Wagstaff v. Matthews
Wagstaff v. Matthews
Opinion of the Court
This suit involves a dispute over the ownership of lignite deposits underlying an 80-acre tract of land located in Panola County. The trial court, after a jury trial, signed a judgment in favor of A.P. Matthews, Jr., plaintiff/appellee (Matthews). We affirm the judgment.
The documentary evidence reveals the following undisputed facts and circumstances. On May 6,1968, Matthews signed and delivered a coal and lignite lease (plaintiff’s exhibit no. 1) to “Bob M. Lloyd, Trustee,”
IT IS SPECIFICALLY UNDERSTOOD, HOWEVER, that one half (%) of the oil, gas and other minerals in and under and that may be produced from the tract of land herein conveyed, are excepted and reserved for the benefit of Grantor and the other record owner or owners of such minerals, as their several interests may appear, together with the right of ingress and egress at all times for the purpose of mining, producing, exploring, saving and marketing such minerals, or either of them.3
This conveyance is made subject to the terms and rights now existing under the Coal and Lignite lease in favor of Bob M. Lloyd or any existing Coal and Lignite or Oil and Gas Lease of record covering the above described land, but covers and includes and there is hereby conveyed and granted herein an undivided one half (Vfe) interest in and to all bonuses, rents and royalties due and to be paid under the terms thereof.4
During mining operations and after Texas Utilities Mining Company (TUMCO), the beneficial owner
This case went to trial before a jury, and at the close of the evidence, the court submitted three special issues to the jury. The issues, answers and the court’s explanatory instructions relating thereto are as follows:
You are instructed that under present Law, the term ‘other minerals’ when it appears in a mineral reservation does not include coal and lignite, when the coal and lignite is within two hundred feet of the surface, and any reasonable method of removal would consume, deplete or destroy the surface.
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SPECIAL ISSUE NO. 1
Do you find from the preponderance of the evidence that Plaintiff and Defendant intended that the Deed to the Veterans Land Board reserve one-half of the coal and lignite in the 80-acre tract in favor of A.P. Matthews?
Answer: ‘They did’ or ‘They did not.’
Answer: They did.
SPECIAL ISSUE NO. 2
Do you find from the preponderance of the evidence that Plaintiff and Defendant were mutually mistaken as to the legal effect of the mineral reservation contained in the Deed to the Veterans Land Board?
Answer: ‘Yes’ or ‘No.’
Answer: No.
In connection with the foregoing Special Issues you are instructed that by the term ‘mutual mistake,’ it is meant a mistake that is common to both parties to a transaction, each of who [sic] is under the same mistake as to its terms. A ‘mutual mistake’ exists when the parties to an instrument are under a clear agreement as to the factual and legal result they wish to accomplish by it, but the legal effect of the words they use does not produce that result.
SPECIAL ISSUE NO. 3
Do you find from the preponderance of the evidence that Plaintiff and Defendant believed at the time of the execution of the Warranty Deed, that the mineral reservation effectively reserved to Plaintiff a one-half interest in the coal and lignite in the 80-acre tract conveyed to the Veterans Land Board?
Answer: ‘They did’ or ‘They did not.’
Answer: They did.
Based on the jury’s affirmative answers to Special Issues 1 and 3,
Wagstaff urges one point of error, contending the trial court erred in overruling his motions for instructed verdict and judgment non obstante veredicto “because the mineral reservation in question did not affirmatively and fairly evidence an intention to reserve coal and lignite.” The motions urged by Wagstaff are all bottomed on the premise that under the decisions in Acker v. Guinn, 464 S.W.2d 348 (Tex. 1971); Reed v. Wylie (II), 597 S.W.2d 743 (Tex. 1980); and Moser v. U.S. Steel Corp., 676 S.W.2d 99 (Tex. 1984), as a matter of law, the mineral reservation did not reserve one-half of the coal and lignite. In this connection, we observe that the parties stipulated at trial that coal and lignite deposits
Matthews, in answer to Wagstaff’s arguments, refers us to several Supreme Court decisions
The trial court’s judgment is correct for the reasons stated herein, and it is affirmed.
. For an undisclosed beneficial owner.
. Pursuant to the application of Donald Wag-staff, defendant/appellant (Wagstaff), who selected and agreed to purchase the same under the Texas Veterans Land Program. See Tex.Nat. Res.Code Ann. § 161.281-.286 (Vernon 1978, Vernon Supp. 1987). (Before trial the Board conveyed the land to Wagstaff.)
. For the sake of clarity and convenience, this paragraph will hereafter be referred to as “Paragraph 1” or “First Paragraph.”
. For the sake of clarity and convenience, this paragraph will hereafter be referred to as "Paragraph 2” or "Second Paragraph."
. Or a subsidiary of the owner.
. Matthews’ daughter.
. The judgment recited, inter alia, "It appearing to the Court that the verdict ... was for the Plaintiff....”
.Obviously in substantial quantities.
. E.g., Smith v. Jasper County Lumber Co., 124 Tex. 156, 76 S.W.2d 505 (1934); Germany v. Turner, 132 Tex. 491, 123 S.W.2d 874 (1939).
. As an issue of fact.
. The reservation there, in part, read, "There is ... reserved ... a one-fourth ... in and to all oil, gas and other minerals....” (Emphasis ours.)
. See Garrett v. Dils Company, 157 Tex. 92, 299 S.W.2d 904 (1957).
. See Cherokee Water Co. v. Forderhause, 641 S.W.2d 522, 524 (Tex. 1982).
. At whatever depth it is encountered.
. We presume, if in fact, as suggested by the record that TUMCO, or its parent company, paid the cash royalties into the court’s registry, the trial court will direct the clerk to pay the same with interest earned thereon to Matthews, less the fee allowed the county for management of the fund. See Tex.Rev.Civ.Stat.Ann. art. 2558a (Vernon Supp. 1987).
Case-law data current through December 31, 2025. Source: CourtListener bulk data.