Smith v. Williams

The issue presented in this case is whether execution of an instrument conveying a note and lien “and all liens and titles held ... in and to said land” transfers the severed mineral estate in the land. The trial court granted summary judgment that this language conveyed the mineral estate. The court of appeals affirmed. 779 S.W.2d 479. We reverse.

Wolcott Gin, Inc., a company owned by Terry Smith, conveyed to Smith the mineral estate in three tracts of land. At the same time, Smith sold his stock in that company to Derrell Froman and others. In return, the company executed a $680,000…