Clinton T. Montgomery, Managing Trustee of the Tri-Mont Irrevocable Trusts, Kimberly Shipman Dyess, Melody Shipman Delong and Michele Mitchell Grimsley v. ES3 Minerals, LLC and Echo Minerals, LP

CourtCourt of Appeals of Texas
DecidedMay 30, 2024
Docket08-23-00153-CV
StatusPublished

This text of Clinton T. Montgomery, Managing Trustee of the Tri-Mont Irrevocable Trusts, Kimberly Shipman Dyess, Melody Shipman Delong and Michele Mitchell Grimsley v. ES3 Minerals, LLC and Echo Minerals, LP (Clinton T. Montgomery, Managing Trustee of the Tri-Mont Irrevocable Trusts, Kimberly Shipman Dyess, Melody Shipman Delong and Michele Mitchell Grimsley v. ES3 Minerals, LLC and Echo Minerals, LP) 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
Clinton T. Montgomery, Managing Trustee of the Tri-Mont Irrevocable Trusts, Kimberly Shipman Dyess, Melody Shipman Delong and Michele Mitchell Grimsley v. ES3 Minerals, LLC and Echo Minerals, LP, (Tex. Ct. App. 2024).

Opinion

COURT OF APPEALS EIGHTH DISTRICT OF TEXAS EL PASO, TEXAS

CLINTON T. MONTGOMERY, § No. 08-23-00153-CV MANAGING TRUSTEE OF THE TRI-MONT IRREVOCABLE TRUSTS, § Appeal from the KIMBERLY SHIPMAN DYESS, MELODY SHIPMAN DELONG, § 143rd Judicial District Court and MICHELE MITCHELL GRIMSLEY, § of Reeves County, Texas Appellants, § Cause No. 21-06-24013-CVR v.

ES3 MINERALS, LLC and ECHO MINERALS, LP,

Appellees.

OPINION

In this appeal, we are asked to interpret the conveyance of a nonparticipating royalty

interest in a 1955 deed. The parties contest whether the deed conveyed a floating 1/4 royalty

interest or a fixed 1/32 royalty interest. Because we determine the presumption of a floating royalty

interest is not rebutted by the language in the remainder of the deed, we reverse the trial court’s

rulings on the parties’ cross motions for summary judgment, render judgment that the interest

conveyed was a 1/4 floating royalty interest, and remand the case for further proceedings. FACTUAL AND PROCEDURAL BACKGROUND

In 1955, J.D. Arthur and his wife, Elva J. Arthur, as grantors, conveyed to W. Travis

Lattner, Jr., grantee, a nonparticipating royalty interest through a warranty deed conveying certain

real property in Reeves County, Texas, using this operative language: “[T]he Grantors do hereby

expressly include in this conveyance, a non-participating royalty of one-fourth (l/4th) of the

landowner’s usual one-eighth (1/8th) royalty on oil and gas produced and saved from said

land[.]”Appellants, who include Clinton T. Montgomery, Managing Trustee of the Tri-Mont

Irrevocable Trusts, Kimberly Shipman Dyess, Melody Shipman Delong, and Michele Mitchell

Grimsley, are the successors-in-interest to Lattner, the grantee; while Appellees, ES3 Minerals,

LLC and Echo Minerals, LP, are successors-in-interest to the Arthurs, the grantors. Ownership of

the royalty interest is not in dispute; rather, the parties disagree on the nature and quantum of the

conveyed interest.

Appellants brought a declaratory judgment action seeking a declaration that the 1955 deed

conveyed a floating 1/4 nonparticipating royalty interest, individually owned as follows: Tri-Mont

Irrevocable Trusts (1/8), Kimberly Shipman Dyess (1/24), Melody Shipman Dyess (1/24) and

Michel Mitchell Grimsley (1/24). To recover royalty payments made to Appellees, the suit

additionally sought a money judgment for money had and received and unjust enrichment. Last,

Appellants sought recovery of attorney’s fees. ES3 Minerals answered with a general denial. Echo

Minerals also answered with a general denial, included certain affirmative defenses, and

counterclaimed for declaratory judgment, in which it also sought declarations regarding the

meaning of the nonparticipating royalty interest conveyed in the subject deed. Specifically, Echo

Minerals alleged the deed language conveyed a fixed 1/32 nonparticipating royalty interest, not a

floating 1/4 nonparticipating royalty interest. Also, Echo Minerals sought recovery of attorney’s

2 fees. Appellants and Echo Minerals each moved for partial summary judgment on their dueling

interpretations of the deed’s language. In doing so, both sides claimed the language at issue was

not ambiguous.

After a hearing, the trial court granted Echo Minerals’ motion for partial summary

judgment and denied Appellants’ motion, finding that the deed in question conveyed a fixed 1/32

nonparticipating royalty interest. The trial court granted permission for an interlocutory appeal on

the issue of the interpretation of the conveyance. Appellants petitioned this court for permissive

appeal, which we granted, and this appeal followed. 1

ISSUES ON APPEAL In two issues, Appellants urge that the trial court improperly construed the conveyance of

the royalty interest and thus improperly granted Echo Minerals’ motion for partial summary

judgment and denied their own. Appellants argue the deed language—particularly the inclusion of

double fractions that include a 1/8 fraction—triggers a presumption that the use of such double

fraction was purposeful and that 1/8 reflects the entire royalty interest that would be received under

any present or future oil and gas leases, not just a fixed fraction of a 1/8 royalty. See Van Dyke v.

Navigator, 668 S.W.3d 353 (Tex. 2023); Hysaw v. Dawkins, 483 S.W.3d 1, 13 (Tex. 2016). That

is, the use of the fraction of 1/8 was used as a proxy for the grantors’ entire royalty interest, so that

the grantors’ conveyance of 1/4 of the landowner’s usual 1/8 royalty indicates the intent to convey

a 1/4 floating royalty interest. Conversely, Appellees claim six distinct provisions of the deed rebut

the Van Dyke presumption indicating the double fraction used in the conveyance was “nothing

1 ES3 Minerals filed a joinder brief supporting Echo Minerals’ position on appeal. See Tex. R. App. P. 9.7.

3 more than a double fraction” that transferred a fixed 1/32 royalty interest in the oil and gas

produced and saved from the land.

DISCUSSION A. Standard of review

We review de novo a declaratory judgment granted on a traditional motion for summary

judgment. Angel v. Tauch, 642 S.W.3d 481, 488 (Tex. 2022). Traditional summary judgment is

appropriate where there is no genuine issue of material fact, and a party is entitled to judgment as

a matter of law. Id.; see Tex. R. Civ. P. 166a(c). When both parties move for summary judgment

on the same issue and the trial court grants one motion but denies the other, the reviewing court

should review the evidence presented by both sides, determine all questions presented, and render

the judgment the trial court should have rendered. Angel, 642 S.W.3d at 488.

B. Deed interpretation principles

The interpretation of an unambiguous deed is a question of law for the court. Wenske v.

Ealy, 521 S.W.3d 791, 794 (Tex. 2017). If a deed is worded in such a way that it can be given a

certain or definite meaning, then the deed is not ambiguous. Endeavor Energy Res., L.P. v.

Discovery Operating, Inc., 554 S.W.3d 586, 601 (Tex. 2018). Ambiguity does not arise merely

because parties assert differing interpretations. See id. Rather, “ambiguity exists only if both

parties’ interpretations are reasonable.” Piranha Partners v. Neuhoff, 596 S.W.3d 740, 744

(Tex. 2020). As is the case here, “[e]ven when the parties agree that an agreement is unambiguous

. . . a reviewing court should independently confirm that determination.” Occidental Permian, Ltd.

v. Citation 2002 Investment LLC, No. 23-0037, 2024 WL 2226281, at *3 (Tex. May 17, 2024)

(citing Piranha Partners, 596 S.W.3d at 743–44).

4 When interpreting a deed, our objective is to “‘ascertain the true intentions of the parties

as expressed in the writing itself,’ beginning with the instrument’s express language.” Nettye

Engler Energy, LP v. BlueStone Nat. Res. II, LLC, 639 S.W.3d 689 (Tex. 2022) (quoting Italian

Cowboy Partners, Ltd. v. Prudential Ins. Co. of Am., 341 S.W.3d 323, 333 (Tex. 2011). Our initial

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Garrett v. Dils Company
299 S.W.2d 904 (Texas Supreme Court, 1957)
Luckel v. White
819 S.W.2d 459 (Texas Supreme Court, 1992)
French v. Chevron U.S.A. Inc.
896 S.W.2d 795 (Texas Supreme Court, 1995)
in Re the Office of the Attorney General of Texas
456 S.W.3d 153 (Texas Supreme Court, 2015)
Graham v. Prochaska
429 S.W.3d 650 (Court of Appeals of Texas, 2013)
Hysaw v. Dawkins
483 S.W.3d 1 (Texas Supreme Court, 2016)
Uri, Inc. v. Kleberg Cnty.
543 S.W.3d 755 (Texas Supreme Court, 2018)

Cite This Page — Counsel Stack

Bluebook (online)
Clinton T. Montgomery, Managing Trustee of the Tri-Mont Irrevocable Trusts, Kimberly Shipman Dyess, Melody Shipman Delong and Michele Mitchell Grimsley v. ES3 Minerals, LLC and Echo Minerals, LP, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clinton-t-montgomery-managing-trustee-of-the-tri-mont-irrevocable-trusts-texapp-2024.