XTO Energy Inc. v. Nikolai
357 S.W.3d 47
| Tex. App. | 2011Background
- Chain of title tracing from Shields Deed (1882) and Madewell Deed (1904) to the Nikolais shows a mineral reservation retained by Madewell.
- Speer Deed (1922) reiterates that mineral rights were not transferred, creating a contested reserve in the Nikolais’ title chain.
- Nikolais sue XTO in Nov 2007 to quiet title and obtain UDJA relief, challenging mineral reservations and asserting surface/mineral ownership.
- Trial court granted Nikolais summary judgment on title and denied XTO summary judgment; judgment later included estoppel-by-deed discussions.
- XTO asserted estoppel by deed and sought declarations about the mineral reservation; Nikolais argued Madewell/Speer deeds were void for description and mineral reservation invalid.
- On appeal, court held Nikolais estopped by deed from denying the mineral reservation; reversed in part and remanded in part, with fee issues and attorney’s fees addressed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Estoppel by deed bars denial of mineral reservation | Nikolais contend reservation void; estoppel should not bind denial | XTO maintains estoppel by deed binds Nikolais through chain of title | Estoppel by deed applies; Nikolais barred from denying mineral reservation |
| Trial court erred by granting Nikolais summary judgment on title/UDJA | Nikolais claim title in fee simple including minerals despite reservations | XTO seeks relief on mineral reservation and related issues | Court erred; summary judgment for Nikolais reversed; estoppel controls |
| Adverse possession and prior possession claims failed | Nikolais supported by Leonard Nikolai affidavit alleging possession-related rights | Affidavit evidence is inadmissible as summary judgment proof; no proven possession | Nikolais cannot establish adverse or prior possession; claim overruled |
| Attorney's fees under the UDJA were improperly awarded/denied | UDJA fees available due to title-relief claims | Suits were essentially Trespass to Try Title; UDJA fees not recoverable | Denial of attorney’s fees affirmed; UDJA not applicable for these title claims |
| Remand for Alagood's ad litem fee matter | Ad litem fees should be determined on appeal | Fees issues require trial-court determination | Remand to determine reasonable ad litem appellate fees |
Key Cases Cited
- Greene v. White, 137 Tex. 361, 1941 (Tex. 1941) (recitals in deeds bind parties and pass title via muniment of title)
- Angell v. Bailey, 225 S.W.3d 834 (Tex.App.-El Paso 2007) (estoppel by deed applies to recitals in deeds)
- Williams v. Hardie, 85 Tex. 499, 22 S.W. 399 (Tex. 1893) (recitals in a deed bind grantees and successors)
- Brown v. Chambers, 63 Tex. 131 (Tex. 1885) (read-in deed instruments incorporate described maps/surveys)
- Masgas v. Anderson, 310 S.W.3d 567 (Tex.App.-Eastland 2010) (estoppel by deed requires binding recitals in chain of title)
- Poag v. Flories, 317 S.W.3d 820 (Tex.App.-Fort Worth 2010) (UDJA fees not recoverable where title dispute is effectively trespass to try title)
- Martin v. Amerman, 133 S.W.3d 262 (Tex. 2004) (UDJA fees limited where claim concerns title clearing; not always applicable)
- City of Keller v. Wilson, 168 S.W.3d 802 (Tex. 2005) (standard for reviewing summary judgments; de novo review)
- Reynolds v. Murphy, 188 S.W.3d 252 (Tex.App.-Fort Worth 2006) (evidentiary rulings reviewed for abuse of discretion in summary judgment context)
- Turner, Collie & Braden v. Brookhollow, Inc., 642 S.W.2d 160 (Tex. 1982) (exception to relief extending to non-appealing parties when rights are interwoven)
- Ex parte Elliot, 815 S.W.2d 251 (Tex. 1991) (procedural remand authority in appellate context)
