Hoffman v. Magnolia Petroleum Co.
Texas Commission of Appeals
273 S.W. 828 (Tex. Com. App. 1925)
Duke leased oil and gas rights to his 320 acres to R.O. Harvey. Duke reserved a one-eighth royalty interest. Subsequently, Duke sold to Peter Hoffman (plaintiff) a one-half interest of oil, gas, and other minerals on 90 acres of the tract of land. The deed stated that it was subject to the lease but also stated: “It is understood and agreed that this sale is made subject to [Harvey’s] lease but covers and includes one-half of all the oil royalty and gas rental or royalty due to be paid under the terms of said lease.” Hoffman brought suit seeking to recover one-half of the royalties on the entire 320 acres, as opposed to only the 90 acres he bought. The defendant argued that because the subject of the deed was the 90 acres, the royalty interest should be applied to those 90 acres only. The trial court found in favor of the defendant. The Texas Court of Civil Appeals affirmed. Hoffman appealed.
Rule of Law
Holding and Reasoning (Stayton, J.)
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