Frank W. Fouts, IV and Sheila D. Stibolt v. Kurt W. Muench, Lance A. Muench, Mark A. Muench and UpCurve Energy Partners, LLC

CourtCourt of Appeals of Texas
DecidedNovember 24, 2025
Docket08-24-00218-CV
StatusPublished

This text of Frank W. Fouts, IV and Sheila D. Stibolt v. Kurt W. Muench, Lance A. Muench, Mark A. Muench and UpCurve Energy Partners, LLC (Frank W. Fouts, IV and Sheila D. Stibolt v. Kurt W. Muench, Lance A. Muench, Mark A. Muench and UpCurve Energy Partners, LLC) 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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Frank W. Fouts, IV and Sheila D. Stibolt v. Kurt W. Muench, Lance A. Muench, Mark A. Muench and UpCurve Energy Partners, LLC, (Tex. Ct. App. 2025).

Opinion

COURT OF APPEALS EIGHTH DISTRICT OF TEXAS EL PASO, TEXAS ————————————

No. 08-24-00218-CV ————————————

Frank W. Fouts, IV and Sheila D. Stibolt, Appellants

v.

Kurt W. Muench, Lance A. Muench, Mark A. Muench, and UpCurve Energy Partners, LLC, Appellees

On Appeal from the 143rd Judicial District Court Reeves County, Texas Trial Court No. 19-09-23159-CVR

M E MO RA N D UM O PI NI O N The initial dispute in this case concerned whether a 160-acre tract of land in Reeves County,

Texas (the property) was conveyed to the grantees as their separate property or as community

property, and with or without the right of survivorship. After the trial court rendered summary

judgments on both matters, that final order was appealed. See UpCurve Energy Partners, LLC v. Muench, 661 S.W.3d 907 (Tex. App.—El Paso 2023, no pet.). This Court affirmed in part, reversed

in part, and remanded for further proceedings. See id. at 922. On remand, the sole issue before the

trial court was “the marital property characterization issue of whether the grantees of the l981 Deed

received their interest as separate property or community property.” Following a bench trial, the

trial court signed a final judgment that determined the parties’ respective separate property interests

and incorporated its previous ruling on the survivorship issue. Frank W. Fouts, IV and Sheila D.

Stibolt (collectively, Appellants) appealed. For the following reasons, we affirm.

I. BACKGROUND 1

In 1981, Dorothy M. Werner conveyed the property to her three children via a quit claim

deed (the 1981 Deed). Her three children were Shirley A. Muench, Richard A. Werner, and

Geraldine Fox. Appellees, Kurt W. Muench, Lance A. Muench, and Mark A. Muench (collectively,

the Muenches), obtained their interests in the property from their mother, Shirley Muench.

Appellants obtained their interests in the property from Geraldine Fox. UpCurve Energy Partners,

LLC (UpCurve) obtained its interests via conveyances from other grantees.

In the initial lawsuit, the Muenches filed a trespass-to-try-title suit against several

defendants, including Appellants and UpCurve. On cross-motions for summary judgment, the trial

court considered: the Muenches’ argument that the property was conveyed as a gift and was

therefore their separate property; UpCurve’s argument that the property was not conveyed with

right of survivorship and the conveyance was a grant of community property; and Appellants’

argument that the property was conveyed with right of survivorship. On August 11, 2021, the trial

court issued a final order (1) granting the Muenches’ motion for summary judgment “as to the

1 A more detailed summary of the facts and procedural history of the underlying dispute may be found in our prior opinion. See UpCurve Energy Partners, LLC v. Muench, 661 S.W.3d 907, 910–15 (Tex. App.—El Paso 2023, no pet.).

2 separate property issue” and otherwise denying the motion; (2) granting UpCurve’s motion for

summary judgment “as to the survivorship issue” and otherwise denying the motion; and (3)

denying Appellants’ motion for summary judgment.

UpCurve appealed, arguing the trial court erred in determining the property was conveyed

as separate property. None of the parties appealed the trial court’s ruling on the survivorship issue.

See id. at 914, 916 n.3. After considering the appeal, this Court concluded that (1) the Muenches

did not meet their summary judgment burden to conclusively establish a conveyance by gift such

as to characterize the ownership of the grantees’ interests as separate property, and (2) UpCurve

failed to meet its burden to conclusively establish the community property character of the property

interest conveyed to each grantee. Id. at 921–22. We then reversed the trial court’s grant of the

Muenches’ motion for summary judgment, affirmed the trial court’s denial of UpCurve’s motion

for summary judgment, and remanded for further proceedings consistent with the opinion. Id. at

922.

On remand, the sole issue before the trial court was “the marital property characterization

issue of whether the grantees of the l981 Deed received their interest as separate property or

community property.” At the bench trial, the only evidence considered by the trial court was an

Agreed Statement of Facts 2 and the 1981 Deed. No witnesses testified. The court heard argument

regarding whether the 1981 Deed was a gift deed that conveyed separate property or whether the

deed conveyed community property. The issue of survivorship, although briefly mentioned, was

not relitigated.

2 The Agreed Statement of Facts set forth two alternative outcomes regarding the parties’ respective ownership interests in the property: one if the court determined the 1981 Deed was a grant of separate property and the other if the court determined the deed was a grant of community property. Each party was identified by name with their respective interest under each scenario.

3 At trial, the Muenches argued in favor of their position that the property should be

characterized as separate property, while UpCurve argued that the property should be characterized

as community property.

Fouts argued as follows:

Good afternoon, Your Honor. This is going to be short and sweet. Sheila and I have come here today to hear your decision on how our grandmother’s 1981 Illinois deed was conveyed. We have not changed our position. It was a survivorship deed. We are not going to take up the Court’s time to rehash what we’ve already rehashed many times before because nothing has changed. The nonmaterial correction deed along with the appellate’s [sic] opinion says it all, but that’s not for us to decide. It’s for you to decide. And that being said, we rest our side.

. . .

There are recitals in the 1981 deed that were not recognized. And I realize where we’re at right now where [sic] the survivorship issue, but at the time–at this time, we would like to adopt [the Muenches’] argument as [sic] separate property issue even though we still think and know it was a survivorship deed, but we agree with everything that he says.

And Stibolt argued:

. . . I just wanted to say that of out of the cases presented here, I don’t think there’s any that reflect a deed from Illinois. My grandmother was from Illinois. The deed was drafted in Illinois. Illinois is not a community property state . . . so I don’t know how they can impose or manipulate a 1981 deed from Illinois to fit Texas rules and codes because it’s not going to. It was crafted in Illinois. Illinois is not a community property state and it does accept survivorship.

We also recognize that when you did not rule in our favor as far as a summary judgement, that the wording was not there for survivorship in Texas, and we agreed with that. It wasn’t. And that’s when we introduced the nonmaterial correction deed, but like I say, again, to impose Texas rules and laws on an Illinois deed, I think is unfair. 3

3 When Appellants each filed separate answers to the lawsuit, they attached as an exhibit a document dated April 3, 2017, entitled “Correction Quit Claim Deed (Nonmaterial Correction).” The document stated: “Error Being Corrected” “Volume 408, Page 81, Deed Records of Reeves County. Texas . . . The words ‘with rights of survivorship’ were inadvertently excluded from the Original Conveyance after the words ‘not in Tenancy in Common but in Joint Tenancy’ (in the first paragraph of the Original Conveyance).” This document was not offered or admitted at the trial on remand.

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Frank W. Fouts, IV and Sheila D. Stibolt v. Kurt W. Muench, Lance A. Muench, Mark A. Muench and UpCurve Energy Partners, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frank-w-fouts-iv-and-sheila-d-stibolt-v-kurt-w-muench-lance-a-texapp-2025.