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647 S.W.3d 901
Tex. App.
2020
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Background

  • In a 1924 deed Geo. H. Mulkey conveyed land to G.R. White and G.W. Tom while reserving "one-half of one-eighth of all minerals and mineral rights." The parties dispute whether that reservation equals 1/16 or a different share.
  • Mulkey Assignees (heirs/assigns of the Mulkeys) claim the reservation yields one-half of the minerals; White Assignees claim the reservation is a double fraction equal to one-sixteenth, leaving 15/16 conveyed.
  • The trial court granted summary judgment for White Assignees, holding the deed unambiguous and reserving 1/16 to the Mulkeys; other dependent claims were severed.
  • On appeal Mulkey Assignees argued (1) the estate misconception doctrine should inform construction to yield a 1/2 share, (2) the presumed-lost-deed (presumed grant) doctrine established a 1/2 interest, and (3) equitable/judicial estoppel and related defenses precluded summary judgment.
  • The court reviewed deed construction de novo, concluded the reservation is unambiguous as a "fraction of a fraction," held surrounding historical misconceptions cannot create ambiguity, and ruled presumed grant cannot change an unambiguous deed; estoppel defenses were not preserved to defeat the deed-construction summary judgment.
  • The Eleventh Court of Appeals affirmed the summary judgment declaring the Mulkeys reserved 1/16 of the minerals and White/Tom received 15/16.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Deed construction: meaning of "one-half of one-eighth" reservation Mulkey Assignees: ambiguous; should be read to reserve one-half of minerals White Assignees: unambiguous double fraction = 1/16 reserved; 15/16 conveyed Court: unambiguous; reservation is 1/2 of 1/8 = 1/16; affirm summary judgment
Estate misconception theory as an aid to construction Mulkey: historical assumption about 1/8 royalty shows parties intended 1/2 ownership White: cannot use historical misconception to override plain, consistent deed language Court: cannot use that theory to create ambiguity where deed is clear; doctrine not dispositive
Presumed lost deed / presumed grant to alter quantum of interest Mulkey: long acquiescence and documents imply a lost conveyance returning 7/16 to Mulkeys so they hold 1/2 White: chain-of-title and 1924 deed are clear; presumed grant inapplicable to change deed's express terms Court: presumed grant cannot be used to change the clear terms of the deed; no fact issue entitling Mulkeys to 1/2
Equitable/judicial estoppel defenses Mulkey: recitals in later deeds and probate inventories estop White from claiming >1/2 White: defenses were not adequately presented to defeat deed-construction MSJ; moved only on certain estoppel theories Court: estoppel defenses not properly raised/preserved to defeat MSJ; any trial-court error in granting no-evidence SJ on those defenses was harmless

Key Cases Cited

  • Valence Operating Co. v. Dorsett, 164 S.W.3d 656 (Tex. 2005) (de novo review of deed/mineral-rights construction and summary-judgment principles)
  • Hysaw v. Dawkins, 483 S.W.3d 1 (Tex. 2016) (estate-misconception doctrine may inform but does not override clear instrument language)
  • URI, Inc. v. Kleberg Cty., 543 S.W.3d 755 (Tex. 2018) (objective intent and four-corners interpretation control contract/deed construction)
  • Luckel v. White, 819 S.W.2d 459 (Tex. 1991) (harmonizing conflicting fractional provisions in mineral conveyances)
  • Concord Oil Co. v. Pennzoil Expl. & Prod. Co., 966 S.W.2d 451 (Tex. 1998) (resolving inconsistent fractions in deeds; harmonization approach)
  • U.S. Shale Energy II, LLC v. Laborde Props., L.P., 551 S.W.3d 148 (Tex. 2018) (distinguishing fixed vs. floating royalty language and limiting reliance on typical 1/8 royalty absent deed language)
  • Kachina Pipeline Co. v. Lillis, 471 S.W.3d 445 (Tex. 2015) (surrounding circumstances cannot be used to manufacture ambiguity)
  • Graham v. Prochaska, 429 S.W.3d 650 (Tex. App.—San Antonio 2013) (treating simple fractional reservations as fixed interests when instrument is clear)
  • Garrett v. Dils Co., 299 S.W.2d 904 (Tex. 1957) (judicial notice that one-eighth was a common royalty standard in the era)
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Case Details

Case Name: Susan Davis Van Dyke v. the Navigator Group
Court Name: Court of Appeals of Texas
Date Published: Dec 31, 2020
Citations: 647 S.W.3d 901; 11-18-00050-CV
Docket Number: 11-18-00050-CV
Court Abbreviation: Tex. App.
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