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Japhet v. McRae
Texas Commission of Appeals
276 S.W. 669 (Tex. Com. App. 1925)
Wilbur Fisher executed an oil and gas lease with the Producers’ Oil Company (Producers) on a 15-acre tract of land that Fisher owned. Fisher retained a one-eighth royalty interest. Subsequently, Fisher conveyed five of the acres to Walter Keeble (plaintiff), who later conveyed to Charles McRae (plaintiff) three of those five acres. Subsequently, Fisher conveyed his remaining ten acres to Keeble. Keeble then conveyed those ten acres to Dan Japhet (defendant). Fisher’s reserved one-eighth royalty interest passed with each of these conveyances. Producers developed Japhet’s ten acres and produced oil thereon. McRae and Keeble brought suit against Japhet to recover five-fifteenths of the one-eighth royalty from the oil, representing their remaining interest in the 15-acre tract subject to the lease. The trial court found in favor of Japhet. The Texas Court of Civil Appeals reversed. Japhet appealed.
Rule of Law
Holding and Reasoning (Powell, J.)
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