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

Summary

The Texas Supreme Court affirmed the trial court and Court of Civil Appeals judgments, holding that a constructive trust may be imposed despite the Texas Trust Act’s prohibition on oral express trusts in order to prevent unjust enrichment arising from a breach of fiduciary duty among joint venturers. Accordingly, Matthews and Thompson were entitled to an equal one‑third share of the overriding royalty interest obtained by Omohundro from Slick Oil. The Court also rejected the clean‑hands defense as non‑absolute and affirmed the lower courts’ findings.