Stewart v. City of Austin

744 S.W.2d 682, 1988 Tex. App. LEXIS 399, 1988 WL 13044
CourtCourt of Appeals of Texas
DecidedJanuary 20, 1988
Docket3-87-074-CV
StatusPublished
Cited by16 cases

This text of 744 S.W.2d 682 (Stewart v. City of Austin) 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
Stewart v. City of Austin, 744 S.W.2d 682, 1988 Tex. App. LEXIS 399, 1988 WL 13044 (Tex. Ct. App. 1988).

Opinion

SHANNON, Chief Justice.

Appellants, former owners of Fayette County real property, sued appellees Lower Colorado River Authority and City of Austin in the district court of Fayette County. By their suit, appellants sought, “alternatively and in combination,” damages, reformation or rescission and cancellation of deeds to mineral estates formerly owned by them. The district court rendered summary judgment that appellants take nothing. This Court will affirm the judgment.

The summary judgment proof showed that in 1974 appellees determined to construct an electric generating plant in Fay-ette County. Within approximately one year, appellees obtained for the site more than six thousand acres in fee by deed or by proceedings in eminent domain. Appel-lees deemed it necessary to acquire in fee those tracts with unsevered mineral rights to protect against uncontrolled drilling or other mineral recovery efforts.

For those appellants who chose to proceed in eminent domain, the special commissioners made awards in 1975 or 1976 and all of those landowners drew down those awards from the registry of the court. In that connection, appellants do not dispute the fact that the trial court signed orders allowing the withdrawals, along with final judgments and dismissal orders.

In 1981, appellees leased for oil and gas exploration certain acreage of the plant site not then immediately scheduled for additional phases of plant construction. After mineral production was obtained at the plant site, appellants’ interest in their former mineral estates quickened and they filed suit in June 1983.

By their suit, appellants sought, in the main, to recover the mineral interests previously conveyed by them by deed or taken from them by judgment in eminent domain proceedings. As this Court understands, appellants’ theories for recovery were several: (1) mutual mistake by the parties as to the value of the mineral interests and as to appellees’ legal right “to condemn the mineral estates in their entirety”; (2) fraud by appellees in misrepresenting to appellants that appellees had a legal right “to condemn the mineral estates in their entirety” and fraud in misrepresenting that the mineral estates were of nominal value; (3) appellees’ failure to enter into good faith negotiations; (4) appellees’ failure to use the mineral estates “for a public purpose”; and (5) appellees’ exercise of duress in obtaining the mineral estates.

Appellees moved for summary judgment, asserting inter alia, that appellants’ suit was barred by limitations or res judicata depending upon whether the particular landowner conveyed by deed or whether he proceeded in eminent domain.

This Court affirms the summary judgment as to those appellants who conveyed their property by deed upon the basis that their claims were barred by limitations. We affirm the summary judgment as to those appellants who proceeded in eminent domain upon the ground that their claims were barred by res judicata.

Appellees urge that the district court properly granted summary judgment based upon limitations. In support of their argument, appellees suggest that the summary judgment proof conclusively established that appellants’ claims based upon fraud, mutual mistake, and duress were barred by limitations.

Suits for damages for fraud are governed by the two-year statute of limitations. Tex.Rev.Civ.Stat.Ann. art. 5526 (now codified as Texas Civil Practice and Remedies Code § 16.003); Blondeau v. Sommer, 139 S.W.2d 223 (Tex.Civ.App.1940, writ ref’d); National Resort Com *684 munities, Inc. v. Short, 712 S.W.2d 200 (Tex.App.1986, writ ref’d n.r.e.); National Resort Communities, Inc. v. Holleman, 594 S.W.2d 195 (Tex.Civ.App.1980, writ ref d n.r.e.). Suits for rescission or reformation predicated upon fraud (or its species, duress) and mutual mistake are governed by the four-year statute of limitations. Tex.Rev.Civ.Stat.Ann. art. 5529 (now codified as Texas Civil Practice and Remedies Code § 16.051); see Sullivan v. Barnett, 471 S.W.2d 39 (Tex.1971); Hall v. Miller, 147 S.W.2d 266 (Tex.Civ.App.1941, writ dism’d).

In support of their limitations defense, appellees brought forward summary judgment proof showing that they took fee title by deed during 1975 and that some eight years later in June 1983 appellants filed their suit.

If the claimed fraud or mutual mistake about which appellants complained occurred at all, it occurred at the time appellants conveyed fee title to appellees. Nevertheless, the statute of limitations begins to run in mistake and fraud cases when the mistake or fraud was, or in the exercise of reasonable diligence should have been, discovered. McClung v. Lawrence, 430 S.W.2d 179 (Tex.1968); Sherman v. Sipper, 137 Tex. 85, 152 S.W.2d 319 (1941).

Appellants sought to employ the discovery rule to avoid appellees’ limitations defense. Although appellants insist to the contrary, and, admittedly, the opinions are not entirely free from ambiguity, this Court has concluded that appellants had the burden to plead and prove that they came within the “discovery” rule and thereby suspend the running of limitations. Smith v. Knight, 608 S.W.2d 165,166 (Tex.1980); Sherman v. Sipper, supra; National Resort Communities v. Short, supra; compare Weaver v. Witt, 561 S.W.2d 792, 794 (Tex.1977); Gregg v. Galo, 720 S.W.2d 116 (Tex.App.1986, no writ); Intermedics v. Grady, 683 S.W.2d 842 (Tex.App.1984, writ ref'd n.r.e.); Hoffman v. Wall, 602 S.W.2d 324 (Tex.Civ.App.1980, writ ref’d n.r.e.).

Usually, a defendant who seeks a summary judgment on the theory that the plaintiff’s suit is without merit has the burden of establishing, as a matter of law, that there is no genuine issue of fact as to one or more essential elements of the plaintiff’s cause of action. Gibbs v. General Motors Corporation, 450 S.W.2d 827 (Tex.1970). The cause in this appeal, however, is not that type of suit; here, appellees’ summary judgment evidence established the affirmative defense of limitations as a matter of law. In this situation, the Gibbs

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Bluebook (online)
744 S.W.2d 682, 1988 Tex. App. LEXIS 399, 1988 WL 13044, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stewart-v-city-of-austin-texapp-1988.