Scott & Julieann Hanson and Nikki & Jeremy Steele v. Lennar Homes of Texas Land & Construction, Ltd. and D.R. Horton - Texas Ltd.

Court of Appeals of Texas·Decided February 9, 2012·No. 02-11-00513-CV·Published

Opinion

COURT OF APPEALS

SECOND DISTRICT OF TEXAS

FORT WORTH

NO. 02-11-00210-CV

JOSEPH LEON MADDOX, PATTI APPELLANTS LYNN MADDOX, AND LINDA FAYE WEBER

V.

VANTAGE ENERGY, LLC AND THE APPELLEES CAFFEY GROUP, LLC

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FROM THE 67TH DISTRICT COURT OF TARRANT COUNTY ----------

OPINION

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I. INTRODUCTION

Appellants Joseph Leon Maddox, Patti Lynn Maddox, and Linda Faye Weber sued Appellees Vantage Energy, LLC and The Caffey Group, LLC, pleading causes of action for breach of contract, promissory estoppel, and negligent misrepresentation. The trial court granted summary judgment for Appellees (collectively referred to as Vantage) on all of Appellants‘ claims.

Appellants perfected this appeal, challenging the summary judgment in ten issues.1 Because we hold that Appellants lack standing to sue for breach of contract and promissory estoppel, we will dismiss Appellants‘ appeal of those claims and will render judgment accordingly. Because we hold that no summary judgment evidence exists that Vantage made any material misrepresentations of existing fact, we will affirm the trial court‘s summary judgment for Vantage on Appellants‘ negligent misrepresentation claim.

II. FACTUAL AND PROCEDURAL BACKGROUND Appellants are homeowners in southwest Fort Worth. During the summer of 2008, oil and gas companies began approaching individual homeowners in southwest Fort Worth to attempt to obtain leases of the minerals under the homeowners‘ properties. Some property owners in southwest Fort Worth formed a nonprofit, unincorporated association2 named Southwest Fort Worth Alliance, or SFWA, for the purpose of negotiating the best possible lease terms for the largest possible group of lessors. Eventually, Vantage reached an agreement with SFWA that included a ―uniform oil and gas lease form.‖ Appellants assert that a written contract exists between Vantage and SFWA; Appellants claim the contract consists of a series of approximately eleven

1 Although the table of contents in Appellants‘ brief lists ten issues, they are not segregated in Appellants‘ analysis. For ease of reference, however, we refer to the ten issues as numbered in Appellants‘ table of contents.

2 See Tex. Bus. Orgs. Code Ann. §§ 252.001–.017 (West 2011). A nonprofit association is defined as ―an unincorporated organization . . . consisting of three or more members, joined by mutual consent for a common, nonprofit purpose.‖ Id. § 252.001(2).

emails––and the attachments to those emails, including the uniform oil and gas lease form––that were exchanged between Vantage and an individual acting for SFWA.3 Based on the emails and the uniform oil and gas lease form, SFWA publicized that Vantage had ―won the bid for endorsement‖ of SFWA and was SFWA‘s ―preferred and endorsed Natural Gas Developer.‖ Appellants concede in their brief that SFWA did not possess authority to, and did not, negotiate individual leases for Appellants or for anyone; instead, Appellants claim that the contract between Vantage and SFWA was ―a contract for an endorsement of Vantage and its offer.‖ The uniform oil and gas lease form is a template; it provides blanks for the date of execution of the lease, the name of the lessor, and for the legal description and address of the property covered by the lease.4 The uniform oil and gas lease form also states that each individual lessor is not obligated to sign the form lease but instead has the right to negotiate his or her own terms with

3 Appellants claim the eleven-emails-and-attachments contract was executed by Vantage and SFWA by virtue of the Texas Uniform Electronic Transactions Act, which provides that an electronic signature shall be given the same legal force as an ink signature. See Tex. Bus. & Com. Code Ann. § 322.007 (West 2009). We do not address this contention because, as set forth below, even assuming a contract existed between Vantage and SFWA, Appellants are not third-party beneficiaries of the contract and have no standing to sue to enforce it. See Tex. R. App. P. 47.1 (providing that appellate court must address only issues necessary to final disposition of appeal).

4 The uniform oil and gas lease form provides in part, ―This LEASE AGREEMENT (this ―Lease‖) is made as of the ___ day of _________, 2008, between the Lessor(s) whose legal description and address are set forth on Schedule-1 attached hereto, and Lessee _____________, whose address is _____________, Fort Worth, Texas _________.‖ The uniform oil and gas lease form is not executed by anyone.

any oil and gas company and individually bears the responsibility of investigating the lease and its terms.5 Vantage began obtaining leases from mineral owners in the SFWA neighborhoods. Between 4,000 and 7,500 leases were obtained; the record does not reflect if these lessors negotiated to modify the uniform oil and gas lease terms or not. Approximately one month later, however, as the price of natural gas fell, Vantage suspended its urban leasing activities. Appellants filed the instant suit, seeking to compel Vantage to offer them an oil and gas lease in accordance with the terms set forth in the uniform oil and gas lease form. Appellants‘ petition prayed that the court ―award Plaintiffs specific performance and give Plaintiffs the opportunity to accept or reject the negotiated lease, as described herein . . . .‖

5 The uniform oil and gas lease form specifically states on page 11:

(c) Lessor Acknowledgement . . . By signing this Lease, Lessor [i.e., Appellants] acknowledges and stipulates that Lessor was not obligated to sign this lease based upon the terms negotiated by [SFWA] with Lessee and that Lessor had the right to negotiate its own terms with any company prior to signing this lease. Additionally, Lessor acknowledges that it is the Lessor‘s obligation to investigate the Lease, all negotiated terms, to take such action as necessary to make an informed decision prior to signing this Lease, and that the decision made by Lessor in signing this lease is made after fully researching the matter independent of any other information provided by [SFWA]. It is ultimately the responsibility of Lessor to (a) determine if Lessor wants to negotiate with the Lessee, (b) fully investigate the issues and facts related to signing an oil and gas lease, and (c) determine what terms are acceptable to Lessor to be included in this lease.

III. GROUNDS FOR SUMMARY JUDGMENT The trial court‘s summary judgment expressly stated that it was granted on several grounds, including that Appellants ―do not qualify as third-party beneficiaries to the alleged contract‖ between Vantage and SFWA.6 Concerning Appellants‘ negligent misrepresentation claim, the trial court ruled that no evidence existed that Vantage had made any material misrepresentations of existing fact to Appellants. Concerning Appellants‘ promissory estoppel pleading, the trial court ruled that no evidence existed that Vantage had promised to sign an already existing written agreement.

IV. APPELLANTS LACK STANDING TO ASSERT BREACH OF CONTRACT CLAIM A. The Law Concerning Standing to Sue as a Third-Party Beneficiary In Texas, ―standing‖ denotes the presence of a real controversy between the parties that will actually be determined by the judicial declaration sought. Austin Nursing Ctr., Inc. v. Lovato, 171 S.W.3d 845, 848 (Tex. 2005); Pagosa Oil & Gas, L.L.C. v. Marrs & Smith P’ship, 323 S.W.3d 203, 209–10 (Tex. App.—El Paso 2010, pet. denied). Standing is a necessary component of subject-matter jurisdiction, without which a court lacks authority to hear a case. See Tex. Ass’n of Bus. v. Tex. Air Control Bd., 852 S.W.2d 440, 444–45 (Tex. 1993). Because

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