Lazy M Ranch, Ltd. v. TXI Operations, LP
Texas Court of Appeals
978 S.W.2d 678 (1998)
- Written by Tammy Boggs, JD
Facts
TXI Operations, LP (TXI) (plaintiff) engaged in contract negotiations with Dr. George Morris, the ailing owner of Lazy M Ranch, Ltd. (Lazy M) (defendant). The parties entered a written contract under which TXI was required to pay $2,000 for the right to conduct subsurface tests on a part of the ranch’s land—a specifically delineated 1,669 acres—and had the option to lease 300 of the 1,669 acres by tendering a sum of $98,000 within six months. Morris died a few months later. Thereafter, TXI sought to exercise its lease option. The successor owner of Lazy M refused to honor the lease option based on evidence that TXI had intentionally and repeatedly entered and performed subsurface tests on areas of Lazy M’s land that were outside the specified acreage. Lazy M had protested and objected to TXI’s trespasses. Lazy M’s new owner also believed that TXI had taken advantage of Morris. TXI sued Lazy M for specific performance of the lease. The trial court granted summary judgment in favor of TXI and awarded specific performance of the lease as TXI’s remedy. Lazy M appealed, arguing in part that TXI materially breached the contract and had unclean hands, precluding specific performance.
Rule of Law
Issue
Holding and Reasoning (Powers, J.)
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