Texaco v. Newton & Rosa Smith Charitable Trust

471 So. 2d 877
CourtLouisiana Court of Appeal
DecidedJune 12, 1985
Docket17012-CA
StatusPublished
Cited by24 cases

This text of 471 So. 2d 877 (Texaco v. Newton & Rosa Smith Charitable Trust) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Texaco v. Newton & Rosa Smith Charitable Trust, 471 So. 2d 877 (La. Ct. App. 1985).

Opinion

471 So.2d 877 (1985)

TEXACO, INCORPORATED, Initiator of the Concursus,
v.
NEWTON AND ROSA SMITH CHARITABLE TRUST, Defendant-Appellant,
Michael R. Smith and Cheryl L. Smith, Defendants-Appellees.

No. 17012-CA.

Court of Appeal of Louisiana, Second Circuit.

June 12, 1985.

*878 Blanchard, Walker, O'Quin & Roberts by Reginald E. Cassibry, Shreveport, for Texaco, Inc.

Egan & Cook by Reuben W. Egan, and Patricia L. Roberts, Shreveport, for Newton & Rosa Smith Charitable Trust—appellant.

Peters, Ward, Bright & Hennessy by Frank Bright and J. Patrick Hennessy, Shreveport, for defendants-appellees Michael R. Smith and Cheryl L. Smith.

Lee & Bartage by Gordon O. Bartage, Shreveport, for defendant-appellee Curator Ad Hoc for Newton Smith.

Before MARVIN, JASPER E. JONES, SEXTON, JJ.

JASPER E. JONES, Judge.

The plaintiff, Texaco Incorporated, instituted this concursus proceeding to determine the ownership of a ½ mineral interest in a 500 acre tract of land in Caddo Parish. Funds accruing to the disputed interest were deposited in the registry of the court. The claimants are: (1) Michael and Cheryl Smith (appellees) who are the record owners of the 500 acres; and (2) the Newton and Rosa T. Smith Charitable Trust.[1] The Charitable Trust appeals a summary judgment decreeing appellees to be the owners of the disputed interest and awarding appellees the funds deposited in the registry of the court. We affirm.

It is undisputed that a mineral servitude covering the disputed interest was created in favor of the Charitable Trust by the will of Rosa T. Smith and that the servitude so created prescribed by ten years nonuse in December, 1975.[2] The major issues raised on appeal are whether a new servitude in favor of the Charitable Trust was created in a March 5, 1976 act of transfer of the ownership of the 500 acres from the owner to appellees' ancestors in title and if not, whether appellees are estopped from asserting *879 their claims to the disputed interest.

Newton and Rosa T. Smith, husband and wife, formerly owned the 500 acre tract as part of their extensive land holdings in Caddo Parish. No children were born of the marriage between Newton and Rosa but they took a special interest in Newton Alberta and Joseph Alberta who lived on their property. Newton Smith died testate on November 20, 1956 leaving all his property to his wife. Rosa died testate on February 21, 1958. Her will directed the establishment of two trusts relevant to this litigation, the Newton and Rosa T. Smith Charitable Trust and the Alberta Children Trust.

Rosa left a ½ mineral interest in all of her property to the Charitable Trust. It was also provided that the trust was to remain in existence for as long as the law allowed.

To the Alberta Children Trust Rosa left the 500 acre tract for the benefit of the Alberta brothers subject to the mineral servitude in favor of the Charitable Trust. She directed that this trust was to remain in existence until the 25th birthday of the younger brother, Joseph, at which time ownership of the property would be transferred to the brothers in indivision.

The cumulative effect of the creation of the two trusts was to grant the Charitable Trust a servitude over ½ the minerals in the 500 acre tract, the title to which was left to the Alberta Children Trust. After Rosa's death there was some drilling activities on the land covered by the servitude. All activities which would have served to interrupt prescription terminated on December 9, 1965 and prescription accrued on December 9, 1975.

Joseph Alberta had his 25th birthday on March 5, 1976 and on that date the trustees of the Alberta Children Trust transferred ownership of the 500 acres to the brothers. The act of transfer provides in part:

"The real property herein conveyed is subject to:
(1) An oil, gas and mineral lease executed by vendors in favor of Lee Kinnebrew, husband of Grace M. Kinnebrew, under date of October 29, 1974, for a primary term of five (5) years, and
(2) An agricultural lease executed by vendors in favor of W.L. McKinney, under date of December 12, 1974, for a primary term of two (2) years, and
(3) A reservation of one-half (½) of the oil, gas and other minerals under the real property conveyed in favor of the NEWTON AND ROSA T. SMITH CHARITABLE TRUST, a Louisiana non-profit corporation, domiciled in Shreveport, Caddo Parish, Louisiana." (emphasis added)

The Alberta brothers divested themselves of the ownership of the 500 acres through several conveyances to James R. Kavanaugh.[3] Each act of conveyance recognizes that the property sold was subject to the reservation of ½ the minerals in favor of the Charitable Trust. Appellees, who are unrelated to Newton and Rosa Smith, acquired ownership of the 500 acres in two transactions, in June, 1978 and February, 1981, from vendees of Kavanaugh.

On April 10, 1980 appellees at the request of Wilburn Lunn, a lawyer, who at the time was a trustee for the Charitable Trust and who represented appellees in the first transaction in which they purchased a portion of the 500 acres, executed an instrument which states that with respect to the portion of the tract purchased in June, 1978, they do hereby ratify and confirm:

"(1) the reservation of one-half (½) of the oil, gas and other minerals under said property in favor of the Newton and Rosa T. Smith Charitable Trust, a Louisiana non-profit corporation, domiciled in Caddo Parish, Louisiana."

On April 11, 1980 Newton Alberta executed a document which stated:

"BEFORE ME, the undersigned authority, personally came and appeared Newton Smith [Alberta], husband of Ruthie Marie Fuller Smith, and a resident of Harris County, Texas, who declared:
*880 That with respect to the property acquired by him from the Trustees under the trust created under the will of Rosa Anna Teamer Smith, under date March 5, 1976, as recorded in Conveyance Book 1534 page 58 of the records of Caddo Parish, Louisiana, he does hereby ratify and confirm
The reservation of one-half (½) of the oil, gas and other minerals under said property in favor of the Newton and Rosa T. Smith Charitable Trust, a Louisiana non-profit corporation, domiciled in Caddo Parish, Louisiana.
This correction and amendment is made to more definitely set forth the division of the mineral interest intended under the conveyance of said property, with appearer and his brother Joseph Leon Smith, acquiring the remaining one-half (½) interest in the minerals under said property."

NEW SERVITUDE

Appellant contends that the "subject to the reservation of minerals" clause in the March 5, 1976 act of transfer of the 500 acres from the Alberta Children Trust to the brothers created a new servitude in favor of the Charitable Trust.[4] In the alternative it contends that it should be allowed to put on parol evidence to show that the parties to the act of transfer intended to create a new servitude. The trial court rejected both contentions.

The reservation or sale of minerals creates a real right in property in the nature of a servitude. LSA-R.S. 31:18 and 21; Steele v. Denning, 445 So.2d 94 (La. App.2d Cir.1984), aff. 456 So.2d 992. The right to impose a servitude on land belongs exclusively to the owner of the land and a mineral servitude can be created only by a landowner who owns the minerals. LSA-R.S.

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Bluebook (online)
471 So. 2d 877, Counsel Stack Legal Research, https://law.counselstack.com/opinion/texaco-v-newton-rosa-smith-charitable-trust-lactapp-1985.