Sundance Minerals, L.P. v. Moore
354 S.W.3d 507
Tex. App.2011Background
- Sundance Minerals, L.P. appeals a summary judgment favoring the Holders and related parties on a deed-royalty interpretation dispute.
- The 1958 deed reserved an undivided and non-participating one-half interest in the oil, gas, and other mineral rights, with language stating they would receive one half of the usual one eighth royalty.
- Sundance leased the property in 2003 to Quicksilver Resources for a one-fifth royalty, raising questions about how the reserved half would scale with the lease royalty.
- The trial court granted summary judgment for appellees and awarded attorney’s fees to appellees.
- The court held the reservation to be a fractional royalty, not a fixed one-sixteenth, and sustained the attorney’s fees award but modified appellate fees to be contingent on any unsuccessful appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Deed construction of royalty reservation | Sundance: reserves only a fixed nonparticipating 1/16 royalty | Appellees: reservation is a fractional royalty contingent on lease royalties | Reservation is a fractional royalty, not fixed at 1/16 |
| Attorne y’s fees sufficiency evidence | Sundance challenges fee evidence as conclusory | Appellees rely on counsel affidavit supporting reasonableness | There is legally sufficient evidence supporting the fees under Andersen factors |
| Appellate attorney’s fees contingency | Unclear whether appellate fees should be conditional | Fees should be awarded; no condition specified | Appellate attorney’s fees must be contingent upon unsuccessful appeal; judgment modified accordingly |
Key Cases Cited
- Luckel v. White, 819 S.W.2d 459 (Tex. 1991) (deed construction principles; harmonize instrument)
- Schlittler v. Smith, 101 S.W.2d 543 (Tex. Com. App. 1937) (royalty reservations; distinguish bonuses/rentals)
- Slaughter v. Estate of Slaughter, 305 S.W.3d 804 (Tex.App.-Texarkana 2010) (mineral estate interests; royalties reserved)
- Range Res. Corp. v. Bradshaw, 266 S.W.3d 490 (Tex.App.-Fort Worth 2008) (fractional royalty; floats with lease royalty)
- Garcia v. Gomez, 319 S.W.3d 638 (Tex. 2010) (attorney’s fees affidavit evidence; Andersen factors (context))
- Arthur Andersen & Co. v. Perry Equipment Corp., 945 S.W.2d 812 (Tex. 1997) (multifactor test for reasonable fees; guidance for awards)