Omohundro v. Matthews

Frank D. Matthews, Jr., and Ray James Thompson, Jr., brought suit against E. G. Omohundro to recover an undivided l/3rd interest each in a l/16th overriding royalty interest which Omohundro acquired from Slick Oil Corporation. The trial court decreed that a constructive trust existed in favor of Matthews and Thompson to the interests they claimed. The Court of Civil Appeals has affirmed that judgment. 317 S.W. 2d 771. We here affirm those judgments.

The record shows that Omohundro learned of the possibility of obtaining an assignment (commonly called a “farmout”) from Humble Oil and Refining…