Cade v. Cosgrove

430 S.W.3d 488, 2014 WL 1320958, 2014 Tex. App. LEXIS 3600
CourtCourt of Appeals of Texas
DecidedApril 3, 2014
DocketNo. 02-11-00424-CV
StatusPublished
Cited by7 cases

This text of 430 S.W.3d 488 (Cade v. Cosgrove) 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
Cade v. Cosgrove, 430 S.W.3d 488, 2014 WL 1320958, 2014 Tex. App. LEXIS 3600 (Tex. Ct. App. 2014).

Opinion

OPINION

LEE ANN DAUPHINOT, Justice.

Appellants Michael Cade and Billie Cade appeal from the trial court’s denial of their o [492]*492motion for summary judgment on their claims against Appellee Barbara Cosgrove, individually, and as trustee of the Charles and Barbara Cosgrove Family Revocable Living Trust, and the granting of Cos-grove’s motion for summary judgment. Cosgrove appeals from the trial court’s denial of her motion for partial summary judgment for attorney’s fees. The Cades conveyed property to a revocable trust created by Cosgrove and her husband, now deceased, under a deed that conveyed the mineral estate in contravention of the sales contract, and they sued Cosgrove when she refused to execute a correction deed. Because we hold that neither the Cades nor Cosgrove established a right to summary judgment, we reverse.

Background Facts and Procedural History

On September 21, 2006, the Cades and the Cosgroves executed a contract for the sale of the Cades’ property in Arlington, Texas. The property was subject to an oil, gas, and mineral lease between the Cades and Dale Resources, LLC. The sales contract stated that the Cades were to retain all mineral rights. The warranty deed, however, failed to include the mineral reservation. The deed was signed by the Cades at closing on October 10, 2006, and was recorded on October 16, 2006.

After the sale, the Cades and the lessee under the mineral lease took acts consistent with an understanding that the Cades still owned the minerals. The Cades sent Chesapeake Energy a letter notifying the company of their address change on December 11, 2008.1 Chesapeake sent the Cades two shut-in checks dated January 7, 2009 and January 21, 2010. On October 25, 2010, Chesapeake mailed the Cades a letter informing them of their rights as royalty owners.

In December 2010, however, Michael called Chesapeake to ask about the status of the Cades’ bank deposit forms for royalties, and he learned that the company had sent the royalty deposit forms to Cos-grove. In this conversation, Michael learned that there was a “problem” -with the deed with respect to the mineral reservation. The Cades asked Cosgrove to execute a correction deed, but she refused.

The Cades filed this suit on February 24, 2011, asserting claims for a declaratory judgment that the Cades owned the minerals, breach of an agreement with the title company that the parties signed at closing, fee forfeiture,2 tortious interference with contractual relationship, and civil theft. The Cades filed a motion for partial summary judgment, and Cosgrove filed a motion for summary judgment asserting limitations and the merger doctrine. Cosgrove asked the trial court to dismiss the Cades’ claims “subject to Cos-grove’s right to pursue attorney’s fees.”

The trial court signed an order granting Cosgrove’s motion for summary judgment, denying the Cades’ motion, and dismissing the Cades’ claims. Cosgrove then filed a motion for partial summary judgment seeking attorney’s fees under the Declaratory Judgment Act. The trial court signed a final judgment denying Cosgrove’s motion, stating that “it would be inequitable and unjust to award attorney’s fees based on the facts in this lawsuit.” Both sides now appeal.

Standard of Review

We review a summary judgment [493]*493de novo.3 We consider the evidence presented in the light most favorable to the nonmovant, crediting evidence favorable to the nonmovant if reasonable jurors could and disregarding evidence contrary to the nonmovant unless reasonable jurors could not.4 We indulge every reasonable inference and resolve any doubts in the non-movant’s favor.5 A plaintiff is entitled to summary judgment on a cause of action if it conclusively proves all essential elements of the claim.6 A defendant who conclusively negates at least one essential element of a cause of action is entitled to summary judgment on that claim.7

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.8 The reviewing court should render the judgment that the trial court should have rendered.9

Analysis

1. Cosgrove’s Motion for Summary Judgment

In the Cades’ first issue, they argue that the trial court erred by granting Cos-grove’s motion for summary judgment. Cosgrove moved for summary judgment on all of the Cades’ claims. Cosgrove’s summary judgment motion asserted two grounds for judgment: the merger doctrine and the statute of limitations.

I.1. Merger Doctrine

Cosgrove argued that the doctrine of merger prohibited the Cades from using the terms of the sales contract to contradict the terms of the deed. Generally, the terms of a sales contract are merged into the deed, and the deed is considered the final expression of the parties’ agreement.10

A party may avoid the application of this doctrine, however, by alleging and proving a mistake in the execution of the deed.11 The Cades asserted in their petition that the deed should be reformed because the deed’s omission of their reservation of their mineral interest was a mutual mistake. A deed may be reformed on the ground of mutual mistake.12 Unilateral mistake by one party, and knowledge of that mistake by the other party, is equivalent to mutual mistake.13 Thus, the merger doctrine does not prevent the Cades from seeking reformation of the deed based on mutual mistake. The contract reflected an agreement that the Cades would retain the property’s mineral rights, [494]*494Cosgrove does not argue to the contrary, and she offered no evidence to contradict the contract. Because summary judgment should not have been granted for Cosgrove on this ground, we sustain this part of the Cades’ first issue.

1.2. Statute of Limitations

Cosgrove also asserted the statute of limitations to defeat the Cades’ claims. We first consider the statute of limitations as to the Cades’ deed reformation claim. The Cades do not dispute that the four-year statute of limitations applies to claims for deed reformation or that they brought their claim more than four years after they executed the deed.

Before discussing deed reformation claims, we must clarify the nature of the claim asserted and acknowledge that what the Cades stated in their petition was that they wanted a declaration “that the mineral interest of the Property was not conveyed by them to [Cosgrove] ... and that they still hold clear legal title to these mineral interests.” But they do not deny that the deed did convey the mineral interests, and that conveyance of the minerals is the basis of their suit. It is clear from reading their pleadings in their entirety that what they sought was a declaration reforming of the deed.14

1.2.1. General rule regarding accrual of a claim to reform a deed

Generally, a cause of action accrues, and therefore the limitation period begins to run, “when a wrongful act causes a legal injury.”15

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Bluebook (online)
430 S.W.3d 488, 2014 WL 1320958, 2014 Tex. App. LEXIS 3600, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cade-v-cosgrove-texapp-2014.