranty Fed. Savs. Bank v.
    Horseshoe Operating Co., 
    793 S.W.2d 652
    , 658 (Tex. 1990). In challenging the
    trial court’s severance of her cross-claim, Strieber does not dispute the first two
    prongs are met. Strieber-ANT:Br. 5. Instead, Strieber contends her cross-claim
    against Burlington and ConocoPhillips for breach of an alleged oral contract is so
    interwoven as to be inseparable from Koopmanns’ request for declaratory
    judgment under the 1996 Deed.
    Strieber fails to recognize three important points:
    •     First, it is possible for two claims to share some common facts and
    issues without being “interwoven.”
    •     Second, courts have broad discretion to sever live claims from a
    completed claim to expedite finality and appeal.
    •     Third, Strieber is not being “forced” to litigate her cross-claim and
    this appeal concurrently because of the severance, but rather due to
    her own request that the trial court deny any stay of the severed claim.
    1.    The claims are not “interwoven”
    Two claims are not “interwoven” simply because they involve some
    common issues and facts. For example, permissive counter- or cross-claims may
    be asserted in the same lawsuit as a plaintiff’s claims if they arise from a common
    17
    transaction/occurrence and share some common legal or factual questions. TEX. R.
    CIV. P. 40(a).    If this level of commonality rendered claims unseverable, no
    severance ever would be permitted. Yet, a review of the case law demonstrates
    that, if a claim could be brought in a separate lawsuit (as Strieber concedes her
    cross-claim could), it is rarely “so interwoven” as to preclude severance. Instead,
    the “interwoven” standard requires a pervasive identity of issues creating a real
    danger of duplicative trials.
    For example, claims involving the exact same damages sought for the exact
    same injury are not so “interwoven” to preclude severance. The Texas Supreme
    Court has affirmed severance of claims against multiple defendants for joint and
    several damages from indivisible injuries. Morgan v. Compugraphic Corp., 
    675 S.W.2d 729
    , 733-34 (Tex. 1984). These claims necessarily rested on common
    facts and evidence. Id. at 733. However, each claim could have been brought
    separately, and default judgment against one defendant averted two trials on
    liability (though not on damages). Id. at 734. The Supreme Court found no abuse
    of discretion in the severance. Id.
    Likewise, two claims are not “interwoven” simply because they involve
    common contract interpretation issues. This Court has addressed whether claims
    for breaches of various oil and gas leases could be severed from each other. Union
    Gas Corp. v. Gisler, 
    129 S.W.3d 145
    , 155 (Tex. App.—Corpus Christi-Edinburg
    18
    2003, no pet.). All the contract claims involved interpretation of a single unit
    designation governing pooled leases. Id. Despite this common denominator, the
    separate leases between different parties made the ultimate questions of breach
    “[s]eparate and discreet,” supporting severance.     Id.   The Court distinguished
    severable claims based on separate contracts between different parties from
    unseverable claims based on “but one contract, one set of facts, and one set of
    issues.” Id.
    Just as two claims involving a common contract or indivisible injuries are
    not so interwoven to preclude severance, two claims are not “interwoven” simply
    because the one claim’s outcome constitutes a threshold to the other. In Union
    Gas, this Court also addressed severability of claims for breach of oil and gas
    leases from threshold claims for bad-faith pooling. Id. at 148, 155. A finding of
    bad-faith pooling could have eliminated royalties owed under some of the leases,
    which, in turn, would have affected the amounts owed to other royalty owners. Id.
    at 148. However, the contract claims could have been asserted separately. Id. at
    155. Furthermore, the bad faith claim presented tort issues and facts “rang[ing]
    well beyond the more narrow confines” of the contract questions. Id. Despite the
    threshold connection, the claims were properly severed.       Id.; see also F.F.P.
    Operating Partners, L.P. v. Duenez, 
    237 S.W.3d 680
    , 694 (Tex. 2007) (stating
    indemnity claim is properly severable from underlying liability claim).
    19
    In this case, Koopmanns’ declaratory judgment claim and Strieber’s cross-
    claim are based on two different alleged agremeents between different parties. See
    Union Gas, 129 S.W.3d at 155. Koopmanns sought a declaration of their rights
    under the 1996 Deed with Strieber. Once that threshold question was decided,
    Strieber’s contingent cross-claim focused entirely on formation and breach of a
    purported 2011 oral contract to which Koopmanns are not parties.              2CR:5.
    Strieber’s cross-claim is not “interwoven” simply because she premised it on
    Koopmanns’ obtaining declaratory relief. See Duenez, 237 S.W.3d at 694 (stating
    that indemnity claim, as opposed to contribution claim for proportionate
    responsibility, is properly severable from threshold liability claim); Union Gas,
    129 S.W.3d at 155 (holding that threshold bad-faith pooling claim was severable
    from contract claims).
    Unlike Koopmanns’ and Strieber’s claims based on different contracts
    between different parties, the claims in the four cases discussed in Strieber’s brief
    involved one inseparable set of facts and issues. Duenez, Cotner, and McKillip-
    Odom involved personal injury claims arising out of a single car accident. In
    Duenez, the court refused to sever a contribution cross-claim seeking to impose
    proportionate (not joint and several) liability for the same drunk driving accident
    on which the plaintiff sued. 237 S.W.3d at 693-94. In Cotner, the Texas Supreme
    Court noted in dicta that the plaintiff-driver’s claim and plaintiff-passenger’s claim
    20
    against a single defendant could not be severed. State Dept. of Highways & Public
    Transp. v. Cotner, 
    845 S.W.2d 818
    , 819 (Tex. 1993). And in McKillip-Odom, the
    plaintiff-passenger’s claims were not severable from the plaintiff-driver’s claims
    and defendant’s contribution claims. In re McKillip-Odom, 
    2007 WL 2045282
    , at
    *2-3 (Tex. App.—Tyler July 18, 2007, orig. proceeding) (mem. op.).
    The remaining case—Levetz—involved a contract, but only one:                 a
    settlement agreement. Levetz v. Sutton, 
    404 S.W.3d 798
    , 801 (Tex. App.—Dallas
    2013, pet. denied). The appellate court held the plaintiff’s breach of contract claim
    could not be severed from the defendant’s lack of capacity defense. Id. at 802-03.
    Levetz exemplifies the “one contract, one set of facts, and one set of issues” this
    Court found distinguishable in Union Gas. See 129 S.W.3d at 155 (affirming
    severance of claims sharing certain interpretation questions but ultimately based on
    separate contracts).
    Far from involving a single car accident or one contract, Koopmanns’
    declaratory judgment claim and Strieber’s cross-claim are based on two separate
    alleged agreements, disparate facts, and independent issues. The trial court acted
    within its discretion in severing the cross-claim.
    2.     The summary declaratory judgment confirms severance was
    proper
    The severance’s propriety is further confirmed by the summary declaratory
    judgment that preceded it. The interest in avoiding duplicative trials of the exact
    21
    same issues is notably absent when a live claim is severed from claims resolved
    summarily, e.g., by partial summary judgment, default judgment, dismissal, or
    agreement. See, e.g., McGuire v. Commercial Union Ins. Co., 
    431 S.W.2d 347
    ,
    351 (Tex. 1968); Smith v. Tex. Farmers Ins. Co., 
    82 S.W.3d 580
    , 588 (Tex. App.—
    San Antonio 2002, pets. denied). This type of severance, even if done solely to
    expedite appellate review, is not an abuse of discretion. Cherokee Water Co. v.
    Forderhause, 
    641 S.W.2d 522
    , 526 (Tex. 1982); Garcia v. Willman, 
    4 S.W.3d 307
    ,
    311-12 (Tex. App.—Corpus Christi 1999, no pet.).
    In Cherokee Water, the plaintiff sought declaratory judgment that its
    purchase right under a deed conveying mineral interests included the right to lease
    the land. Forderhause v. Cherokee Water Co., 
    623 S.W.2d 435
    , 440 (Tex. Civ.
    App.—Texarkana 1981), rev’d, 
    641 S.W.2d 522
     (Tex. 1982). The defendants
    asserted a counterclaim for reformation if the trial court construed the deed to
    include a lease. Id. After a summary judgment construing the deed to include a
    lease, the trial court severed the reformation claim and set it for trial. Id. at 437.
    Both claims arose out of the same instrument. Id. at 440. Yet, the Texas Supreme
    Court held the trial court did not abuse its discretion in severing the live claim after
    the threshold claim was disposed by summary judgment. Cherokee Water, 641
    S.W.2d at 526.
    22
    As in Cherokee Water, Strieber conditioned her cross-claim on Koopmanns’
    obtaining declaratory relief. 2CR:5. After summarily granting declaratory relief,
    the trial court acted within its discretion in severing Strieber’s cross-claim. See
    641 S.W.2d at 526.
    3.    Strieber cannot complain of alleged prejudice she invited
    Although there is no danger of duplicative trials here due to the summary
    judgment, Strieber argues she is prejudiced by moving forward with her cross-
    claim and this appeal simultaneously. Strieber-ANT:Br. 5, 7-8. She argues “all
    that judicial time and expense [in trying the severed cross-claim] will have been
    wasted” if this Court ultimately reverses the declaratory judgment.9 Strieber-
    ANT:Br. 8. This same situation existed in Cherokee Water, where severance was
    proper. See 641 S.W.2d at 526. Moreover, competing interests such as alleged
    prejudice or judicial economy are matters committed to the trial court’s discretion
    that will not be re-adjudicated on appeal. See RGV Healthcare Assocs., Inc. v.
    Estevis, 
    294 S.W.3d 264
    , 269 (Tex. App.—Corpus Christi-Edinburg 2009, pet.
    denied); Excel Corp. v. Valdez, 
    921 S.W.2d 444
    , 448 (Tex. App.—Corpus Christi
    1996, orig. proceeding).
    9
    Strieber does not identify any other source of alleged prejudice. See Collin
    County v. Hixon Family P’ship, Ltd., 
    365 S.W.3d 860
    , 877-78 (Tex. App.—Dallas
    2012, pets. denied); Howell v. Tex. Workers’ Compensation Comm’n, 
    143 S.W.3d 416
    , 439 (Tex. App.—Austin 2004, pets. denied).
    23
    Moreover, Strieber is estopped from complaining about this situation. In
    opposing the motion to sever and stay her cross-claim, Strieber argued that “[e]ven
    if the Court were to order severance of Mrs. Strieber’s claims into a separate
    cause of action, it should not stay further proceedings until the Burlington
    Defendants, or Plaintiffs for that matter, are satisfied that all appellate remedies are
    exhausted.” 4CR:369 (emphasis added). Having asked the trial court to move
    forward with her severed cross-claim, Strieber cannot complain she is prejudiced
    thereby. See In re Greater McAllen Star Properties, 
    444 S.W.3d 743
    , 749 (Tex.
    App.—Corpus Christi-Edinburg 2014, no pet. hist.).
    Finally, the severance does not prejudice Strieber. Strieber does not ask this
    Court to stay her cross-claim pending a decision on Koopmanns’ declaratory
    judgment. Instead, she asks the Court to vacate the severance and remand her
    cross-claim for immediate trial while this appeal is abated, i.e. before ownership of
    Strieber’s NPRI is finally decided. Strieber-ANT:Br. 11. Thus, both the existing
    severance and Strieber’s request on appeal carry equal risk that ultimate reversal of
    the declaratory judgment will render trial of her cross-claim a waste.
    The lack of prejudice further confirms severance was proper. In addition,
    the lack of prejudice shows that, even if the severance constituted error, no harm
    exists to support reversal. See Morgan, 675 S.W.2d at 734; Henry S. Miller Mgmt.
    24
    Corp. v. Houston State Assocs., 
    792 S.W.2d 128
    , 133 (Tex. App.—Houston [1st
    Dist.] 1990, writ denied).
    PRAYER
    WHEREFORE, Cross-Appellees ConocoPhillips Company and Burlington
    Resources Oil & Gas Co., L.P. respectfully request the Court affirm the trial
    court’s partial summary judgment that Koopmanns take nothing on their non-
    declaratory claims and affirm the trial court’s severance order, both of which
    merged into the final judgment. Cross-Appellees further request they be awarded
    their costs on appeal, or alternatively, if the Court grants relief to more than one
    side, that costs on appeal be assessed against the party incurring same. See TEX. R.
    APP. P. 43.4. Cross-Appellees also request all other and further relief to which they
    may be entitled at law and in equity.
    25
    Respectfully submitted,
    /s/ Michael V. Powell
    Michael V. Powell
    State Bar No. 169204400
    W. Scott Hastings
    State Bar No. 24002241
    Kirsten M. Castañeda
    State Bar No. 00792401
    Elizabeth L. Tiblets
    State Bar No. 24066194
    LOCKE LORD LLP
    2200 Ross Avenue, Suite 2200
    Dallas, Texas 75201-6776
    (214) 740-8000
    (214) 740-8800 (fax)
    Kevin D. Cullen
    State Bar No. 05208625
    CULLEN, CARSNER, SEERDEN
    & CULLEN, L.L.P.
    119 South Main Street
    Victoria, Texas 77902
    (361) 573-6318
    (361) 573-2603 (fax)
    COUNSEL FOR APPELLANTS/
    CROSS-APPELLEES CONOCOPHILLIPS
    COMPANY AND BURLINGTON
    RESOURCES OIL & GAS LP
    26
    CERTIFICATE OF COMPLIANCE
    Pursuant to Texas Rule of Appellate Procedure 9.4(i)(3), the undersigned
    certifies that this Brief complies with the length limitations of Rule 9.4(i) and the
    typeface requirements of Rule 9.4(e).
    1.     Exclusive of the contents excluded by Rule 9.4(i)(1), this Brief
    contains     5,369         words as counted by the Word Count function (including
    textboxes, footnotes, and endnotes) of Microsoft Office Word 2010.
    2.     This Brief has been prepared in proportionally spaced typeface using:
    Software Name and Version: Microsoft Office Word 2010
    Typeface Name: Times New Roman
    Font Size: 14 point
    /s/ Kirsten M. Castañeda
    Kirsten M. Castañeda
    27
    CERTIFICATE OF SERVICE
    I hereby certify that on February 19, 2015, a true and correct copy of this
    Brief is served by e-service through efile.txcourts.gov on Appellant Strieber and on
    Appellees/Cross-Appellants through their respective counsel of record, listed
    below:
    Mike Johanson                                  D. Mitchell McFarland
    mjohanson&JandFLaw.com                         State Bar No. 13597700
    Christopher Michael Volf                        mmcfarland@munsch.com
    cvolf@jandflaw.com                            Carrie Schadle
    Todd Taylor                                     State Bar No. 24051618
    ttaylor@jandflaw.com                           cschadle@munsch.com
    JOHANSON & FAIRLESS, L.L.C.                    MUNSCH HARDT KOPF & HARR
    1456 First Colony Blvd.                           PC
    Sugarland, Texas 77479                         700 Milam Street, Suite 2700
    Counsel for Appellees/Cross-Appellants         Houston, Texas 77002-2806
    Counsel for Appellant Strieber
    Ronald B. Walker
    State Bar No. 20728300                       Errol John Dietze
    rwalker@walkerkeeling.com                      State Bar No. 05858000
    WALKER KEELING, L.L.P.                          ejd@dietze-reese.com
    120 S. Main, Suite 500                        DIETZE & REESE
    P.O. Box 108                                  108 North Esplanade Street
    Victoria, Texas 77902                         P.O. Box 841
    Counsel for Appellees/Cross-Appellants       Cuero, Texas 77954
    Counsel for Appellant Strieber
    /s/ Kirsten M. Castañeda
    Kirsten M. Castañeda
    28
    

Document Info

Docket Number: 13-14-00402-CV

Filed Date: 2/19/2015

Precedential Status: Precedential

Modified Date: 9/29/2016

Authorities (30)

Cherokee Water Co. v. Forderhause , 25 Tex. Sup. Ct. J. 470 ( 1982 )

McGuire v. Commercial Union Insurance Co. of New York , 11 Tex. Sup. Ct. J. 518 ( 1968 )

Southwestern Bell Telephone Co. v. DeLanney , 809 S.W.2d 493 ( 1991 )

Morgan v. Compugraphic Corp. , 27 Tex. Sup. Ct. J. 501 ( 1984 )

F.F.P. Operating Partners, L.P. v. Duenez , 50 Tex. Sup. Ct. J. 764 ( 2007 )

Mitchell Energy Corporation, Maurice Sherman Bliss, ... , 80 F.3d 976 ( 1996 )

Browning Oil Co., Inc. v. Luecke , 2000 Tex. App. LEXIS 7572 ( 2000 )

Newsome v. Charter Bank Colonial , 940 S.W.2d 157 ( 1997 )

Gore Oil Co. v. Roosth , 2005 Tex. App. LEXIS 378 ( 2005 )

Union Gas Corp. v. Gisler , 2003 Tex. App. LEXIS 7581 ( 2003 )

Headington Oil Co., LP v. White , 287 S.W.3d 204 ( 2009 )

Excel Corp. v. Valdez , 1996 Tex. App. LEXIS 1460 ( 1996 )

Fortune Production Co. v. Conoco, Inc. , 44 Tex. Sup. Ct. J. 97 ( 2000 )

Smith v. Texas Farmers Insurance Co. , 82 S.W.3d 580 ( 2002 )

Howell v. Texas Workers' Compensation Commission , 2004 Tex. App. LEXIS 7164 ( 2004 )

Texas Oil & Gas Corporation v. Vela , 429 S.W.2d 866 ( 1968 )

Forderhause v. Cherokee Water Co. , 1981 Tex. App. LEXIS 4045 ( 1981 )

Jim Walter Homes, Inc. v. Reed , 29 Tex. Sup. Ct. J. 369 ( 1986 )

Guaranty Federal Savings Bank v. Horseshoe Operating Co. , 33 Tex. Sup. Ct. J. 465 ( 1990 )

Iron Mountain Bison Ranch, Inc. v. Easley Trailer ... , 42 S.W.3d 149 ( 2001 )

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