Energy Reserves Group, Inc. v. Tarina Oil Co.

664 S.W.2d 169, 1983 Tex. App. LEXIS 5645
CourtCourt of Appeals of Texas
DecidedDecember 30, 1983
Docket04-83-00050-CV
StatusPublished
Cited by3 cases

This text of 664 S.W.2d 169 (Energy Reserves Group, Inc. v. Tarina Oil Co.) 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
Energy Reserves Group, Inc. v. Tarina Oil Co., 664 S.W.2d 169, 1983 Tex. App. LEXIS 5645 (Tex. Ct. App. 1983).

Opinions

OPINION

ESQUIVEL, Justice.

Appellant Energy Reserves Group, Inc. (ERG), has filed a motion for rehearing setting out therein that this court erred in affirming the judgment of the trial court that the denial of ERG’s plea of privilege is [171]*171supported under subdivisions 5 and 14 of TEX.REV.CIV.STAT.ANN. art. 1995. ERG’s motion is granted and our previous opinion is withdrawn and the following is substituted therefor.

Appellee Tarina Oil Company (Tarina) brought a declaratory judgment suit in La Salle County against ERG, a corporation whose residence and principal place of business is situated in Harris County. ERG filed a plea of privilege to be sued in Harris County and Tarina filed a controverting affidavit relying upon subdivisions 5 and 14 of article 1995. The plea of privilege was overruled and ERG has appealed. We reverse.

We will first discuss whether the denial of the plea of privilege is supported under subdivision 14, article 1995. Said section provides an exception to the general venue rule requiring suit in the defendant’s own county and reads as follows:

14. Lands. — Suits for the recovery of lands or damages thereto, or to remove incumbrances upon the title to land, or to quiet the title to land, or to prevent or stay waste on lands, must be brought in the county in which the land, or a part thereof, may lie.

To support venue under subdivision 14, a plaintiff must establish that his suit is for recovery of land or damages thereto and that the land is situated in the county of such suit. Cowden v. Cowden, 143 Tex. 446, 451, 186 S.W.2d 69, 71 (1945); Flournoy Production Co. v. Kain, 626 S.W.2d 850, 853 (Tex.App.—San Antonio 1981, no writ); Anglo Exploration Corp. v. Grayshon, 577 S.W.2d 742, 743 (Tex.Civ.App.—San Antonio 1979, writ ref’d n.r.e.). Whether or not the suit is one for recovery of lands or damages thereto is a matter to be determined from the allegations of the plaintiff’s petition. Renwar Oil Corp. v. Lancaster, 154 Tex. 311, 313, 276 S.W.2d 774, 775 (1955); Anglo Exploration Corp. v. Grayshon, supra at 744; Klein v. Sibley, 203 S.W.2d 239, 241 (Tex.Civ.App.—San Antonio 1947, no writ).

Tarina’s pleadings pertinent to venue were in essence to the effect that (1) Tarina and ERG entered a contract whereby Tari-na agreed to rework certain wells, the Cooke A-l, B-l and C-l wells, situated on tracts of land covered by leases owned either in full or partially by ERG, and in return, ERG agreed to assign to Tarina an undivided one-half Qh) interest in and to said wells and leases; (2) that the basis of this contract was two written farmout agreements executed by Tarina and ERG on July 31, 1981 and subsequently amended and extended in writing; (3) that ERG refused to allow .Tarina to rework the two remaining wells, the A-l and B-l wells, described in the farmout agreements, basing its refusal on the contention that Tarina had not complied with the terms of the farmout agreements; (4) that ERG’s refusal to permit Tarina to continue reworking the wells under the terms of the farmout agreements constituted a breach of contract by ERG; and (5) Tarina in said suit sought a declaratory judgment declaring that the two farmout agreements, together with amendments and extensions thereto, are a legal and enforceable contract and that ERG is holding the leasehold interests described in the farmout agreements as constructive trustee for the benefit of Tarina.

ERG admits that a suit claiming equitable title to land by means of constructive trust does come within subdivision 14 but it argues that the facts set out in the petition merely allege a suit for specific performance of a contract to assign an interest in land and as such is not within subdivision 14 of article 1995. We agree.

Upon reviewing the allegations in Tarina’s petition, we find the primary nature of this suit is one for specific performance of a contract. We find that it is apparent from the allegations that the only right or title to the land in question which Tarina claims is such, if any, as is derived through the alleged contract which is made the basis for this action, and that to establish and have performed that alleged contract is the real and sole purpose of this suit. True, Tarina has alleged that ERG is [172]*172holding the leasehold interest in said land as a constructive trustee for the benefit of Tarina, but there are no allegations to substantiate the creation of such a constructive trust.

A primary circumstance from which the law will raise a constructive trust is a breach of a confidential relationship. Gaines v. Hamman, 163 Tex. 618, 358 S.W.2d 557, 560 (1962). There is no allegation of the existence of a fiduciary relationship between Tarina and ERG, nor that such relationship was prior to and apart from the transactions made the basis of this suit. Fraud may also give rise to a constructive trust. Gourley v. Fields, 348 S.W.2d 787, 790 (Tex.Civ.App.—Eastland 1961, no writ). Tarina does not assert that ERG’s actions constituted fraud. Finally, a joint venture can give rise to a constructive trust. Omohundro v. Matthews, 161 Tex. 367, 341 S.W.2d 401, 405 (1960). No such allegation is contained in Tarina’s petition.

A suit for specific performance of a contract to assign an interest in land is not within subdivision 14 of article 1995. Levinson v. Slater, 565 S.W.2d 337, 341 (Tex.Civ.App.—Corpus Christi 1978, no writ). Accordingly, we hold that the denial of the plea of privilege was not supported under subdivision 14 of article 1995.

Our final inquiry is whether the denial of the plea of privilege is supported under subdivision 5, article 1995. Said section also provides an exception to the general venue rule requiring suit in the defendant’s own county, the pertinent part of which reads as follows:

5. Contract in writing. — (a) Subject to the provisions of Subsection (b), if a person has contracted in writing to perform an obligation in a particular county, expressly naming such county, or a definite place therein, by such writing, suit upon or by reason of such obligation may be brought against him, either in such county or where the defendant has his domicile.
* Sfc * SjS * *

In order to come within the purview of exception 5, Tarina was required to prove a contract in writing designating a particular county or a definite place within a county for performance of an obligation. Flournoy Production Co. v. Kain, 626 S.W.2d 850, 852 (Tex.App.—San Antonio 1981, no writ); Levy v. Lamar Savings Leasing Corp., 584 S.W.2d 581

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Energy Reserves Group, Inc. v. Tarina Oil Co.
664 S.W.2d 169 (Court of Appeals of Texas, 1983)

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664 S.W.2d 169, 1983 Tex. App. LEXIS 5645, Counsel Stack Legal Research, https://law.counselstack.com/opinion/energy-reserves-group-inc-v-tarina-oil-co-texapp-1983.