MacKey v. Great Lakes Investments, Inc.

255 S.W.3d 243, 2008 Tex. App. LEXIS 1760, 2008 WL 647769
CourtCourt of Appeals of Texas
DecidedMarch 12, 2008
Docket04-06-00277-CV
StatusPublished
Cited by20 cases

This text of 255 S.W.3d 243 (MacKey v. Great Lakes Investments, Inc.) 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
MacKey v. Great Lakes Investments, Inc., 255 S.W.3d 243, 2008 Tex. App. LEXIS 1760, 2008 WL 647769 (Tex. Ct. App. 2008).

Opinion

OPINION

CATHERINE STONE, Justice.

Great Lakes Investments, Inc./Great Lakes Interests, Inc. and Ken Mackey assert competing claims to royalty payments under an oil and gas lease. After the trial court determined Great Lakes Investments, Inc./Great Lakes Interests, Inc. owned the disputed royalty payments, Mackey filed this appeal claiming that the trial court erred by granting summary judgment in favor of Great Lakes Investments, Ine./Great Lakes Interests, Inc. 1 The Madrid and Laredo Trading Company, Ltd., an intervenor in the underlying lawsuit, also appeals, claiming the trial court’s judgment is not a final appealable judgment because unresolved matters remain pending in the trial court between Madrid and Great Lakes Investments, Inc. /Great Lakes Interests, Inc. We conclude the trial court’s judgment is a final appeal-able judgment and affirm the trial court’s judgment.

Background

On January 12, 1989, Blas and Rosina Martinez (the “Martinezes”) executed a promissory note in the amount of $1,001,275.94 payable to First Federal Savings and Loan Association of Laredo (“First Federal”). The note was secured by a deed of trust lien on the following property:

Certain grants of land situated in the Dolores Subdivision of the Jose Vasquez Borrego Grant, Abstract 209, Zapata County, Texas, and more fully described in a Warranty Deed dated May 31,1966, from Euxodio Martinez and Tomasa G. Martinez to Blas M. Martinez and Rosi-na Urteaga Martinez recorded in Volume 136, pages 384-90, Deed Records of Zapata County, Texas; together with all improvements situated thereon; and,
A security interest in and to Grantors’ .0459515 interest in and to all of the gas which may be produced from the 335.2025 acre pooling unit more fully described in Unit Declaration by Gulf Oil Corp. filed and recorded in Vol. 217, p. 593, of the Deed Records of Zapata County, Texas.
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Lot Number One Hundred Ten (110), Block Twenty-two (22), in the City of San Ignacio, Zapata County, Texas.

*247 The deed of trust also reflected that the Martinezes included as part of their security for the debt “all leases now existing or hereafter made” and “all the rents and revenues of the Property including those now due or to become due by virtue of any lease or other agreement for the occupancy or use of all or any part of the Property.” First Federal recorded its note in Zapata County, Texas on September 21, 1989.

On November 12, 1992, the Martmezes, in exchange for oil and gas royalty payments, agreed to lease to Chevron USA, Inc. (“Chevron”) part of the property they had used to secure their note with First Federal. Around this same time, one of the Martinezes’ other creditors, First National Bank of South Texas (“FNBST”) sued the Martinezes. The Martmezes and FNBST resolved their dispute and entered into an agreed judgment on June 8, 1993. Under the terms of the agreed judgment, the Martmezes agreed to pay FNBST the sum of $124,731.09. The Martinezes, however, failed to satisfy their obligation to FNBST following the court’s entry of judgment.

Several events occurred over the next several years involving the Martmezes and their creditors. First, on February 11, 1994, the Martinezes filed for bankruptcy relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Southern District of Texas. 2 Second, in an effort to create a judgment lien against the Martinezes’ property, FNBST recorded its Abstract of Judgment in Zapata County, Texas on February 14, 1994. Finally, on June 5, 1995, MC Investments acquired the promissory note and deed of trust lien held by First Federal. Upon acquiring the note and deed of trust from First Federal, MC Investments began negotiating with the Martinezes regarding payment of their outstanding obligation.

The Martinezes and MC Investments were ultimately able to reach a settlement agreement concerning the Martinezes’ outstanding obligation. On March 11, 1997, the Bankruptcy Court confirmed the Mar-tinezes’ plan of reorganization, which referenced the Martinezes’ obligation to MC Investments. The plan of reorganization confirmed by the court provided that the Martmezes would sign two new promissory notes to MC Investments: one note for $500,000 and another note for $1,000,000. These notes were secured by deeds of trust describing the following property as security:

Certain grants of land situated in the Dolores Subdivision of the Jose Vasquez Borrego Grant, Abstract 209, Zapata County, Texas, and more fully described in a Warranty Deed dated May 31,1966, from Euxodio Martinez and Tomasa G. Martinez to Blas M. Martinez and Rosi-na Urteaga Martinez recorded in Volume 136, pages 384-90, Deed Records of Zapata County, Texas; together with all improvements situated thereon; and,
A security interest in and to Grantors’ .0459515 interest in and to all of the gas which may be produced from the 335.2025 acre pooling unit more fully described in Unit Declaration by Gulf Oil Corp. filed and recorded in Vol. 217, p. 593, of the Deed Records of Zapata County, Texas.
* * *
Tract IV: Lot Number One Hundred Ten (110), Block Twenty-two (22), in the City of San Ignacio, Zapata County, Texas.

*248 The deeds of trust further provided that the Martinezes agreed to post as security for their notes “all present and future rent and other income and receipts from the property.” Besides addressing the Mar-tinezes’ obligation to MC Investments, the plan of reorganization confirmed by the Bankruptcy Court also addressed the Mar-tinezes’ outstanding obligation to Mackey for his legal services in connection with their bankruptcy. Although the plan of reorganization confirmed by the Bankruptcy Court addressed the Martinezes’ outstanding obligations to Mackey and MC Investments, the plan of reorganization did not address FNBST’s judgment hen against the Martinezes.

On May 12,1999, the Martinezes executed a document with Mackey purporting to assign to him any oil and gas royalty payments they were to receive from the Chevron lease. The Martinezes’ assignment to Mackey provides:

assignors, in consideration of the sum of ... ($10.00) and other good and valuable consideration, the receipt of which is hereby acknowledged, including but not limited to, forbearance by [Mackey] of the enforcement of writ of execution and Sheriffs sale thereunder set for June 1, 1999, in Zapata County, Texas, for which no lien express or implied is retained, by this Assignment grants and conveys to [Mackey], Assignee, all their right, title, and interest in and to any and all sums of money now due or due to become due, including but not limited to production payments to [the Martinezes], assignors, from ... Chevron ...

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Cite This Page — Counsel Stack

Bluebook (online)
255 S.W.3d 243, 2008 Tex. App. LEXIS 1760, 2008 WL 647769, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mackey-v-great-lakes-investments-inc-texapp-2008.