Simmons v. Wilson

216 S.W.2d 847, 1949 Tex. App. LEXIS 2251
CourtCourt of Appeals of Texas
DecidedJanuary 6, 1949
DocketNo. 2824.
StatusPublished
Cited by42 cases

This text of 216 S.W.2d 847 (Simmons v. Wilson) 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
Simmons v. Wilson, 216 S.W.2d 847, 1949 Tex. App. LEXIS 2251 (Tex. Ct. App. 1949).

Opinion

HALE, Justice.

This -suit -is based -upon -an accounting under a constructive trust. It involves certain overriding royalty interests a-sserted in and -to a mineral leasehold estate -covering 160 acres -of -o-il producing land designated as Survey No. 43 in Kleberg County, Texa-s. Appellant, Jay Simmons, -is the legal holder of the -leasehold in -controversy an-d -as such is -alleged to 'be the -equitable trustee for the benefit of appellees under the asserted trust.

- T-h-e suit was originally -instituted on June 15, 1945, ,by appellees H. A. Potter, Wm. E. Ramsey, Woodie Craig and Guy I. Warren (hereafter referred to as Potter et al.) against -appellant. Thereafter, appellees N. G. Landrum, John L. Cottingham, Mrs. Hayden Tucker, surviving wife of C. R. Tucker, and others (hereafter referred to as Landrum et al.), j-oined by Sam E. Wilson, Jr. and S. E. W. Oil Corporation (hereafter referred to sometimes as the Corporation), instituted their suit -again-st appellant. On January 6, 1947, after John W. Rawlinso-n and wif-e, his brother and sister (hereafter referred to as the Raw-linsons) and others had become parties to the proceedings, the -court below -ordered a -consolidation -of the two suits.

The consolidated suit was tried -before a jury. Upon the con-clu-sion of the evidence P-ott-er -et al., Landrum et al., Wilson and the- Corporation- -severally moved the -court for a peremptory instruction in their favor *849 •against appellant. Each of these motions was overruled. The case was then suhrnit-ted to a jury on certain special issues hut the jury was unable to agree upon answers to some of the issues 'so submitted and was discharged. Thereupon, Potter et. al., Landrum et al., Wilson and the Corporation severally moved 'for judgment in their favor against appellant on the undisputed evidence. The -court overruled the motions of Wilson -and the 'Corporation 'for judgment in their favor, severed the causes of action asserted by them from the causes of action asserted by the other complaining parties, granted the motions of Potter et al., and of Landrum et al., for judgment in their favor against appellant on the undisputed evidence and rendered judgment accordingly.

Under appropriate points in his 'brief, appellant says in effect that the trial court erred (1) in severing the causes of action asserted against him by Wilson and the Corporation from the causes of action asserted against hi-m by appellees and (2) in rendering judgment against him in favor of appellees after severance.

The undisputed evidence shows that appellant produced a total of 285,007 barrels of oil from the leased premises during the period from August 11, 1945 to July 31, 1947, which was of the total value of $466,553.22. These totals were 'broken down so as to show the amount and value of the oil produced and sold during each month in the period of time covered. The undisputed evidence further shows that the overriding royalty interests of appellees, if any, in the leasehold estate are held as follows: by Landrum et al. an undivided ½6 of the total production; and :by Potter et al. an undivided ⅛ of ⅞ of the total production.

The trial court rendered judgment on February 27, 1948, establishing the -respective overriding royalty interests asserted by appellees in the leasehold estate, awarding recovery to Landrum et al. in the proportions of their several interests for the total sum of $29,159.57 and awarding recovery to Potter et al. -in the proportions of their -several interests -for the total sum of $51,029.26, together with interest on each of -such sums af the rate of six per cent per annum from the date of the judgment until paid. Potter and his associates excepted to the judgment and gave notice -of appeal therefrom in so far as the same did n-ot allow them any interest as damages on their respective shares of the oil produced during the period of time from August of 1945 to July of 1947 and under an appropriate cross-point in their brief they say the court below erred in refusing to allow them any recovery for -such interest as damages.

It thus appears to us that the appeal presents three ultimate questions of law for decision, viz: Were the facts established by the undisputed evidence in the court below sufficient to impress appellant’s leasehold estate in Survey No. 43 with a constructive trust for the benefit of appellees? If so, did the trial court err in severing the causes of action asserted by Wilson and the Corporation from the causes of action asserted by appellees? And, if not, were Potter and associates entitled to recover interest as damages on their claims against appellant? .

The basic theory out of which a constructive trust arises is stated in 26 R. C. L. 1236 as follows: “It is a well settled general rule that if one person obtains the legal title to property, not only by fraud, or by violation of -confidence of fiduciary relations, but in any other uncon-scientious manner, so that he cannot equitably retain the property which really belongs to another, equity -carries out its theory of a double ownership, equitable and legal, by impressing a constructive trust upon the property in favor of the one who is in good conscience entitled to it, and who is considered in equity as the beneficial owner.”

Constructive trusts are purely -creatures of equity. Their forms and varieties are practically without limit. Their classification is dependent upon the circumstances surrounding the acquisition of the legal title to property in each particular case. Being remedial in character, however, their broad function in all of *850 their varied forms and classifications is to. redress wrong or unjust enrichment, in keeping with established principles of equity and justice. Tex. Jur. vol. 42, p. 649, Secs. 45-47; Am. Jur. Vol. 54, p. 167, Sec. 218; C. J., Vol. 65, p. 454, Sec. 215; Restatement of the Law of Trusts, Part I; pp. 5-6; 3 'Bogert on Trusts and Trustees, § 471; Pomeroy’s Eq. Jur., (5th Ed.) Vol. 1, p. 209, Sec. 155; 1 Perry on Trusts, (6th Ed.) Par. 186.

The leased premises here in controversy are surrounded by a large body of land known as the King Ranch, formerly owned by Robt. J. Kleberg. On November 13, 1896,, Robt. J. Kleberg executed a deed to Wm. and Ida Rawlinson by the terms of which he purported to convey to them 160 acres of land, more or less, in Kleberg County, Texas, designated as Survey No. 44. However, the grantees did not enter into possession of Survey No. 44 but they did immediately take possession of Survey No. 43, containing 160 acres adjoining Survey No. 44. Ever since that time Wm. and Ida Rawlinson and their heirs have had possession of Survey No. 43, claiming the same as their own,'and Robt. J. Kle-berg and his successors in title have had possession of Survey No. 44, claiming the same as their own.

Prior to 1940 the King Ranch, a corporation, had granted a mineral lease to Humble Oil & Refining Company, hereafter referred to as the “Humble”, covering its lands in Kleberg County. Among the lands specifically . described in this lease was the tract designated as Survey No. 43, then int possession of the Rawlin-sons as heirs of Wm. and Ida Rawlinson, but it did not specifically include Survey No. 44.

On February 21, 1940, the Rawlinsons executed an “unless” oil and gas lease in usual form to Chas. F. Hernán and Woodie Craig, hereafter referred to as the “H-C Lease”, covering 160 acres of land designated as Survey No. 44 in Kleberg County.

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216 S.W.2d 847, 1949 Tex. App. LEXIS 2251, Counsel Stack Legal Research, https://law.counselstack.com/opinion/simmons-v-wilson-texapp-1949.