E. G. Omohundro v. Frank D. Matthews, Jr.

Summary

The Texas Supreme Court affirmed the trial court and Court of Civil Appeals, imposing a constructive trust on Omohundro to equally share the overriding royalty interests with Matthews and Thompson despite the Texas Trust Act’s prohibition on oral express trusts. The majority held that a fiduciary/confidential relationship existed, justifying a constructive trust to prevent unjust enrichment, while a dissent argued the oral agreement could not support such a trust.