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Smart Summary

Factual and Procedural Background

Mason Bristol and JBW Land and Minerals, Inc. (collectively "Bristol") appealed a final judgment rendered in favor of Placid Oil Company ("Placid"). The appeal concerns the transfer of venue from Tarrant County to Yoakum County, Texas. Bristol challenged the propriety of the venue transfer and contended that Placid waived any venue objections by failing to timely secure a hearing on its motion to transfer venue and by invoking the jurisdiction of the Tarrant County court prior to the venue transfer. The underlying dispute involved claims related to an oil and gas lease and associated revenue.

Legal Issues Presented

  1. Whether the trial court erred in transferring venue from Tarrant County to Yoakum County under Texas Civil Practice and Remedies Code § 15.011.
  2. Whether Placid waived its right to transfer venue by failing to timely request a hearing on its motion to transfer venue.
  3. Whether Placid waived its venue objection by invoking the judicial power of the Tarrant County court, specifically by filing a motion for summary judgment, before the venue transfer was granted.

Arguments of the Parties

Appellants' (Bristol) Arguments

  • The mandatory venue provision of § 15.011 was inapplicable because Bristol sought only monetary damages and not an interest in land.
  • Placid waived its venue objection by not timely securing a hearing on its motion to transfer venue, as approximately 32 months elapsed before the motion was ruled upon.
  • Placid waived the venue objection by invoking the jurisdiction of the Tarrant County court through filing a motion for summary judgment before the venue transfer was granted.

Appellee's (Placid) Arguments

  • The suit involved recovery of an interest in real property (the mineral lease) and associated revenues, triggering mandatory venue in the county where the property is located (Yoakum County).
  • Placid requested a hearing on the motion to transfer venue in its motion and first amended answer, evidencing diligence in pursuing the motion.
  • Filing a motion for summary judgment subject to the pending motion to transfer venue did not waive Placid’s venue objection.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Tex. Civ. Prac. Rem. Code Ann. § 15.011 (Vernon 1986) Mandatory venue for actions involving recovery of real property or interests in real property lies in the county where the property is located. Applied to determine that venue was proper in Yoakum County because the dispute involved an interest in real property (mineral lease).
Ruiz v. Conoco, Inc., 868 S.W.2d 752, 757 (Tex. 1993) Appellate courts review venue decisions based on the entire record, including the merits. Guided the court's independent review of the entire record to confirm venue propriety.
Bleeker v. Villarreal, 941 S.W.2d 163, 167 (Tex.App.-Corpus Christi 1996, pet. dism'd) Venue rulings are reviewed to determine if ultimately vindicated by the fully developed record. Supported affirming venue transfer based on the entire record.
Talley v. Howsley, 176 S.W.2d 158, 160 (Tex. 1943) Definition of constructive trust as a relationship requiring conveyance of property by legal titleholder to another. Used to establish that Bristol’s claim for constructive trust sought an interest in real property.
Jupiter Oil Co. v. Snow, 819 S.W.2d 466, 468 (Tex. 1991) An oil and gas lease is an interest in land or realty. Supported the conclusion that the mineral lease was an interest in real property, triggering mandatory venue provisions.
Gold v. Insall, 8 S.W.2d 542, 543 (Tex. Civ. App.-Galveston 1928, writ dism'd w.o.j.) Amendments alleging new causes of action implicating different venue provisions may re-open venue transfer opportunities. Supported the court’s view that venue remained proper in Yoakum County even if the constructive trust claim was added after transfer.
Whitworth v. Kuhn, 734 S.W.2d 108, 111 (Tex.App.-Austin 1987, no writ) Movant must request a hearing on motion to transfer venue within a reasonable time. Discussed but court found insufficient evidence of waiver due to lack of record support.
Grozier v. L-B Sprinkler Plumbing Repair, 744 S.W.2d 306, 311 (Tex. App-Fort Worth 1988, writ denied) Movant must pursue hearing on venue motion to avoid waiver. Considered but court found Placid did request hearing, negating waiver claim.
In re Spiegel, 6 S.W.3d 643, 646 (Tex.App.-Amarillo 1999, no pet.) Appellant bears burden to show on record that opposing party was not diligent in pursuing hearing. Applied to reject Bristol’s claim of waiver based on delay without supporting record evidence.
Kerrville State Hosp. v. Clark, 900 S.W.2d 425, 430 n. 2 (Tex.App.-Austin 1995), rev’d on other grounds, 923 S.W.2d 582 (Tex. 1995) Trial court has discretion to entertain motion to transfer venue despite delay in obtaining hearing. Supported affirmance of trial court’s decision to consider venue motion despite delay.
General Motors Corp. v. Castaneda, 980 S.W.2d 777, 783 (Tex.App.-San Antonio 1998, pet. denied) Filing motions subject to pending motion to transfer venue does not waive venue objection. Applied to hold Placid did not waive venue objection by filing motion for summary judgment subject to venue motion.
Kohut v. Mrs. Baird's Bakeries, Inc., 478 S.W.2d 139 (Tex. Civ. App.-Houston [14th Dist.] 1972, no writ) Motion for summary judgment after venue transfer granted may waive venue objection. Distinguished as inapplicable because here the motion for summary judgment was filed before venue transfer was granted.
Gentry v. Tucker, 891 S.W.2d 766 (Tex.App.-Texarkana 1995, no writ) Trial on merits before venue ruling may waive venue objection. Distinguished as venue ruling occurred before trial on merits here.
Dossey v. Oehler, 359 S.W.2d 624 (Tex. Civ. App.-Eastland 1962, writ dism'd w.o.j.) Improper venue waiver where plea in abatement and transfer were improperly sequenced. Distinguished as no similar procedural irregularity occurred here.

Court's Reasoning and Analysis

The court began by addressing the venue transfer under Texas Civil Practice and Remedies Code § 15.011, which mandates that actions to recover real property or an interest therein must be brought in the county where the property is located. Bristol argued that because it sought only monetary damages, the mandatory venue did not apply. However, the court noted that Bristol’s live pleading sought the imposition of a constructive trust on both the revenue from the oil well and the mineral lease itself. The court explained that a constructive trust involves the conveyance of property rights, and since an oil and gas lease is an interest in land, Bristol’s claim effectively sought recovery of an interest in realty. Therefore, venue was properly transferred to Yoakum County, where the property is located.

Regarding the waiver claims, the court examined Bristol’s argument that Placid failed to timely request a hearing on its motion to transfer venue. The court found that Placid had requested a hearing at least twice and that the record did not show any lack of diligence by Placid. The passage of 32 months before ruling was insufficient to prove waiver, especially without evidence that the delay impaired Bristol’s ability to oppose the motion. The court further held that delay in obtaining a hearing does not compel denial of a venue transfer motion and that the trial court did not abuse its discretion in considering the motion.

Finally, the court addressed Bristol’s contention that Placid waived its venue objection by filing a motion for summary judgment, thereby invoking the trial court’s jurisdiction inconsistent with an intent to transfer venue. The court found that because Placid expressly made the summary judgment motion subject to its venue motion, no waiver occurred. The court distinguished the cited authorities on waiver, emphasizing that those cases involved either motions filed after venue transfer or trials on the merits before venue rulings, circumstances not present here.

Holding and Implications

The Court affirmed the judgment of the trial court, holding that venue was properly transferred to Yoakum County and that Placid did not waive its right to transfer venue.

The decision directly affects the parties by confirming that venue lies in the county where the real property interest is located when a constructive trust is sought on the mineral lease and related revenues. The court’s ruling does not establish new precedent but reinforces the application of existing venue statutes and case law concerning constructive trusts and venue waiver principles.

MASON BRISTOL and JBW LAND and MINERALS, INC., Appellants v. PLACID OIL COMPANY, Appellee

Memorandum Opinion

BRIAN QUINN, Justice.

Mason Bristol and JBW Land and Minerals, Inc. (Bristol) appeal from a final judgment entered in favor of Placid Oil Company (Placid). Their three points of error concern venue. That is, Bristol contends that error occurred when venue was transferred from Tarrant to Yoakum County, Texas. So too do they assert that any venue dispute was waived because Placid 1) did not timely secure a hearing on its motion to transfer and 2) invoked the judicial power of the Tarrant County court before the motion was granted. We affirm.

Issue One — Propriety of Order Transferring Venue

Initially, Bristol contends that the cause should not have been transferred from Tarrant County. He believes this is so because the mandatory venue provision described at § 15.011 of the Texas Civil Practice and Remedies Code was inapplicable. Furthermore, it allegedly was inapplicable because he had only sought, via the suit, monetary damages as opposed to an interest in land. We disagree.

The version of § 15.011 in existence at the time suit was filed stated that:

[a]ctions for recovery of real property or an estate or interest in real property, for partition of real property, to remove encumbrances from the title to real property, or to quiet title to real property shall be brought in the county in which all or a part of the property is located.

Tex. Civ. Prac. Rem. Code Ann. § 15.011 (Vernon 1986).

Standard of Review

"In determining whether venue was or was not proper, the appellate court shall consider the entire record, including the trial on the merits." Tex. Civ. Prac. Rem. Code Ann. § 15.064(b). This statutory provision allows us to review the decision on a record different than that before the district court at the time it ruled upon the issue. Ruiz v. Conoco, Inc., 868 S.W.2d 752, 757 (Tex. 1993); Bleeker v. Villarreal, 941 S.W.2d 163, 167 (Tex.App.-Corpus Christi 1996, pet. dism'd by agr.). That is, we must independently review the "entire record to determine whether venue was proper in the ultimate county of suit." Ruiz v. Conoco, Inc., 868 S.W.2d at 757-58. So, if in reviewing the entire record we find any probative evidence illustrating that venue was proper in the county wherein judgment was entered, we must affirm the decision to transfer venue to that county. Id. Or, as stated by the Corpus Christi Court of Appeals, "our review considers only whether the venue ruling was ultimately vindicated by the fully developed record." Bleeker v. Villarreal, 941 S.W.2d at 167.

Application of Standard

First, as mentioned in footnote one, suits to recover realty or an interest in realty must be filed in the county where all or part of the property is located. Tex. Civ. Prac. Rem. Code Ann. § 15.011 (Vernon 1986). Second, through his live pleading at the time of trial, Bristol sought, among other things, the imposition of a constructive trust "on the revenue received from the [oil] well in question and the lease. . . ." (Emphasis added). Third, a constructive trust is a relationship with respect to property subjecting one who holds legal title to property "to convey it to another. . . ." Talley v. Howsley, 176 S.W.2d 158, 160 (Tex. 1943). Fourth, given the foregoing definition of a constructive trust, Bristol effectively demanded the conveyance of both the mineral leasehold at issue and revenue produced therefrom to himself. Fifth, it is indisputable that an oil and gas lease constitutes an interest in land or realty. Jupiter Oil Co. v. Snow, 819 S.W.2d 466, 468 (Tex. 1991). Sixth, since a mineral lease constitutes an interest in land, logic dictates that Bristol's demand for a constructive trust upon the lease was tantamount to an attempt to recover an interest in realty. Seventh, since actions to recover an interest in realty must be filed in the county wherein the land is located and the land at bar was located in Yoakum County, then mandatory venue was in Yoakum County, the county where judgment was rendered.

To the extent that Bristol sought a constructive trust via an amended pleading filed after the cause was transferred from Tarrant to Yoakum County, the amendment would have entitled Placid to again seek transfer, assuming the Tarrant County district court had initially refused to transfer the proceedings. Gold v. Insall, 8 S.W.2d 542, 543 (Tex. Civ. App.-Galveston 1928, writ dism'd w.o.j.) (stating that one who has previously waived an opportunity to transfer venue may regain such opportunity when the plaintiff amends his pleading to allege a new cause of action implicating a different venue provision). Thus, irrespective of whether the demand for the trust had been asserted in Bristol's initial pleading and retained throughout the cause or first mentioned in his last pleading, venue still lay in Yoakum County, i.e. the county wherein the land was located.

In short, that the legislature intended to have disputes involving the ownership of land resolved in the county or counties wherein the land lay is clear. Upon considering the entire record before us, we conclude that the legislature's intent was fulfilled at bar. The dispute regarding the interest in realty was resolved by the district court for the county wherein the land was located. Thus, we cannot say that venue was improper.

Issue Two and Three — Waiver of Right to Transfer

Delay

Bristol contends that Placid waived its venue complaint because it "did not secure" a timely hearing on its motion to transfer. In support thereof, he cited authority imposing upon the movant an obligation to request a hearing within a reasonable time, Whitworth v. Kuhn, 734 S.W.2d 108, 111 (Tex.App.-Austin 1987, no writ), and to pursue such a hearing. Grozier v. L-B Sprinkler Plumbing Repair, 744 S.W.2d 306, 311 (Tex. App-Fort Worth 1988, writ denied). Yet, as proof that the duties were breached, Bristol merely cites to the amount of time which lapsed between the date on which Placid filed its motion and the date on which the trial court eventually ruled on it; that period approximated 32 months. Unmentioned by Bristol is the date on which Placid requested the hearing or the steps, if any, taken by the company to secure one. Yet, our review of the file disclosed that Placid prayed that the matter "be set for hearing" in the closing paragraph of its motion and in its first amended answer filed on October 30, 1997. So, to the extent that a movant "has the duty to request a setting," Tex.R.Civ.P. 87(1), it appears that Placid sought one at least twice. Given this circumstance, the record does not support Bristol's assertion in this respect.

Nor does the record afford us evidence upon which to conclude that Placid somehow acted less than diligently in pursuing the matter once a hearing was sought. Nor can one reasonably attribute non-feasance to the company simply because 32 months lapsed before the trial court ruled on the motion. A myriad of things could have caused that delay. It is quite possible that Placid did nothing. Equally possible is that Placid diligently pursued resolution of its motion but that the trial court's docket did not permit determination of the request. Or, it could be that the trial court awaited Bristol's response to the motion, which response was not filed until five weeks before the matter was formally submitted to the court. In any case, the burden lay with Bristol to present us with an appellate record supporting his contention that Placid was less than diligent, In re Spiegel, 6 S.W.3d 643, 646 (Tex.App.-Amarillo 1999, no pet.), and it did not. Thus, to impute non-feasance to the oil company would be to act upon mere speculation, something we cannot do.

Furthermore, it may be that delay in obtaining a hearing provides grounds for the trial court to deny a motion to transfer. Yet, such a delay does not mean that the trial court must deny it. It remains within its discretion to nevertheless entertain the motion on the merits if it so chooses. Kerrville State Hosp. v. Clark, 900 S.W.2d 425, 430 n. 2 (Tex.App.-Austin 1995), rev'd on other grounds, 923 S.W.2d 582 (Tex. 1995). Here, the court chose to entertain it, and, we cannot hold that it abused its discretion in doing so. This is especially so given that Bristol nowhere asserts that the delay impaired his ability to defeat the motion.

Invocation of Trial Court's Jurisdiction

Lastly, Bristol asserts that the trial court was obligated to deny the motion because Placid invoked "the judicial power of the Tarrant County Court in a manner inconsistent with a continuing intention to transfer venue." The manner in which it allegedly invoked that power was through filing a motion for summary judgment. Yet, Placid expressly made its request for summary judgment subject to its motion to transfer venue. Under that circumstance, seeking relief from the court did not result in waiver of the pending motion to change venue. General Motors Corp. v. Castaneda, 980 S.W.2d 777, 783 (Tex.App.-San Antonio 1998, pet. denied) (holding that GM did not waive its motion to transfer because it stated in its later motions that same were subject to its venue motion).

Next, the authorities cited by Bristol as support for his contention are inapposite. For instance, the court in Kohut v. Mrs. Baird's Bakeries, Inc., 478 S.W.2d 139 (Tex. Civ. App.-Houston [14th Dist.] 1972, no writ) was faced with a situation where Baird's pursued summary judgment after its motion to transfer venue had been sustained. That did not occur here. Nor was the case at bar actually tried on the merits before the venue issue was heard; that is what distinguishes Gentry v. Tucker, 891 S.W.2d 766 (Tex.App.-Texarkana 1995, no writ) from the dispute before us. Finally, Dossey v. Oehler, 359 S.W.2d 624 (Tex. Civ. App.-Eastland 1962, writ dism'd w.o.j.) is readily distinguishable since the plea of privilege filed there was made subject to a plea in abatement. That is, the defendant in Dossey first moved to abate the proceeding and then to transfer venue, stating that the latter was subject to the former. In doing so, it ignored the concept of due order of pleadings. Nothing like that happened here.

Accordingly, we overrule the three issues asserted by Bristol and affirm the judgment entered below.

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BRISTOL v. PLACID OIL CO
(May 16, 2002)