Consolidated Property Interests, LLC v. Penny Payne
12-15-00105-CV
| Tex. App. | Dec 21, 2015Background
- Consolidated seeks a declaratory judgment that the subject minerals were acquired as community property in 1907.
- Frances Payne and her brother inherited a half mineral interest in 1909 upon Pearl’s intestate death.
- The 1931 mineral deed allegedly conveys Frances and her brother’s half interests, with Penny asserting a recital implying quitclaims.
- Consolidated argues the 1931 deed’s clause is an operative lease-termination clause, not a recital, transferring the half interest.
- Penny concedes the property was not J. O. Payne’s separate property and the property was bought as community property; the parties dispute attorney’s-fee issues.
- The court ultimately determines the 1931 deed contains no recital and reverses the trial court on the main ownership issue, with fee issues to be addressed on remand.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Interpretation of the 1931 deed | Penny argues the clause is a recital limiting ownership. | Consolidated argues the clause is an operative lease-termination provision transferring half interest. | 1931 deed interpreted in Consolidated's favor; recital argument rejected. |
| Relevance of parties' subjective intentions | Penny speculates about predecessors’ subjective expectations. | Subjective intentions are irrelevant to community-property characterization. | Subjective beliefs rejected; community-property character fixed at acquisition. |
| Attorney’s-fee remedy on reversal | Consolidated seeks declaratory judgment and fee award per Kachina on remand. | Only a trial court may award attorney’s fees in a declaratory judgment. | Court should reverse and remand the attorney’s-fee issue. |
Key Cases Cited
- Kachina Pipeline Co., Inc. v. Lillis, 471 S.W.3d 445 (Tex. 2015) (upon reversal of declaratory judgment, may remand attorney’s fees)
- Pearson v. Fillingim, 332 S.W.3d 361 (Tex. 2011) (trace funds to separate property context)
- Richardson v. Hart, 185 S.W.3d 563 (Tex. 1945) (lease-termination clause context in deed construction)
- Williams v. Hardie, 22 S.W. 399 (Tex. 1893) (recitals and their notice within instruments)
- Smith v. Buss, 144 S.W.2d 529 (Tex. 1940) (community-property characterization framework)