Court Opinion

ID: 9678050
Source: CourtListenerOpinion
Date Created: 2023-08-24 06:09:34.968595+00
Date Added: 2024-06-11T18:17:01.410602
License: Public Domain

CADENA, Chief Justice,
concurring:
While I agree that the judgment below should be affirmed, I cannot join in the conclusion that “the alleged actions of conversion and breach of contract and ... the impression of a constructive trust on the funds ” constitute “the primary and principal right asserted in” plaintiffs’ suit and that “the pleadings for recovery of title to royalty interests, although couched in terms of a trespass to try title suit,” are “ancillary and a method for asserting a claim to royalty interests in land.” Anglo Exploration Corp. v. Grayshon, 577 S.W.2d 742 (Tex.Civ.App.—San Antonio 1979, writ ref’d n.r.e.) does not support this conclusion.
The first count of plaintiffs’ petition is in the form of the traditional form of an action in trespass to try title and meets the requirements of Rule 783, TEX.R.CIV.P. This count, while describing the interest which plaintiffs’ claim (a royalty interest in described land), follows the usual practice and does not allege how plaintiffs acquired their interest, nor does it contain any allegation of fact, other than ownership, in support of plaintiffs’ claim of right to possession. Plaintiffs allege that defendants are withholding from plaintiffs the royalty interest and the right to receive the income from such interest.
The prayer under this first count is for judgment for title and possession of the royalty interest and for damages.
The second count is prefaced by a statement that it is an alternative pleading and is not a waiver of the first count. The allegations under this count are fairly summarized in paragraphs (1), (2) and (4) of the majority opinion except for the fact that the majority opinion fails to mention allegations that defendants breached a fiduciary duty.
By their prayer under the second count plaintiffs sought judgment for:
1. Title, possession and damages to their royalty interest.
2. An accounting of all royalties received by defendants.
3. The imposition of a constructive trust on such royalties.
4. The termination of such trust and disbursement of its assets.
5. Damages for breach of the agreement, breach of fiduciary duty, and conversion.
6. Exemplary damages, attorney’s fees, interest and court costs.
Grayshon merely holds that (1) a royalty interest is “land” for the purpose of fixing venue under subdivision 14, and (2) a suit claiming equitable title to land by means of a constructive trust is a suit for recovery of land under such subdivision. 577 S.W.2d at 744, 745.
In describing the nature of plaintiff’s suit in Grayshon, this Court said,
The principal right asserted in [plaintiff’s] suit for which relief is sought is for establishment through a constructive trust of an equitable title to 20% of certain overriding royalties received by defendants under an assignment of an oil, gas and mineral lease covering certain lands in Webb County. The action for *83specific performance and for breach of contract is merely ancillary thereto, ...
577 S.W.2d at 745.
The Grayshon opinion states that plaintiff’s prayer was “for 20% of the overriding royalty interest, ... for an accounting, for exemplary damages, and for other relief ...” 577 S.W.2d at 745. According to the transcript which is on file as part of the official records of this Court, plaintiff’s prayer was for (1) “any monies due after an accounting,” (2) 20% of the overriding royalty interest, (3) “20% of all monies received by defendants as a result of production from” the lease, (4) exemplary damages, and (5) costs and such other relief, etc.
The relief sought in Grayshon is the same as the relief sought by plaintiffs in this case. In both cases plaintiffs sought judgment awarding them title to the royalty interest, the only difference being that in this case a judgment for title was listed first in the prayer while in Grayshon plaintiff’s first prayer was for a judgment “for monies due” him. In Grayshon, plaintiff prayed for judgment for “20% of the” royalty interest while in this case plaintiffs, under both counts, prayed for judgment “for title and possession” and for damages. Grayshon, in his petition alleged that he “claims a constructive trust as to such royalty interest,” although his prayer does not ask that a constructive trust be impressed on such interest. In this case while plaintiff asked that a constructive trust be placed on the “royalties received by” defendants, his allegations of breach of a fiduciary duty by defendants state grounds for imposition of a constructive trust on the royalty interest. It is true that plaintiff in this case did not ask for such relief in his prayer, but neither did Grayshon.
There is no basis for holding that in Grayshon the primary purpose of the suit was the establishment of an equitable title to the royalty interest while in this case “the alleged actions of conversion and breach of contract as well as the impression of a constructive trust” on the monies received by defendants are the primary and principal rights asserted, with the pleadings for recovery of title to the royalty interest are “ancillary.” In both cases plaintiffs seek title to the royalty interest and recovery of the funds received by defendants.
The fact that, as asserted in the opinion of Justice Butts, the pleadings for recovery of the royalty interest in this ease is “a method for asserting a claim to royalty interests in land” is no basis for giving primacy to the allegations which seek a recovery of monies received by defendants. If that be true, the claim of a constructive trust in Grayshon would be reduced to a similar secondary and ancillary status because such claim is no more than a method for asserting a claim to royalty interests in land. The majority theory, which makes the primary purpose of plaintiffs’ suit the recovery, by means of a constructive trust, of monies received by defendant, leads to a strange result. Plaintiffs’ prayer in this case expressly seeks “an order terminating said trust and disbursing its assets.” Under the Justice Butts’ theory, the principal purpose of the suit is to recover only such funds as defendants might have in their hands on the date of judgment, when the constructive trust is to be terminated and the assets disbursed, and the prayer to establish title to the royalty interest be treated as something thrown in as an afterthought of little importance so long as plaintiffs recover the money already received by defendants. It is clear that plaintiffs seek to establish title to the royalty interest and, on the basis of such title, to establish their right to the royalty payments which defendants have received. This is exactly what plaintiff sought in Grayshon.
Plaintiffs’ alternative plea clearly recites that such alternative plea is not relied on to exclusion of any other title that plaintiffs’ might establish under the count in trespass to try title. The alternative plea did not bar proof by plaintiffs of any title they *84might establish under their trespass to try title count. Rhoades v. Meyer, 418 S.W.2d 300, 302 (Tex.Civ.App.—Texarkana 1967, writ ref d n.r.e.).
Plaintiffs’ pleadings in this case clearly establish that the suit is one for the recovery of title to land under subdivision 14.
However, I agree that the order sustaining the pleas of privilege of the five defendants other than Anne Fuller should be affirmed, because the evidence is sufficient to support the finding that the allegations in plaintiffs’ pleading seeking to maintain venue in Jim Hogg County under subdivision 14 were made in bad faith.
Plaintiffs’ claim of equitable title must rest on the fact that oil and gas were being produced on the land in question by December 24, 1976. All of the evidence is to the effect that there was no production of oil, gas or other minerals on the land until 1977. While the witness who gave such testimony could not definitely establish the date in 1977 when such production began, he clearly and directly testified that there had been no production prior to 1977. Although plaintiffs’ attorney testified that he embodied the venue allegations in the pleadings in good faith and had no personal knowledge as to whether production had begun by December 24, 1976, there is no testimony concerning the knowledge or belief of plaintiffs themselves. It would have taken no great effort for plaintiffs to discover whether there had, in fact, been production on the land prior to December 24, 1976. Plaintiffs had the means at hand of obtaining knowledge of the pertinent facts concerning production. There is no evidence that they made any effort to discover the relevant facts. Under these circumstances, the trial court did not abuse its discretion that in holding that the venue allegations were not made in good faith, and the evidence is sufficient to support the trial court’s finding. See Batex Oil Company v. La Brisa Land & Cattle Co., 352 S.W.2d 769, 772 (Tex.Civ.App.—San Antonio 1962, writ dism’d).