Corine, Incorporated and Drewland Enterprises, Inc. v. Chris Harris, Jack E. Harris, Jr., and Chris Harris and Jack E. Harris, Jr., as Co-Trustees Under the 2004 Grady Harris Children`s Trust

CourtCourt of Appeals of Texas
DecidedApril 2, 2008
Docket06-07-00088-CV
StatusPublished

This text of Corine, Incorporated and Drewland Enterprises, Inc. v. Chris Harris, Jack E. Harris, Jr., and Chris Harris and Jack E. Harris, Jr., as Co-Trustees Under the 2004 Grady Harris Children`s Trust (Corine, Incorporated and Drewland Enterprises, Inc. v. Chris Harris, Jack E. Harris, Jr., and Chris Harris and Jack E. Harris, Jr., as Co-Trustees Under the 2004 Grady Harris Children`s Trust) 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.

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Corine, Incorporated and Drewland Enterprises, Inc. v. Chris Harris, Jack E. Harris, Jr., and Chris Harris and Jack E. Harris, Jr., as Co-Trustees Under the 2004 Grady Harris Children`s Trust, (Tex. Ct. App. 2008).

Opinion



In The

Court of Appeals

Sixth Appellate District of Texas at Texarkana



______________________________


No. 06-07-00088-CV
______________________________


CORINE, INCORPORATED AND
DREWLAND ENTERPRISES, INC., Appellants


V.


CHRIS HARRIS, JACK E. HARRIS, JR., AND CHRIS HARRIS AND
JACK E. HARRIS, JR., AS CO-TRUSTEES UNDER THE
2004 GRADY HARRIS CHILDREN'S TRUST, Appellees





On Appeal from the 413th Judicial District Court
Johnson County, Texas
Trial Court No. C200700217





Before Morriss, C.J., Carter and Moseley, JJ.
Opinion by Chief Justice Morriss


O P I N I O N

In 1970, Jack and Jo Anne Harris purchased an approximately 528.14-acre tract of land in Johnson County, (1) Texas, from Marie Stevens, Mary Lou Stevens McDonald, and Judy Nell Stevens Ellis. In the conveyance to the Harrises, the three grantors retained, altogether, a 1/16 royalty interest that would last for twenty years and thereafter until there was no mineral production. (2) In 1983, the Harrises conveyed that land to Charles L. Stephens, retaining the following:

all of those royalty rights reserved by Marie Stevens, her heirs, executors and administrators, in [the 1970 deed], so that if the reversion described therein occurs, then the Grantors, their heirs, executors and administrators, will then be vested with said royalty rights described in said deed.

The meaning of that reservation lies at the heart of this appeal. Appellants, Corine, Incorporated, and Drewland Enterprises, Inc. (collectively Corine), claim under Charles L. Stephens. Appellees, Chris Harris and Jack E. Harris, Jr., Individually and as Co-Trustees under the 2004 Grady Harris Children's Trust (collectively Harris Interests), claim under the Harrises.

The ultimate question before us is to what extent, if any, the Harris Interests, by virtue of the 1983 reservation, own a royalty interest in the property. The trial court granted summary judgment in favor of the Harris Interests, ruling that they own a 1/16 royalty interest in the property. Our analysis leads us to conclude that (1) the Harrises' royalty reservation adopted the size of Marie's royalty interest but not its duration, and (2) the Harris royalty should be measured by only Marie's retained royalty interest. We reform the trial court's judgment to reflect that the Harris Interests own a 1/32 royalty, rather than a 1/16. We affirm the judgment as modified.

We review de novo a decision to grant or deny a summary judgment motion. See Provident Life & Accident Co. v. Knott, 128 S.W.3d 211, 215 (Tex. 2003). The standards for reviewing a traditional motion for summary judgment are well established. Nixon v. Mr. Prop. Mgmt. Co., 690 S.W.2d 546, 548 (Tex. 1985). The movant has the burden of showing that no genuine issue of material fact exists and that the movant is entitled to summary judgment as a matter of law. Am. Tobacco Co. v. Grinnell, 951 S.W.2d 420, 425 (Tex. 1997); Ash v. Hack Branch Distrib. Co., 54 S.W.3d 401, 413 (Tex. App.--Waco 2001, pet. denied). The reviewing court must accept as true all evidence favorable to the nonmovant. Nixon, 690 S.W.2d at 549; Ash, 54 S.W.3d at 413. Every reasonable inference must be indulged, and all doubts resolved, in favor of the nonmovant. Grinnell, 951 S.W.2d at 425; Ash, 54 S.W.3d at 413.

If the Harris Interests, based on the evidence in the deeds, could establish that there was no genuine issue of material fact as to any interest they owned in the land, the Harris Interests would have been entitled to summary judgment.

One issue before the trial court, relevant to this appeal, is whether the language in the two deeds, quoted above, is ambiguous. All parties agree that there is no ambiguity, though they differ markedly on the interpretation of the deeds. If the language is ambiguous, there is a fact question for the jury to resolve, making summary judgment improper. J. Hiram Moore, Ltd. v. Greer, 172 S.W.3d 609, 614 (Tex. 2005). If we find the language to be unambiguous, we may construe the deeds as a matter of law. See Westwind Exploration, Inc. v. Homestate Sav. Ass'n, 696 S.W.2d 378, 381 (Tex. 1985). The question of ambiguity in a deed is a question of law. Cherokee Water Co. v. Freeman, 33 S.W.3d 349, 353 (Tex. App.--Texarkana 2000, no pet.) (citing Reilly v. Rangers Mgmt., Inc., 727 S.W.2d 527, 529 (Tex. 1987)). An instrument is not ambiguous if it can be given a definite or certain meaning as a matter of law. Coker v. Coker, 650 S.W.2d 391, 394 (Tex. 1983). If, however, a deed is subject to two or more reasonable interpretations, it is ambiguous. See Columbia Gas Transmission Corp. v. New Ulm Gas, Ltd., 940 S.W.2d 587, 589 (Tex. 1996). An ambiguity creates a fact issue as to the parties' intent. Id. An ambiguity does not arise simply because the parties advance conflicting interpretations. Lopez v. Munoz, Hockema & Reed, L.L.P., 22 S.W.3d 857, 861 (Tex. 2000) (citing New Ulm Gas, Ltd., 940 S.W.2d at 589. For an ambiguity to exist, both interpretations must be reasonable. Id.

To interpret the Harrises' reservation, we look to that language contained in the 1983 deed wherein the Harrises retained the following:

all of those royalty rights reserved by Marie Stevens, her heirs, executors and administrators, in [the 1970 deed], so that if the reversion described therein occurs, then the Grantors, their heirs, executors and administrators, will then be vested with said royalty rights described in said deed.

The reservation in the 1970 deed was defined by size (1/2 of 1/8 royalty) and duration (for twenty years and so long thereafter as mineral production continues).

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Corine, Incorporated and Drewland Enterprises, Inc. v. Chris Harris, Jack E. Harris, Jr., and Chris Harris and Jack E. Harris, Jr., as Co-Trustees Under the 2004 Grady Harris Children`s Trust, Counsel Stack Legal Research, https://law.counselstack.com/opinion/corine-incorporated-and-drewland-enterprises-inc-v-chris-harris-jack-texapp-2008.