United Oil & Minerals, Inc. v. Costilla Energy, Inc.

1 S.W.3d 840, 146 Oil & Gas Rep. 380, 1999 Tex. App. LEXIS 6613, 1999 WL 675893
CourtCourt of Appeals of Texas
DecidedAugust 31, 1999
Docket13-98-319-CV, 13-98-609-CV
StatusPublished
Cited by41 cases

This text of 1 S.W.3d 840 (United Oil & Minerals, Inc. v. Costilla Energy, 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
United Oil & Minerals, Inc. v. Costilla Energy, Inc., 1 S.W.3d 840, 146 Oil & Gas Rep. 380, 1999 Tex. App. LEXIS 6613, 1999 WL 675893 (Tex. Ct. App. 1999).

Opinion

OPINION

Opinion by

Justice DORSEY.

Appellant United Oil & Minerals, Inc. (United) attempts to appeal a judgment to which it is not a party, having been earlier non-suited from the action. We hold it has no standing to appeal and dismiss its appeal. As an alternative, United brings a petition for writ of mandamus complaining of the trial judge’s action. We deny the writ.

This case involves the validity of an oil and gas lease, the Simpson lease. Cos-tilla Oil and Gas (Costilla) was the lessee, but farmed out 310 acres to Yuma Petroleum Co., which re-assigned to United. Costilla retained an interest. United drilled and completed a well, earning its interest under the farmout agreement. 2

A concern was raised about the continued validity of the Simpson lease, so United took a “top lease” from the lessors, including James E. Pilgreen and others. The top lease would only become operational if the Simpson lease expired. If the Simpson lease was held to be valid, the top lease would not have any effect.

Costilla sued United and the top lease lessors, including Pilgreen and the Zal-mans, appellees here (collectively Pil-green), seeking a declaratory judgment that the Simpson lease was valid, damages and an accounting. Pilgreen countersued, seeking a declaratory judgment that the Simpson lease had terminated. Pilgreen also filed a plea in abatement requesting that the lawsuit be abated until Costilla joined all necessary parties. United, although not seeking affirmative relief from any party, being only a defendant in Cos-tilla’s action, sought an abatement of both causes of action, Costilla’s and Pilgreen’s, claiming an absence of necessary parties.

By letter dated January 14, 1998, the district court notified the parties that it denied Pilgreen’s request for an abatement and granted United’s, but only as to Pil-green’s counterclaim seeking the declared termination of the Simpson lease. The court directed Pilgreen and United to submit orders to that effect. No orders were submitted and none were signed and entered.

On March 24, 1998, Costilla filed a second amended original petition in which United was omitted as a defendant. An amended pleading supersedes and supplants earlier original pleadings. Tex.R. Civ. P. 65. Prior parties that are omitted from subsequent pleadings for relief are dismissed from the action, just as if a formal order dismissing them had been entered. Webb v. Jorns, 488 S.W.2d 407, 409 (Tex.1972); Mercure Co., N.V. v. Rowland, 715 S.W.2d 677, 679 (Tex.App.—Houston [1st Dist.] 1986, writ ref'd n.r.e.). The amended petition, by omitting United, operated as a voluntary dismissal of Costil-la’s claims against United.

That same day, March 24th, Costilla, Pilgreen, and the Zalmans entered into a rule 11 agreement settling their dispute. *844 They presented the court with an agreed judgment, which the court signed. 3

United, who had not been notified of the nonsuit or the agreed judgment until after the fact, filed a Motion for New Trial and Motion to Modify, Amend or Correct Final Judgment and Alternatively, Plea in Intervention. Judge Peschel conducted a hearing on the motion, but never entered an order; the motion was overruled by operation of law. Tex.R. Crv. P. 329b(c).

Motion to Dismiss Appeal

Costilla and Pilgreen have filed a motion to dismiss the appeal, contending United lacks standing to appeal a judgment to which it is not a party. The crux of the motion is that because United was not a party to the final judgment, having been earlier nonsuited by Costilla and not having any pleadings for affirmative relief on file at the time, it may not complain of the judgment. Because it was not a party to the judgment, it has no standing to complain of it.

Rule 162 of the Texas Rules of Civil Procedure gives a plaintiff the right to take a nonsuit at any time before he has rested his case. The plaintiffs right to take a nonsuit is unqualified and absolute as long as the defendant has not made a claim for affirmative relief. BHP Petroleum Co. v. Millard, 800 S.W.2d 838, 840 (Tex.1990) (orig.proceeding). At the time Costilla filed the second amended original petition, United had not asserted any claims for affirmative relief against Costil-la. Thus, Costilla had an absolute right to nonsuit, and, as reflected in the court’s final judgment, United was no longer a party to the lawsuit.

Once a final judgment has been entered, only parties of record may exercise the right of appeal. Preston v. American Eagle Ins. Co., 948 S.W.2d 18, 20 (Tex.App.—Dallas 1997, no writ) (citing Continental Cas. Co. v. Huizar, 740 S.W.2d 429, 430 (Tex.1987)); see also Gunn v. Cavanaugh, 391 S.W.2d 723, 724 (Tex.1965) (generally, only parties of record may exercise a right of appeal).

United is not a party to the final judgment and has no standing to appeal that judgment. The motion to dismiss the appeal is GRANTED.

Mandamus

United has also filed a petition requesting mandamus relief, claiming it has a justiciable interest in the underlying controversy sufficient to permit it to contest the actions of the trial court.

Mandamus will issue only to correct a clear abuse of discretion or the violation of a duty imposed by law when there is no other adequate remedy provided by law. Canadian Helicopters Ltd. v. Wittig, 876 S.W.2d 304, 305 (Tex.1994) (orig.proceeding); In re Daisy Mfg. Co., 976 S.W.2d 327, 328 (Tex.App.—Corpus Christi 1998) (orig.proceeding).

We have already determined that United has no remedy by appeal, because it was not a party to the final judgment. The requirement for mandamus that there not be an adequate remedy by appeal has been met by applicant. To be entitled to mandamus relief, United must have a justiciable interest in the underlying controversy. Terrazas v. Ramirez, 829 S.W.2d 712, 723 (Tex.1991) (orig.proceeding) (citing Hunt v. Bass, 664 S.W.2d 323, 324 (Tex.1984); Mitchell v. Dixon, 140 Tex. 520, 168 S.W.2d 654, 656 (1943)). However, a person does not need to be a party to the underlying litigation in order to seek mandamus relief. Terrazas, 829 S.W.2d at 723, (citing Stewart v. McCain, 575 S.W.2d 509 (Tex.1978)).

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Bluebook (online)
1 S.W.3d 840, 146 Oil & Gas Rep. 380, 1999 Tex. App. LEXIS 6613, 1999 WL 675893, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-oil-minerals-inc-v-costilla-energy-inc-texapp-1999.