Lead Opinion
OPINION
This is an appeal from a summary judgment in favor of appellees Wanda Jo Moore and Maxine Holder, in their individual and other capacities, and Robert E. Holder, Ricky Joe Holder, Terry S. Holder, Philip B. Holder, Janilee Holder Wisdom, Scotty D. Plaster, Rex. L. Plaster, and Larry F. Plaster on their counterclaim in this suit to determine the type of royalty reserved in a deed. Appellant Sun-dance Minerals, L.P. contends in two issues that (1) the trial court erred by granting appellees’ motion for summary judgment contending that the deed reserved a fraction of a royalty and denying its motion that the deed instead reserved a fixed, fractional, nonparticipating royalty and (2) the trial court erred in awarding attorney’s fees to appellees. We modify the trial court’s judgment and affirm it as modified.
Background
In 1958, J.B. Holder and Ruth Holder conveyed 515 acres of real property to J.D. Armstrong and Ophelia Armstrong. The Holders, however, reserved in the deed “an undivided and non-participating one-half interest in the oil, gas, and other mineral rights.” The deed further stated that the Holders “shall be entitled to one half of the usual one eighth royalty received forsuch [sic] oil, gas and other minerals produced from said land.”
Sundance is the successor-in-interest to the Armstrongs; appellees are the successors to the Holders. In 2003, Sundance leased the land to Quicksilver Resources for a one-fifth royalty. Appellees contend that the 1958 reservation entitles them to one-half of whatever royalty is payable at any given time under a lease on the property; in this case, one-half of the one-fifth royalty payable under Sundance’s lease with Quicksilver (a one-tenth overall royalty). Sundance asserts that appellees are entitled to only half of a normal one-eighth royalty (one-sixteenth overall).
Sundance sued appellees seeking a declaratory judgment that the 1958 deed reserved only a fixed, nonparticipating one-sixteenth royalty. Sundance also sought attorney’s fees. Appellees counterclaimed based on their interpretation that they own one-half of the actual royalty collected by Sundance; they also asked for attorney’s fees. Both parties moved for summary judgment. The trial court granted appellees’ motion and awarded attorney’s fees to appellees.
Summary Judgment Standard of Review
We review a summary judgment de novo. Travelers Ins. Co. v. Joachim,
When both parties move for summary judgment and the trial court grants one motion and denies the other, the reviewing court should review both parties’ summary judgment evidence and determine all questions presented. Mann Frankfort,
Proper Construction of Deed Reservation
In its first issue, Sundance contends that the trial court should have granted its summary judgment and denied appellees’ because the royalty reservation in the deed should be construed to reserve to appellees only a fixed, fractional nonparticipating royalty interest or l/16th of any royalty.
When interpreting a deed just as in interpreting a contract, the intent of the parties is to be determined from the express language found within the four corners of the document. Luckel v. White,
It is well-settled that a mineral estate is comprised of five separate and distinct interests: 1) the right to develop, 2) the right to lease, 3) the right to receive bonus payments, 4) the right to receive delay rentals, and 5) the right to receive royalty payments. French v. Chevron U.S.A.,
The words “royalty,” “bonus,” and “rentals” have a well-understood meaning in the oil and gas business. Likewise, “minerals” and “mineral rights” have a well-recognized meaning. Broadly speaking, a reservation of minerals or mineral rights without limitation would include royalties, bonuses, and rentals. A conveyance of land without reservations would include all minerals and mineral rights. However, it is well settled that a grantor may reserve minerals or mineral rights and he may also reserve royalties, bonuses, and rentals, either one, more or all. Here we have a reservation of only “royalty rights.” It is obvious, it seems to us, that this does not include a reservation of bonuses or rentals, but only of an interest in oil, gas, or minerals paid, received, or realized as “royalty” under any lease existing on the land at the time of the reservation, or thereafter executed by the grantee, his heirs or assigns.
Schlittler v. Smith,
A “fractional royalty” interest entitles the owner to the specified fraction
Here, the deed first, purports to reserve one-half of the mineral estate to the Holders, which reservation, if not later qualified, would have entitled them and their successors to one-half of any royalty paid under a lease, as well as a one-half interest in any bonuses and rentals. See Sehlittler,
Accordingly, we conclude and hold that the trial court did not err by granting
Attorney’s Fees
In its second point, Sundance contends that the trial court’s award of attorney’s fees to appellees should be reversed because (a) the trial court should have granted its motion for summary judgment and not appellees’, or (b) alternatively, there is no evidence to support the award of attorney’s fees to appellees. Because we have already determined that the trial court did not err by denying Sundance’s motion for summary judgment, we need not address that part of Sundance’s second issue claiming that it was entitled to attorney’s fees. ' Therefore, we will address only whether there was legally sufficient evidence to support the award of attorney’s fees to appellees.
In a declaratory judgment action, the trial “court may award costs and reasonable and necessary attorney’s fees as are equitable and just.” Tex. Civ. Prac. Rem. Code Ann. § 37.009 (West 2008); State & Cnty. Mut. Fire Ins. Co. ex rel. So. United Gen. Agency of Tex. v. Walker,
Sundance has raised only a legal sufficiency challenge to the evidence supporting the attorney’s fees award. We may sustain a legal sufficiency challenge only when (1) the record discloses a complete absence of evidence of a vital fact; (2) the court is barred by rules of law or of evidence from giving, weight to the only evidence offered to prove a vital fact; (3) the evidence offered to prove a vital fact is no more than a mere scintilla; or (4) the evidence establishes conclusively the opposite of a vital fact. Uniroyal Goodrich Tire Co. v. Martinez,
Texas courts consider eight factors when determining the reasonableness of attorney’s fees, including awards made under the Uniform Declaratory Judgment Act:
(1) the time and labor required, the novelty and difficulty of the questions involved, and the skill required to perform the legal service properly;
(2) the likelihood ... that the acceptance of the particular employment will preclude other employment by the lawyer;
(3) the fee customarily charged in the locality for similar legal services;
(4) the amount involved and the results obtained;
(5) the time limitations imposed by the client or by the circumstances;
(6) the nature and length of the pro- • fessional relationship with the client;
(7) the experience, reputation, and ability of the lawyer or lawyers performing the services; and
(8) whether the fee is fixed or contingent on results obtained or uncertainty of collection before the legal services have been rendered.
Arthur Andersen & Co. v. Perry Equipment Corp.,
Sundance contends that appellees’ counsel did not testify in support of attorney’s fees and that the affidavit he presented to the trial court “offered minimal, highly conclusory statements.” Thus, Sundance contends that counsel’s affidavit is no evidence at all. Appellees’ counsel stated in the affidavit that he had been licensed to practice law in the State of Texas since 1964, that he was personally familiar with suits in “this county similar to” this case, and that he was “personally familiar with the current normal and reasonable fees charged in such cases.” Therefore, he averred that “[a]n attorney’s fee of $12,000 is a reasonable attorney’s fee to be charged in this case and has been necessarily incurred by the Defendants in the prosecution of this action.” He did not attach any billing statements to his affidavit. In addition, he averred that he was “additionally familiar with similar types of cases in this county that are appealed and the current normal and reasonable attorney’s fees incurred in such cases” and that “$7,500.00 is a reasonable and necessary attorney’s fee to be incurred by the Defendants in the event of each appeal or attempt of an appeal taken by the Plaintiff.”
Counsel thus averred that ap-pellees incurred $12,000 in attorney’s fees, that he was familiar with the types of fees charged in similar cases in the county, and that $12,000 was a reasonable and necessary fee. Thus, the trial court received evidence on the third and seventh factors. An affidavit filed by a summary judgment movant’s attorney that sets forth his qualifications, his opinion regarding reasonable attorney’s fees, and the basis for his opinion will be sufficient to support summary judgment, if uncontroverted. Gaughan v. Nat’l Cutting Horse Ass’n,
In Garcia v. Gomez, the supreme court reversed the court of appeals’s opinion concluding that an attorney’s testimony providing evidence on only the third and seventh Andersen factors was conclusory and therefore no evidence of reasonableness and necessity.
The attorney’s testimony in Garcia is similar to the affidavit testimony from ap-pellees’ counsel in this case; in fact, appel-lees’ counsel’s affidavit testimony went further than the testimony in Garcia when he averred that the fees were “necessarily incurred by” appellees. See Tex.R. Civ. P. 166a(c), (f) (providing that summary judgment may be based on proper affidavit testimony). Other courts of appeals have concluded that similar affidavit testimony is at least “some evidence” of reasonable and necessary attorney’s fees sufficient to survive a legal sufficiency challenge. See Giron v. Baylor Univ. Med. Ctr., No. 05-09-00825-CV,
We conclude and hold that the award of attorney’s fees is supported by sufficient evidence. We therefore overrule the second part of Sundance’s second issue challenging the sufficiency of the evidence of attorney’s fees.
Although we have concluded that there is legally sufficient evidence supporting the amount of fees, Sundance also complains that the award of appellate attorney’s fees is improper because it is unconditional. An unconditional award of attorney’s fees has a chilling effect on the paying party’s exercise of legal rights. In re Ford Motor Co.,
Conclusion
Having sustained part of Sundance’s second issue regarding appellate attorney’s fees, we modify the judgment to make the award of appellate attorney’s fees contingent upon an unsuccessful appeal. We affirm the remainder of the judgment as modified.
GABRIEL, J. filed a concurring and dissenting opinion.
Notes
. We agree with Sundance that those cases involving deeds with minimum royalty language are not applicable here because the 1958 deed does not contain minimum royalty language. See, e.g., Hausser v. Cuellar,
Concurrence in Part
concurring and dissenting.
I agree with the majority’s opinion that the deed at issue reserved a “fraction of royalty” and that the trial court did not err in its ruling on the competing motions for summary judgment. I disagree, however, that there was legally sufficient evidence to uphold the award of attorney’s fees.
The appellees’ attorney’s affidavit — the only evidence offered to support the award — states, in whole,
I am the attorney of record for the Defendants in the above entitled and numbered cause. I am over eighteen (18) years of age, of sound mind, and fully competent and capable of making this Affidavit. I am a licensed attorney, licensed to practice in the State of Texas, having been licensed to practice since September, 1964. I am personally familiar with suits in this county similar to the above entitled and numbered cause and am personally familiar with the current normal and reasonable fees charged in such cases. An attorney’s fee of $12,000.00 is a reasonable attorney’s fee to be charged in this case and has been necessarily incurred by the Defendants in the prosecution of this action. I am additionally familiar with similar types of cases in this county that are appealed and the current normal and reasonable attorney’s fees incurred in such cases. In the event of an appeal of this case, $7,500 is a reasonable and necessary attorney’s fee to be incurred by the Defendants in the event of each appeal or attempt of an appeal taken by the Plaintiff. This affidavit is made in furtherance of Defendants [sic] Motion for Summary Judgment.
An uncontroverted affidavit is generally sufficient to support an award of attorney’s fees when it “sets forth his qualifications, his opinion regarding reasonable attorney’s fees, and the basis for his opinion.” Cammack the Cook, L.L.C. v. Eastburn,
The majority points to a number of cases with “similar affidavit testimony” which was found sufficient. However, of those opinions which contain a full description of the affidavit, the affidavit in this case falls below them all. See Giron v.
I understand that the majority feels bound by the supreme court’s ruling in Garcia.
. The majority in Garcia found the affidavit in that case to be sufficient. "While the attorney’s testimony lacked specifics, it was not, under these circumstances, merely concluso-ry.”
