Balmorhea Ranches, Inc. v. Ann Ross Heymann

CourtCourt of Appeals of Texas
DecidedOctober 24, 2022
Docket08-20-00127-CV
StatusPublished

This text of Balmorhea Ranches, Inc. v. Ann Ross Heymann (Balmorhea Ranches, Inc. v. Ann Ross Heymann) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Balmorhea Ranches, Inc. v. Ann Ross Heymann, (Tex. Ct. App. 2022).

Opinion

COURT OF APPEALS EIGHTH DISTRICT OF TEXAS EL PASO, TEXAS

BALMORHEA RANCHES, INC., § No. 08-20-00127-CV

Appellant, § Appeal from the

v. § 143rd District Court

§ of Reeves County, Texas ANN ROSS HEYMANN, § (TC# 18-01-22295-CVR) Appellee. §

OPINION

In this dispute over ownership of certain tracts of land, Appellant Balmorhea Ranches, Inc.

(Balmorhea Ranches), appeals the trial court’s order denying its motion for summary judgment

and granting the competing motion of Appellee Ann Heymann. On appeal, Balmorhea Ranches

brings seven issues—mixed with procedural and merit-based complaints—contending the trial

court erred in considering evidence outside the summary judgment proceeding, in issuing findings

of fact and conclusions of law, and in rendering judgment on the merits. We affirm.

I. BACKGROUND

The Rosenbaums

Ann Heymann is the granddaughter of E.F. Rosenbaum. In the years 1917 and 1919, respectively, E.F. Rosenbaum’s parents, Joseph and Emma Rosenbaum, executed two

conveyances of land to him. Relevant to this case, the 1917 deed conveyed—among many other

properties—just over 300 acres of Section 52, Block 13, in Reeves County, Texas. The 1919 deed

subsequently conveyed just over 200 additional acres of Section 52, Block 13.

The parties agree that, in 1926, E.F. Rosenbaum conveyed some, but not all, of the land he

acquired in 1917 and 1919 to Balmorhea Livestock Company (Balmorhea Livestock), a company

he apparently formed. Relevant to this case, the approximately 200 acres of Section 52 that were

included in the 1919 deed to E.F. Rosenbaum were not explicitly included in the 1926 deed to

Balmorhea Livestock. The ownership of the three tracts that make up those approximately 200

acres are in dispute in this case. Because the parties agree on the size, location, and description of

the three tracts, we see no need to describe them more specifically here; we simply refer to them

together as the “Property.”

E.F. Rosenbaum survived his wife by a decade. Both died without a will. One of their

children had predeceased them with no children of his own, so upon E.F. Rosenbaum’s death in

1963, his estate passed in equal shares to their other two children: a daughter named Maud

Rosenbaum Levi Blumenthal (Maud) and a son named E.F. Rosenbaum Jr. (Frank Jr.). Ann

Heymann was one of Frank Jr.’s three children. When Frank Jr. died in 1963, he left his entire

estate—including his one-half interest in his father’s estate—to his then-current wife, Lillian Ross.

For that reason, Ann’s claim of interest in the Property does not derive from the share that was, at

one time, owned by her father. Instead, Ann’s claim of interest derives from the share she inherited

from Maud, her aunt.

When Maud died in 1981, she left her estate—including her one-half interest in her father’s

estate—to her daughter Nina Sweeney. Nina Sweeney, of course, was Ann Heymann’s first cousin.

2 Nina Sweeney died in 2007, and all of the beneficiaries named in her will had predeceased her.

Subsequently, all of her real property located in the State of Texas—including her one-half interest

in Frank Jr.’s estate—passed according to Texas’ laws of intestate succession. Those laws of

succession provided that Sweeney’s estate was to be divided into two equal shares, with one such

share passing to her “maternal kindred” and one passing to her “paternal kindred.” TEX. EST. CODE

ANN. § 201.001(f)-(h). Sweeney’s maternal kindred were identified as Ann Heymann and her two

brothers, Stephen and Joseph Ross. As a result of the foregoing, half of Sweeney’s estate was

divided between the three of them, each receiving a one-sixth interest in Sweeney’s estate, and, by

extension, a one-twelfth interest in E.F. Rosenbaum’s estate. As a result, in this dispute, Ann

Heymann claims that she owns an undivided one-twelfth interest in the Property’s surface and

mineral estates.

Balmorhea Livestock and Balmorhea Ranches

In 1939, Balmorhea Livestock filed for bankruptcy. Related to that proceeding, Balmorhea

Ranches was created for the specific purpose of acquiring Balmorhea Livestock’s assets. In 1942,

the bankruptcy trustee, James C. Wilson, conveyed all of Balmorhea Livestock’s real property

assets to Balmorhea Ranches by trustee deed (the Trustee’s Deed). None of the Property at issue

here was included in the Trustee’s Deed.

After acquiring Balmorhea Livestock’s real property, Balmorhea Ranches entered into

numerous contracts to lease and sell some of those surface and mineral rights. In the first two of

these leases, executed in 1950 and 1955—approximately eight and thirteen years after the

Trustee’s Deed, respectively—Balmorhea Ranches explicitly leased mineral rights to only the

portion of Section 52 that was included in the Trustee’s Deed. However, in a 1957 oil-and-gas

lease, Balmorhea Ranches purported to lease additional parts of Section 52, including the Property.

3 By 1965, and for all later leases included in our record—one each from the years 2002, 2004, 2008,

2011, and 2015—Balmorhea Ranches purported to lease the mineral rights to virtually all of

Section 52. The 2015 oil-and-gas lease was in favor of Apache Corporation. According to Dudley

Montgomery, the president of Balmorhea Ranches, it was Apache Corporation who first raised a

potential title issue with regard to the Property.

Balmorhea Ranches asserts it sold the Property’s surface estate in 2005 to Spanish Trail

Land and Cattle Company, LP, but it claims it retained a 100% interest in the mineral estate. 1 The

warranty deed to Spanish Trail Land and Cattle explicitly conveyed the part of Section 52 included

in the 1942 Trustee’s Deed.

Procedural History

In January of 2018, Balmorhea Ranches sued Ann Ross Heymann for declaratory

judgment; for trespass to try title; and for attorneys’ fees. Balmorhea Ranches claimed it was the

rightful owner of the Property under theories of adverse possession and the doctrine of presumed

lost grant. After litigating for a time, Balmorhea Ranches filed a first amended petition in which it

continued to assert it owned all right, title and interest in and to the Property as a result of the

presumed lost grant (or lost deed), but it no longer asserted a claim of adverse possession.

On March 19, 2019, Balmorhea Ranches moved for summary judgment claiming as a

matter of law that the presumed-lost-grant doctrine applied to the case and it was entitled to

judgment removing a cloud of title on the Property asserted by Ann Heymann. 2 Heymann soon

filed a competing motion for summary judgment claiming that Balmorhea Ranches’ declaratory

1 Spanish Trail Land and Cattle Company, LP is not a party in this case. 2 Only one exhibit was attached to Balmorhea Ranches’ motion for summary judgment: the affidavit of Dudley Montgomery, the principal of Balmorhea Ranches.

4 action and its trespass to title claim both fail as a matter of law. 3 Specifically, Heymann asserted

the evidentiary doctrine of presumed lost grant did not apply based on an undisputed chain of title

governing the Rosenbaum tracts. After full briefing from the parties, the trial court held a motions

hearing. 4 As the hearing ended, the trial court indicated it would take the matter under advisement.

In the meantime, the case proceeded toward trial, and on January 23, 2020, the parties jointly filed

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