Dean Davenport, Individually and as Trustee of the CRD 2017 Trust, Jana Davenport, the JasperRuth Ranch, LLC, JRRanch a Unit, LLC, and JRRanch B Unit, LLC v. EOG Resources, Inc.

Texas Court of Appeals, 4th District (San Antonio)·Decided June 24, 2026·No. 04-25-00062-CV·Published

Opinion

Fourth Court of Appeals

San Antonio, Texas

OPINION

No. 04-25-00062-CV

Dean DAVENPORT, Individually and as Trustee of the CRD 2017 Trust, Jana Davenport, The JasperRuth Ranch, LLC, JRRanch A Unit, LLC, and JRRanch B Unit, LLC, Appellants

v.

EOG RESOURCES, INC.,

Appellee

From the 111th Judicial District Court, Webb County, Texas Trial Court No. 2023-CVG-000491-D2 Honorable Monica Z. Notzon, Judge Presiding

Opinion by: Velia J. Meza, Justice

Sitting: Lori Massey Brissette, Justice Adrian A. Spears II, Justice Velia J. Meza, Justice

Delivered and Filed: June 24, 2026 AFFIRMED Appellants, Dean Davenport and various related entities, 1 appeal from a judgment awarding $14,954,784 in damages to EOG Resources, Inc. for breach of contract. The Davenports contend the trial court erred in granting summary judgment and directed verdict motions, challenge

1 Collectively referred to as the “Davenports.”

the sufficiency of the evidence, and assert that the trial court abused its discretion by denying their mid-trial request to amend their pleadings. We affirm.

BACKGROUND

In 1967, the parties’ predecessors in interest entered into an oil, gas and mineral lease colloquially referred to as the Garner Lease. This lease grants the lessee broad surface use rights. Of particular relevance to this suit, the lease contains a provision restricting lessee from free use of “water from [l]essor’s wells.”

In January of 2020, the Davenports began purchasing various tracts of land burdened by the Garner Lease. At that time, the mineral lessee, EOG, was not actively drilling on the tracts of land purchased by the Davenports. However, in October or November of 2021, Dean Davenport became aware that EOG was planning to resume drilling under the Garner Lease. Shortly thereafter, the Davenports were approached by EOG with an offer to purchase water from their wells. The Davenports accepted and on January 31, 2022, the parties entered into a non-exclusive take or pay water purchase agreement (“WPA”).

On March 24, 2023, EOG informed the Davenports of their plan to construct a new access gate (the “Rancho Derecho gate”) and road through their property due to the inaccessibility and disrepair of the existing entry point along Krueger Road. The Davenports objected to EOG’s plan and suggested alternative routes. Despite the Davenports’ objection, EOG proceeded to construct the Rancho Derecho gate and a caliche road over the Davenports’ ranch, prompting this litigation.

The parties moved for summary judgment on competing declaratory judgment claims, each seeking an interpretation of the terms of the WPA. The Davenports sought to declare that the WPA restricted all of EOG’s ingress and egress to the Krueger Road gate. EOG sought a declaration that this restriction only applied when traversing to and from the frac pond and designated water wells.

Additionally, EOG sought summary judgment against the Davenports’ fraudulent inducement and statutory fraud claims. The trial court ultimately granted EOG’s summary judgment motions and denied the Davenports’ motion.

A jury trial on the merits was held on September 23, 2024. Prior to resting their case-in-

chief, the Davenports requested leave to amend their petition to include the affirmative defense of excuse by prior material breach. The trial court denied this request. After the Davenports rested, EOG moved for directed verdict on the Davenports trespass action, which the trial court granted. The jury found that the Davenports—not EOG—breached the WPA and awarded EOG $14,954,784 in damages. The trial court signed a final judgment based upon the jury’s verdict. This appeal followed.

DISCUSSION

The Davenports raise five issues on appeal; we address each issue in turn.

1. The Trial Court Did Not Err in Granting EOG’s Motions for Summary Judgment The Davenports contend the trial court erred by granting EOG’s motions for summary judgment. We disagree.

1.1 Standard of Review A trial court’s grant of summary judgment is reviewed de novo. Tarr v. Timberwood Park Owners Ass’n, Inc., 556 S.W.3d 274, 278 (Tex. 2018). We take as true all evidence favorable to the nonmovant. Valence Operating Co. v. Dorsett, 164 S.W.3d 656, 661 (Tex. 2005). All doubts and reasonable inferences are resolved in the nonmovant’s favor. Id.

Under the traditional standard, movants must demonstrate that there is no genuine issue of material fact and that they are entitled to judgment as a matter of law. Provident Life & Acc. Ins. Co. v. Knott, 128 S.W.3d 211, 216 (Tex. 2003). If the movant carries this burden, the burden shifts

and the nonmovant must raise a genuine issue of material fact to preclude summary judgment. Lujan v. Navistar, Inc., 555 S.W.3d 79, 84 (Tex. 2018).

Under either type of motion for summary judgment, a genuine issue of material fact exists if more than a scintilla of evidence is produced as to each essential element of the cause of action or defense challenged. Ford Motor Co. v. Ridgway, 135 S.W.3d 598, 600 (Tex. 2004). More than a scintilla of evidence exists when it would enable reasonable and fair-minded people to differ in their conclusion; whereas the evidence is less than a scintilla if it is so weak as to do no more than create a mere surmise or suspicion of fact. King Ranch, Inc. v. Chapman, 118 S.W.3d 742, 751 (Tex. 2003).

Because the parties filed competing summary judgment motions, we must consider the “evidence presented by both sides, determine all questions presented, and if we determine that the trial court erred, render the judgment the trial court should have rendered.” Valence Operating Co., 164 S.W.3d at 661 (citation modified).

1.2 Construction of the WPA The Davenports and EOG each argued for competing interpretations of the WPA.

Specifically, section 9 of the agreement states:

9. EOG shall enter and exit the [Davenports’] Lands through the Krueger Rd. gate.

EOG agrees to use existing roads that will be designated by Grantor (“Designated Roads”) over [the Davenports’] Lands covered hereby for ingress and egress to the Frac Pond and/or designated water wells and agrees to maintain such roads in good condition at all times. EOG shall promptly repair any damages or ruts caused by EOG’s use of Designated Roads.

Neither party argues that section 9 is ambiguous. The Davenports read section 9 as restricting all of EOG’s access—for any reason—to the Krueger Road gate. EOG reads this Krueger Road gate restriction as applying only when using the frac pond and designated water wells.

“When a contract’s meaning is disputed, our primary objective is to ascertain and give effect to the parties’ intent as expressed in the [contract].” URI, Inc. v. Kleberg Cnty., 543 S.W.3d 755, 763 (Tex. 2018). “‘To achieve this goal, we examine the entire document and consider each part with every other part so that the effect and meaning of one part on any other part may be determined.’” Myers-Woodward, LLC v. Underground Services Markham, LLC, 716 S.W.3d 461, 473 (Tex. 2025) (quoting Heritage Res., Inc. v. NationsBank, 939 S.W.2d 118, 121 (Tex. 1996)). We give the words within the instrument their plain, ordinary, and generally accepted meaning unless the contract directs otherwise. URI, 543 S.W.3d at 764. We also presume that the parties intended every contract clause to have some effect. Heritage Res., Inc., 939 S.W.2d at 121.

In arguing that the WPA restricted all access solely to the Krueger Road gate, the Davenports focus on the first sentence of section 9. Read in isolation, this sentence supports the Davenports’ interpretation. “But we do not read contractual phrases in isolation, and we must avoid . . . adopting a wooden construction foreclosed by the legal text’s context.” Point Energy Partners Permian, LLC v. MRC Permian Co., 669 S.W.3d 796, 808 (Tex. 2023) (citation modified). Instead, we must utilize “a holistic approach aimed at ascertaining intent from all words and all parts of the” WPA. Hysaw v. Dawkins, 483 S.W.3d 1, 13 (Tex. 2016).

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Dean Davenport, Individually and as Trustee of the CRD 2017 Trust, Jana Davenport, the JasperRuth Ranch, LLC, JRRanch a Unit, LLC, and JRRanch B Unit, LLC v. EOG Resources, Inc., (Tex. Ct. App. 2026).

Dean Davenport, Individually and as Trustee of the CRD 2017 Trust, Jana Davenport, the JasperRuth Ranch, LLC, JRRanch a Unit, LLC, and JRRanch B Unit, LLC v. EOG Resources, Inc. (Dean Davenport, Individually and as Trustee of the CRD 2017 Trust, Jana Davenport, the JasperRuth Ranch, LLC, JRRanch a Unit, LLC, and JRRanch B Unit, LLC v. EOG Resources, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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