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Kardell v. Acker
2016 Tex. App. LEXIS 4648
| Tex. App. | 2016
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Background

  • J.E. Murphy’s five children partitioned four ranches in 1948; partition deeds reserved minerals in common and gave surface grantees exclusive right to execute leases but required reservation of a base 1/8 royalty for benefit of all children in proportions they then owned.
  • On October 27, 1948, Mabel Snowden conveyed to her four siblings an undivided 4/5ths (each 1/5th) of the oil, gas, and minerals she acquired, stating grantees would receive 4/5ths of royalties (1/5th each) from existing and future leases but would have no bonus above the 1/8 royalty.
  • A 1953 declaration sought to clarify the partition deeds, reaffirming intention that lessors reserve a basic 1/8 royalty (or proportion thereof) for the lessor and other children.
  • Johnie conveyed mineral interests to Mabel in 1953 to give her 3/5ths for a loan; after repayment Mabel reconveyed a 1/5th interest to Johnie in 1965.
  • In 1980 Mabel and Johnie executed a correction deed stating the 1965 instrument mistakenly conveyed a mineral interest and instead conveyed an "undivided non‑participating one‑fifth of the whole and entire royalty interest," effective retroactively to 1965.
  • A dispute arose in 2009 after a Swift Energy lease; trial court granted summary judgment to the Acker heirs, holding they own an undivided non‑participating 1/5 of the whole royalty interest. Snowden heirs appealed.

Issues

Issue Snowden's Argument Acker's Argument Held
Whether this court’s prior Winslow opinion operates as res judicata/collateral estoppel on construction of Mabel’s deeds Winslow precludes relitigation; court already construed partition deeds Winslow did not address Mabel’s 1948 Snowden deed, so it has no preclusive effect Winslow has no res judicata/collateral estoppel effect — not dispositive here
Proper construction of the 1980 correction deed: does it convey 1/5 of the whole royalty or 1/5 of a 1/8 royalty? The correction should be read in light of 1948 deed; Acker interest is 1/5 of a 1/8 royalty (i.e., 1/40) The 1980 deed’s four corners unambiguously convey an undivided non‑participating 1/5 of the whole and entire royalty Deed unambiguously conveys an undivided non‑participating 1/5 of the whole royalty interest
Whether courts may consider chain‑of‑title deeds (1948, 1953, 1965) to alter the 1980 deed’s clear meaning Consideration of earlier deeds would show intent to convey 1/5 of 1/8 royalty Even if considered, earlier deeds (and Garza analysis) support 1/5 of whole royalty; 1980 deed controls Even reviewing the chain of title, result is the same: 1/5 of whole royalty interest
Whether Snowden heirs are entitled to attorney’s fees if judgment reversed If successful, Snowden seeks fees Acker opposes; contingent on outcome Court affirmed trial judgment; issue of fees not reached

Key Cases Cited

  • Winslow v. Acker, 781 S.W.2d 322 (Tex. App.—San Antonio 1989) (discussing partition deeds but not construing Mabel’s 1948 Snowden deed)
  • Provident Life & Accident Ins. Co. v. Knott, 128 S.W.3d 211 (Tex. 2003) (summary judgment standard)
  • Nixon v. Mr. Prop. Mgmt. Co., 690 S.W.2d 546 (Tex. 1985) (summary judgment and inference standards)
  • Mann Frankfort Stein & Lipp Advisors, Inc. v. Fielding, 289 S.W.3d 844 (Tex. 2009) (when both sides move, appellate court reviews both records and renders correct judgment)
  • Luckel v. White, 819 S.W.2d 459 (Tex. 1991) (intent of parties in deed construed from four corners)
  • Altman v. Blake, 712 S.W.2d 117 (Tex. 1986) (defining essential attributes of a severed mineral estate)
  • Garza v. Prolithic Energy Co., L.P., 195 S.W.3d 137 (Tex. App.—San Antonio 2006) (construing multi‑clause conveyance and holding that instrument conveyed a mineral interest and that fractional royalty shares should be harmonized to yield consistent fractional shares under future leases)
Read the full case

Case Details

Case Name: Kardell v. Acker
Court Name: Court of Appeals of Texas
Date Published: May 4, 2016
Citation: 2016 Tex. App. LEXIS 4648
Docket Number: No. 04-15-00534-CV
Court Abbreviation: Tex. App.