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Lesley v. Veterans Land Board

Texas Supreme Court
352 S.W.3d 479 (Tex. 2011)


Facts

The Lesleys (plaintiffs) owned a one-half interest in the minerals in place in a tract of land. Bluegreen Southwest One, L.P. (Bluegreen) (defendant) owned the land’s surface estate and the executive right to lease the minerals. Bluegreen subdivided the land for residential purposes and imposed a restrictive covenant on the subdivision. The restrictive covenant limited oil and gas development within the subdivision. The Lesleys brought suit against Bluegreen, claiming that Bluegreen, the executive-right holder, had breached its duty of fair dealing to the Lesleys as non-executive mineral-interest holders in the subdivision land. The trial court found in favor of the Lesleys, and Bluegreen appealed. The court of appeals reversed, holding that because Bluegreen had not exercised the executive right, Bluegreen could not have breached the duty of fair dealing accompanying that right. The Lesleys appealed.

Rule of Law

Issue

Holding and Reasoning (Hecht, J.)

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