De Benavides v. Warren

674 S.W.2d 353, 82 Oil & Gas Rep. 115, 1984 Tex. App. LEXIS 5399
CourtCourt of Appeals of Texas
DecidedApril 25, 1984
Docket04-82-00405-CV
StatusPublished
Cited by45 cases

This text of 674 S.W.2d 353 (De Benavides v. Warren) 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
De Benavides v. Warren, 674 S.W.2d 353, 82 Oil & Gas Rep. 115, 1984 Tex. App. LEXIS 5399 (Tex. Ct. App. 1984).

Opinion

OPINION

BUTTS, Justice.

Plaintiffs, Rosa Vela De Benavides, Carlos Y. Benavides, Alfonso N. Benavides, Arturo T. Benavides, Beatriz S. Benavides, Carlos Y. Benavides, Jr., Individually and as Trustee, and Arturo N. Benavides, Individually and as Trustee, sued for a declaratory judgment in this oil and gas case to determine whether term royalties had terminated. Defendants, Lynne A. Warren, Wendy A. Warren, Andrea R. Warren, Arthur Lykes Sentz, James N.L. Sentz, Patricia Sentz Sharpsteen, and Virginia G. Moriarty, all descendants of A.M. Sentz, coun-tersued for an accounting, asking that a constructive trust be imposed upon royalty payments claimed by defendants to belong to them. Edwin L. Cox, the other defendant, an oil leasehold operator of lands involved in this suit, did not appeal the judgment that royalty payments, held in suspension by him since 1979, be paid to the named descendants of A.M. Sentz in their proportionate shares. The trial court rendered a declaratory judgment in favor of the defendants granting their counterclaim and prejudgment interest. The plaintiffs appeal. We affirm.

Plaintiffs include Rosa Vela De Bena-vides, the original grantor of the royalty deed, dated March 19, 1923, to A.M. Sentz. She is predecessor in title to the other plaintiffs. She executed the subject royalty conveyance which granted a Vi6th nonparticipating royalty interest in oil, gas and other minerals produced from more than 10,000 acres of land in several tracts spanning three south Texas counties. The royalty deed provided in part:

* * * * * *

... This sale and assignment is made for the full period of ten years from the date hereof, unless during said period oil, gas or other minerals are produced and saved from said land and premises, in paying quantities, in which event this sale and assignment is to continue so long as said oil, gas and other minerals are produced in paying quantities; and is made subject to all oil and gas leases now on said premises, or which may hereafter be made by me on said premises ... and does not in any way impair my right to make any lease, or leases which I may execute thereon. I do hereby bind myself, my heirs, executors and administrators to warrant and forever defend, all and singular the said title unto A.M. Sentz, his heirs and assigns. * * * * ⅜ *

The grant created a royalty interest, that interest terminating unless minerals were produced in paying quantities during the ten year period, the royalty interest continuing so long as such production existed. It was a non-participating interest, and the plaintiffs retained the executive right to execute mineral leases. See Upshaw v. Norsworthy, 267 S.W.2d 566 (Tex.Civ.App.—Eastland 1954, writ ref d n.r.e.); H. WILLIAMS & C. MEYER, OIL AND GAS LAW § 338 (rev. 1983). It is undisputed that minerals were produced in paying quantities during the primary term.

Plaintiffs bring seven points of error, five of them attacking the findings of fact as not supported by legally and factually sufficient evidence, and also attacking certain holdings (conclusions of law). The last two points address the propriety of the award of royalty payments to defendants and the award of prejudgment interest.

*356 REVIEW OF FINDINGS OF FACT

Findings of fact have the same force and effect as jury answers to special issues and are treated with the same dignity on appellate review. 4 R. McDONALD, TEXAS CIVIL PRACTICE § 16.05 (1971). Unchallenged findings are binding on appeal. Whitten v. Ailing & Cory Co., 526 S.W.2d 245, 248 (Tex.Civ.App.—Tyler 1975, writ ref’d).

In arriving at its findings, the trial court may accept or reject any or all of the testimony of a witness. Electro-Hydrau-lics Cory, of America v. Special Equipment Engineers, Inc., 411 S.W.2d 382, 387 (Tex.Civ.App — Waco 1967, writ ref’d n.r. e.).

Under a “no evidence” challenge to the finding, the appellate court considers only the evidence, and reasonable inferences therefrom, tending to support the finding and disregards all evidence and inferences to the contrary. Ray v. Farmers’ State Bank of Hart, 576 S.W.2d 607, 609 (Tex.1979). Where there is at least some evidence of probative force to support the finding under a “no evidence” attack, it is binding. Id. at 609-610.

When a finding is attacked as not being supported by factually sufficient evidence, the appellate court must consider all of the evidence. Garza v. Alviar, 395 S.W.2d 821, 823 (Tex.1965). The finding will be upheld unless it is so against the great weight and preponderance of the evidence as to be clearly and manifestly wrong. In re Kings Estate, 150 Tex. 662, 244 S.W.2d 660, 661 (1951); Houston Natural Gas Corp. v. Pearce, 311 S.W.2d 899, 903 (Tex.Civ.App.—Houston 1958, writ ref d n.r.e.).

Plaintiffs first challenge three findings of fact as legally and factually insufficient:

Findings of Fact
7. Plaintiffs did .not prove any cessation of production from each and every tract included in the Royalty Deed at any time.
8. No production of oil and gas from the lands included in the Royalty Deed or lands pooled or unitized therewith, was shown to have been in less than paying quantities.
20. In December of 1971, Mayfield commenced the Mayfield B-l well, which was completed and which produced gas, on February 10, 1972.

At the bench trial the parties stipulated:

The plaintiffs and defendants with reference to the Deed of March 19, 1923, which is the subject of this lawsuit, [stipulate] that the only period of time, from the date of the deed to the present, during which plaintiffs contend that there was a cessation of production in paying quantities from land covered by the Deed, was between December 31, 1970 and July, 1972.

Thus, the plaintiffs sought a declaratory judgment that production in paying quantities had ceased, thereby nullifying the royalty deed, the period of cessation occurring after December 31, 1970. The burden clearly rested on plaintiffs to show cessation of production on all the land within the royalty deed.

Plaintiffs proof centered on cessation of production of the Rowden B-5 well on survey 459 in Webb County. The evidence showed plaintiffs executed an oil and gas lease with W.F. Houser in 1939 on surveys 459 and 659. Rowden had obtained the leasehold interest on 459 and farmed out to Cox; Rowden B-5 produced seven barrels in March, 1972, and none in April; the well had produced for more than 30 years.

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Bluebook (online)
674 S.W.2d 353, 82 Oil & Gas Rep. 115, 1984 Tex. App. LEXIS 5399, Counsel Stack Legal Research, https://law.counselstack.com/opinion/de-benavides-v-warren-texapp-1984.