Humphreys-Mexia Co. v. Gammon

254 S.W. 296, 113 Tex. 247, 29 A.L.R. 607, 1923 Tex. LEXIS 157
CourtTexas Supreme Court
DecidedJune 30, 1923
DocketNo. 3899.
StatusPublished
Cited by146 cases

This text of 254 S.W. 296 (Humphreys-Mexia Co. v. Gammon) 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
Humphreys-Mexia Co. v. Gammon, 254 S.W. 296, 113 Tex. 247, 29 A.L.R. 607, 1923 Tex. LEXIS 157 (Tex. 1923).

Opinion

Mr. Chief Justice CURETON

delivered the opinion of the court.

*253 This suit was filed in the District Court of Limestone County, by J. L. Gammon, John F. Wyatt, R. J. Colburn, M. B. Ray, and A. H. Paillett, against Humphreys-Mexia Company, a corporation, C. A. Kennedy, H. W. Freeman, W. D. Freeman, H. C. Freeman, J. E. Winans, J: W. McLendon, Jack Womack, Max Guteman, and The Shear Company, defendants, in the form of trespass to try title to part of the Pedro Varilla Eleven League Grant, situated about 1-% miles west of the town of Mexia, in Limestone County.

In the trial court judgment was rendered in favor of the defendants named, except The Shear Company. On appeal, the Court of Civil Appeals reversed and rendered the judgment in favor of the defendants in error here, who were plaintiffs below. 244 S. W., 162. The case is here on writ of error.

Defendants in error owned the land in dispute, except the oil and minerals in the same. C. A. Kennedy was the common source of the title to the whole of the land, including the oil and minerals, and all parties claim under him.

On September 30, 1899, C. A. Kennedy executed and delivered a general warranty deed, in the usual form, to the land in controversy, to F. M. Sanches, the consideration being $1500, evidenced by five promissory vendor’s lien notes, each for the sum of $300, payable as therein specified. The deed, after describing the land by field notes, and preceding the habendum and warranty clauses, contained an exception reading as follows:

“But it is expressly agreed and understood that said C. A. Kennedy reserves all the Oil and minerals in said land and he and his heirs assigns and legal representatives shall have the right at all times to enter on the above described lands and to bore wells and make excavations and to remove all the oil and minerals found thereon.”

The deed also contained an express reservation of the vendor’s lien to secure the payment of the purchase money notes.

At the time of the execution of this deed, Kennedy, who was, or had been, a merchant, was indebted to the Rotan Grocery Company, which was crowding him for settlement of his account. A short time after the execution of the deed, Kennedy carried the notes received by him therefor to Mr. Shear, the President of the Company, who accepted them and gave him credit on his account therefor. Kennedy states that.Mr. Shear “knew full well the reservations in the deed, and he told me it was not worth one cent to me or anybody else.” Some three or four months thereafter Kennedy, at the request of the Company, and without any additional consideration therefor, executed and delivered a transfer of the notes to the Company. This instrument reads as follows:

The State of Texas \ Whereas heretofore, to-wit, on the 30 day County of Limestone, j *254 of Sept. A. D. 1 1899, F. M. Sanches, made, executed and delivered to C. A. Kenneday his five Several promissory notes payable to the order of said C. A. Kenneday as follows: Dated Sept. 30th, 1899, due Nov. 1st, respectively 1900, 1901, 1902, 1903, and 1904, for $300.00 each, bearing 10% interest per annum from January 1st, 1900, with interest on each of said notes at the rate of 10 per cent per •annum and providing for the payment of 10 per cent additional as attorney’s fees upon the Contingency therein specified. And whereas, said notes were given in payment of the purchase money for the following described parcel of land, situated in Limestone County, Texas, viz: being two tracts or parcels land out of the Pedro Varilla Eleven League grant this day sold to F. M. Sanches on Sept. 30, 1899.

“And whereas, a Vendor’s lien is reserved and retained on said land to secure the payment of said notes and each thereof; Now, therefore Know all men by these presents, that I, the said C. A. Kennedy, for a valuable consideration, have assigned, transferred and delivered said 5 notes to The Rotan Grocery Co. and in consideration of the premises and the sum of One Dollar to me in hand paid, the receipt of which is hereby acknowledged, have bargained, sold and conveyed, assigned and set over to the said The Rotan Grocery' Co. my lien on said land and have and do hereby bargain, sell and quit-claim all my right, title, interest, estate, claim and demand, both legal and equitable, in and to said land and every part thereof, together with all and singular the hereditaments and appurtenances thereunto appertaining. To have and to hold unto the said The Rotan Grocery Co. successors & assigns and his heirs and assigns forever.

“In testimony whereof, witness my hand at Mexia, this 29th day of Jan. A. D. 1900.

C. A. Kennedy.”

On February 24, 1903, Sanches and wife conveyed' the land described in the deed to him from Kennedy to the Rotan Grocery Company, the consideration being the cancellation of the notes shown in the deed. This conveyance contained a recitation as follows :

“The land herein conveyed being the same land deeded to F. M. Sanches by C. A. Kennedy by deed recorded in Volume 36, page 547, Deed Records of Limestone County, Texas, and this conveyance is subject to the mineral rights reserved in said conveyance.”

On March 30, 1905, the Rotan Grocery Company conveyed the land to Mrs. Jasper K. Smith, with the following in the deed:

“This land herein conveyed being the same land deeded to F. M. Sanches by C. A. Kennedy by deed recorded in Vol. 36, page 547, deed .records of Limestone County and afterwards conveyed to Rotan Grocery Company by said F. M. Sanches by deed dated February 24, 1903, recorded in deed records of Limestone County and is subject to the mineral rights reserved in said conveyance.”

*255 On September 4, 1908, the Rotan Grocery Company released the lien reserved in its deed to Mrs. Jasper K. Smith to secure the purchase money notes therein described, which release, among other things, recited:

“Said Rotan Grocery Company has no other or further claim against said land or any part thereof.”

The word “minerals” is sufficiently broad to include “oil and minerals,” the words used in the reservation in Kennedy’s deed to Sanches, and for convenience will be used in this opinion as comprehending both oil and minerals.

The plaintiffs in error Humphreys-Mexia Co. et al., claim the minerals in the land in controversy under the exception in the deed above described-from Kennedy to Sanches.

The defendants in error claim by mesne conveyances solely under Mrs. Jasper K. Smith. The Shear Company, successor to the Rotan Grocery Company, claims that it took title to the minerals by reason of the transfer of the vendor’s lien notes to it by Kennedy, set out above.

The Shear Company and the defendants in error both contend that the title to the minerals passed out of Kennedy by virtue of the transfer of the vendor’s lien notes heretofore described, and that thereafter when Sanches conveyed the land to the Company, the latter had title to not only the surface, but to the minerals as well. Defendants in error, Gammon et al., assert, however, that the deed and release of the purchase money notes to Mrs. Jasper K.

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Bluebook (online)
254 S.W. 296, 113 Tex. 247, 29 A.L.R. 607, 1923 Tex. LEXIS 157, Counsel Stack Legal Research, https://law.counselstack.com/opinion/humphreys-mexia-co-v-gammon-tex-1923.