Garza v. De Montalvo

213 S.W.2d 762, 1948 Tex. App. LEXIS 1459
CourtCourt of Appeals of Texas
DecidedJune 16, 1948
DocketNo. 11826.
StatusPublished
Cited by2 cases

This text of 213 S.W.2d 762 (Garza v. De Montalvo) 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
Garza v. De Montalvo, 213 S.W.2d 762, 1948 Tex. App. LEXIS 1459 (Tex. Ct. App. 1948).

Opinion

MURRAY, Justice.

This is an appeal by Eugenio Garza and wife, Florinda de Diaz de Garza, Maria Garza, a feme sole, Nievas Garza and wife, Maria C. de Ramirez de Garza, Olivia Garza, a feme sole, Horacio Garza, Fili-berto A. Garza and wife, Francisca Rodriguez de Garza,, and Luis Garza, Sr., and wife, Maria de Jesus Ramirez de Garza, who shall hereafter be referred to as Garza appellants, from a judgment of the District Court of Nueces County, among other things, awarding to Ernestine G. de Mon-talvo-, a widow, Romualdo Garza and wife, Julia M. Garza, and Sabas Garza de Pena, a widow, who shall hereafter be referred to as Garza appellees, an undivided interest, in different proportions, in the mineral royalty rights of 1163 acres of land out of the La Sal Colorado Grant in Starr County, Texas. The Sun Oil Company and certain so-called “royalty purchasers” were parties to the suit, but the real controversy is between the Garza appellants and Garza ap-pelles above named. The Garza appellants are seven of the children (joined by their respective spouses where married) of Eugenio Garza Garcia and wife, Crisanta Laureles de Garza, and the three Garza appellees (joined by their respective spouses where married) are the remaining three children of that couple.

According to the findings of the trial judge, on January 27, 1923, Eugenio Garza de Garcia and wife, Crisanta Laureles de Garza, were the owners of all the 1163 acres here invloved, except 53 acres owned separately by Romualdo Garza. On October 25, 1930, Eugenio Garza Garcia died intestate in Starr County, Texas, and no administration of his estate was had nor was any necessary.

On September 25, 1933, Crisanta Laureles de Garza and her ten children (all married children being joined by their respective spouses) executed an oil, gas and mineral lease upon these 1163 acres of land in favor of Homer P. Lee. This lease was shortly thereafter transferred and assigned to Sun Oil Company, the present owner of the same. The parties in executing this lease acted as tenants-in-common as to the 1163 acres, except as to Tract No. 4, which contains 53 acres, and was owned separately by Romualdo Garza. Crisanta Laureles de Garza died intestate in Starr County after the execution of the lease and while it was in full force and effect, leaving as her heirs her ten children, all of whom had joined her in the execution of the mineral lease. No administration was required or had on her estate.

On or about December 20, 1937, the ten children of Eugenio Garza de Garcia and Crisanta Laureles de Garza, and while this mineral lease was in full force and effect, after the death of their mother, and before any production of oil, gas or other minerals was obtained from said lands, entered into a partition agreement which made no mention of the mineral estate, nor did the Sun Oil Company participate in this partition agreement. Later oil was produced from each of the tracts set aside to the seven children who are the Garza appellants herein, and none has been produced from the tracts set aside to the -three children who-are Garza appellees herein.

The trial was to the court without the intervention of a jury and resulted in judgment giving the Garza appellees a right to participate in all oil royalties from the entire 1163 acres on a pro rata basis.

We are of the opinion that the trial court did not err in so holding. The 1163 acre tract was not owned jointly by the ten Garza heirs, but a certain 53 acre tract thereof was owned separately by Romualdo Garza in his own right. Therefore, when *765 the mineral lease was executed to Homer P. Lee, on September 25, 1933, it was a unitized lease. Brown v. Smith, 141 Tex. 425, 174 S.W.2d 43; Parker v. Parker, Tex.Civ.App., 144 S.W.2d 303.

In French v. George, Tex.Civ.App., 159 S.W.2d 566, 569, it is said:

“It seems to be established as a general rule of law that where several owners of adjoining tracts of land unite in a single lease to a third party for development of oil or gas as a single tract, and provision is made for delivery of the royalty to the lessors, in the absence of an agreement to the contrary, the royalties must be divided among the lessors in the proportion that the area of the tract owned by each bears to the total area covered by the lease, and the ownership of the tract upon which a well may be drilled and from which oil may be produced is a matter of no consequence.”

The fact that Romualdo Garza afterwards conveyed his 53 acres to his brothers and sisters and then entered into a partition agreement whereby each owner received a divided interest in the 1163 acre tract did not have the effect of changing the unitized lease as such. It remained a unitized lease after the partition. In 140 A.L.R. 1283, it is said:

“It seems that a purchaser of land ordinarily takes the same subject to the rights of others to share in oil and gas produced therefrom under an existing lease or agreement pooling royalty interests, if the conveyance is received with notice of such interests.”

See also, Standard Oil Co. of California v. John P. Mills Organization, 3 Cal.2d 128, 43 P.2d 797; Merrill Engineering Co. v. Capital Nat. Bank, 192 Miss. 378, 5 So. 2d 666; Hunt Production Co. v. Dickerson, Tex.Civ.App., 135 S.W.2d 597.

Appellants contend that the trial court erred in finding that Romualdo Garza owned a separate tract of 53 acres out of the 1163 acre tract. We feel that the stipulations of the parties were clearly sufficient to support the finding.

Appellants contend that the parti-tition agreement reciting that the 1163 acre tract was held by the ten Garza children as owners in common, the Garza appellees were thereby estopped to assert that any part of such land was owned by one of them in severalty. We cannot sustain this contention. It is true that at the time of the execution of the partition agreement the entire 1163 acre tract was held by all of the owners as tenants in common, but this was after Romualdo had conveyed his 53 acre tract to the other Garza heirs. This recital in the partition agreement could not estop Romualdo from claiming that at the time of the execution of the mineral lease on the 1163 acre tract he owned a certain 53 acres thereof, separately from the other heirs. Whether or not the mineral lease was unitized depends upon the state of the title at the time such lease" was executed and not some years later when the partition agreement was executed.

Garza appellees contend that the royalties from the 1163 acre tract should be apportioned among the Garza heirs, for ■the reason that the partition agreement was made after the minerals had been severed from the surface estate by the mineral lease now held and owned by Sun Oil Company, and therefore such partition agreement effected only a partition of the surface estate and did not effect a partition of the mineral rights, no mention of said mineral rights having been made in the agreement.

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213 S.W.2d 762, 1948 Tex. App. LEXIS 1459, Counsel Stack Legal Research, https://law.counselstack.com/opinion/garza-v-de-montalvo-texapp-1948.