Joseph Mitchell Beard v. Endeavor Natural Gas, L.P., and Tepee Petroleum Company

CourtCourt of Appeals of Texas
DecidedDecember 19, 2008
Docket01-08-00180-CV
StatusPublished

This text of Joseph Mitchell Beard v. Endeavor Natural Gas, L.P., and Tepee Petroleum Company (Joseph Mitchell Beard v. Endeavor Natural Gas, L.P., and Tepee Petroleum Company) 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
Joseph Mitchell Beard v. Endeavor Natural Gas, L.P., and Tepee Petroleum Company, (Tex. Ct. App. 2008).

Opinion

Opinion Issued December 19, 2008

Opinion Issued December 19, 2008


In The

Court of Appeals

For The

First District of Texas


NO. 01-08-00180-CV


JOSEPH MITCHELL BEARD, Appellant

V.

ENDEAVOR NATURAL GAS, L.P and TEPEE PETROLEUM COMPANY, INC., Appellees


On Appeal from the 113th District Court

Harris County, Texas

Trial Court Cause No. 2007-13754



MEMORANDUM OPINION

           Joseph Beard appeals the trial court’s declaratory judgment in favor of Endeavor Natural Gas, L.P., (Endeavor) and Tepee Petroleum Company, Inc. (Tepee).  The trial court granted Endeavor and Tepee a summary judgment for declaratory relief, finding that Endeavor had paid Beard the correct amount of natural gas royalties pursuant to a division order recently executed by Beard.  Beard contends that (1) the trial court erred in denying Beard’s motion to transfer venue to Smith County; (2) Endeavor and Tepee’s declaratory judgment action was not based on a legally viable claim; (3) the declaratory judgment action was unsustainable because it was filed for an improper purpose, solely as a preemptive strike against Beard; (4) the trial court erred in granting summary judgment because Endeavor failed to present competent summary judgment; and (5) the trial court abused its discretion in denying Beard’s request for attorney’s fees related to the declaratory judgment action.  Endeavor and Tepee cross-appeal as to attorney’s fees.  They contend that the trial court abused its discretion in failing to award them attorneys fees as the prevailing parties in the declaratory judgment action.  We conclude that (1) venue was proper in Harris County; (2) the declaratory judgment was based on a legally viable claim; (3) the declaratory judgment was not filed for an improper purpose; (4) Endeavor presented competent summary judgment proof; and (5) the trial court did not abuse its discretion in not awarding any of the parties attorney’s fees.  We therefore affirm.

Background

Beard, an attorney and resident of Smith County, Texas, owns a royalty interest in a natural gas well located in Nacogdoches County.  Endeavor operates the well, and Tepee is the revenue processor for Endeavor.  Endeavor and Tepee both operate out of Harris County.  On January 18, 2007, Beard executed a division order, which certified his .0085612 royalty interest in the well, and delivered the division order to Tepee.

Within 45 days, at the beginning of March 2007, Tepee sent Beard an initial royalty check from the well in the amount of $28,378.43, which Beard endorsed and deposited in his local bank.  Endeavor and Tepee soon determined, however, that, due to a clerical error, this check was drawn in an incorrect amount, resulting in overpayment to Beard of $6,518.93.  On March 6, Tepee phoned Beard and left him a voicemail message, informing him that Tepee had stopped payment on the initial royalty check.  That day, Tepee also issued a replacement check in the correct amount, which was delivered to Beard by March 9.  Also on March 6, Beard sent a letter to Endeavor demanding that they release the stop-payment order on the initial royalty check.  Beard further stated in his letter, “You are requested to contact me upon receipt of this letter and state whether you are going to comply with the above-referenced request.  If forced to file suit for breach of contract, negligence, violation of privacy laws, and, in general, overall incompetence, I will seek the recovery of all attorney’s fees recoverable by law.”  Endeavor and Tepee did not release the check.  On March 7, Beard sent another letter to Endeavor and Tepee demanding that they issue another royalty check in the original amount of $28,378.43 to him on or before March 14.  This letter further stated, “If I am forced to file suit for an accounting and other viable legal causes of action, I will name you [employee of Endeavor] as an individual Defendant, right after naming Endeavor Natural Gas, L.P. as an entity defendant.  Additionally I will name [employee of Tepee] as an individual Defendant, right after naming Tepee Petroleum Company, Inc., as a corporate Defendant.”  Beard sent both letters by fax. 

Also on March 7, Beard received a letter from Tepee apologizing for the mistake and explaining that by a clerical error, Tepee had inadvertently computed the production payments from April to July of 2005 twice in the total and included those extra amounts in the initial royalty check, resulting in a difference of $6,518.93.  This letter further states the Beard should receive a royalty check in the correct amount by Federal Express.

Beard replied to Tepee’s March 7 letter with another letter stating that Endeavor and Tepee had until March 14 to reissue a royalty check in the amount of $28,378.43, and if Endeavor and Tepee failed to do so, then Beard would sue in Nacogdoches County “to determine what the ‘proper funds’ are in this matter.”  Beard’s letter continues, “The difference between Tepee Petroleum’s two calculated amounts is $6,518.93.  If Endeavor and Tepee Petroleum want to spend a year or two embroiled in a lawsuit over that difference, then so be it.” 

On or before March 9, Beard received the replacement check from Tepee, with “production run/distribution data” attached.  This data showed the production from the well from April 2005 to December 2006, and it included the calculation of Beard’s .0085612 interest in the well.  On March 9, Beard responded to his receipt of this check with another letter to Tepee, stating that he did not “assume or agree that the amount of the aforementioned second check is correct” and could not deposit the check because any such action on his part could be construed as a ratification of the amount or waiver of his legal claims and causes of action in the matter.  He again restated his demand for a check in the original amount to be received by March 14, although he said he regretted offering to resolve it for such an amount, as it had become apparent that it would cost him more than the $6,518.93 difference to “straighten out the mess at the bank you caused.”  On March 12, Beard returned the check to Tepee.

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Joseph Mitchell Beard v. Endeavor Natural Gas, L.P., and Tepee Petroleum Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/joseph-mitchell-beard-v-endeavor-natural-gas-lp-an-texapp-2008.