Executive Right: Duty to Non-executive

摘要

The Newtons own all of the surface and 1/4 of the minerals in a 99.997 acre tract along with all of the executive rights. The owners of the other 3/4s of the mineral estate apparently own defeasible term interests that will revert to other parties if there is no development on the premises. Aurora approaches the Newtons about leasing the premises but the Newtons refuse to lease. Aurora then sues them on behalf of the defeasible term mineral owners alleging a breach of the duty owed to the non-executive owners. The trial court enters a take nothing judgment against Aurora based on its finding that mere is no duty to execute a lease and therefore, no breach of the fiduciary duty between the Newtons and the non-executive mineral interest owners. Held: affirmed. The court relies on In re Bass, 113 S.W.3d 735,164 0.&G.R. 834 (Tex. 2003) for the general proposition that mere is no duty on behalf of the executive rights owner to lease the premises. Thus, according to the court no fiduciary duty can exist until such time the executive actually executes a lease. Because the Newtons did not execute a lease, the trial court properly dismissed the claim. The court of appeals also affirms an award of attorney's fees finding that the Newtons counterclaimed for a declaratory judgment, which can serve as the basis for such an award.