Mann v. Trend Exploration Co.

934 S.W.2d 709, 1996 Tex. App. LEXIS 5733, 1996 WL 729767
CourtCourt of Appeals of Texas
DecidedJuly 11, 1996
DocketNo. 08-94-00341-CV
StatusPublished
Cited by6 cases

This text of 934 S.W.2d 709 (Mann v. Trend Exploration Co.) 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
Mann v. Trend Exploration Co., 934 S.W.2d 709, 1996 Tex. App. LEXIS 5733, 1996 WL 729767 (Tex. Ct. App. 1996).

Opinion

OPINION

BARAJAS, Chief Justice.

This is an appeal from a summary judgment in favor of Appellee. Appellant sued Appellee seeking a two percent overriding royalty interest on certain oil and gas leaseholds. Appellee moved for summary judgment, which the trial court granted. We affirm the judgment of the trial court.

I. SUMMARY OF THE EVIDENCE

Appellee is a company located in Midland, Texas, engaged in the business of drilling and operating oil and gas properties. Appellant was employed to do money raising and landwork by Appellee from April 1, 1989 to October 31, 1989 as senior executive vice president. Prior to his employment with Appellee, Appellant worked as an independent landman.1 In the year prior to his employment, Appellant performed landwork for Appellee in connection with the acquisition of two prospects. One involved assistance in obtaining a farmout2 on the southwest quarter of section 15 of the Amoco Powell Ranch.3 For his work, Appellant was paid daywork rates and assigned a two percent overriding royalty interest.

On February 27, 1989, Appellee hired Appellant for a three-year period, terminable by either party at the end of each year of employment. The oral employment contract consisted of a salary of $2,000 per month, which was roughly one-third of Appellant’s salary at his previous job. The dispute in this case concerns what the parties agreed upon as additional compensation.

Appellant’s notes of the employment meeting indicate that Appellant was to “[pjartiei-pate in success of business from now on— ORRI (overriding royalty interest) + Stock Options, Bonus, or Whatever.” Specifically, Appellant contends that he was to receive a two percent overriding royalty on every property on which he worked during his em[711]*711ployment even though Appellee did not actually acquire such property or obtain production thereon until after his termination. However, Appellant does not remember whether the specific amount of two percent was explicitly mentioned during the employment meeting itself. Appellant contends that he understood Appellee’s offer to be two percent based upon previous discussions, relationship, and the two pre-employment contracts between the parties.

Conversely, Terry Holland, president of Appellee Trend Exploration Company, characterizes the oral agreement as including a salary, certain benefits, and that Appellant would be compensated in some manner that the deal would bear on any prospects he participated in obtaining or brought to Ap-pellee which were completed. Holland further asserts that there was never any discussion or promise made of an overriding royalty interest or any specific interest on any property.

While he was employed by Appellee, Appellant worked on obtaining from Amoco Production Company a farmout of the balance of the Amoco/Powell leases.4 However, Appellant was only successful in obtaining a farmout of one quarter section, the northwest quarter of section 2, for which he received a two percent overriding royalty interest.

On October 13, 1989, Appellee informed Appellant that his job was being terminated after October 31, 1989. During the October 13 termination meeting, Appellant and Ap-pellee’s president discussed all of the completed and ongoing projects in which Appellant had participated. The parties disagree as to whether the Amoco/Powell Ranch Project was discussed in the termination meeting. Although Appellant asserts that the parties discussed whether he was “involved” in (had an interest in) the Amoco/Powell Ranch,5 he notes that he did not specifically mention any future Amoco/Powell Ranch acquisitions. Appellee’s president does not remember whether Appellant and its vice president denied that the Amoco/Powell leases were specifically mentioned. After Appellant’s termination, he performed no further work or services for Appellee and no further work on the Amoco/Powell project.

Eight months after Appellant’s termination, Amoco contacted Appellee, providing additional seismic information on the Powell Ranch. After reviewing the data, Appellee obtained a farmout on the southeast quarter of section 9 and drilled a dry hole. In subsequent negotiations with Amoco, Appellee was advised that Amoco would be interested in an extensive geophysical proposal and might be interested in farming out the remaining non-producing acreage on the Powell Ranch.6 On October 26, 1990, Appellee and Amoco entered into a contract whereby Appellee would undertake an extensive geophysical survey in exchange for a farmout on all of the remaining unproductive Powell Ranch acreage. Several successful wells have been drilled pursuant to this farmout. Appellant is claiming that such agreement entitles him to a two percent overriding royalty interest on the after-acquired Amoco/Powell leases.

Appellant brought suit on June 30, 1993 for breach of the parties oral employment contract, as supplemented by their oral termination agreement, seeking a two percent overriding royalty interest on the above-described lands covered by the Amoco/Powell leases. Appellee moved for summary judgment, claiming that there existed no genuine issue as to any material fact. The trial court granted summary judgment in favor of Ap-pellee, which precipitated this appeal.

[712]*712II. DISCUSSION

Appellant attacks the judgment of the trial court in four points of error. We begin with the standards we employ to review a summary judgment.

The standard of review on appeal is whether the successful movant at the trial level carried its burden of showing that there is no genuine issue of material fact and that a judgment should be granted as a matter of law. Lear Siegler, Inc. v. Perez, 819 S.W.2d 470, 471 (Tex.1991); Nixon v. Mr. Property Management Co., 690 S.W.2d 546, 548 (Tex.1985); Cortez v. Liberty Mut. Fire Ins. Co., 885 S.W.2d 466, 469 (Tex.App. — El Paso 1994, writ denied). Thus, the question on appeal is not whether the summary judgment proof raises fact issues as to required elements of plaintiffs cause or claim, but whether the summary judgment proof establishes, as a matter of law, that there is no genuine issue of material fact as to one or more elements of plaintiffs cause or claim. Gibbs v. General Motors, 450 S.W.2d 827, 828 (Tex.1970).

In resolving the issue of whether the mov-ant has carried this burden, all evidence favorable to the non-movant must be taken as true and all reasonable inferences, including any doubts, must be resolved in the non-movant’s favor. Nixon, 690 S.W.2d at 548-49; DeLuna v. Guynes Printing Co., 884 S.W.2d 206, 208 (Tex.App. — El Paso 1994, writ denied). Where the defendants are the movants and they submit summary judgment evidence disproving at least one essential element of each of plaintiffs causes of action, then summary judgment should be granted. Perez, 819 S.W.2d at 471; Bradley v. Quality Serv. Tank Lines,

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934 S.W.2d 709, 1996 Tex. App. LEXIS 5733, 1996 WL 729767, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mann-v-trend-exploration-co-texapp-1996.