668 S.W.3d 353
Tex.2023Background
- 1924 deed from George and Frances Mulkey reserved “one-half of one-eighth of all minerals and mineral rights.”
- For ~90 years subsequent transactions (conveyances, leases, division orders, stipulations, etc.) uniformly treated each side (Mulkey and White successors) as owning an undivided one-half mineral interest.
- In 1946 a Mulkey family letter referenced a contract giving the Mulkeys one-half the minerals; no contemporaneous deed/contract has been found.
- In 2013 White successors sued (trespass to try title) after royalties were paid 50/50; trial court granted White partial summary judgment holding the reservation unambiguously conveyed a 1/16 interest; court of appeals affirmed.
- The Supreme Court of Texas reversed: (1) as a matter of deed construction, the double-fraction phrase presumes 1/8 functioned as a term of art referring to the whole mineral estate, so “one-half of one-eighth” reserved one-half; and (2) alternatively, the presumed-grant doctrine independently vests the Mulkeys with one-half on the undisputed long history of open, acquiesced claims.
- Case remanded to the trial court for further proceedings consistent with that ruling.
Issues
| Issue | Mulkey's Argument | White's Argument | Held |
|---|---|---|---|
| Proper construction of reservation phrase “one-half of one-eighth” | In 1924 usage, 1/8 in double fractions was a term of art meaning the whole mineral estate, so the phrase reserved one-half the estate | Phrase is literal arithmetic; one-half × one-eighth = 1/16 reserved to Mulkeys | Deed construed for Mulkeys: presumption that 1/8 was term-of-art in double fractions not rebutted by the instrument; reservation equals one-half of the mineral estate |
| Application of presumed-grant doctrine to vest additional title | Even if deed initially reserved only 1/16, decades of open, consistent transactions and non-claim by Whites satisfy presumed-grant elements and vest the Mulkeys with the other 7/16 | Doctrine inapplicable; court of appeals required a title “gap” and found none | Court held presumed-grant doctrine satisfied (long open adverse claim, nonclaim and acquiescence); even if unnecessary, it independently confirms Mulkeys’ one-half ownership |
Key Cases Cited
- Hysaw v. Dawkins, 483 S.W.3d 1 (Tex. 2016) (analyzed the “double-fraction dilemma,” recognized 1/8 as a historical term-of-art and set out contextual presumption with possible rebuttal)
- Garrett v. Dils Co., 299 S.W.2d 904 (Tex. 1957) (judicial notice of historical double-fraction usage in mineral instruments)
- URI, Inc. v. Kleberg County, 543 S.W.3d 755 (Tex. 2018) (textual interpretation defaults to a term’s ordinary meaning at the time of drafting)
- New Prime Inc. v. Oliveira, 139 S. Ct. 532 (2019) (statutory phrase meaning is determined by public meaning at enactment date)
- Concord Oil Co. v. Pennzoil Expl. & Prod. Co., 966 S.W.2d 451 (Tex. 1998) (discussed estate-misconception: lessor retained more than a mere 1/8 royalty interest)
