450 S.W.3d 147
Tex. App.2014Background
- Ethel Nichols Hysaw’s 1947 will devised surface estates to her three children (Inez, Howard, Dorothy) with mineral estates, subject to a non-participating royalty interest for each child’s siblings.
- The will’s Paragraph 3 provides three royalty provisions: (i) each child gets 1/3 of 1/8 of all minerals (fractional royalty) for siblings, (ii) each child gets 1/3 of 1/8 royalty (also fractional), and (iii) if any royalty is sold during lifetime, each child shall receive 1/3 of the remainder of unsold royalty (conditional, fractional).
- Ethel’s children’s heirs filed a dispute after leases produced royalties; Inez’s descendants argued for fractional fixed royalties to siblings, while Howard and Dorothy’s descendants argued equal sharing; the trial court granted Howard and Dorothy and denied Inez; the appellate court reverses.
- Ethel’s 1/3 of 1/8 provisions create fractional royalties (fixed fractions of production) for each sibling’s interest, while the third provision is conditional and contemplates future royalty shares; the will as a whole supports unequal sharing consistent with the fractional royalty structure.
- The court concludes the will’s plain language assigns all surface and corresponding mineral rights to each child, subject to two fixed fractional royalties (1/24 of production) for the other two siblings; equal sharing is not mandated by the will.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| What royalty interests did the will convey to the children? | Inez’s descendants: fractional royalties to siblings; | Howard/Dorothy’s descendants: equal sharing of all royalties; | The will conveys fractional royalties (1/24) to each sibling, not equal shares. |
| Does the second provision negate the first or cause conflict? | Second provision restates the grant without reducing royalty. | Second provision creates conflict by suggesting equal sharing; | No conflict; second provision affirms the first and does not limit surface royalties. |
| Does the third provision alter the overall royalty sharing? | Third provision could imply equal sharing of the remainder. | Third provision is conditional and does not apply to the fixed fractional royalties. | Third provision is conditional; it does not override the fractional royalty structure. |
| Is equal sharing implied by the will’s language when read with all provisions? | Intended equal sharing in all royalties. | Language shows fractional, not equal, sharing; cannot rewrite unambiguous terms. | Unambiguous language governs; no mandate for equal sharing. |
Key Cases Cited
- Luckel v. White, 819 S.W.2d 459 (Tex. 1991) (constructing wills; intent drawn from language; cannot rewrite unambiguous provisions)
- Coghill v. Griffith, 358 S.W.3d 834 (Tex. App.—Tyler 2012) (fractional royalty wording; distinguishes fractional royalty from fraction of royalty)
- Range Res. Corp. v. Bradshaw, 266 S.W.3d 490 (Tex. App.—Fort Worth 2008) (fractions of royalties; floating vs fixed fractions)
- Tiller v. Tiller, 685 S.W.2d 456 (Tex.App.—Austin 1985) (example of fractional royalty terms)
- Hawkins v. Tex. Oil & Gas Corp., 724 S.W.2d 878 (Tex.App.—Waco 1987) (illustrates one-half of one-eighth royalty)
- Luckel v. White, 819 S.W.2d 462 (Tex. 1991) (language on harmonizing will provisions)
