Noble Exploration, Inc. v. Nixon Drilling Co., Inc.

794 S.W.2d 589, 114 Oil & Gas Rep. 160, 1990 Tex. App. LEXIS 1967, 1990 WL 112524
CourtCourt of Appeals of Texas
DecidedAugust 8, 1990
Docket3-88-153-CV
StatusPublished
Cited by48 cases

This text of 794 S.W.2d 589 (Noble Exploration, Inc. v. Nixon Drilling Co., 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
Noble Exploration, Inc. v. Nixon Drilling Co., Inc., 794 S.W.2d 589, 114 Oil & Gas Rep. 160, 1990 Tex. App. LEXIS 1967, 1990 WL 112524 (Tex. Ct. App. 1990).

Opinion

GAMMAGE, Justice.

Noble Exploration, Inc. (Noble) appeals from a take-nothing judgment in the district court in its suit against Nixon Drilling Company (Nixon). Noble brings two points of error, arguing that the district court erred in admitting certain evidence and in rendering judgment in favor of Nixon because the evidence established as a matter of law that instruments filed by Nixon were insufficient to fix and secure a lien under Tex.Prop.Code Ann. § 56.002 (1984) 1 against Noble’s oil and gas leasehold estate. We will reverse the judgment of the trial court.

Between September 1986 and February 1987, Anthony Exploration Company, Inc. (Anthony), Noble’s predecessor-in-interest, acquired an oil and gas leasehold estate in. approximately 101.3 acres of land in Lee County. On March 1, 1987, Anthony purportedly entered into a “farmout agreement” with Nobleson Operating, Inc. (No-bleson) (which is not a party to this lawsuit), assigning the working interest, subject to Anthony’s overriding royalty interest, to Nobleson in return for Nobleson’s drilling and completing a commercially producing well on 40 acres of the land. On March 17, 1987, Nobleson entered into a drilling contract with Nixon to drill a well, “Carleston No. 2,” on the land.

The record is sketchy regarding the drilling and status of the well. Jerry Nixon, president of Nixon, testified that Nixon encountered problems after drilling Carle-ston No. 2 and was not paid for its services. He further testified that Nixon filed suit against Nobleson in a separate proceeding and that a counterclaim was filed against Nixon. Anthony Noble, president of both Noble and Anthony, testified that Carleston No. 2 was never completed as a well capable of commercial production.

On May 28 and June 17,1987, Nixon filed instruments entitled “Statement of Lien and Affidavit” and “Mechanic’s and Materi-almen's Lien Affidavit,” purporting to fix and secure a lien on the entire leasehold pursuant to chapter 56 of the Property Code. Nixon subsequently filed a “Partial Release of Lien,” releasing and discharging from its lien all but the 40 acres surrounding the Carleston No. 2 well.

Anthony then filed suit against Nixon seeking a declaratory judgment that the lien affidavit was invalid; removal of cloud on its title created by the filing of Nixon’s lien affidavit; and actual damages, exemplary damages, and attorney’s fees. Nixon answered by general denial. Before trial, Anthony assigned its interest in the oil and gas leasehold estate to Noble, and the trial court entered an order substituting Noble as real-party plaintiff. Following a bench trial, the trial court entered a take-nothing judgment in favor of Nixon, giving rise to this appeal by Noble.

No findings of fact or conclusions of law were requested or filed. In a nonjury trial, where no findings of fact or conclusions of law are filed or requested, all necessary findings to support the trial court’s judgment will be implied. E.g., Burnett v. Motyka, 610 S.W.2d 735, 736 (Tex.1980). Such implied findings, however, may be attacked by evidentiary points of error, just as with jury findings and findings entered by a trial court. Id.

Noble brings a legal insufficiency argument in its first point of error, arguing that the evidence established as a matter of law that Nixon improperly secured a lien against Noble’s mineral leasehold estate under chapter 56. In reviewing a “matter of law” challenge, the reviewing court employs a two-prong test. The court will first examine the record for evidence that supports the finding, ignoring all evidence to the contrary. If there is no evidence to *591 support the finding, the court will then examine the entire record to see if the contrary proposition is established as a matter of law. If the contrary proposition is established conclusively by the evidence, the point of error will be sustained. Sterner v. Marathon Oil Co., 767 S.W.2d 686, 690 (Tex.1989).

In applying this standard, we must also be mindful of the rule that in a nonjury trial, where no findings of fact or conclusions of law are filed or requested, the trial court’s judgment must be affirmed if it can be upheld on any legal theory that finds support in the evidence. Davis v. Huey, 571 S.W.2d 859, 862 (Tex.1978).

Chapter 56 is the exclusive statute governing liens against mineral property to secure payment for labor or services related to mineral activities. Persons entitled to liens under this statute are not entitled to liens provided by other statutes. Ball v. Davis, 118 Tex. 534, 18 S.W.2d 1063, 1066 (1929). Section 56.002 provides:

A mineral contractor or subcontractor has a lien to secure payment for labor or services related to the mineral activities.

The term “mineral contractor” is defined in § 56.001(2):

‘Mineral contractor’ means a person who performs labor or furnishes or hauls material, machinery, or supplies used in mineral activities under an express or implied contract with a mineral property owner or with a trustee, agent, or receiver of a mineral property owner.

(Emphasis added.)

Applying these tests, we examine the record looking first only at evidence that would support a finding of an implied or express contract between Nixon and a mineral property owner or its trustee, agent, or receiver. The record reveals by unchallenged exhibits that Anthony owned the mineral leasehold estate. Because we find no evidence in the record of a contract between Nixon and any other mineral property owner or a trustee or receiver of Anthony’s, we direct our search to evidence of a contract between Nixon and Anthony or its agent.

Nixon does not argue there was, and we find no evidence of, an express contract with Anthony. Instead, Nixon argues on appeal both that Nobleson was Anthony’s agent and that an implied contract existed between Nixon and Anthony. Nixon bases these arguments on (1) an asserted blending of corporate activities and unity of stock ownership between Anthony and No-bleson and (2) the existence of a contract between Anthony and Nobleson at the time Nobleson and Nixon entered into their contract.

At trial, Anthony Noble testified on cross-examination that he was president of Anthony and his mother and father were its vice-presidents and sole shareholders; that his mother and father are stockholders in Noble; that his father is president of Nobleson and his father and mother “and possibly someone else” are shareholders in Nobleson; and that all three corporations— Anthony, Noble, and Nobleson — share the same offices, employees, and telephone lines. Anthony Noble further testified on cross-examination that his father, Bill Noble, was aware of the contract between Nobleson and Nixon, having signed it himself on behalf of Nobleson.

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Bluebook (online)
794 S.W.2d 589, 114 Oil & Gas Rep. 160, 1990 Tex. App. LEXIS 1967, 1990 WL 112524, Counsel Stack Legal Research, https://law.counselstack.com/opinion/noble-exploration-inc-v-nixon-drilling-co-inc-texapp-1990.