Miles v. Martin

321 S.W.2d 62, 159 Tex. 336, 2 Tex. Sup. Ct. J. 182, 10 Oil & Gas Rep. 580, 1959 Tex. LEXIS 553
CourtTexas Supreme Court
DecidedFebruary 18, 1959
DocketA-6764
StatusPublished
Cited by158 cases

This text of 321 S.W.2d 62 (Miles v. Martin) 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
Miles v. Martin, 321 S.W.2d 62, 159 Tex. 336, 2 Tex. Sup. Ct. J. 182, 10 Oil & Gas Rep. 580, 1959 Tex. LEXIS 553 (Tex. 1959).

Opinions

Mr. Justice Walker

delivered the opinion of the Court.

The principal question in this case is whether the rule laid down in Duhig v. Peavy-Moore Lumber Co., 135 Texas 503, 144 S.W. 2d 878, applies to a deed executed by respondent, J. 0. Martin, in 1951. Respondent brought the suit against Carl Miles, a petitioner, and others to recover an undivided one-fourth interest in the minerals in and under approximately 417 acres of land in Taylor County which he claims was reserved to him by the terms of said deed. In the course of the trial it developed that the only real controversy is between petitioner and respondent, and the other defendants, except a stakeholder of the royalties allocable to such interest, were dismissed from the suit. The case was tried to the court without a jury, and judgment was entered awarding respondent the one-fourth mineral interest and accrued royalties, subject only to valid mineral leases covering the land and to the power of others to execute oil and gas leases thereon. This judgment was affirmed by the Court of [339]*339Civil Appeals. 310 S.W. 2d 635. We have concluded that the present record does not establish respondent’s ownership of the mineral interest in question and that the cause should be remanded for a determination of his right to equitable relief.

By warranty deed dated December 22, 1950, L. A. Wall and wife, who are the common source of title, conveyed the land to respondent. There was “excepted from this conveyance and reserved to the grantors, herein, their heirs and assigns,” one-fourth of the royalty that might be provided in, and one-fourth of all bonuses and delay rentals received from or payable under, any oil, gas or mineral lease or contract thereafter executed by the grantee, his heirs or assigns, for the exploration and development of the land or any part thereof. It further stipulated that the grantors, their heirs or assigns, need not be named as lessors or join in the execution of any such lease or contract. There are other provisions which are not mentioned here because the entire exception is quoted in the opinion of the Court of Civil Appeals.

The conveyance which gives rise to the present suit is a general warranty deed dated January 12, 1951, whereby respondent conveyed the land to Jabe M. Pratt and Carl P. Pratt. This instrument also reserves one-fourth of the royalty, bonus money and delay rentals, and authorizes the grantees, their heirs and assigns, to execute mineral leases and contracts for the development of the property. The reservation is identical in all respects with that set out in the Wall deed.

By deed dated January 8, 1955, the Pratts conveyed the land to petitioner and O. B. Haley. The terms and provisions of this instrument will be noticed later. O. B. Haley’s interest was subsequently acquired by petitioner, who then conveyed a tract of 5.08 acres to R. L. Holloway. Petitioner thereafter conveyed the surface of the remainder of the land, together with all leasing rights and one-half of the bonuses, delay rentals and royalties, to J. Q. Carter.

It was held in the Duhig case that the grantor in a general warranty deed is estopped to claim title to an interest reserved therein when to permit him to do so would, in effect, breach his warranty with respect to the title and interest which the deed purports to convey. The parties recognize that the Walls own an undivided one-fourth interest in the minerals by virtue of the reservation in their deed to respondent, subject to the leasing rights granted thereby. Although this interest was out[340]*340standing, it is not mentioned in the conveyance executed by respondent to the Pratts. The latter instrument purports to convey all the surface, three-fourths of the bonus money, delay rentals and royalties, and all leasing privileges. It also contains a covenant of general warranty, and there is no contractual provision limiting the title, rights and powers which the grantees were to acquire thereunder. The form of the conveyance thus brings the case squarely under the Duhig holding, and we shall consider the facts and circumstances found by the trial court which respondent says render such rule inapplicable.

The deed from respondent to the Pratts reserves an express vendor’s lien to secure the payment of a note for $6,650.00 of even date with the deed, executed by the grantees and payable to respondent’s order on or before thirty days after date. Respondent transferred this note and the lien securing same to Kansas City Life Insurance Company by assignment dated January 31, 1951. The Pratts executed a deed of trust on the land dated January 22, 1951, to secure the payment of a note for $6,650.00 given by them to Kansas City Life in renewal and extension of the vendor’s lien note. It is recited therein that the deed of trust is “subject to mineral interest reserved in deed from L. A. Wall and wife to J. O. Martin dated December 22, 1950, recorded in Volume 417, page 600, Deed Records of said County, and to mineral interest reserved in deed from J. O. Martin and wife to Jabe M. Pratt and Carl P. Pratt dated January 12, 1951.”

The evidence shows and the trial court found that the executed deed, vendor’s lien note, assignment, deed of trust, and deed of trust note were placed by the parties in the hands of P. P. Bond, who had obtained the loan for the Pratts from Kansas City Life. All of the instruments were held by Bond in escrow pending receipt of a check for the proceeds of the loan. When the check was received, Bond delivered same to respondent, filed the three recordable instruments for record at the same time, and forwarded the two notes to the loan company. This was done in accordance with the previous agreement and understanding of the parties.

Respondent argues that under these circumstances the several instruments held in escrow by Bond are to be construed together as parts of the same transaction. He says that the deed of trust plainly recognizes the existence and validity of two mineral reservations, and that this must be read into and becomes part of the deed and thus takes the case out of the Duhig rule. We do not agree.

[341]*341It is well settled that separate instruments executed at the same time, between the same parties, and relating to the same subject matter may be considered together and construed as one contract. Howards v. Davis, 6 Texas 174; 26 C.J.S. Deeds 840, Sec. 91; 16 Am. Jur. Deeds 537, Sec. 175. This undoubtedly is sound in principle when the several instruments are truly parts of the same transaction and together form one entire agreement. It is, however, simply a device for ascertaining and giving effect to the intention of the parties and cannot be applied arbitrarily and without regard to the realities of the situation.

Decisions will be found in which instruments have been construed together or treated as one contract even though they were not between the same parties. See Guadalupe-Bianco River Authority v. City of San Antonio, 145 Texas 611, 200 S.W. 2d 989; Veal v. Thomason, 138 Texas 341, 159 S.W. 472. In the Guadalupe-Bianco case, the city and the river authority made an agreement in settlement of pending litigation under the terms of which the city was permitted to acquire the assets of a certain utility company on condition that it would lease a part of the property to the authority. The conveyance to the city was accordingly treated as being subject to the lease for the purpose of determining the validity of the latter.

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Cite This Page — Counsel Stack

Bluebook (online)
321 S.W.2d 62, 159 Tex. 336, 2 Tex. Sup. Ct. J. 182, 10 Oil & Gas Rep. 580, 1959 Tex. LEXIS 553, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miles-v-martin-tex-1959.