THOMSON OIL ROYALTY, LLC v. Graham

351 S.W.3d 162, 180 Oil & Gas Rep. 82, 2011 Tex. App. LEXIS 7901, 2011 WL 4549365
CourtCourt of Appeals of Texas
DecidedSeptember 30, 2011
Docket12-10-00422-CV
StatusPublished
Cited by18 cases

This text of 351 S.W.3d 162 (THOMSON OIL ROYALTY, LLC v. Graham) 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
THOMSON OIL ROYALTY, LLC v. Graham, 351 S.W.3d 162, 180 Oil & Gas Rep. 82, 2011 Tex. App. LEXIS 7901, 2011 WL 4549365 (Tex. Ct. App. 2011).

Opinion

OPINION

JAMES T. WORTHEN, Chief Justice.

Thomson Oil Royalty, LLC appeals the trial court’s summary judgment entered in favor of Appellee Camille Tucker Graham. In four issues, Thomson Oil contends that the trial court erred in granting summary judgment in Graham’s favor. We affirm.

Background

In 2008, Thomson Oil and EOG Resources, Inc. (EOG) attempted to acquire mineral leases in the Haynesville Shale formation located in San Augustine County, Texas. Both parties contacted Graham about leasing minerals she owned in San Augustine County. The summary judgment evidence reveals that the following relevant events transpired:

• On July 21, Graham signed a memorandum of oil, gas, and mineral lease with EOG, in which she agreed to lease a 306 acre tract to EOG for $127,000.00. The effective date of the lease is July 18, 2011.
• On July 23, Terry Scull, the manager for Thomson Oil, contacted Graham concerning Thomson Oil’s leasing the same 306 acre tract and a 241 acre tract from her.
• On July 24, Thomson Oil sent Graham an oil and gas lease for the 306 and 241 acre tracts as well as a bank draft for $136,755.00.
• On July 25, Graham signed the lease to Thomson Oil covering the 306 and 241 acre tracts.
• On July 28, Scull contacted EOG seeking to assign Thomson Oil’s lease covering the 306 and 241 acre tracts to EOG for consideration.
• On July 30, EOG recorded its memorandum of oil, gas, and mineral lease in volume 114, page 296 of the Real Property Records of San Augustine County. Thereafter, EOG notified Scull of its lease covering the 306 acre tract. Scull later saw this recorded memorandum in the San Augustine County clerk’s office.
• Scull had a telephone conversation with Graham during which she admitted that the 306 acre tract previously had been leased to EOG. Thereafter, Graham’s attorney sent Scull a letter confirming the prior lease to EOG and requesting that he return the signed lease to Graham and refuse to pay the thirty day bank draft of $136,755.00.
• On August 25, Thomson Oil paid the $136,755.00 bank draft to Graham.
• On August 27, Thomson Oil filed the July 25 lease from Graham covering both the 306 and 241 acre tracts in volume 116, page 505 of the Real Property Records of San Augustine County. Thereafter, Thomson Oil assigned its interest in the 241 acre tract to Devon Energy for $200,000.00.

On December 19, 2008, Thomson Oil filed suit against Graham seeking damages for statutory fraud, common law fraud, breach of contract, breach of warranty of title, and unjust enrichment. Graham an *165 swered alleging the affirmative defense of ratification and further alleging that no warranty had been made to Thomson Oil in conjunction with the lease at issue.

Thereafter, Thomson Oil filed a traditional motion for partial summary judgment, in which it argued that Graham had breached her warranty of title to Thomson Oil. Graham filed a traditional motion for summary judgment arguing that (1) Thomson Oil had ratified the lease and (2) no warranty had been made in the lease to Thomson Oil. The trial court denied Thomson Oil’s motion for partial summary judgment and granted Graham’s motion. This appeal followed.

Motion for Summary Judgment

In four issues, Thomson Oil contends that the trial court erred in granting Graham’s motion for summary judgment because (1) the lease at issue was not a quitclaim; (2) Thomson Oil’s causes of action for common law fraud and statutory fraud were not before the court; (8) Graham was not entitled to summary judgment on her affirmative defense of ratification; and (4) the other affirmative defenses asserted by Graham were not relevant to the trial court’s decision.

Standard of Review

The movant for traditional summary judgment has the burden of showing there is no genuine issue of material fact and that it is entitled to judgment as a matter of law. TEX.R. CIV. P. 166a(c); Nixon v. Mr. Property Mgmt. Co., 690 S.W.2d 546, 548 (Tex.1985). When a defendant moves for summary judgment based on an affirmative defense, such as ratification, the defendant, as movant, bears the burden of proving each essential element of that affirmative defense. See Ryland Group, Inc. v. Hood, 924 S.W.2d 120, 121 (Tex.1996). Once the movant has established a right to summary judgment, the burden of proof shifts to the nonmov-ant to respond to the motion and present to the court any issues that would preclude summary judgment. See City of Houston v. Clear Creek Basin Auth., 589 S.W.2d 671, 678-79 (Tex.1979).

We review the entire record de novo in the light most favorable to the nonmovant and indulge every reasonable inference to resolve any doubts against the motion. See Sudan v. Sudan, 199 S.W.3d 291, 292 (Tex.2006); KPMG Peat Marwick v. Harrison County Fin. Corp., 988 S.W.2d 746, 748 (Tex.1999). If, as in the instant case, the order granting the summary judgment does not specify the grounds upon which judgment was rendered, we must affirm the summary judgment if any of the grounds in the summary judgment motion is meritorious. See FM Props. Oper. Co. v. City of Austin, 22 S.W.3d 868, 872 (Tex.2000). Further, when competing motions for summary judgment are filed, and one is granted while the other is denied, we first review the order granting summary judgment. See Cent. Mut. Ins. Co. v. KPE Firstplace Land, LLC, 271 S.W.3d 454, 458 (Tex.App.-Tyler 2008, no pet.).

Ratification

In its third issue, Thomson Oil contends that Graham failed to prove she was entitled to judgment as a matter of law on her affirmative defense of ratification.

Applicable Law

A contract procured by fraud can be ratified. See Harris v. Archer, 134 S.W.3d 411, 427 (Tex.App.-Amarillo 2004, pet. denied). Ratification is the adoption or confirmation, by one with knowledge of all material facts, of a prior act that did not then legally bind that person and which that person had a right to repudiate. *166 Enserch Corp. v. Rebich, 925 S.W.2d 75, 84 (Tex.App.-Tyler 1996, writ dism’d by agr.).

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Bluebook (online)
351 S.W.3d 162, 180 Oil & Gas Rep. 82, 2011 Tex. App. LEXIS 7901, 2011 WL 4549365, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomson-oil-royalty-llc-v-graham-texapp-2011.