Charles Alford and Mary Lou Alford v. Robert Thomas McKeithen, EOG Resources, Inc. and Central Texas Land Services

ACCEPTED 12-14-00262 TWELFTH COURT OF APPEALS TYLER, TEXAS 7/10/2015 4:55:37 PM CATHY LUSK CLERK NO. 12-14-00262-CV IN THE FILED IN 12th COURT OF APPEALS TYLER, TEXAS TWELFTH COURT OF APPEALS 7/10/2015 4:55:37 PM CATHY S. LUSK SITTING AT TYLER, TEXAS Clerk ___________________________ CHARLES ALFORD AND MARY LOU ALFORD, APPELLANTS VS. ROBERT THOMAS MCKEITHEN, EOG RESOURCES, INC., AND CENTRAL TEXAS LAND SERVICES, APPELLEES. ___________________________ Appealed from the 1ST Judicial District Court of San Augustine County, Texas Trial Court No. CV-12-9344 BRIEF OF APPELLEE ROBERT THOMAS MCKEITHEN Noel D. Cooper Texas Bar No. 00796397 LAW OFFICES OF NOEL D. COOPER 117 North St., Suite 2 Nacogdoches, Texas 75961 Telephone: (936) 564-9000 Telecopier: (936) 715-6022 Email: noelcooper@noelcooper.com ATTORNEY FOR APPELLEE, ROBERT THOMAS MCKEITHEN ORAL ARGUMENT REQUESTED NO. 12-14-00262-CV CHARLES ALFORD AND MARY LOU ALFORD, APPELLANTS VS. ROBERT THOMAS MCKEITHEN, EOG RESOURCES, INC., AND CENTRAL TEXAS LAND SERVICES, APPELLEES. IDENTITY OF PARTIES & COUNSEL Appellant certifies that the following is a complete list of the parties, attorneys, and any other person who has any interest in the outcome of this lawsuit: Noel D. Cooper Texas Bar No. 00796397 LAW OFFICES OF NOEL D. COOPER 117 North St., Suite 2 Nacogdoches, Texas 75961 Telephone: (936) 564-9000 Telecopier: (936) 715-6022 Email: noelcooper@noelcooper.com ATTORNEY FOR APPELLEE, ROBERT THOMAS MCKEITHEN ROBERT THOMAS MCKEITHEN APPELLEE Tom Rorie Attorney at Law 210 North Street Nacogdoches, Texas 75961 TEL: (936) 559-1188 FAX: (936) 559-0099 Email: trorie@sbcglobal.net ATTORNEY FOR APPELLANTS, CHARLES ALFORD AND MARY LOU ALFORD -2- CHARLES ALFORD AND MARY LOU ALFORD APPELLANTS Jason R. Mills FREEMAN MILLS PC 110 N. College, Suite 1400 Tyler, Texas 75702 TEL: (903) 592-7755 FAX: (903) 592-7787 Email: eservicejrm@freemanmillspc.com ATTORNEY FOR APPELLEES, EOG RESOURCES, INC. AND CENTRAL TEXAS LAND SERVICES EOG RESOURCES, INC. APPELLEE CENTRAL TEXAS LAND SERVICES APPELLEE -3- TABLE OF CONTENTS IDENTITY OF PARTIES & COUNSEL .......................................................... 2 TABLE OF CONTENTS ................................................................................. 4 INDEX OF AUTHORITIES ........................................................................... 5 STATEMENT OF THE CASE ........................................................................ 7 ISSUES PRESENTED ................................................................................... 8 STATEMENT OF FACTS ............................................................................... 8 SUMMARY OF THE ARGUMENT............................................................... 11 ARGUMENT.................................................................................................12 Response to The trial court did not err in Appellants’ Issue 1: holding that the mineral reservation was incorporated into the Deed.....................12 PRAYER ...................................................................................................... 23 CERTIFICATE OF COMPLIANCE .............................................................. 23 CERTIFICATE OF SERVICE....................................................................... 24 APPENDIX .................................................................................................. 25 -4- INDEX OF AUTHORITIES CASES American Physicians Ins. Exch. v. Garcia, 876 S.W.2d 842 (Tex. 1994) .......................................................................................... 15 Duhig v. Peavy-Moore Lumber Co., Inc., 144 S.W.2d 878 (Tex. 1940) ..........................................................................................16 Dupnik v. Hermis, No. 04–12–00417–CV, 2013 Tex. App. Lexis 2461, 2013 WL 979199 (Tex. App.—San Antonio March 13, 2013, pet. denied)(mem. op.) ... 18 Equistar Chems., L.P. v. Dresser-Rand Co., 240 S.W.3d 864 (Tex. 2007)..........................................................................................12 Gulf States Utils. Co. v. Low, 79 S.W.3d 561 (Tex. 2002) ......................................................................................... 15 Harmes v. Arkalatex Corp. 615 S.W.2d 177 (Tex. 1981)........................................................................................... 15 Harris v. Windsor, 294 S.W.2d 798 (Tex. 1956) ..........................................................................................16 Italian Cowboy Partners v. Prudential Ins., 341 S.W.3d 323 (Tex. 2011)........................................................................................... 17 Klein v. Humble Oil & Refining Co., 67 S.W.2d 911 (Tex. Civ. App.—Beaumont 1934), aff'd, Klein v. Humble Oil & Refining Co., 86 S.W.2d 1077 (1935) ..............16 Mitchell v. Castellaw, 246 S.W.2d 163 (Tex. 1952) .......................................................................................... 17 Southwestern Bell Tel. Co. v. DeLanney, 809 S.W.2d 493 (Tex. 1991) ........................................................................................... 15 -5- Smith v. Allison, 301 S.W.2d 608 (Tex. 1956) ..........................................................................................16 Spencer v. Eagle Star Ins. Co. of America, 876 S.W.2d 154 (Tex., 1994) .........................................................................................12 RULES TEX. R. APP. P. 44 ..........................................................................................21 TEX. R. CIV. P. 272 ........................................................................................12 TEX. R. CIV. P. 273.........................................................................................12 TEX. R. CIV. P. 274 ........................................................................................12 Tex. R. Civ. P. 279.........................................................................................14 -6- NO. 12-14-00262-CV CHARLES ALFORD AND MARY LOU ALFORD, APPELLANTS VS. ROBERT THOMAS MCKEITHEN, EOG RESOURCES, INC., AND CENTRAL TEXAS LAND SERVICES, APPELLEES. BRIEF OF APPELLEE ROBERT THOMAS MCKEITHEN COMES NOW, Noel D. Cooper, counsel for Appellee, Robert Thomas McKeithen, hereinafter identified as “Robert” or “McKeithen,” in the above numbered cause, and files this Appellee’s Brief and would show this Honorable Court as follows: STATEMENT OF THE CASE Nature of the Case. McKeithen was the sole heir of Annie and Jack Jessup, two long-time residents of San Augustine County, Texas. Appellants were ranchers and farmers in San Augustine County, and they rented property from the Jessups for their cattle. The purchased the Jessups’ property in 2003 to graze their cattle, and they never discussed the mineral estate. A Special Warranty Deed With Vendor’s Lien (“the Deed”) and a Deed Of Trust were was drawn up to reflect the agreements of the parties, and a mineral reservation was included in one of the legal descriptions. After the fracking boom began in San Augustine County, Appellants -7- brought suit against Appellees seeking to reform the deeds between Appellants and the Jessups to remove the mineral reservation. Course of Proceedings. All parties moved for summary judgment, and the trial court denied all motions for summary judgment. CR 2:93, 3:87. A jury was selected, and evidence was heard on May 6 and 7, 2014. Trial Court Disposition. A verdict was returned by the jury, and the trial court entered a take-nothing judgment as to all of the Appellants’ claims. CR 3:133. ISSUES PRESENTED FOR REVIEW Response to Issue 1: Appellants erroneously contend that the trial court erred in ruling that the mineral reservation in the Warranty Deed With Vendor’s Lien was incorporated into the deed. At first review of the record, Appellants’ waived this issue at the trial court. Appellants failed to object to the jury charge which included an instruction to the jury regarding mineral reservation, effectively conceding that this was a lost cause for them. However, even had there not been a waiver, the Appellants are incorrect regarding the law as it relates to the Deed. STATEMENT OF FACTS This is a case about a pasture, 117 acres out of 128 acres of pasture, which the Appellants purchased from the Jessups in 2003. RR 3:18,26. For -8- five or six years, Appellants leased the pasture from Jack and Annie Jessup. RR 3:16-17. In 2002, Annie asked Mary Lou if she knew of anyone who would want to purchase the pasture. RR 3:18. Mary Lou was interested, but the Appellants could not afford the pasture at that time. RR 3:18. The next year, Mary Lou approached Annie about buying the pasture, and they entered into an oral contract for the sale of the pasture for $80,000, or about $684/acre. RR 3:18-20. Mary Lou and Annie never discussed the mineral estate. RR 3:20. Appellants and the Jessups met at the office of a local attorney, and paperwork was drawn up for the sale of the pasture plus the Jessups’ house. RR 3:22. Appellants signed a Deed of Trust. RR 3:31- 32. Mary Lou conceded that the mineral estate was not part of Appellant’s contract with the Jessups to buy the pasture. RR 3:53. More importantly, she and her husband would have purchased the pasture with or without the mineral estate; they got a great deal on the pasture. RR 3:53. Mary Lou agreed that the contract to purchase the pasture was a handshake deal between people with an ongoing business relationship. RR 3:56. Mary Lou did completely read neither the Deed or the Deed of Trust. RR 3:57. Robert was the Jessups’ nephew and their sole heir. RR 3:59-60. Before Mr. Jessup had passed, Robert was appointed his guardian. RR 3:74. -9- After the pasture had been sold to the Jessups, Robert was approached about leasing the mineral rights under the pasture, and he leased them. RR 3:68-69. The guardianship proceedings were initiated so that Robert could lease the mineral rights to EOG. RR 3:78. At some point, Mary Lou’s daughter-in-law, Brenda, called Mary Lou and told her that Robert had made a deposit of funds that he received from EOG. RR 3:46. Mary Lou called Robert and wanted him to sign a release of lien on the pasture she and her husband bought, and when Robert reviewed the proposed release, it did not release just the lien but also had sneaked in a line by which he would release all of his mineral rights. RR 3:71. Appellants later sued Robert. CR 1:4. Connie Vaughn worked for Ken Muckleroy as a part-time real estate closer. RR 4:16-17. According to her description of her duties, a real estate closer would meet with the parties in conjunction with a real estate closing, review all of the documentation with them, make sure everything was correct, and the proceed with the parties’ signing the documents. RR 4:17. Ms. Vaughn knows that she prepared documents for selling the pasture, but she had no specific recollection of the closing. RR 4:24-25. She reviewed the Exhibit A attached to the Deed. RR 4:29. The earlier instruments from which she obtained the property description would have usually been - 10 - brought to her by the property sellers, but she had no memory of whether the Jessups had brought the particular legal description to her. RR 4:35. She agreed that it was possible that the Jessups gave the legal description to her knowing that the mineral reservation was in there. RR 4:36. Ms. Vaughn agreed that the face of the Deed referenced a 1950 instrument with the same mineral reservation, and that if the metes and bounds had not been attached to the Deed, only the reference to the 1950 instrument, the Deed still would have been valid. RR 4:40-41. The attorney who employed Ms. Vaughn, Ken Muckleroy, could not recall meeting with the Jessups and the Alfords, and he had no specific recollections about the transaction which led to this litigation. RR 4:65-66. SUMMARY OF THE ARGUMENT Appellants were poured out of court by a jury of their peers because the causes of action under which they chose to sue McKeithen had no factual support. In their sole ground for appeal, they argue not about those facts or the jury charge but about one ruling made by the trial court. That one complaint boils down to their assertion that the mineral reservation attached to the Deed was not actually incorporated into the Deed. However, Appellants failed to preserve this issue as they did not object to an instruction on this point included in the Charge of the Court. This really - 11 - was a last-ditch effort as Appellants raised this issue with the trial court at the 11th hour and after their motion for summary judgment had been heard. However, even if they had not waived their sole complaint, Texas case law is firmly against their position, and Appellants fail to address a recent decision from another Texas appellate court which is exactly on point and for which the Texas Supreme Court denied the petition for review. Finally, their request for a remand on damages is frivolous and without merit. ARGUMENT Response to Appellants’ Issue 1: The trial court did not err in ruling that the mineral reservation was incorporated into the deed. Argument & Authorities This matter started out as a suit to reform the Deed to remove the mineral reservation, CR 1:4, and evolved to include a claim for trespass to try title. CR 3:88. Only the trespass to try title and reformation claims were submitted to the jury, CRS 2:4,8,9, and the jury found against Appellants on both of these issues. CRS 2:8,9. The jury also found that the Appellants had not utilized due diligence in reviewing the deed. CRS 2:10. Well after all of the parties had filed and had heard their motions for summary judgment and six (6) days before jury selection, Appellants filed a Motion for Court to Construe Document Prior to Evidence and Submission of Issues to Jury In - 12 - Trial. CR 3:118-21. The trial court ruled that “under the rules of construction of documents that the language stating a mineral reservation found in the description of a 117 acre tract described as Tract 1 in Exhibit ‘A’ attached to that deed: Is Incorporated [sic] into the Deed.” CRS 4-5 (Ex. 1). Appellants’ sole issue is that the trial court incorrectly ruled that the mineral reservation was incorporated into the Deed. Appellants Waived This Issue Appellants waived this issue for purposes of appeal. “All objections [to the charge] not so presented shall be considered as waived.” TEX. R. CIV. P. 272. “Either party may present to the court and request written questions, definitions, and instructions to be given to the jury . . . . A request by either party for any questions, definitions, or instructions shall be made separate and apart from such party’s objections to the court’s charge.” TEX. R. CIV. P. 273. “A party objecting to a charge must point out distinctly the objectionable matter and the grounds of the objection. Any complaint as to a question, definition, or instruction on account of any defect, omission, or fault in pleading, is waived unless specifically included the objections.” TEX. R. CIV. P. 274. A party must object to an erroneous or defective question, instruction, or definition. See Equistar Chems., L.P. v. Dresser-Rand Co., 240 S.W.3d 864, 868 (Tex. 2007)(holding that failure to - 13 - object to an improper instruction waived that issue); Spencer v. Eagle Star Ins. Co. of America, 876 S.W.2d 154, 157 (Tex., 1994)(holding an objection is necessary to preserve error on improper instruction). During the formal charge conference, Appellants’ only objections to the Charge of the Court concerned Question No. 3, the Due Diligence issue. RR 4:105-06. Appellants did no object to any other part of the Charge of the Court. RR 4:passim. Thus, the following question was submitted to the jury without objection from Appellants: - 14 - CRS 2:8 (Ex. 2). Included in the instructions is the following: “You are further instructed that Exhibit A was incorporated into the Deed.” Id. While Appellants are not specifically complaining about the Charge of the Court, they are complaining about a finding, and they waived this issue by not complaining during the charge conference to an instruction which directly addressed the issue about which they were complaining. There is a large body of case law which has held that a party can waive an entire theory of recovery or damage by not objecting with its omission from the charge. TEX. R. CIV. P. 279; see Gulf States Utils. Co. v. Low, 79 S.W.3d 561, 565 (Tex. 2002); Harmes v. Arkalatex Corp. 615 S.W.2d 177, 179 (Tex. 1981); see, e.g., American Physicians Ins. Exch. v. Garcia, 876 S.W.2d 842, 848 n.12 (Tex. 1994)(holding that defendant waived estoppel defense); Southwestern Bell Tel. Co. v. DeLanney, 809 S.W.2d 493, 495 (Tex. 1991)(holding that plaintiff waived breach of contract claim). Appellants cannot now come and complain of the trial court’s ruling when they did not object to the jury being given this instruction. The Mineral Reservation Was Incorporated Into the Deed Irrespective of whether Appellants waived their one complaint on appeal, they never address any of the litany of Texas court decisions interpreting mineral reservations and instead rely totally on general - 15 - contract cases. Texas courts “have long since relaxed the strictness of the ancient rules for the construction of deeds, and have established the rule for the construction of deeds as for the construction of all contracts,-that the intention of the parties, when it can be ascertained from a consideration of all parts of the instrument, will be given effect when possible. That intention, when ascertained, prevails over arbitrary rules.” Harris v. Windsor, 294 S.W.2d 798, 800 (Tex. 1956). “The ultimate purpose in construing a deed is to ascertain the intention of the grantor, and when this intention is ascertained, that construction which carries the intention into effect, when such intention is lawful, governs and controls.” Smith v. Allison, 301 S.W.2d 608, 614 (Tex. 1956). “The cardinal rule for the construction of deeds is to ascertain the intention of the parties as expressed in the deed.” Klein v. Humble Oil & Refining Co., 67 S.W.2d 911, 914 (Tex. Civ. App.—Beaumont 1934), aff'd, Klein v. Humble Oil & Refining Co., 126 Tex. 450, 86 S.W.2d 1077, 1078 (1935). A reservation on the face of the deed only serves to further identify what is included in the metes and bounds. See Duhig v. Peavy-Moore Lumber Co., Inc., 144 S.W.2d 878, 879 (Tex. 1940). Further, the trial court ruled that the Deed was ambiguous. CRS 4. When the court determines that the contract language is ambiguous, the intended meaning of that language becomes a fact issue for the trier of - 16 - fact and extraneous evidence may be admitted to help determine the language’s meaning. Italian Cowboy Partners v. Prudential Ins., 341 S.W.3d 323, 333-34 (Tex. 2011). The agreement of the parties was to purchase the pasture. RR 3:18- 20. Would anyone, reading the entire document which was filed with the San Augustine County Clerk, have had any doubt of the mineral reservation in Tract One? The short answer is “no.” Moreover, if the mineral reservation was simply lifted from the metes and bounds to the first page of the deed, it would be obvious that it would serve the effect of the reservation. See Mitchell v. Castellaw, 246 S.W.2d 163, 164-65 (Tex. 1952). Appellants signed a deed of trust with the exact same mineral reservation. Mary Lou and her husband would have bought with pasture with or without the mineral estate, RR 3:53, and she conceded that neither she nor the Jessups ever uttered the word “minerals.” RR 3:56. Appellants were running cattle on the pasture when they bought it, RR 3:34, and they were still using the pasture for that purpose at the time of trial. RR 3:56. If we are trying to determine the intent of the parties, the intent is clear: Appellants did not intend to purchase the mineral estate. Nowhere in the record does it say that Appellants intended to purchase the mineral estate beneath the pasture. - 17 - Appellants are aware of adverse case law directly on point which is controlling to their single issue, though they never cite or contrast that law to this appeal. It is troubling that Appellants, though they have been aware of adverse authority for over a year, CR 2:143-147, do not even make mention of it in their brief. A recent case from San Antonio considered a deed like the one in this case. Dupnik v. Hermis, No. 04–12–00417–CV, 2013 Tex. App. Lexis 2461, 2013 WL 979199 (Tex. App.—San Antonio March 13, 2013, pet. denied)(mem. op.)(Ex. 3). In that case, four co-tenants partitioned a nearly 100-acre piece of land in 1983, but the minerals remained undivided. Id. at *2. In 1991, Hermis, an original cotenant, conveyed Dupnik, another original cotenant, one surface acre and her 114 mineral interest 1n the acre. Id. Hermis did the same thing in 1994 with five acres (the five acres included the previously conveyed one acre). Id. Then in 1998 Hermis conveyed her entire 24.68-acre tract to Dupnik. Id. The 1998 deed contained the same alleged problem as the deed in this case. The property description in the deed contained an acreage amount and survey, but also relied on a description in the attached Exhibit A. Id. at *3. But while the reservation in the deed said "none," the description described tract two as "the surface only." Id. - 18 - Dupnik arose out of the same error as this case: the property description in the 1998 deed was copied out of an older deed. Id at *4. Dupnik sued in 2011 for a declaratory judgment on her mineral ownership in the land. Id. at *3. The trial court found that the deed unambiguously contained a binding mineral reservation. Id. at * 1. The court of appeals affirmed, first because Dupnik's claim to the minerals was barred by limitations, and second because the deed unambiguously contained a binding mineral reservation. Id. at * 12, * 15. Courts must interpret deeds harmoniously to give effect to all their parts. Id. at *13-*14. The intent to be enforced is not the parties' subjective intent, but rather the intent "from the language used within the instrument's four comers[.]" Id. at * 15. Therefore, "the actual, subjective intent of the parties will not always be given effect even if [the court] were able to discern that subjective intent." Id. (internal quotations omitted). Applying those interpretive rules, the court of appeals in Dupnik properly found that the reservation of "none" simply meant that the grantor was not retaining the rights "to any of the substances that belong to the surface estate owner." Id. (citing Moser v. US. Steel Corp., 676 S.W.2d 99, 102 (Tex. 1984)). The tract at issue in this case is Tract One of the deed, and the - 19 - Jessups stated that the property being conveyed is more particularly described in the exhibit to the Deed. The exhibit describes the location of the tract and states that the conveyance does not include one half of all the minerals beneath the tract. The Deed also contains the following provision under the heading “Exemptions to Conveyance and Warranty:” RR 5:PX-2. In addition, the Deed stated that it incorporated any prior mineral reservations, and there was a prior reservation of one half of the minerals. Accordingly, because one-half of the minerals had been previously reserved and the Jessups were excluding from the description the other half of the minerals, the exhibit was also providing a horizontal boundary and not just vertical boundary lines. The conveyance of Tract One was limited to the surface. Because the conveyance of Tract One was for the surface only, the part of the deed reserving a life estate in Tract Two does not create an ambiguity. Like in Dupnik, where a reservation of "none" did not conflict with a grant of the surface only, the Jessups did not need to reserve anything from Tract One because they did not grant the minerals. Dupnik, 2013 Tex. App. Lexis, at *15. Accordingly, the warranty deed unambiguously does not grant any of the minerals in Tract One to - 20 - Appellants. Appellants did not introduce any evidence of damages at trial, so there is no basis to remand the case on the issue of damages. Appellants’ request that the case be remanded to the trial court is frivolous and without merit. “The court may not order a separate trial solely on unliquidated damages if liability is contested.” TEX. R. APP. P. 44.1(b). The jury did not make a determination of damages. CRS 2:12. While Appellants introduced copies of two checks, RR 5:PX-12, PX-13, they did not elicit any testimony about specifically what those monies related to so that a jury could determine any damages. RR 3:passim, 4:passim. It is telling that, despite their having sued both EOG and Central Texas Land Services, they did not call any expert witnesses from either of those two appellants or under their own control to testify regarding how monies paid to the Jack Jessup Estate equated to harm to the Appellants. What was that money for? Appellants never offered any testimony on that issue. Conclusion Appellants claims are easy to follow: they would like to have been deeded the minerals. Of course, equitably this falls flat. They never negotiated for the mineral estate, they never agreed to purchase the mineral estate, and they would have purchased the pasture with or without the mineral estate—for less than $700 per acre who would not? They bought - 21 - the pasture for what they were paying to lease the pasture. The jury understood Appellants’ motivations, and their findings reflect the facts: not only did the Appellants not own the mineral estate, there was no mistake in reducing the Jessups’ and Alfords’ agreement to writing. Not being able to win on the facts, Appellants are left trying to find some justification for stealing something which doesn’t belong to them—a legal do over. Unfortunately for their arguments, they are were done in the trial court. Appellants tried to get the trial court to rule that the mineral reservation was not part of the deed, but when that was successful, they did not bring it up again during the trial, and they waived the issue by not objecting to the trial court’s instructions on the mineral reservation. Even had Appellants preserved the issue, they are wrong on the law as the mineral reservation, according to the courts which have addressed similar facts, is incorporated into the Deed. EOG and Central Texas Land Services obviously thought that the Jessups had retained the minerals, and the Appellants attorney, Mr. Muckleroy, also knew that the Deed reserved the minerals. Why else would he have sneaked in a line into the release of lien about the minerals? Thus, Appellant’s single issue is wholly without merit, and the judgment of the trial court should be affirmed. - 22 - PRAYER Wherefore, Appellee Robert Thomas McKeithen prays this Court to affirm the decision of the trial court for the reasons stated herein and for all other relief to which he is entitled. Respectfully submitted, /s/Noel D. Cooper Noel D. Cooper Texas Bar No. 00796397 LAW OFFICES OF NOEL D. COOPER 117 North St., Suite 2 Nacogdoches, Texas 75961 Telephone: (936) 564-9000 Telecopier: (936) 715-6022 Email: noelcooper@noelcooper.com ATTORNEY FOR APPELLANT, ROBERT THOMAS MCKEITHEN CERTIFICATE OF COMPLIANCE Pursuant to TEX. R. APP. P. 9.4(i)(3), I certify that this document is computer generated and contains 2,962 words based on a computer word count. /s/Noel D. Cooper NOEL D. COOPER - 23 - CERTIFICATE OF SERVICE I certify that I delivered a copy of this Brief of Appellee Robert Thomas McKeithen to each attorney of record or party in accordance with the Texas Rules of Appellate Procedure on July 10, 2015, at the addresses and manners below. Tom Rorie Attorney for Charles Alford and Mary Lou Alford Attorney at Law 210 North Street Nacogdoches, Texas 75961 TEL: (936) 559-1188 FAX: (936) 559-0099 Email: trorie@sbcglobal.net By Electronic Filing Manager Jason R. Mills Attorney for EOG Resources, Inc. and Central Texas Land Services Freeman Mills PC 110 N. College, Suite 1400 Tyler, Texas 75702 TEL: (903) 592-7755 FAX: (903) 592-7787 Email: eservicejrm@freemanmillspc.com By Electronic Filing Manager /s/Noel D. Cooper NOEL D. COOPER - 24 - NO. 12-14-00262-CV CHARLES ALFORD AND MARY LOU ALFORD, APPELLANTS VS. ROBERT THOMAS MCKEITHEN, EOG RESOURCES, INC., AND CENTRAL TEXAS LAND SERVICES, APPELLEES. APPELLANT’S APPENDIX LIST OF DOCUMENTS 1. Order on Construction by Court of Warranty Deed from Jack P. Jessup and Annie Elizabeth Jessup to Charles Alford and Mary Lou Alford Dated April 25, 2003 ............................................................... Exhibit 1 2. Charge of the Court ................................................................. Exhibit 2 3. Dupnik v. Hermis, No. 04–12–00417–CV, 2013 Tex. App. Lexis 2461, 2013 WL 979199 (Tex. App.—San Antonio March 13, 2013, pet. denied)(mem. op.) ........................................................... Exhibit 3 - 25 - EXHIBIT 1 4 5 CAUSE NO. CV-12-9344 CHARLES and MARY LOU ALFORD § IN THE DISTRICT COURT § Plaintiffs, § § vs. § § OF FILED ROBERT THOMAS McKEITHEN; § rq J ·.1 S-0 CLOCK~ M 1 EOG RESOURCES, INC.; and § CENTRAL TEXAS LAND SERVICES § ~ 20-1JJ... JEAN s0TOE Dl~lerk s=- § SAN AUGUS!V1:TEXAS Defendant. § BY "/?=---- u § § SAN AUGUSTINE COUNTY, TEXAS CHARGE OF THE COURT LADIES AND GENTLEMEN OF THE JURY: After the closing arguments, you will go to the jury room to decide the case, answer the questions that are attached, and reach a verdict. You may discuss the case with other jurors only when you are all together in the jury room. Remember my previous instructions: Do not discuss the case with anyone else, either in person or by any other means. Do not do any independent investigation about the case or conduct any research. Do not look up any words in dictionaries or on the Internet. Do not post information about the case on the Internet. Do not share any special knowledge or experiences with the other jurors. Do not use your phone or any other electronic device during your deliberations for any reason. [The Court will give you a number where others may contact you in case of an emergency.] Any notes you have taken are for your own personal use. You may take your notes back into the jury room and consult them during deliberations, but do not show or read your notes to your fellow jurors during your deliberations. Your notes are not evidence. Each of you should rely on your independent recollection of the evidence and not be influenced by the fact that another juror has or has not taken notes. You must leave your notes with the bailiff when you are not deliberating. The bailiff will give your notes to me promptly after collecting them from you. I will make sure your notes are kept in a safe, secure location and not disclosed to anyone. After you complete your deliberations, the bailiff will collect your notes. When you are released from jury duty, the bailiff will promptly destroy your notes so that nobody can read what you wrote. Here are the instructions for answering the questions. 1. Do not let bias, prejudice, or sympathy play any part in your decision. EXHIBIT 2 CHARGE OF THE COURT 4 1/10 2. Base your answers only on the evidence admitted in court and on the Ia:w that is in these instructions and questions. Do not consider or discuss any evidence that was not admitted in the courtroom. 3. You are to make up your own minds about the facts. You are the sole judges of the credibility of the witnesses and the weight to give their testimony. But on matters oflaw, you must follow all of my instructions. 4. If my instructions use a word in a way that is different from its ordinary meaning, use the meaning I give you, which will be a proper legal definition. 5. All the questions and answers are important. No one should say that any question or answer is not important. 6. Answer "yes" or "no" to all questions unless you are told otherwise. A "yes" answer must be based on a preponderance of the evidence [unless you are told otherwise]. Whenever a question requires an answer other than "yes" or "no," your answer must be based on a preponderance of the evidence [unless you are told otherwise]. 7. The term "preponderance of the evidence" means the greater weight of credible evidence presented in this case. If you do not find that a preponderance of the evidence supports a "yes" answer, then answer "no." A preponderance of the evidence is not measured by the number of witnesses or by the number of documents admitted in evidence. For a fact to be proved by a preponderance of the evidence, you must find that the fact is more likely true than not true. 8. Do not decide who you think should win before you answer the questions and then just answer the questions to match your decision. Answer each question carefully without considering who will win. Do not discuss or consider the effect your answers will have. 9. Do not answer questions by drawing straws or by any method of chance. 10. Some questions might ask you for a dollar amount. Do not agree in advance to decide on a dollar amount by adding up each juror's amount and then figuring the average. 11. Do not trade your answers. For example, do not say, "I will answer this question your way if you answer another question my way." 12. The answers to the questions must be based on the decision of at least 10 of the 12 jurors. The same 10 jurors must agree on every answer. Do not agree to be bound by a vote of anything less than 10 jurors, even if it would be a majority. As I have said before, if you do not follow these instructions, you will be guilty of juror misconduct, and I might have to order a new trial and start this process over again. This would waste your time and the parties' money, and would require the taxpayers of this county to pay for another trial. If a juror breaks any of these rules, tell that person to stop and report it to me immediately. CHARGE OF THE COURT 5 2/10 Presiding Juror: 1. When you go into the jury room to answer the questions, the first thing you will need to do is choose a presiding juror. 2. The presiding juror has these duties: a. have the complete charge read aloud if it will be helpful to your deliberations; b. preside over your deliberations, meaning manage the discussions, and see.that you follow these instructions; c. give written questions or comments to the bailiff who will give them to the judge; d. write down the answers you agree on; e. get the signatures for the verdict certificate; and f. notify the bailiff that you have reached a verdict. Do you understand the duties of the presiding juror? If you do not, please tell me now. Instructions for Signing the Verdict Certificate: • You may answer the questions on a vote of 10 jurors. The same 10 jurors must agree on every answer in the charge. This means you may not have one group of 10 jurors agree on one answer and a different group of 10 jurors agree on another answer. • If 10 jurors agree on every answer, those 10 jurors sign the verdict. • If 11 jurors agree on every answer, those 11 jurors sign the verdict. • If all 12 of you agree on every answer, you are unanimous and only the presiding juror signs the verdict. • All jurors should deliberate on every question. You may end up with all 12 of you agreeing on some answers, while only 10 or 11 of you agree on other answers. But when you sign the verdict, only those 10 who agree on every answer will sign the verdict. Do you understand these instructions? If you do not, please tell me now. CHARGE OF THE COURT 6 3/10 DEFINITIONS Throughout this charge, the following terms shall have the meaning indicated: 1. "The Alfords" means the Plaintiffs Charles Alford and Mary Lou Alford. 2. "The Jessups" means Jack P. Jessup and Annie Elizabeth Jessup. 3. "McKeithen" means Defendant Robert Thomas McKeithen, in all his capacities. 4. "EOG" means Defendant EOG Resources, Inc. 5. "Central Texas Land Services" means Defendant Central Texas Land Services. 6. The "Deed" means the April 25, 2003 Warranty Deed with Vendor's Lien from the Jessups to the Alfords. 7. "Tract One" means the 117.50 acre tract of land located about seven miles west of San Augustine, Texas, and that is more particularly described as Tract One in the Deed. CHARGE OF THE COURT 7 4110 QUESTION NO. 1 Question: Have the Alfords proved that they have title to an undivided one-half of the mineral estate beneath Tract One? Instruction: To establish title, the Alfords must (1) prove a regular chain of conveyances from the sovereign, (2) establish superior title out of a common source, (3) prove title by limitations, or (4) prove title by prior possession coupled with proof that possession was not abandoned. The Alfords may prevail only on the superiority of their title, not on the weakness of McKeithen's title. You are instructed that it is undisputed that prior to executing the Deed, the Jessups owned an undivided one-half of the minerals beneath Tract One. The question of fact for you to decide is whether the Deed reserved or conveyed the mineral interest. If it reserved the mineral interest answer "No," and if it conveyed the mineral interest answer "Yes." You are further instructed that Exhibit A was incorporated into the Deed. You are further instructed that a warranty deed will pass all of the estate owned by the granter at the time of the conveyance unless there are reservations or exceptions which reduce the estate conveyed. Answer: o~ Answer "Yes" or ''No."--+--'--"V.___ _ CHARGE OF THE COURT 8 5/10 QUESTION NO. 2 If you answered "No" to Question No. 1, then answer this question. Otherwise do not answer this question. Question: Have the Alfords proved that the Deed should be reformed such that the reservation of minerals in Exhibit A of the Deed should be removed? Instruction: To be entitled to a reformation of the Deed, the Alfords must prove that (1) there was an agreement before the Deed was written; and (2) there was a mutual mistake, made after the original agreement, in reducing the agreement to writing that to does not reflect the agreement of the parties to the Deed~ \c.,,; You are instructed that to prove a "mutual mistake," the Alfords must prove (1) a mistake of fact, (2) held mutually by the parties to the Deed, (3) and which materially affects the subject matter of the Deed. You are further instructed that a warranty deed will pass all of the estate owned by the grantor at the time of the conveyance unless there are reservations or exceptions which reduce the estate conveyed. Answer: /)0 Answer "Yes" or ''No."__.__ _ __ CHARGE OF THE COURT 9 6/10 QUESTION NO. 3 If you answered "Yes" to Question No. 2, then answer this question. Otherwise do not answer this question. Question: Have the Alfords proved that they exercised due diligence in reviewing the Deed? Instruction: You are instructed that the standard of diligence in reviewing the Deed is that diligence an ordinary prudent person would have used under the same or similar circumstances. Answer: I\ Answer "Yes" or ''No.;'_..._!1--=0___ CHARGE OF THE COURT 10 7/10 QUESTION NO. 4 If you answered "Yes" to Question No. 3, then answer this question. Otherwise do not answer this question. Question: By what date did the Alfords discover, or should have discovered by exercising reasonable care and diligence, the reservation of minerals for Tract One in Exhibit A to the Deed? Instruction: You are instructed that the standard of diligence in reviewing the Deed is that diligence an ordinary prudent person would have used under the same or similar circumstances. Answer: Answer by inserting a specific, month, day and year. - - - - - - - - - - - CHARGE OF THE COURT 11 8/10 REQUESTED QUESTION NO. 5 If you answered "Yes" to Question No. 1 or "Yes" to Question No. 2, then answer this question. Otherwise do not answer this question. Question: What sum of money, if any, if paid now in cash, would fairly and reasonably compensate the Alfords for the damages, if any, that resulted from the minerals beneath Tract One being leased? Instruction: You shall consider only the difference, if any, between the royalty the Alfords received and the royalty the Alfords would have received had the Jessups or McKeithen not claimed title to one- half of the minerals beneath Tract One. Do not add any amount for interest on damages, if any. Answer: Answer in dollars and cents, if any. $_ _ _ _ _ _ _ _ __ CHARGE OF THE COURT 12 9/10 VERDICT CERTIFICATE If the verdict is unanimous, the presiding juror should sign below. Presiding Juror If the verdict is not unanimous, then thedecidingjurors should sign below. 1/'L-JuJ IJ~ 2. (kk