J. Hiram Moore, Ltd. v. Greer
J. Hiram Moore, Ltd. v. Greer
Concurring Opinion
concurring.
The dissent discerns no principle in the Court’s decision, but there is one, and a very venerable one at that: hard cases make bad law.
Moore argues that general grants must always be read literally, or land titles will become uncertain, and chaos will descend. Greer argues that general grants can never include more than small strips adjacent specifically described property, or unsophisticated, perhaps careless, grantors will be duped out of property they never intended to convey. We have squarely rejected Greer’s argument in two cases,
any and all other land and interest in land owned or claimed by the Grantor in said survey or surveys in which the above described land is situated or in [sic] adjoining the above described land.5
As it happened, the grantor owned the surface and minerals in 1,440 acres adjoining the two specifically described quarter-sections.
The dissenting opinion argues that the general grant was not given effect in Smith because it literally included the surface estate as well as the minerals and was therefore repugnant to the rest of the deed that conveyed only mineral interests. The argument is certainly a reasonable one, but I doubt seriously that Smith would have been decided differently if the general grant had read, “any and all other mineral interest”. The inclusion of the surface estate in the general grant was troublesome, but so, too, was the inclusion of the mineral interest in two-and-one-quarter sections that could have been described as easily as the two quarter-sections in which interests were specifically conveyed if the parties had ever had the remotest notion that the additional acreage was to be part of the transaction.
With these few additional thoughts, I join in the Court’s opinion.
. Northern Sec.Co. v. United States, 193 U.S. 197, 400, 24 S.Ct. 436, 48 L.Ed. 679 (1903) (Holmes, J., dissenting) ("Great cases, like hard cases, make bad law.”); Robinson v. Central Tex. MHMR Ctr., 780 S.W.2d 169, 172 n. 1 (Tex. 1989) (Hecht, J., dissenting).
. Holloway's Unknown Heirs v. Whatley, 133 Tex. 608, 131 S.W.2d 89, 90-92 (1939); Sun Oil Co. v. Burns, 125 Tex. 549, 84 S.W.2d 442, 445, 446-447 (1935) (quoting Lauchheimer v. Saunders, 27 Tex.Civ.App. 484, 65 S.W. 500, 501 (1901, no writ)).
. Sun Oil Co. v. Bennett, 125 Tex. 540, 84 S.W.2d 447 (1935); Gulf Prod. Co. v. Spear, 125 Tex. 530, 84 S.W.2d 452 (1935); Strong v. Garrett, 148 Tex. 265, 224 S.W.2d 471 (1949); see also Texas Consol. Oils v. Bartels, 270 S.W.2d 708, 712 (Tex.Civ.App.-Eastland 1954, writ ref’d); Smith v. Westall, 76 Tex. 509, 13 S.W. 540 (1890); Witt v. Harlan, 66 Tex. 660, 2 S.W. 41 (1886).
. 157 Tex. 220, 301 S.W.2d 608 (1956).
. Id. at 610.
. Id. at 611.
. Id. at 613-615.
. 727 S.W.2d 262 (Tex. 1987).
. Post at 623.
. Post at 617.
Dissenting Opinion
dissenting.
The granting clause of the royalty deed at issue says that it conveys:
all of the oil royalty, gas royalty, overriding royalty and royalty in casinghead gas, gasoline, and royalty in other minerals ... that may be produced from the following described lands situated in the County of Wharton, State of Texas, to wit:
All of that tract of land out of the AB 801 SEC 14/W M BARNARD #14 SURVEY, Wharton County, Texas known as the MEDALLION OIL— SIXS FRELS UNIT. Grantor agrees to execute any supplemental instrument requested by Grantee for a more complete or accurate description of said land. Reference is made to this unit(s) for descriptive purposes only and shall not limit this conveyance to any particular depths or wellbores. In addition to the above described lands, it is the intent of this instrument to convey, and this conveyance does so include, all of grantors [sic] royalty and overriding royalty interest in all oil, gas and other minerals in the above named county or counties, whether actually or properly described herein or not, and all of said lands are covered and included herein as fully, in all respects, as if the same had been actually and properly described herein.
This grant is unambiguous. It purports to grant Greer’s interest in a specific section of a specific survey, and it also purports to grant all of Greer’s royalty interests in Wharton County, whether described in the deed or not. As it turns out, Greer does not own what she purported to convey in the specific grant. But she does own royalty interests in Wharton County, and she unequivocally conveyed all those royalty interests in the general granting section of this deed. I would give effect to this grant unless and until the deed is reformed or rescinded.
The Court’s reasoning for failing to enforce the deed as written boils down to this and only this: “The deed in effect states that Greer conveys nothing, and that she conveys everything. We cannot construe
If the Court were to faithfully apply our precedent which is considerable
I have several questions for the Court: Would the Court hold that the deed in this case, including the general grant of all royalty interests in Wharton County, is ambiguous if:
1)a metes and bounds description of the land in which royalty interests were conveyed had been used as the specific description, but the description did not close;
2) there were three tracts of land specifically described in which royalty interests were granted, and all were effective, but there was one other royalty interest in Wharton County, not specifically described, that Greer owned;
3) there were three tracts of land specifically described in which royalty interests were granted, but one failed because Greer owned no interest in that one tract;
4) there were 100 tracts of land specifically described in which royalty interests were granted, but one failed because Greer owned no interest in that one tract; or
5) there were 100 tracts of land specifically described in which royalty interests were granted, and all were effective, but there were three other royalty interests in Wharton County, not specifically described, that Greer owned?
What principle of law does the Court announce today that will give stability and predictability in construing deeds, wills, oil and gas leases, liens, and deeds of trust? I can discern none. We are told only that when there is at least one specific grant and it fails, an unambiguous general grant is rendered ambiguous. Accordingly, there will be trials, sometimes years after the grantors and grantees have passed on, to determine what a conveyance meant.
I
Our jurisprudence has given effect to geographic grants for more than 100 years. In 1890, this Court construed a deed that granted all “ ‘land by me inherited ... from my deceased parents’ ” as well as “ ‘all right that I now have ... to any estate or property ... in this county or State.’ ”
As early as 1886, this Court held in Witt v. Harlan that a general geographic grant would be given effect even though there were other tracts specifically described.
The decision in Holloway’s Unknown Heirs v. Whatley
“Third tract being 30 acres a part of the Moses Donohoe League, being all that part of said league the title to which now stands in my name. If there is any other land owned by me in Liberty County, Texas, or any land, the title to which stands in my name, it is hereby conveyed, the intention of this instrument being to convey all land owned by me in said County.”16
After Holloway and Baldwin had died, a dispute erupted over whether the one-half undivided mineral interest in the three tracts that were the subject of Holloway’s first deed had passed to Baldwin under the general granting clause of the second deed, even though neither the mineral interest nor the three tracts in which Holloway had retained the one-half mineral interest were specifically referenced in the second deed. First, this Court rejected the argument that a conveyance of “land” should exclude a previously severed mineral interest unless the severed mineral estate was clearly identified as a mineral estate.
We then examined the general granting clause, which said, “ *[i]f there is any other land owned by me in Liberty, County, Texas, or any land, the title to which stands in my name, it is hereby conveyed, the intention of this instrument being to convey all land owned by me in said County.’ ”
This Court held in Holloway that the general grant conveyed the one-half mineral interest.
It is also significant in analyzing Greer’s deed that this Court said in Holloway that if there were any uncertainty in what was
If it should be admitted that there is any uncertainty inhering in any portion of the language employed by Holloway to describe the land intended to be conveyed, the language in its entirety is rendered certain by the concluding statement of the description that it was the grantor’s intention to convey all of the land owned by him in Liberty County.22
In Greer’s deed, she did not own what was specifically described, but any uncertainty about her intent to convey all her royalty interest in Wharton County was removed by the geographic grant.
In refusing to give effect to the geographic grant in Greer’s deed, the Court relies heavily on Smith v. Allison.
The Smith deed specifically described an undivided one-half interest in the oil, gas, and other minerals in the southeast l/4th and the northwest l/4th of Section 124, Block 25.
“The parties however intend this deed to include and the same is hereby made to cover and include not only the above described land, but also any and all other land and interest in land owned or claimed by the Grantor in said survey or surveys in which the above described land is situated or in [sic] adjoining the above described land. Should the foregoing particular description for any reason prove incorrect or inadequate to cover the land intended to be conveyed as above specified grantor agrees to execute such instrument or instruments that may be necessary to correct such particular description.”26
The grantor also owned the northeast l/4th of Section 124, as well as all of Sections 123 and 145, which adjoined section 124, but none of those interests were specifically described in the Smith deed.
(1) To adopt the contention of the petitioners-respondents, Allison and others, the deed, even though they now only claim an undivided 1/2 of the minerals in the northeast 1/4 of Section 124, would convey the full fee simple title to Mrs. Neely.
(2) Even though the petitioners-respondents, Allison and others, assert they are not claiming any interest in Sections 123 and 145, the fact remains that the general description does not limit the conveyance to minerals in Section 124, but conveys the land. The granting clause, the habendum clause, and the warranty clause refer only to minerals.29
We concluded that “the deed under question contains material inconsistent provisions that render it uncertain as to the property conveyed.”
This Court explained in Sun Oil Co. v. Bums when there is a conflict between general and specific grants and when there is not.
There is no occasion to determine which shall prevail, the particular or the general description, unless there is a conflict or repugnance. And, of course, there is no conflict or repugnance between the general and the particular description if the deed or lease clearly shows, as does the lease here, the intention of the grantor or lessor to grant or lease, not only the land particularly described, but also other land coming within the terms of the general description.38 An oil and gas form lease was at issue in
Sun Oil Co. v. Burns. A typewritten metes and bounds description of about 100 acres was included, followed by a pre-printed general grant:
“It being the intention, however, of lessor to include within the terms of this lease not only the above described land, but also any and all other land owned or claimed by lessor in said survey or surveys in which the above described land is situated or in adjoining surveys and adjoining the above described land.”39
We held that this general grant included a 3.736-acre tract that adjoined the specifically described acreage. In Sun Oil Co. v. Bennett, decided the same day, the same printed-form lease contained a typewritten metes-and-bounds description of two tracts, one 34 acres and the other 42 acres.
In Gulf Production Co. v. Spear, decided two weeks after Bums and Bennett, the lease contained a typewritten metes-and-bounds description of a four-sided tract said to contain six acres, but the description omitted the course of the boundary on one side.
The Greer deed says “[i]n addition to the above described lands, it is the intent of this instrument to convey” all royalty interests in Wharton County. That grant should be given effect, just as this Court gave effect to the general grants in Holloway, Burns, Bennett, and Spear’s, and other cases cited above.
“This lease also covers and includes, in addition to that above described, all land, if any, contiguous or adjacent to or adjoining the land above described and (a) owned or claimed by lessor by limitation, prescription, possession, reversion or unrecorded instrument or (b) as to which lessor has a preference right of acquisition.”51
The Court rejected Colle’s claim that the lease covered Curry’s mineral interest in both tracts, stating that in Smith v. Allison
the court held that a Mother Hubbard clause would only serve to cover property not described in the deed when that other property consists of small un-leased pieces or strips of land which may exist without the knowledge of one or both of the parties. We hold that is a correct statement of the law which controls the situation in this case. Our holding in Smith precludes Colle from using the Mother Hubbard clause to secure title to the minerals in the 49.34 acre adjoining tract, the existence of which was known to both parties at the time the lease was executed.52
This characterization of Smith, which held only that a particular deed before the Court was ambiguous, is plainly wrong. Further, the rationale in Jones v. Colle was unnecessary, given that Colle did not contend that Curry owned or claimed the second tract only by limitation, prescription, possession, reversion, unrecorded instrument, or preference right of acquisition. The general grant, read literally, did not lease any interest in the 49.34-acre tract to Colle. With respect to the inaccuracy of the specific description, which referred to a larger mineral interest in the 68.72-acre tract than Curry owned, the Court seems to have been influenced by the fact that Colle knew of both tracts when he prepared the lease and yet referred only to the one.
Jones relied solely on Smith, and while it misread that case, the result was not inconsistent with a correct reading of Smith or any other decision of this Court. Under these circumstances, dicta in Jones cannot fairly be read to change the consistent rule applied by Texas courts for a century. In any event, this Court construed the lease in Jones v. Colle as a matter of law. The Court did not find the lease ambiguous.
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Because the Court does not give effect to a direct, unambiguous grant, I dissent.
. 172 S.W.3d at 614.
. Smith v. Westall, 76 Tex. 509, 13 S.W. 540 (1890); Witt v. Harlan, 66 Tex. 660, 2 S.W. 41 (1886); Holloway’s Unknown Heirs v. Whatley, 133 Tex. 608, 131 S.W.2d 89 (1939); Sun Oil Co. v. Burns, 125 Tex. 549, 84 S.W.2d 442 (1935); Tex. Consol. Oils v. Bartels, 270 S.W.2d 708 (Tex.Civ.App.-Eastland 1954, writ ref’d).
. 157 Tex. 220, 301 S.W.2d 608 (1957).
. Id. at 610.
. Burns, 84 S.W.2d at 446.
. Amicus briefs have been submitted by CSM Partners, L.C. and others; David L. Kundy-sek, pro se; Mauritz & Couey, a Texas Partnership; the law firm of Schoenbaum, Cur-phy & Scanlan, P.C.; the Texas Civil Justice League; the Texas Oil & Gas Association; and the law firm of Scott, Douglass & McCon-nico, L.L.P., on behalf of titleX.com.
. Smith, 13 S.W. at 540.
. Id.
. Tex. Consol. Oils v. Bartels, 270 S.W.2d 708, 710 (Tex.Civ.App.-Eastland 1954, writ ref'd).
. 66 Tex. 660, 2 S.W. 41, 41-42 (1886).
. Id. at 41.
. Id.
. Id.
. Id. at 42.
. 133 Tex. 608, 131 S.W.2d 89 (1939).
. Id. at 90 (emphasis in original).
. Id. at 91.
. Id.
. Emphasis added.
. 131 S.W.2d at 92.
. Id. at 91.
. Id. at 92.
. 157 Tex. 220, 301 S.W.2d 608 (1956).
. 131 S.W.2d at 92 (holding that to construe the grant of land and interests in land to exclude severed mineral interests "would be tantamount to holding that a mineral estate, when constructively severed from the surface by apt words of description, is not ‘land.’ Such a holding would be in the teeth of such cases as Texas Company v. Daugherty ....”).
. Id.
. Id. at 611.
. Id.
. Id.
. Id. at 612.
. 27 Tex.Civ.App. 484, 65 S.W. 500, 501 (1901, no writ).
. Id.
. Smith, 301 S.W.2d at 612.
. Id. (quoting Lauchheimer, 65 S.W. at 501).
. Id.
. 125 Tex. 549, 84 S.W.2d 442, 446-47 (1935).
. Id. at 446.
. Id. at 447.
. Id. at 443.
. 125 Tex. 540, 84 S.W.2d 447, 448 (1935).
. Id.
. Id. at 449.
. 125 Tex. 530, 84 S.W.2d 452, 453-54 (1935).
. Id.
. Id. at 454-55.
. Id. at 457.
. 727 S.W.2d 262 (Tex. 1987).
. 72 S.W.3d at 440.
. Jones, 727 S.W.2d at 262.
. Id.
. Id. at 263.
Opinion of the Court
delivered the opinion of the Court,
We deny the motion for rehearing. We withdraw our opinion of December 31, 2004 and substitute the following in its place.
Mary Greer, her three sisters, and their widowed mother partitioned an 80-acre tract into four 20-acre tracts, designated 1 through 4. The land is all in the I. & G.N. R.R. Survey No. 6, A-232 (“the Railroad Survey”), in Wharton County. Each sister received title to the surface and minerals in one tract and one-fourth of a non-participating royalty interest in each of the other three tracts. Greer received Tract 3.
In 1988, the two sisters who owned Tracts 1 and 2 leased their minerals to Larry K. Childers. The SixS Freís # 1 Well was completed on an adjacent 106-acre tract in the Wm. Barnard Survey No. 14, A-801 (“the Barnard Survey”), and in 1991 that tract was pooled with Tracts 1 and 2 and four other tracts, at a specified horizon, to form the 350-acre SixS Freís Gas Unit. The following schematic drawing depicts Tracts 1-4 and the SixS Freís Gas Unit:
After 1991, Greer was thus entitled to receive 1/4 of the royalty for each of Tracts 1 and 2 from the SixS Freís #1 Well. There was no production — hence no royalty due Greer — with respect to Tracts 3 and 4.
that may be produced from the following described lands situated in the County of Wharton, State of Texas, to wit:
All of that tract of land out of the AB 801 SEC 14/W M BARNARD #14 SURVEY, Wharton County, Texas known as the MEDALLION OIL — • SIXS FRELS UNIT. Grantor agrees to execute any supplemental instrument requested by Grantee for a more complete or accurate description of said land. Reference is made to this unit(s) for descriptive purposes only and shall not limit this conveyance to any particular depths or wellbores. In addition to the above described lands, it is the intent of this instrument to convey, and this conveyance does so include, all of grantors [sic] royalty and overriding royalty interest in all oil, gas and other minerals in the above named county or counties, whether actually or properly described herein or not, and all of said lands are covered and included herein as fully, in all respects, as if the same had been actually and properly described herein.
The first quoted sentence, a specific grant, describes land “known as the ... SIXS FRELS UNIT” in the Barnard Survey. As already noted, the SixS Freís unit comprised tracts in both the Barnard Survey and the adjacent Railroad Survey, but Greer owned no interests in the Barnard Survey.
During September and October, Steger acquired other royalty interests in Wharton County, and in December it sold twenty-five such interests, including the one acquired from Greer, to J. Hiram Moore, Ltd. for $360,000, which was market value. At that time, there was no production from Greer’s Tract 3, nor was it pooled with any producing property.
Two years later, in December 1998, Kaiser-Francis Oil Co., successor to the working interest in Tract 3 that Greer conveyed to Holliman, pooled about 313 acres, including Tracts 1-4, at a different horizon than the SixS Freís Gas Unit, for production from the Greer # 1 Well which had been completed in Tract 3. Moore claimed all royalties with respect to the interests partitioned to Greer in Tracts 1-4, and when Greer disputed the claim, Kaiser-Francis suspended payments for those tracts.
Moore sued Greer to determine their respective rights, and Greer counterclaimed for declaratory relief as well as rescission and reformation based on mutual mistake and fraud. Moore moved for summary judgment, contending that it had acquired all of Greer’s royalty interests in
The court of appeals reversed the summary judgment with this explanation:
Here the question is not whether the property [claimed by Moore] was described specifically enough [in Greer’s royalty deed to Steger], but whether the “catch-all” language is sufficient to effect a conveyance of a significant property interest that Greer contends she had no intention of conveying by this deed. Jones v. Colle[, 727 S.W.2d 262 (Tex. 1987) ] sets forth the longstanding rule in Texas that a clause, like the one at issue here, can only convey small interests that are clearly contemplated within the more particularly described conveyance, and they are not effective to convey a significant property interest not adequately described in the deed or clearly contemplated by the language of the conveyance. Because the interest in Tract 3 was a substantial one, we hold that the rule disallowing such “cover-all” clauses to effectively convey a substantial property interest is the controlling law in this case.
We granted the petition for review to determine the extent of the interest conveyed in the deed. 46 Tex. Sup.Ct. J. 793 (June 19, 2003).
We may construe the deed as a matter of law only if it is unambiguous. See Westwind Exploration, Inc. v. Homestate Sav. Ass’n, 696 S.W.2d 378, 381 (Tex. 1985). Citing Holloway’s Unknown Heirs v. Whatley, 133 Tex. 608, 131 S.W.2d 89, 92 (Com.App. 1939), Moore argues that the deed is unambiguous and that the general description establishes that the parties intended the deed to convey all of Greer’s royalty interests in the county. Pointing to a line of cases in which our courts have recognized the validity of geographic grants, Moore contends that the general description falls into that category of conveyances and thus enlarges the specific grant. See, e.g., Holloway’s Unknown Heirs, 131 S.W.2d at 90.
Greer, on the other hand, contends that she intended a specific conveyance only. She argues that the second grant does not enlarge the first. Citing Jones v. Colle, 727 S.W.2d 262 (Tex. 1987), and Smith v. Allison, 157 Tex. 220, 301 S.W.2d 608 (1957), she argues, and the court of appeals agreed, that the language following the specific grant was intended to convey only small unleased strips of land adjacent to the described property. 72 S.W.3d at 441.
In Smith v. Allison, 157 Tex. 220, 301 S.W.2d 608, 611 (1956), we held that a deed was ambiguous when its general description conveyed a significantly greater interest (surface and minerals in land included within the specific description) than the specific grant (minerals only) and when the amount paid for that conveyance appeared to relate only to the mineral interest specifically described. Accordingly, we noted that “the deed under question contain[ed] material inconsistent provisions that rendered] it uncertain as to the property conveyed.” Smith, 301 S.W.2d at 612. We noted:
*614 The deed grants 1/2 of the minerals in two specifically described sections, and although the granting clause, habendum clause, and warranty clause confine the conveyance to minerals, yet, the general description fails to limit the conveyance to minerals in the northeast 1/4 and Sections 123 and 145. These recitations clearly indicate an inconsistency between the general description and the descriptive matter identifying the particular tracts described and mentioned in the deed.
Id. Because the deed was ambiguous, it was correctly submitted to the jury, and we affirmed the judgment on that verdict. Id. at 615.
We face a similar problem here. The specific description in Greer’s deed points to a survey in which Greer apparently owns no interest. The deed purports to convey “[a]ll of that tract of land out of the AB 801 SEC 14/W M BARNARD # 14 SURVEY,... known as the MEDALLION OIL — SIXS FRELS UNIT.” As previously noted, Greer owns a 1/4 nonparticipating royalty interest in Tracts 1 and 2, which were pooled in the SixS Freís Unit; however, neither tract is in the W M Barnard Survey. Therefore, the specific description either does not describe any royalty interests owned by Greer, or it incorrectly describes her royalty interests in Tracts 1 and 2 that are part of the SixS Freís Unit by stating that they are in the W M Barnard Survey instead of the I. & G.N. R.R. Survey. The general description conveys “all of grantors [sic] royalty and overriding royalty interest in all oil, gas and other minerals in the above named county or counties, whether actually or properly described herein or not, and all of said lands are covered and included herein as fully, in all respects, as if the same had been actually and properly described herein.” The deed in effect states that Greer conveys nothing, and that she conveys everything. We cannot construe this deed as a matter of law.
Given the deed’s ambiguity, the trial court erred in granting summary judgment. A jury should therefore hear evidence and determine the parties’ intent. See Columbia Gas Transmission Corp. v. New Ulm Gas, 940 S.W.2d 587, 589 (Tex. 1996). Accordingly, we affirm the court of appeals’ judgment
Justice HECHT filed a concurring opinion.
. We do not address whether, via pooling, Greer may have owned some interest in the Barnard Survey, as Moore stipulated below that "Greer owns no interest in the W.M. Barnard No. 14 Survey.”
. In doing so, we express no opinion on the court of appeals’ holding that "a clause, like the one at issue here, can only convey small interests that are clearly contemplated within the more particularly described conveyance, and they are not effective to convey a significant property interest not adequately described in the deed or clearly contemplated by the language of the conveyance.” 72 S.W.3d at 441 (citing Jones v. Colle, 727 S.W.2d 262 (Tex. 1987)).
Reference
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- J. HIRAM MOORE, LTD., Petitioner, v. Mary GREER, Respondent
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