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Maebelle Yarbrough, Individually and as Trustee of the Darrell Yarbrough Testamentary Trust v. ELC Energy, LLC
12-15-00303-CV
| Tex. App. | May 31, 2017
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Background

  • Maebelle Yarbrough (individually and as trustee) owns land in Nacogdoches County; ELC Energy claimed access rights under a 1980 mineral lease and a later farmout from successors in interest.
  • ELC sought to enter the property in Feb 2015; Yarbrough objected and ELC sued for trespass to try title and related relief.
  • ELC moved for summary judgment asserting it had access rights via a farmout from Musselman and Blevco; ELC amended pleadings and affidavits to reference a different farmout agreement shortly before the hearing.
  • Yarbrough moved for a continuance (Rule 166a(g)) to conduct additional discovery about the changed pleadings and farmout documents; the trial court denied the continuance and granted ELC’s amended MSJ.
  • Summary judgment evidence showed the Ben Irwin Gas Unit was declared in 1982, Acme Brick Well (within unit) was reclassified as a gas well and produced through Feb 2015, and a 2014 farmout (and extension) assigned access/development rights to ELC.
  • The appellate court affirmed summary judgment except reversed and remanded as to Yarbrough in her capacity as Trustee for lack of summary-judgment proof of trustee liability, and found no abuse in denying continuance or in other evidentiary rulings.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Motion for continuance (need for discovery) Changes in ELC’s pleadings/farmout created surprise; needs time to obtain discovery from Musselman, Blevco, Goldsmith, Atlantis ELC argued amendments tracked its MSJ and were timely; Yarbrough had not shown diligence or specific discovery needed Trial court did not abuse discretion: Yarbrough failed to specify discovery sought, show due diligence, or get rulings on motions to compel; denial affirmed
Right to enter / lease perpetuation (production) Lease expired for want of production; Ben Irwin well abandonment means no perpetuation ELC showed pooling, Ben Irwin Gas Unit, and continuous gas production from Acme Brick Well through Feb 2015; farmout gave ELC access MSJ proper as to ELC’s right to access when suit filed: Acme Brick gas production perpetuated the pooled lease; summary judgment on access affirmed
Affidavit contradictions (Gordon) Gordon’s amended affidavit contradicts earlier affidavit and creates fact issue (interested witness) Change reflected correction to identify correct farmout; earlier inclusion was mistake and does not negate later farmout or create genuine fact issue No genuine issue: amended affidavit corrects earlier mistake; evidence considered and not contradictory so MSJ reliance on Gordon proper
Exclusion of late-produced evidence (Rule 193.6) Documents showing lack of production after Feb 2015 should be admitted; ELC waived motion to compel so no supplement duty ELC argued Yarbrough failed to timely supplement and did not show good cause or lack of unfair surprise Trial court did not abuse discretion excluding the late-disclosed evidence; Yarbrough failed to show good cause or lack of prejudice
Summary judgment against cross-defendants and trustee liability Court improperly granted judgment against cross-defendants who did not move; no evidence Yarbrough was liable as Trustee ELC asserted successors’ interests and that Yarbrough (as trustee) succeeded to interest under will/trust (but cited no record) Grant of judgment to non-movant cross-defendants was error but Yarbrough waived harm argument; summary judgment against Yarbrough as Trustee reversed and remanded for lack of proof of trustee liability

Key Cases Cited

  • BMC Software Belg., N.V. v. Marchand, 83 S.W.3d 789 (Tex. 2002) (standards for review of summary judgment and continuance practice)
  • Joe v. Two Thirty Nine Joint Venture, 145 S.W.3d 150 (Tex. 2004) (factors for continuance to obtain discovery)
  • D.R. Horton–Tex., Ltd. v. Savannah Props. Assocs., 416 S.W.3d 217 (Tex. App.–Fort Worth 2013) (continuance / affidavit specificity)
  • Trico Techs. Corp. v. Montiel, 949 S.W.2d 308 (Tex. 1997) (uncontroverted affidavit of interested witness standard)
  • Fort Brown Villas III Condo. Ass’n, Inc. v. Gillenwater, 285 S.W.3d 879 (Tex. 2009) (Rule 193.6 application to summary judgment)
  • Martin v. Amerman, 133 S.W.3d 262 (Tex. 2004) (nature and purpose of trespass-to-try-title actions)
  • Lehmann v. Har–Con Corp., 39 S.W.3d 191 (Tex. 2001) (judgment cannot grant more relief than requested)
  • G&H Towing Co. v. Magee, 347 S.W.3d 293 (Tex. 2011) (harmless-error analysis when MSJ disposes claims not addressed in motion)
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Case Details

Case Name: Maebelle Yarbrough, Individually and as Trustee of the Darrell Yarbrough Testamentary Trust v. ELC Energy, LLC
Court Name: Court of Appeals of Texas
Date Published: May 31, 2017
Docket Number: 12-15-00303-CV
Court Abbreviation: Tex. App.