West 17th Resources, LLC, Pamela Mika Wolf, and Thomas Mika v. Lucian A. Pawelek and Carleen J. Pawelek
2015 Tex. App. LEXIS 12901
Tex. App.2015Background
- The dispute concerns a 290.69-acre tract in Karnes County originally owned by members of the Mika family; Irene Mika held a 1/6 individual interest and a 1/10 trust interest (for the benefit of Thomas and Pamela upon her death).
- In 1994 Irene and other Mikas executed a deed conveying “all” of the 290.69 acres to Lucian and Carleen Pawelek; Irene signed but did not indicate whether she signed individually or “as trustee.”
- The Paweleks took possession in 1995 and later leased mineral rights; Irene died in 2003. In 2012 the Paweleks asked Thomas and Pamela to sign a corrective deed; in 2013 Thomas and Pamela executed oil & gas leases asserting their 1/10 interest.
- Thomas and Pamela (and West 17th Resources) sued the Paweleks for trespass to try title; the Paweleks countered with defenses including that the 1994 deed conveyed all interests or, alternatively, that they had adversely possessed the disputed 1/10 interest.
- The trial court granted summary judgment for the Paweleks; the court of appeals reviewed de novo and affirmed, holding the unambiguous 1994 deed conveyed all of the property (including the trust 1/10) or, alternatively, the Paweleks adversely possessed the interest under the five-year statute.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Irene’s failure to indicate she signed “as trustee” prevents the 1994 deed from conveying the trust’s 1/10 interest | Because Irene didn’t disclose her trustee capacity the deed did not convey trust property | The deed’s plain language conveyed “all” the property; capacity omission does not override unambiguous granting clause | Deed construed as unambiguous; it conveyed all property including the 1/10 trust interest |
| Admissibility of a 1992 deed (showing Irene signed as trustee) to vary the 1994 deed | The 1992 deed shows contrary intent and should be admitted to show Irene intended to reserve the trust interest | The 1994 deed is unambiguous and must be construed from its four corners; extrinsic evidence is unnecessary | Trial court did not err excluding the 1992 deed; unambiguous 1994 deed controls |
| Whether Paweleks can prevail via adverse possession (five-year statute) | As cotenants, Paweleks could not adversely possess without a recorded deed purporting to convey the claimed interest; the 1994 deed doesn’t purport to convey the trust interest due to Irene’s omitted capacity | The 1994 deed did purport to convey all interests; alternatively, Paweleks adversely possessed the 1/10 interest after it vested in Thomas and Pamela | Court held the deed conveyed the interest or, alternatively, Paweleks satisfied five-year adverse possession against the cotenants |
| (Alternative) Estoppel by deed and other limitation periods | Appellants challenged estoppel by deed and adverse-possession under two- and ten-year statutes | Paweleks asserted estoppel by deed and multiple limitation defenses | Court found resolution unnecessary because deed or five-year adverse possession disposed of claim |
Key Cases Cited
- Taylor v. Guillory, 439 S.W.2d 362 (Tex. Civ. App.—Houston [1st Dist.] 1969) (discussed capacity evidence; did not establish a rule that omission of trustee capacity alone defeats conveyance)
- O’Neil v. Powell, 470 S.W.2d 775 (Tex. Civ. App.—Fort Worth 1971) (noted deed signed in individual capacity may not pass trust title; court did not adopt a broad rule based solely on nondisclosure)
- Stribling v. Millican DPC Partners, LP, 458 S.W.3d 17 (Tex. 2015) (deed-construction rules; courts ascertain intent from instrument language)
- Terrill v. Tuckness, 985 S.W.2d 97 (Tex. App.—San Antonio 1998) (presumption favoring grantees; interpret deed to give grantee greatest estate instrument allows)
- Large v. T. Mayfield, Inc., 646 S.W.2d 292 (Tex. App.—Eastland 1983) (disfavors implied reservations; construe deeds to confer greatest estate permitted)