Braxton Minerals III, LLC v. Robert Scott Bauer and Braxton Minerals II, LLC

CourtTexas Supreme Court
DecidedMay 15, 2026
Docket24-0438
StatusPublished
AuthorBlacklock

This text of Braxton Minerals III, LLC v. Robert Scott Bauer and Braxton Minerals II, LLC (Braxton Minerals III, LLC v. Robert Scott Bauer and Braxton Minerals II, LLC) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Braxton Minerals III, LLC v. Robert Scott Bauer and Braxton Minerals II, LLC, (Tex. 2026).

Opinion

Supreme Court of Texas ══════════ No. 24-0438 ══════════

Braxton Minerals III, LLC, Petitioner,

v.

Robert Scott Bauer and Braxton Minerals II, LLC, Respondents

═══════════════════════════════════════ On Petition for Review from the Court of Appeals for the Second District of Texas ═══════════════════════════════════════

Argued November 6, 2025

CHIEF JUSTICE BLACKLOCK delivered the opinion of the Court.

An Oklahoma plaintiff sued Texas defendants who allegedly failed to convey mineral rights as promised. The court of appeals held that Texas courts lack jurisdiction over the suit because the mineral rights are in West Virginia. We disagree. As we said one hundred and thirty years ago, “[i]f a person be under contractual obligation to convey lands, a court of equity having jurisdiction over his person may compel him to make the necessary conveyance, although the land is in another state.” Tex. & Pac. Ry. v. Gay, 26 S.W. 599, 605 (Tex. 1894). This is just as much the law today as it was then. This suit does not seek, nor would a Texas court have the power to give, an in rem judgment establishing ownership of West Virginian real property in an absolute sense, as against the world. Instead, like almost all civil litigation, this suit seeks an in personam judgment adjudicating the parties’ rights as against each other, requiring the defendants to honor their alleged agreement, and binding only the parties. A Texas court with personal jurisdiction over the parties does not lack subject-matter jurisdiction over so familiar a suit merely because ownership of foreign real estate is at issue. The court of appeals’ judgment is reversed. The case is remanded for consideration of remaining issues the court of appeals did not reach.

I.

Robert Bauer is a Texan who buys and sells mineral rights across the country through a multitude of corporate entities. In May 2015, Bauer hired Brad Ashburn, another Texan. A few months later, Bauer and Ashburn formed a new entity, Braxton Minerals II (BM2). In October 2015, Bauer and Ashburn met with EnerQuest Oil & Gas to discuss the purchase of mineral rights in Appalachia. They formed an Oklahoma company for that purpose, Braxton Minerals III (BM3). EnerQuest would own 75% of BM3. Bauer and Ashburn, acting through a company called Braxton Minerals-Appalachia (BMA), would own the rest. EnerQuest contributed $10 million to BM3, while Bauer and Ashburn agreed to sell certain mineral rights held by BM2 to BM3

2 according to an agreed-upon schedule. These terms and others are reflected in BM3’s Company Agreement. Upon its formation, BM3 purchased various mineral rights from BM2. Later opportunities to purchase mineral rights came in the form of “draw requests.” Ashburn, acting on behalf of BMA, would send a draw request to EnerQuest, which funded BM3’s purchases. If the mineral rights described in the request met previously agreed-upon criteria, EnerQuest would approve the request and provide funds to purchase the rights for BM3. From November 2015 to April 2016, Ashburn sent eleven draw requests to EnerQuest. Two of those requests sparked this litigation. In both instances, Ashburn sent EnerQuest a draw request for BM3’s purchase of mineral rights. EnerQuest approved both requests. Thirty mineral deeds were purchased in these two transactions, although nineteen deeds ended up reflecting BM2 as the grantee, not BM3. This resulted in royalty payments to BM2 instead of BM3. BM3 asked Bauer to correct the deeds to list BM3 as the grantee. Bauer refused. BM3 then sued Bauer and BM2 in Tarrant County. BM3’s live petition requests a variety of relief, including: (1) reformation of nineteen mineral deeds to reflect BM3 as grantee; (2) specific performance of the parties’ agreements; (3) declaratory judgment affirming BM3’s ownership of the disputed mineral rights and entitlement to royalties therefrom; (4) a constructive trust over the deeds and all royalty payments; and (5) an injunction prohibiting Bauer and BM2 from transferring the deeds or the royalty payments. Bauer and BM2 filed a counterclaim alleging that BM3, at the direction of

3 Ashburn, defrauded BM2 and avoided paying for the mineral rights. Bauer and BM2 sought dismissal of BM3’s suit under the theory that a Texas court lacks jurisdiction to determine title to real property outside Texas. The district court denied the motion. BM3 moved for summary judgment on both its claims and the counterclaims. The court granted summary judgment to BM3, again rejecting the notion that it lacked jurisdiction for territorial reasons. The judgment awards BM3 much of the requested relief. It orders Bauer and BM2 to perform their contractual obligations, to convey the disputed mineral rights and related royalties, and to reform the nineteen incorrect deeds. It then declares BM3 the rightful owner of certain royalty interests. It enjoins Bauer and BM2 from transferring, selling, or otherwise disposing of the nineteen mineral deeds and related royalties. It also awards damages, attorney’s fees, and other litigation costs to BM3. It does not impose a constructive trust. The court of appeals reversed, dismissing the case for want of jurisdiction because the mineral rights at issue are in West Virginia. 689 S.W.3d 633, 646 (Tex. App.—Fort Worth 2024). The court acknowledged that Texas courts with personal jurisdiction over a party “may enforce [the] party’s personal or contractual obligation that indirectly involves property in another state.” Id. at 637. Even so, the court applied a rule that has developed in some courts of appeals, under which Texas courts lack jurisdiction if “the gist or gravamen of a claim involves adjudication of title to foreign real property interests.” Id. Under this rule, jurisdiction is lacking if disputed ownership of foreign real property is “more than incidental or collateral” to the plaintiff’s

4 claims. Id. In the court of appeals’ view, because the gist of BM3’s “allegations revolve[s] around its claims of ownership of the mineral interests in question,” the suit was an impermissible attempt to have a Texas court adjudicate title to non-Texas real estate. Id. at 639. Having concluded it lacked jurisdiction, the court of appeals appropriately declined to address the appellants’ merits arguments. Id. at 646. BM3 petitioned for review. Its primary contention is that the “gist” rule applied by the court of appeals contravenes this Court’s precedent and obscures the true jurisdictional line of demarcation, which is whether a claim involving foreign property seeks a judgment in personam or in rem. BM3 contends its suit is an in personam action within the jurisdiction of a Texas court even though its claims implicate questions of ownership of West Virginia minerals. Bauer and BM2 disagree and defend the court of appeals’ application of the “gist” rule. We granted the petition.

II.

On at least three occasions, we have confronted the contention that courts lack jurisdiction over a suit involving foreign property. Gay, 26 S.W. at 605–06; Holt v. Guerguin, 163 S.W. 10, 12 (Tex. 1914); McElreath v. McElreath, 345 S.W.2d 722, 727–29 (Tex. 1961). None of these decisions suggests the “gist” rule used below. Each of them, instead, turns on the classical distinction between suits in personam and suits in rem. As the terminology suggests, the distinction between suits in personam (“against the person”) and suits in rem (“against the thing”)

5 dates at least to Roman law.1 In modern usage, a suit in personam is one “[i]nvolving or determining the personal rights and obligations of the parties.” In Personam, BLACK’S LAW DICTIONARY (12th ed. 2024).

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Braxton Minerals III, LLC v. Robert Scott Bauer and Braxton Minerals II, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/braxton-minerals-iii-llc-v-robert-scott-bauer-and-braxton-minerals-ii-tex-2026.