Matthews v. Landowners Oil Ass'n

204 S.W.2d 647, 1947 Tex. App. LEXIS 740
CourtCourt of Appeals of Texas
DecidedJuly 21, 1947
DocketNo. 5765
StatusPublished
Cited by16 cases

This text of 204 S.W.2d 647 (Matthews v. Landowners Oil Ass'n) 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
Matthews v. Landowners Oil Ass'n, 204 S.W.2d 647, 1947 Tex. App. LEXIS 740 (Tex. Ct. App. 1947).

Opinion

LUMPKIN, Justice.

This is a class action case designed to cancel certain mineral conveyances and leases. It was brought by the appellants, W. O. Matthews and twelve other named plaintiffs, residents of Crosby County, Texas, against the appellees, Landowners Oil Association, a corporation, and twenty-two other named defendants. The thirteen named plaintiffs seek to represent all Crosby County landowners who are similarly situated as against the twenty-three named defendants and all others who claim to hold an equitable and beneficial title to any of the minerals in the lands upon which exist the conveyances and leases sought to be cancelled.

In the alternative the appellants seek in trespass to try title and in other pleadings relief against the twenty-three named ap-pellees (thirteen living in widely separated counties in Texas, ten persons living in four different counties in Kansas) and against the Landowners Oil Association as trustee and representative of numerous unknown beneficiaries unnamed in the conveyances sought to be cancelled. The appellants allege it would be difficult and impractical to make these beneficiaries parties defendant.

Several persons filed pleas of intervention, alleging substantially the same facts asserted by the appellants and pray for relief as against all of the appellees. The appellee, Landowners Oil Association, filed pleas in abatement to the appellants’ petition as well as to each plea of intervention, alleging misjoinder of parties and causes of action as well as non-joinder of necessary parties.

The trial court sustained the pleas in abatement. The appellants declined to amend their pleadings and the cause was dismissed. The appellants duly accepted to the action and judgment of the court and gave notice of appeal.

A review of the appellants’ second amended original petition reveals that on March 8, 1929, the appellants, W. O. Matthews and wife, executed an oil and gas lease to the Landowners Oil Association, on 92.15 acres of land located in Crosby County, Texas; that each of the other appellants, or his predecessor in title, subscribed similar mineral leases to the Landowners Oil Association on various tracts of land in Crosby County, differing from the Matthews’ lease only as to dates, names of grantors, and descriptions of the real estate; that the appellee, Landowners Oil Association, was the grantee- and lessee in numerous other conveyances of oil, gas, [649]*649and other minerals covering thousands of acres of land in Crosby County; that in many cases the grantors of such leases and conveyances are dead, leaving such lands, either by will or by virtue of the law of descent and distribution, to many persons; that in many cases such grantors have sold and conveyed the lands to various grantees who have become subrogated to the rights of the original grantors; that the various grantors, the various legatees, and such persons who have inherited by virtue of the laws of descent and distribution, are scattered over the United States, and in some cases are located beyond the seas; that the number of individuals owning land in Crosby County and not named in the appellants’ petition as party plaintiffs are about fifty-five in number and are so numerous that it would not be practical for the named appellants to locate and bring before this court each person owning any of the minerals in land situated in Crosby County, covered by leases and conveyances similar to that executed by the appellants, W. O. Matthews and wife, and the other named appellants to the Landowners Oil Association; and therefore, it has been necessary for the appellants to resort to a class action; that the persons named and described as class defendants are fairly representative of all of the defendants alleged by Landowners Oil Association to be members of Pool One; that very few persons asserted by the appellee, Landowners Oil Association, to be members of Pool One reside in the State of Oklahoma, but most of the members reside cither in the State of Texas or in the State of Kansas.

By a stipulation of counsel it appears that eighteen of the named defendants were personally served with citation, that three entered their appearances and the rest were served by citation by publication. Further, it is reflected by the record that one of the named defendants is deceased and that his titles have passed to his estate.

The appellants attached a copy of the Matthews’ lease to their petition. Generally speaking, this conveyance is similar to the usual oil and gas lease except insofar as it undertakes to create a pool of the interest of the various grantors in the royalties which may arise from the bringing about production on any of the lands in the pool. It gives to each member of the pool an interest in such royalties based upon the number of acres contributed by him to the pool. More specifically, Matthews’ land was to be placed by the appellee, Landowners Oil Association, in an acreage pool, known as Pool One, which consisted, so the lease recites, of more than 25,000 acres but not to exceed 500,000 acres. According to the lease, the acres necessary to comprise this pool were selected according to the judgment and at the expense of the Association and on terms similar, except as to the duration of the term, to the Matthews’ lease; that the privilege of assigning in whole or any part of the lease was given to the ap-pellee with the understanding that the Landowners Oil Association would reserve to the collective credit of the members of the pool “as royalty, free costs, one-eighth of all oil, gas, or other minerals produced and saved from said land.” It was provided in the lease that all royalty oil, or other royalty money, should be the collective property of all of the members of the acreage pool and of the grantee, and that the money was to be deposited to the credit of John Haney as trustee in the First National Bank at Ralls, Texas; that the trustee, John Haney, or his successor, would make quarterly distribution of the money, seventy-five per cent of the balance remaining after payment of the expenses of trusteeship to be distributed among the members of the pool; “that each member shall be entitled to share in the balance at each periodical distribution in the proportion that the number of acres he has conveyed to the pool bears to the actual number of acres comprising said acreage pool.”

The appellants contend the trial court erred in sustaining the pleas in abatement and in dismissing this suit, because this proceeding may be maintained as a class action under Rule 42, Texas Rules of Civil Procedure; because the named appellants had the right under substantive law, without making use of the class action device, to proceed against the Landowners Oil As.-sociation, as trustee for numerous unknown defendants whom it was difficult and impractical to make parties to this suit.

[650]*650We have studied the appellants’ petition carefully. The name of Leslie Mitchell is listed as one of the parties plaintiff. A schedule, a part of the petition, sets forth the name of the original grantor of the lease or the conveyance sought to be cancelled and the name of the party plaintiff alleged to be subrogated to the original grantor. The schedule shows that B. W. Mitchell and wife subscribed an oil and gas lease December 7, 1939, on 640 acres of land located in Crosby County; and further, that Leslie Mitchell is the name of plaintiff who is subro-gated to B. W. Mitchell and wife, the original grantors. Likewise, the schedule shows that on March 5, 1929, E. L. Ellison and wife executed an oil and gas conveyance on 160 acres of land in Crosby 'County.

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Bluebook (online)
204 S.W.2d 647, 1947 Tex. App. LEXIS 740, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matthews-v-landowners-oil-assn-texapp-1947.