Union Pac. R.R. Co. v. Ameriton Props. Inc.

• Decision Date: 02 October 2014
• Docket Number: No. 01–13–00811–CV.,01–13–00811–CV.
• Citation: 448 S.W.3d 671
• Parties: UNION PACIFIC RAILROAD COMPANY, Appellant v. AMERITON PROPERTIES INCORPORATED, Appellee.
• Court: Texas Court of Appeals

448 S.W.3d 671

UNION PACIFIC RAILROAD COMPANY, Appellant

v.AMERITON PROPERTIES INCORPORATED, Appellee.

No. 01–13–00811–CV.

Court of Appeals of Texas, Houston (1st Dist.).

Oct. 2, 2014.

Rehearing Overruled Dec. 9, 2014.

Charles B. McFarland, Joyce, McFarland + McFarland, LLP, Houston, TX, for Appellant.

Ben A. Baring, Jr., Paul J. McConnell, III, R. Travis Piper, Delange, Hudspeth, McConnell & Tibbets, L.L.P., Houston, TX, for Appellee.

Panel consists of Chief Justice RADACK and Justices HIGLEY and BROWN.

OPINION

HARVEY BROWN, Justice.

Ameriton Properties Incorporated sought a declaratory judgment that it owned a strip of land in western Houston and that Union Pacific Railroad Company's only interest in that land was a now- abandoned right of way. Union Pacific counterclaimed, seeking a declaratory judgment that it owned an undivided fee interest in the land pursuant to an 1879 deed and seeking its attorney's fees. Ameriton moved for summary judgment, which the trial court granted as to ownership of the land and denied as to attorney's fees and costs. Union Pacific filed two motions for partial summary judgment, one regarding ownership and one regarding Ameriton's entitlement to attorney's fees, both of which the trial court denied. Ameriton moved for judgment based on these orders and the parties' agreement as to necessary attorney's fees. The trial court then entered a final judgment declaring that Union Pacific's only interest in the property was an abandoned right of way and that Ameriton owns the property free and clear of any claims by Union Pacific and awarding Ameriton its attorney's fees. Union Pacific appeals. We reverse and remand to the trial court for further proceedings.

Background

Disputes over the property in question stretch back more than 130 years. They began when, in the late 1800s, the Galveston, Harrisburg and San Antonio Railway Company (G.H.S.A.) condemned a right of way across a strip of land in western Houston. Union Pacific is the successor in interest to G.H.S.A. At the time of the condemnations, Thomas Hart and S.E. Lawrence owned a one-half undivided interest in the land in question, and the estate of John Lawrence owned the remaining one-half undivided interest. Ameriton is the successor in interest to Hart, S.E. Lawrence, and John Lawrence's heirs.

G.H.S.A. successfully condemned the right of way as to the one-half interest held by Hart and S.E. Lawrence. The nature of the interest obtained through that condemnation proceeding is not at issue in this appeal.

G.H.S.A. also condemned the interest held by the estate of John Lawrence, but G.H.S.A. and the administratrix of the estate, Mary E. Lawrence (“Mary”), settled the dispute while the decision was on appeal. See Galveston, H. & S.A. Ry. Co. v. Blakeney, 73 Tex. 180, 11 S.W. 174, 174 (1889). In 1879, to settle her dispute with G.H.S.A., Mary, on behalf of the estate, executed a deed, granting an interest in the land to G.H.S.A. The record is at best ambiguous as to whether G.H.S.A. obtained any interest in the land through its condemnation proceeding against Mary or the only interest G.H.S.A. obtained from Mary was through the deed. The precise nature of the interest conveyed by the deed is at the heart of this suit, and we therefore include the text here in its entirety:

State of Texas County of Harris: Know all men by these presents:

That Mary E. Lawrence, administratrix of the estate of John Lawrence, deceased, of the County of Harris and State of Texas, for and in consideration of the enhanced value to be given, and which is contemplated to arise in my lands and other property by the location and speedy construction of the Galveston, Harrisburg & San Antonio Railway and for the further consideration of Four Hundred and Thirty–Seven 00/100 Dollars to me in hand paid, the receipt whereof is hereby acknowledged, have [sic] granted, bargained, sold, released, and by these presents to [sic] give, grant, bargain, sell and release to the Galveston, Harrisburg and San Antonio Railway Company, the following described tract or parcel of land, situating, lying and being in the County of Harris and State of Texas, containing three & one-half acres, and more particularly described and known as follows, viz:

A strip of land, fifty feet in width by—[sic] feet in length of lot No. Six of the Hollingsworth survey of the John Austin grant near the western suburbs of the City of Houston and between Buffalo Bayou and the lines of the Houston & Texas Central Railroad—Being the land condemned by the Commission to the use of said Railway Company for Right of Way in Case No. 706, on docket of the County Court, Harris County, a plat of said tracts is made part hereof, but I hereby reserve herein the right to all the timber upon the tract given for right of way together with all and singular the improvements, rights, hereditaments, and appurtenances to the same belonging or in any-way [sic] incident or appertaining: To have and to hold, the said land and appurtenances upon the said Galveston, Harrisburg & San Antonio Railway Company and its legal representatives forever; and I bind myself heirs and legal representatives to warrant and forever defend, all and singular, the title to the aforesaid premises unto the said Galveston, Harrisburg & San Antonio Railway Company, their successors and assigns, against every person whomsoever lawfully claiming or to claim the same or any part thereof, subject, however, to the following condition, to wit: that if the Galveston, Harrisburg & San Antonio Railway Company shall, on or before the first day of January 1881, build its railway and run its cars to the Texas & New Orleans RR Depot, then only in that case this Deed of Conveyance is absolute, and to be and remain full [sic] force and effect; but otherwise to be null and void without further act or reconveyance.

IN TESTIMONY WHEREOF, have hereunto set hand and seal, using scroll for seal, this 15 day of December, A.D., 1879.¹

The dispute did not end there, however. M.E. Blakeney, as guardian for two minor children of John Lawrence, sued G.H.S.A. in 1888, seeking to recover the strip of land on behalf of the children. Blakeney, 11 S.W. at 174. The trial court entered judgment for the children, awarding them $360, and simultaneously condemned a right of way in John Lawrence's interest in the land for G.H.S.A, “to be enjoyed by [the railway] as long as it keeps its said track thereon.” Blakeney appealed to the Supreme Court of Texas, which reversed, holding that the minor children had benefitted from the $437 that G.H.S.A. had paid Mary in exchange for her deed and were not entitled to a further recovery. Id. at 174–75.

Through various transactions, Union Pacific and Ameriton succeeded to the various interests held by their respective predecessors in title. Although there were once tracks on the property, Union Pacific has removed them and no longer uses the property for railroad purposes. According to Ameriton, however, it recently learned that Union Pacific claims a fee simple interest in the property, prompting it to bring this suit.

The parties stipulated to various facts before submitting their summary judgment motions, including several documents—a plat, the judgment from the condemnation suit involving the interest held by Hart and S.E. Lawrence, the trial court's opinion in Blakeney, and the Supreme Court's opinion inBlakeney —which referred to the same piece of property that is at issue here. They also stipulated that Ameriton “owns the Property, subject to whatever rights or interests were conveyed in the deed,” that Union Pacific is successor in title to G.H.S.A., and that Union Pacific has removed its tracks from the property and no longer uses it for railroad purposes. After the trial court granted Ameriton summary judgment on the ownership issue, the parties also stipulated to the amount of Ameriton's reasonable and necessary attorney's fees, although they continued to dispute whether such fees were recoverable.

Ameriton sought summary judgment on three grounds: (1) the deed conveyed only a right of way, not a fee interest in the property; (2) Union Pacific's claim to the land is barred by the doctrine of res judicata (claim preclusion); and (3) that claim is barred by the doctrine of collateral estoppel (issue preclusion). The parties agree that the sole issue presented to the trial court was the nature of the interest conveyed by the 1879 deed from Mary to G.H.S.A.

On appeal, Union Pacific raises six arguments. First, it argues that it should not have to challenge and negate each theory in Ameriton's motion for summary judgment because the trial court specified its reasoning. Second, it argues that the trial court erred in ruling that the 1879 deed to G.H.S.A. conveyed a right of way and not a fee title. The third and fourth arguments address whether Ameriton was entitled to summary judgment by application of res judicata and collateral estoppel, respectively, to the Blakeney opinion. Fifth, Union Pacific argues that this Court should reverse the trial court's judgment and render judgment for Union Pacific. Finally, Union Pacific argues that the trial court's award of attorney's fees was improper because Ameriton's action was really an action to quiet title, not a declaratory judgment action.

Standard of Review

This court reviews an order granting or denying a motion for summary judgment de novo. Tex. Mun. Power Agency v. Pub. Util. Comm'n of Tex., 253 S.W.3d 184, 192 (Tex.2008). “If both parties file competing motions for summary judgment and one is granted and the other overruled, on appeal this Court will determine all questions presented, including the propriety of the order overruling the losing party's motion.” Jones v. City of Houston, 907 S.W.2d 871, 875 (Tex.App.-Houston [1st Dist.] 1995, writ denied) (citing Int'l Ass'n of Fire Fighters v. Baytown, 837 S.W.2d 783, 786 (Tex.App.-Houston [1st Dist.] 1992, writ denied)). “The Court is authorized to either...