Sustainable Texas Oyster Resource Management L.L.C. v. Hannah Reef, Inc.

491 S.W.3d 96, 2016 WL 1267879
CourtCourt of Appeals of Texas
DecidedMarch 31, 2016
DocketNO. 01-15-01026-CV, NO. 01-16-00030-CV
StatusPublished
Cited by17 cases

This text of 491 S.W.3d 96 (Sustainable Texas Oyster Resource Management L.L.C. v. Hannah Reef, 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
Sustainable Texas Oyster Resource Management L.L.C. v. Hannah Reef, Inc., 491 S.W.3d 96, 2016 WL 1267879 (Tex. Ct. App. 2016).

Opinion

[100]*100OPINION

Laura Carter Higley, Justice

Oystermen (1) Hannah Reef, Inc., (2) Shrimps R Us, (3) Ivo Slabic, and (4) Michael Ivic seek to enforce property rights conferred to them under leases entitling them to cultivate and harvest oysters in certain parts of Galveston Bay and to enforce their rights to fish for oysters in public waters pursuant to licenses issued by the Texas Parks and Wildlife Department, an agency of the State of Texas. In 2014, the Chambers-Liberty Counties Navigation District (“the Navigation District”), to which the State had conveyed submerged land within Galveston and Chambers Counties in Galveston Bay, entered into a “Coastal Surface Lease” for “the Planting, Transplanting and Harvesting of Oysters (and other related purposes)” with appellee Sustainable Texas Oyster Resource Management L.L.C. (“STORM”).

The Oystermen sued STORM in Galveston County District Court, alleging that STORM has interfered with their respective property rights under their oyster leases. The Oystermen also sought a declaration that STORM cannot prohibit them from harvesting oysters in the public fishing areas.

STORM moved to transfer the venue of Shrimps R Us’s and Slabic’s claims to Chambers County, in which their two oyster leases lie. The trial court denied the motion, and STORM filed this interlocutory appeal and petition for writ of mandamus to challenge the order denying its motion to transfer venue.

We affirm the trial court’s order in the interlocutory appeal. Because STORM has an adequate remedy by appeal, we deny the petition for writ of mandamus.

Background

In 1957 and 1967, the State of Texas conveyed land submerged by the waters of Galveston Bay to the Navigation District. The submerged land, located in Chambers and Galveston Counties, was conveyed by a series of land patents. The patents expressly reserved mineral rights to the State. The patents also reserved, “for the benefit of the general public [,] the right to use that portion of the above described land which shall actually be covered by water for hunting, fishing, or other recreational purposes ...”

Between 1975 and 1989, the Texas Parks and Wildlife Department, an agency of the State, issued six certificates of location, leasing six tracts of submerged land in Galveston Bay to private parties. These six tracts of submerged land lie within the land transferred to the Navigation District by the State of Texas in 1957 and 1967. The six leases, known specifically as Lease Nos. 409A, 410A, 413A, 431A, 430A, and 433A, permit the leaseholders to plant and harvest oysters on the submerged land described in the leases.

Over the years, each of the six oyster leases was transferred to a different private party, as permitted by the Texas Parks and Wildlife Department. By 2014, the six leases were held by the Oystermen, as follows: Hannah Reef held Lease Nos. 413A and 433A; Shrimps R Us held Lease No. 431 A; Ivo Slabic held Lease No. 430A; and Michael Ivic held Lease Nos. 409A and 410A. The portion of the submerged land subject to the leaseholds owned by Hannah Reef and Ivic — Lease Nos. 409A, 410A, 413A, and 433A — are located in Galveston County. The portion of the submerged land subject to leaseholds owned by Slabic and Shrimps R [101]*101Us — Lease Nos. 430A and 431A — are in Chambers County. Thus, four of the oyster leases were located in Galveston County and two were located in Chambers County.

On April 14, 2014, the Navigation District entered into a “Coastal Surface Lease” with STORM. The Coastal Surface Lease grants STORM the exclusive right, for a period of 30 years, to cultivate and harvest oysters on approximately 23,-000 acres of submerged land in Galveston Bay. The lease states'that ownership of the submerged land was conveyed to the Navigation District by the State of Texas by patents in 1957 and 1967. Included within these 23,000 acres is the submerged land subject to the six private oyster leases issued by the Texas Parks and Wildlife Department and currently held by the four Oystermen.

On August 5, 2014, STORM sent a letter to the Oystermen entitled “No Trespass Notice” and “No Unauthorized Oyster Activities Notice.” The letter informed the Oystermen as follows:

This letter is written notice to you that [STORM] is the Lessee of the land described in the referenced Coastal Surface Lease from [the Navigation District]. [The Navigation District] obtained fee simple title to the land from the State of Texas by ... Letters Patent. The land is located along the shore of Trinity-Galveston-West-East Bay and is generally submerged land.
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[The Navigation District] acquired fee simple title to the land in 1957 & 1967. Pursuant to the lease, STORM has the superior right to use and possession of the land under [the Navigation District’s] fee simple-title for oyster purposes ....
The right to plant, cultivate and grow oysters on this land is inherent in [the Navigation District’s] fee title to the land; a right now leased to STORM. It has come to STORM’s attention that you might be engaged in or about to engage in oyster activities on the land that con.flict with STORM’s property rights and the lease. Be advised that under the lease, you may not engage in oyster activities upon the land without STORM’s consent. Likewise, under the Texas Parks &. Wildlife Code, you may not catch, by any means or method or possess an oyster on this land without STORM’s consent....
Any claim that the State of Texas has the right to authorize you to trespass upon the land-is without merit.
TAKE NOTICE that you do not have STORM’s consent to engage in oyster activities on the land. If you engage in oyster activities on the land, or interfere with STORM’s rights to úse and possession of the land, TAKE NOTICE that STORM will enforce its rights against trespassing and trespassers to the fullest extent or the law.

On July 24, 2015, the Oystermen filed suit against STORM in Galveston County District Court to enforce their respective property rights under the six private oyster leases. ■ They asserted, “Galveston County Venue in this Court is proper under Tex. Civ. Prac. Rem. Code, § 15.011, as this action relates to the lease of lands located in Galveston Bay, Galveston County, Texas and to remove encumbrances on and quiet title to said property.” The Oystermen asserted claims to quiet title, for trespass to try title, and for tortious interference with prospective business relations. They sought declaratory and in-junctive relief as well as damages.

On September 4, 2015, STORM answered, generally denying the Oyster-men’s claims and specifically denying the [102]*102venue allegations. STORM also filed a motion to transfer the suit to Chambers County. ■ STORM asserted venue was mandatory in Chambers • County for Shrimps R Us’s and Slabic’s claims because the leases held by those parties involve land located in Chambers County. STORM ultimately agreed that venue was proper in Galveston County for Hannah Reef s and Ivic’s claims because the oyster leases on which they base their claims involve land located in Galveston County.

On October 19, 2015, the Oystermen responded to the motion to transfer venue. They argued that venue is proper in Galveston County for Shrimps R Us’s.

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Cite This Page — Counsel Stack

Bluebook (online)
491 S.W.3d 96, 2016 WL 1267879, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sustainable-texas-oyster-resource-management-llc-v-hannah-reef-inc-texapp-2016.