In Re Applied Chemical Magnesias Corp.

206 S.W.3d 114, 168 Oil & Gas Rep. 48, 49 Tex. Sup. Ct. J. 1006, 2006 Tex. LEXIS 804, 2006 WL 2505989
CourtTexas Supreme Court
DecidedAugust 31, 2006
Docket04-1119
StatusPublished
Cited by73 cases

This text of 206 S.W.3d 114 (In Re Applied Chemical Magnesias Corp.) 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
In Re Applied Chemical Magnesias Corp., 206 S.W.3d 114, 168 Oil & Gas Rep. 48, 49 Tex. Sup. Ct. J. 1006, 2006 Tex. LEXIS 804, 2006 WL 2505989 (Tex. 2006).

Opinion

Justice GREEN

delivered the opinion of the Court.

In this venue case we consider whether a declaratory judgment suit to determine the rights of the parties to a contract to acquire surface and mineral leases is an action involving an interest in real property thus making it subject to the mandatory venue provision of section 15.011 of the Texas Civil Practice and Remedies Code. We conclude that it is and conditionally grant the writ of mandamus.

I. Background

Applied Chemical Magnesias Corporation (“Applied Chemical”) and Texas Architectural Aggregate, Inc. (“Aggregate”) executed a letter agreement for a proposal to excavate brucitic marble 1 from Aggregate-owned land in Culberson County (“the Marble Canyon land”). The agreement allowed Applied Chemical six months to study the feasibility of mining marble from the site, and provided an option to obtain surface and mineral leases upon proper notice to Aggregate and paying $5,000. After completing the feasibility study, Applied Chemical attempted to exercise its option to purchase the leases. Although Aggregate executed the surface lease contemplated in the letter agreement between the parties, it failed to deliver the written mineral lease. Aggregate did not deliver the mineral leases because it maintained that Applied Chemical had not fully complied with the terms of the agreement. However, despite disagreement over Applied Chemical’s ability to satisfy the conditions of the letter agreement, it appears that Applied Chemical was allowed to commence mining operations shortly after Aggregate executed the surface lease. In *116 explaining this apparent inconsistency, Aggregate asserts that “[t]he arrangements under which the parties have worked jointly on the mineral deposits since [the execution of the letter agreement] are in the nature of independent arrangements or novations concerning different various matters.... ”

At any rate, Aggregate filed a declaratory judgment action in San Saba County seeking to clarify the rights and remedies of the parties under the letter agreement. San Saba County was chosen as the county of venue because that is where the agreement was negotiated and executed, and Aggregate’s principal place of business is located there. Applied Chemical answered and moved to transfer venue to Culberson County, the county in which the Marble Canyon land is located. It also later filed a lis pendens notice in Culberson County asserting an interest in the Marble Canyon land.

Applied Chemical’s original motion to transfer venue contained several drafting errors. The motion was brought in the name of “Defendant Robert MeCreless” and cited section 15.035 of the Texas Civil Practice and Remedies Code as a mandatory venue provision. In fact, MeCreless is a principal of Applied Chemical and was not a party to the action, and Section 15.035 of the Civil Practice and Remedies Code is a permissive, not mandatory, venue provision dealing with written contracts. In two subsequent amended motions, Applied Chemical corrected these errors, substituting itself for MeCreless as the movant and relying upon Section 15.011 of the Civil Practice and Remedies Code, which is a mandatory venue provision requiring suits involving interests in real property to be filed in the county where the property is located.

After conducting a hearing, the trial court denied Applied Chemical’s motion to transfer venue. Applied Chemical now seeks mandamus relief in this Court after failing in that effort in the Third Court of Appeals.

II. Jurisdiction

The Civil Practice and Remedies Code provides that “[a] party may apply for a writ of mandamus with an appellate court to enforce the mandatory venue provisions of [chapter 15 of the Civil Practice and Remedies Code].” Tex. Civ. PRAC. & Rem.Code § 15.0642. “[This] language ... seems to contemplate a review of the merits of the trial court’s decision on mandatory venue.” In re Mo. Pac. R.R. Co., 998 S.W.2d 212, 216 (Tex.1999). Aggregate has challenged our jurisdiction to hear this case, arguing that the trial court’s order denying Applied Chemical’s motion to transfer venue (which did not specify a reason for the decision) may not have been based on the merits of the venue statute but rather on the due-order-of-pleading rule. See Tex.R. Civ. P. 86(1) (stating that venue objections are waived if not filed prior to or concurrently with any other pleading).

In addition to challenging the applicability of section 15.011, Aggregate argued before the trial court that the amended venue motions (which corrected the errors in the original motion) violated the due-order-of-pleading rule because the amended motions were filed after Applied Chemical’s answer. Because the trial court did not specify in its written order whether it was denying the venue motion on its merits or based on the due-order-of-pleading rule, Aggregate contends we cannot be certain that mandamus jurisdiction is proper in this case. We disagree.

While it is true that the trial court’s order did not specify the grounds upon which it denied Applied Chemical’s venue motion, the record of the hearing shows *117 that the court explicitly overruled Aggregate’s due-order-of-pleading argument, stating that “it’s this [c]ourt’s holding that the motion to transfer venue can be amended. The [cjourt will consider same.” Accord In re Pepsico, Inc., 87 S.W.3d 787, 794 (Tex.App.-Texarkana 2002, no pet.) (holding that an original timely motion to transfer venue may be amended to cure defects in the original motion if the amended motion is filed before the trial court rules on the original motion, and that the properly-filed amended motion relates back to and supersedes the original motion to transfer venue). In addition, the court conducted a lengthy discussion with counsel on the merits of the venue statute and subsequently explained his ruling from the bench. The record is clear that the trial court’s order denying Applied Chemical’s motion to transfer venue was a decision on the merits and, accordingly, we have mandamus jurisdiction under the authority of Civil Practice and Remedies Code section 15.0642.

III. Venue

In mandatory venue mandamus actions, we look only to whether the trial court clearly abused its discretion in ruling upon the motion. In re Mo. Pac. R.R. Co., 998 S.W.2d at 215. Here, the trial court concluded that Aggregate’s declaratory judgment action was not a suit involving an interest in real property and thus fell outside the scope of section 15.011.

Section 15.011 of the Civil Practice and Remedies Code governs venue in suits involving land disputes. It states:

Actions for recovery of real property or an estate or interest in real property, for partition of real property, to remove encumbrances from the title to real property, for recovery of damages to real property, or to quiet title to real property shall be brought in the county in which all or part of the property is located.

Tex. Civ. Prac. & Rem.Code § 15.011.

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Bluebook (online)
206 S.W.3d 114, 168 Oil & Gas Rep. 48, 49 Tex. Sup. Ct. J. 1006, 2006 Tex. LEXIS 804, 2006 WL 2505989, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-applied-chemical-magnesias-corp-tex-2006.