Sun Exploration and Production Co. v. Benton
| Decision Date | 08 April 1987 |
| Docket Number | No. C-5489,C-5489 |
| Citation | 728 S.W.2d 35 |
| Parties | SUN EXPLORATION AND PRODUCTION COMPANY, Petitioner, v. Lynda BENTON, Respondent. |
| Court | Texas Supreme Court |
Dawn M. Pate, Davis, Durham, Durham & Park, Huntsville, for petitioner.
Mac L. Bennett, Normangee, and W.A. Keils, Jr., Keils & Fulcher, Teague, for respondent.
This lawsuit arose as a result of an oil and gas lease between Lynda Benton and Sun Exploration and Production Company. Following a trial without a jury, the trial court rendered judgment in favor of Benton. The court of appeals affirmed. 711 S.W.2d 58. We reverse that part of the judgment awarding damages to Benton and render judgment that she take nothing. We affirm the remainder of the judgment.
Benton's asserted interest in the property originated in a conveyance dated March 5, 1966 from Louella Reynolds Ward to Kenneth R. Fulton and J.A. Fulton, Benton's then-husband and father-in-law, respectively. Although Benton's name did not appear on the deed, it is undisputed that she and Kenneth Fulton were married at the time and there was no evidence to rebut the community property presumption. By deed dated July 20, 1973, Kenneth Fulton purported to convey his undivided one-half interest in the property to J.A. Fulton. Several weeks later, Benton filed for divorce from Kenneth Fulton. The divorce was granted on April 20, 1974. The decree of divorce recited in pertinent part as follows:
[W]hile no adjudication has been made as to the title to the [property in question], all right, title and interest of Kenneth R. Fulton and Lynda Fulton in the following described realty is hereby set aside and awarded to Lynda Fulton as her sole and separate property.
On April 12, 1976, J.A. Fulton conveyed the property to Kenneth Fulton. Benton never received a deed to the property nor obtained a judgment as a result of which she was to receive a conveyance from either J.A. Fulton or Kenneth Fulton covering the property in question.
The record reflects that sometime in 1982 Benton's attorney notified Sun that Benton was claiming an interest in the property in question. Late in 1982, Benton was contacted, through her attorney, by Robin Gabriel, an independent land man acting at the direction of Sun. Gabriel testified at trial that Sun was interested in acquiring a lease from Benton because they felt that Benton might have an interest in the property as a result of her marriage to Kenneth Fulton. Sun had already obtained a lease on the property from Kenneth Fulton that they felt covered the entire property. Gabriel further testified that he was instructed, nevertheless, to buy a "protective lease" from Benton. Gabriel prepared the lease and forwarded it, along with Sun's draft, to Benton's attorney. The lease was executed by Benton and returned to Gabriel and was filed in the deed records of Leon County on December 14, 1982 by Gabriel. The draft was deposited for collection on December 9, 1982 and contained the notation "15 days after sight and upon approval of title." The draft was dishonored within the 15 day period.
Benton filed suit against Sun for breach of contract, wrongful dishonor and for violations of the Deceptive Trade Practices Act (DTPA). See TEX.BUS. & COMM.CODE ANN. §§ 17.41--17.63 (Vernon 1968 and Vernon Pamph.Supp.1986). Sun filed a cross-action alleging that Benton had breached an express warranty of title and covenant of seisin. Sun also sought damages under the DTPA contending that Benton's suit was groundless and brought in bad faith or for the purpose of harassment. Following a trial without a jury, the trial court rendered a judgment that Sun take nothing on its cross-actions and that Benton recover from Sun the amount of the draft plus interest and attorney's fees. The trial court also filed these pertinent findings of fact and conclusions of law:
Findings
1. Gabriel was acting as Sun Exploration's agent in the transaction with Benton.
2. Sun Exploration authorized Gabriel to purchase the lease from Benton.
3. Gabriel entered into an agreement with Benton to purchase the lease.
4. Sun Exploration recorded the lease on December 14, 1982.
5. Sun Exploration "caused the draft to be returned unpaid" on December 28, 1982.
1. Benton and Sun Exploration entered into a contract in which Sun Exploration "agreed to purchase" the lease from Benton.
2. Sun Exploration breached the contract by accepting and recording the lease and then refusing to pay Benton the agreed consideration for the lease.
The court of appeals affirmed the trial court's judgment awarding Benton damages for breach of contract.
On appeal, Sun argues that Benton is not entitled to recover for breach of contract as a matter of law because any contract consisted of the lease...
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