Neil Edward Richmond, Mary Richmond Clark and James B. Richmond v. T.N. Wells and Vicki Wells
395 S.W.3d 262
| Tex. App. | 2012Background
- Richmonds conveyed land to John and Stacy Zugg by warranty deed reserving all oil, gas, and minerals; Zuggs then conveyed to Wellses by warranty deed with identical mineral-reservation language.
- Dispute over ownership of mineral interests and whether Richmonds retained minerals after the chain of title to Wellses.
- Endeavor Energy Resources produced the well on the property and paid royalties to the Richmonds until 2008, then to a suspense account on Wellses’ claim.
- Richmonds filed third-party action for reformation to reflect surface-only conveyance; Wellses sought declaratory relief under Tex. Civ. Prac. & Rem. Code § 37.004.
- Trial court granted Wellses’ traditional summary judgment (mineral rights conveyed to Wellses; no reformation for Richmonds) and denied Richmonds’ motion; Wellses’ judgment reversed on appeal and remanded for proceedings consistent with the opinion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Trespass to try title proper? | Richmonds—trespass to try title appropriate for mineral interests. | Wellses—claims are non-possessory; declaratory relief appropriate. | No; non-possessory interests not trespass to try title. |
| Bona fide purchaser defense to reformation? | Richmonds—Wellses not bona fide purchasers, so reformation warranted. | Richmonds must prove Wellses not bona fide; burden on Richmonds. | There is a genuine issue of material fact as to Wellses’ bona fide purchaser status. |
| Reformation of deed against Wellses? | Richmonds entitled to reformation if Wellses aren’t bona fide purchasers. | Wellses may defeat reformation by bona fide purchaser status. | Grant of reformation depends on Wellses’ bona fide purchaser status; remanded for fact-finding. |
Key Cases Cited
- Natural Gas Pipeline Co. of Am. v. Pool, 124 S.W.3d 188 (Tex. 2003) (non-possessory interests and lease interests explained)
- Martin v. Amerman, 133 S.W.3d 262 (Tex. 2004) (possessory interests governing trespass to try title)
- Florey v. Estate of McConnell, 212 S.W.3d 439 (Tex. App.—Austin 2006) (declaratory relief may resolve title questions without trespass action)
- Teon Management, LLC v. Turquoise Bay Corp., 357 S.W.3d 719 (Tex. App.—Eastland 2011) (distinguishable due to possessory interest)
- Miles v. Martin, 321 S.W.2d 62 (Tex. 1959) (bona fide purchaser burden on claimant to prove lack of notice)
- Newport Oil Co. v. Lamb, 352 S.W.2d 861 (Tex. Civ. App.—Eastland 1962) (notice affecting bona fide purchaser status)
- Madison v. Gordon, 39 S.W.3d 604 (Tex. 2001) (elements of bona fide purchaser: good faith, valuable consideration, lack of notice)