Griffin v. Reilly

275 S.W. 242, 1925 Tex. App. LEXIS 711
CourtCourt of Appeals of Texas
DecidedApril 29, 1925
DocketNo. 2478.
StatusPublished
Cited by34 cases

This text of 275 S.W. 242 (Griffin v. Reilly) 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
Griffin v. Reilly, 275 S.W. 242, 1925 Tex. App. LEXIS 711 (Tex. Ct. App. 1925).

Opinion

HALL, C. J.

This suit was instituted by Hugh Reilly, Sr., Hugh Reilly, Jr., and Ed Reilly, against H. S. Griffin and H. J. Bruce, to cancel a certain note in the sum of $36,-321, executed by Hugh Reilly, Jr., and Ed Reilly, payable to the defendant, Griffin, and to have a partition and 'accounting. Said note was secured by a deed of trust upon 3,012 acres of land situated in Archer county. Bruce was the trustee in the deed of trust, and was made a party because of the fact that he had advertised the property for sale under the- deed of trust. Hugh Reilly, Jr., was killed after the institution of the suit, and his widow, Mary Reilly, who qualified as community survivor, has succeeded him as a party in interest. The plaintiffs originally prayed for an injunction restraining the sale of the land, but subsequently, the defendant, Griffin, having waived his right to foreclose the deed of trust lien by sale, the suit was dismissed as to the trustee, Bruce.

The case was tried upon the plaintiff’s fourth amended original petition, and the defendant’s second amended original answer and cross-bill, besides supplemental pleadings. The pleadings in the case are voluminous, and, for the sake of brevity, only such issues as are presented on this appeal are stated, in substance, as follows:

Plaintiffs sought to apply a credit in the sum of $1,100, which Griffin had collected as rent from the land as a payment upon the note. The amount of the credit claimed is not disputed. The issue is, whether it should be applied to the principal or the interest of the note. They further prayed for the cancellation and rescission of their quitclaim deed, dated. December 9, 1922, conveying certain mineral interests in part of the land in question, which deed, it is asserted, was procured by Griffin by fraudulent representations. They further sought the reformation of the note and deed of trust.

By his answer and cross-action the defendant Griffin asked for a judgment for the amount of his note, principal, interest, and attorney’s fees, and a foreclosure of the deed of trust lien.

The case was submitted to a jury upon numerous special issues, many of which are foreign to the contentions here presented, and they will not be set out in full. Judgment was entered that the note be reformed and reduced to the sum of $30,997.84 principal, and $1,379.53 interest, decreeing that said interest be tendered into the registry of the court, together with $600 taxes which the defendant, Griffin, had paid upon the lands for the years 1922 and 1923. The judg *244 ment further canceled the quitclaim deed executed by Iiugh Reilly, Jr., and Edward Reilly to Griffin, by which the grantors released all their right, title, and- interest in and to one-tenth of the mineral rights in what is called the Griffin lands. Other matters are disposed of by the judgment which are not involved in this appeal.

It is first insisted by the appellant, Griffin, that because there was a general partition between the plaintiffs and appellant, and as a part thereof plaintiffs had given him a quitclaim deed to a one-tenth mineral interest in the Griffin lands, and it further appearing' that plaintiffs were seeking to affirm a part of such partition and at the same time to disaffirm the quitclaim deed, the court erred in canceling the deed because there could be no partial cancellation or rescission of an entire transaction. In this connection, it is further insisted that, because the undisputed evidence shows that Griffin, at the time he executed the conveyance to Hugh Reilly, Sr., did not own any mineral interest in the Griffin lands,-the court erred in canceling the conveyance upon the theory that he had falsely represented to the Reillys that he had no such mineral interest.

The lands in question belonged to E. E. Griffin, the father of the appellant, H. S. Griffin. By will, the father devised his land to his four sons and his wife, Sadie P. Griffin, and under its terms each of the devisees inherited an undivided one-fifth in the entire estate. This land was partitioned by a decree of the district court in Hill county. Prior to that time it became known that the lands in Archer county would probably yield minerals upon development, and it was 'agreed amongst the devisees that they would not partition the mineral rights in these lands, and the preliminary judgment so decreed. In accordance with this agreement, the commissioners in partition made no reference to the reservation of mineral rights, and the effect of the final judgment, which must be construed in connection with the mutual understanding of the parties to it, did not dispose of the subsurface estate. In partitioning the surface estate the wife and Ned C. Griffin, one of the sons, took the lands in question, which they afterwards sold to the appellant herein. The conveyance from Ned 0. Griffin and the wife of E. E. Griffin (who since the death of her husband had married Ned 0. Griffin) reserved all minerals in'the grantoi’s. This reservation must, of course, be limited by the extent of the interest which they really had under the will of E. E. Griffin, and in accordance with the partition agreement in Hill county. This, as stated, was a one-fifth interest each. After acquiring the interest of Ned O. and •Sadie P. Griffin, H. S. Griffin sold to Hugh Reilly, Sr., an undivided one-half interest in these tracts, and, in addition, specifically conveyed to him an undivided one-tenth interest in and to the oil and gas which might underlie the surface estate. The other two sons of E. E. Griffin, deceased, receivéd, as their share of their father’s estate, lands situated elsewhere than in Archer county, and at the time of these transactions, in virtue of the agreement between them, all parties owned each an undivided one-fifth interest in the subsurface or mineral estate in the Archer county lands. -That this was the intent of all the parties is clear from subsequent events showing their practical construction of the Hill county decree. July 9, 1918, and July 13, 1918, the executor of the will of E. E. Griffin leased part of.the lands in question to H. S. Griffin, and in the partition agreement of May 8, 1920, all the devisees acknowledged the validity of these leases. This is a significant- fact, in the light of the record showing that under the partition agreement in Hill county it was provided that the administrator of E. E. Griffin, deceased, should still hold for administration the mineral 'estate. The partition agreement which forms the basis of the decrees of partition in Hill county is dated November 19, 1915, and after setting apart specific property not involved here to Sadie P. Griffin, it recites:

“It is further understood and agreed that the remainder of the estate is to be divided into five equal parts, one part to be set aside to Sadie P. Griffin, widow, and one part to each of the four sons of E. E. Griffin.”

Continuing, said instrument further recites:

“It is further understood and agreed that all oil rights and oil interests shall- be and -remain equal in each of the four sons of E. E. Griffin, and his surviving wife, Sadie P. Griffin, that is, the oil rights áre not to be affected by this partition.”

These recitals explain the failure of the final decree in Hill county to make any disposition whatever of the oil rights. It is settled law in this state that oil in place in the ground is real estate, and may be severed from the remainder of the land by contract or conveyance. Hogg v. Magnolia Petroleum Co.

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Bluebook (online)
275 S.W. 242, 1925 Tex. App. LEXIS 711, Counsel Stack Legal Research, https://law.counselstack.com/opinion/griffin-v-reilly-texapp-1925.