Garrett v. Dils Company

299 S.W.2d 904, 157 Tex. 92, 7 Oil & Gas Rep. 322, 1957 Tex. LEXIS 554
CourtTexas Supreme Court
DecidedFebruary 27, 1957
DocketA-6129
StatusPublished
Cited by105 cases

This text of 299 S.W.2d 904 (Garrett v. Dils Company) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Garrett v. Dils Company, 299 S.W.2d 904, 157 Tex. 92, 7 Oil & Gas Rep. 322, 1957 Tex. LEXIS 554 (Tex. 1957).

Opinions

Mr. Chief Justice Hickman

delivered the opinion of the Court.

This is an action in trespass to try title to a tract of land in Navarro County in which the sole controversy centers around the construction of a deed under which respondent holds an interest in the minerals in and under the land. The suit is by Mrs. Mattie Garrett and Mrs. Bee Lively, widow and surviving daughter, respectively, and sole heirs of C. S. Garrett, who died intestate before this suit was filed. The relevant provisions of the deed are as follows:

“That C. S. Garrett and wife, Mattie Garrett, both of Navarro County, Texas, for and in consideration of the sum of Fifteen Thousand Dollars cash in hand paid by J. Mentor Caldwell, hereinafter called Grantee, receipt of which is hereby acknowledged, have granted, sold, conveyed, assigned and delivered and by these presents do grant, sell, convey, assign and deliver unto the said Grantee an undivided one sixty-fourth interest in and to all of the oil, gas and other minerals in and under, and that may be produced from the following described land: (Description follows) :

“Together with the right of ingress and egress at all times for the purpose of mining, drilling, and exploring said land for oil, gas and other minerals, and removing the same therefrom.

“Said land being now under an oil and gas lease executed in favor of I. B. Humphreys or his assigns, it is understood and agreed that this sale is made subject to the terms of said lease, but covers and includes one-eighth of all of the oil royalty, and gas rental or royalty due and to be paid under the terms of said lease.

“It is understood and agreed that one-eighth of the money rentals which may be paid to extend the term within which a well may be begun under the terms of said lease is to be paid to the said Grantee and in event that the above described lease for any reason becomes cancelled or forfeited, then and in that event an undivided one-eighth of the lease interest and all fu[94]*94ture rentals on said land for oil, gas and other minerals privileges shall be owned by said Grantee, he owning one-eighth of one-eighth of all oil, gas, and other minerals in and under said lands, together with one-eighth interest in all future rents.”

Respondent owns the interest which was conveyed to Caldwell by that deed.

As disclosed by that instrument, at the date of its execution, December 7, 1921, the land was under an oil and gas lease to I. B. Humphreys. That lease provided for a one-eighth royalty. No production was obtained thereunder, and it expired by its own terms. Subsequently another lease was executed, which likewise provided for a one-eighth royalty. That lease is still in existence and oil is being produced thereunder.

The trial court held that respondent is entitled to one sixty-fourth of the royalty payable under the lease now in existence, while the Court of Civil Appeals held that respondent is entitled to one-eighth of the royalty payable thereunder. 294 S.W. 2d 730.

Upon the trial petitioners introduced in evidence a division order signed by respondent which defined its interest in the royalty as one sixty-fourth of the one-eighth. However, it was shown that when the division order was received by respondent it retained same and wrote to the company which was purchasing the oil from the lessee that it believed that a mistake had been made, and that it was entitled to one sixty-fourth of the entire production and not one sixty-fourth of one-eighth. In reply the purchaser wrote respondent that it had been advised by two attorneys who examined the deed that respondent’s interest was one sixty-fourth of the one-eighth royalty. Thereafter the division order was signed. That evidence did not disclose that the parties construed the deed to convey only one sixty-fourth of the one-eighth royalty, and the parties do not here contend that it does. On the contrary, it is the view of all parties that the instrument is not ambiguous, and our decision will rest upon that theory.

In construing the deed we shall be guided by the well-established rule which we recently reaffirmed in Harris v. Windsor, 156 Texas 324, 294 S.W. 2d 799, 800, in this language:

“We have long since relaxed the strictness of the ancient rules for the construction of deeds, and have established the rule [95]*95for the construction of deeds as for the construction of all contracts, — that the intention of the parties, when it can be ascertained from a consideration of all parts of the instrument, will be given effect when possible. That intention, when ascertained, prevails over arbitrary rules. Benskin v. Barksdale, Texas Comm. App., 246 S.W. 360; Sun Oil Co. v. Burns, 125 Texas 549, 84 S.W. 2d 442.”

Another applicable rule is that should there be any doubt as to the proper construction of the deed, that doubt should be resolved against the grantors, whose language it is, and be held to convey the greatest estate permissible under its language. Curdy v. Stafford, 88 Texas 120, 30 S.W. 551; Allen v. Creighton, 131 S.W. 2d 47, er. ref.

The question of immediate concern to the parties is the royalty to which the respondent is entitled under the existing lease. We shall approach the solution of that question by considering first the royalty to which it would have been entitled had there been production under the lease in existence when the deed was executed, and then determining from the language of the deed whether it was the intention of the parties that the royalty was to be the same under subsequent leases.

Should the granting clause be considered alone there would be no doubt as to the interest conveyed. It states in certain terms that the interest conveyed was “an undivided one sixty-fourth interest in and to all of the oil * * * .” Had other language in the deed not disclosed what the parties understood “one sixty-fourth” to mean, it would be our duty to give those words their usual meaning and construe the deed as a mineral deed to an undivided one sixty-fourth of the minerals in place. But there follows the granting clause language which clearly defines what the parties understood “one sixty-fourth” of the minerals to mean. After reciting that the land was under an oil and gas lease, the deed provided that “it is understood and agreed that this sale * * * covers and includes one-eighth of all of the oil royalty, and gas rental or royalty due and to be paid under the terms of said lease.” Construing all of these provisions together it is made certain that what the parties intended to convey, had there been production under the then existing lease, was a royalty of one sixty-fourth or one-eighth of the one-eighth royalty retained in the lease. The rights conveyed by the deed under the then existing lease were one-eighth of the money rentals which might be paid to extend the term within which a well might be begun and one-eighth of the one-eighth royalty.

[96]*96Turning now to the rights acquired by Caldwell under that deed in the event the then existing lease should terminate, it is provided that “then and in that event an undivided one-eighth of the lease interest and all future rentals on said land for oil, gas and other mineral privileges shall be owned by said Grantee, he owning one-eighth of one-eighth of all oil, gas, and other minerals in and under said lands, together with one-eighth interest in all future rentals.” We can discover in that language no intent to grant a less interest under a subsequent lease than that granted under the then existing lease.

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Cite This Page — Counsel Stack

Bluebook (online)
299 S.W.2d 904, 157 Tex. 92, 7 Oil & Gas Rep. 322, 1957 Tex. LEXIS 554, Counsel Stack Legal Research, https://law.counselstack.com/opinion/garrett-v-dils-company-tex-1957.