727 S - 727 S.W.2d 605 CHEROKEE WATER COMPANY Appellant v...

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727 S.W.2d 605; CHEROKEE WATER COMPANY, Appellant, v. Martha Paul Rogers FORDERHAUSE, et al., Appellees. (Tex. App.); Page 605 CHEROKEE WATER COMPANY, Appellant, v. Martha Paul Rogers FORDERHAUSE, et al., Appellees. No. 9502. Court of Appeals of Texas, Texarkana. February 10, 1987. Rehearing Denied March 4, 1987. Page 606 Page 607 John W. Stayton, Jr., McGinnis, Lochridge & Kilgore, Austin, Gordon Wellborn, Wellborn, Houston, Adkison, Mann & Sadler, Henderson, for appellant. T.A. Bath, Bath, Turner & Barber, Henderson, D.L. Case, Jackson, Walker, Winstead, Cantwell & Miller, Dallas, for appellees. GRANT, Justice. Cherokee Water Company appeals from an adverse judgment in which Forder-hause, et al prevailed in a jury trial by obtaining reformation of an option clause contained in a deed. This cause was severed from an original suit for which the opinion is found in 623 S.W.2d 435 (Tex.Civ.App.---Texarkana 1981), and the reversal by the Texas Supreme Court is found in 641 S.W.2d 522 (Tex.1982). In the original suit, the Supreme Court determined that the language of the deed was not ambiguous and that an oil and gas lease was within the scope of the language providing for a preferential right to purchase. The Supreme Court determined that the use of the word "sale" encompassed what is sometimes referred to as a "lease" of the minerals, because the common oil and gas lease creates a determinable fee and vests the lessee with title to the oil and gas in place. The language in controversy in the deed is as follows: Grantee is hereby given the first option to purchase the oil, gas and other minerals herein reserved, at the same price and on the same terms as Grantor has agreed to sell to a third party; such option to be accepted or rejected within five (5) days after Grantee has been furnished with the bona fide offer made by such third party. Failure to exercise such option on one sale, shall not be a waiver to purchasing at any subsequent sale or sales by Grantor.
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Page 608 At the time of the transaction in question, a tract of 59.71 acres in Rusk County was owned jointly by three brothers and their wives, Mr. and Mrs. C.E. "Shot" Rogers, Mr. and Mrs. Paul Rogers, and Mr. and Mrs. J.E. Rogers, who will collectively be referred to as the Rogers brothers (which includes their wives). The appellees are Martha Paul Rogers Forderhause, Mrs. J.E. (Fairy) Rogers, individually and executrix of the estate of J.E. Rogers, deceased, Glenn W. Rogers, and Doris Rogers Walters. Cherokee Water Company, appellant, will be referred to as Cherokee. In the summer of 1947, Clyde Hall, accompanied by some other men, talked to C.E. "Shot" Rogers about the plan to purchase the land to build a lake. According to the testimony of "Shot" Rogers's son, the men appealed to "Shot" Rogers to "sell it [the land] on the ground of civic improvements and this sort of thing." Rogers told them that he was not interested in selling, and that his brothers probably were not interested either.
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This note was uploaded on 09/30/2011 for the course EMGT 5130 taught by Professor Jeong during the Fall '11 term at UH Clear Lake.

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727 S - 727 S.W.2d 605 CHEROKEE WATER COMPANY Appellant v...

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