Spanish Land Grant Heirs -- Jousting at Windmills?

A recent article in the San Antonio Express News about a gathering of alleged heirs of the grantees of land grants made by the Spanish crown and Mexican government hundreds of years ago really piqued my interest. My fascinations with Texas history, real estate law, and landowner rights prompted me to examine the claims of this group of descendants of families in South Texas, who assert that their long-dead ancestors never received royalty payments from oil producers operating on family property.

According to the group -- which appears to be largely represented by a single, very determined lawyer -- their ancestors died without leaving proper wills or other payment instructions for the oil companies. Thus, hundreds of millions of dollars in royalties are either unpaid by the oil producers, or have been paid, but are unclaimed and being held by the State of Texas (Comptroller) under the Texas Unclaimed Property Act. This mountain of money will remain "unclaimed," until its rightful owners can be validly identified and their entitlements to the funds proven in accordance with the Act. In order to establish their claims to the millions held by Texas, the heirs seek to have the Texas Legislature amend the Unclaimed Property Act in a way that eases a claimant's burden of proof.

My research reveals that a bill outlining the specific types of information that holders of unclaimed property must disclose was passed last Session (SB 1589), and has now been incoprorated into the Act. According to the Express News article, the families are proposing a new bill that "would set up a method by which the state can identify and qualify descendants of the original grantees using legal and historical documents as well as family genealogical research." I was unable to locate a filed bill as of this writing, but the 82nd Legislative Session is still in its early stages.

At first glance, these folks' chances of getting their hands on hundreds of millions of dollars being held by the State of Texas (who gets to keep all of the interest) seems like jousting at windmills, a la another Spaniard -- Don Quixote. I am quickly reminded of those dreamers who talk about suing Swiss banks to recover unclaimed funds, undoubtedly stolen, that Nazis deposited there and never retrieved.

But, this case might be very different. The families are represented by the same "land grant attorney" who represented some of the descendants of Padre Nicholas Balli -- a priest who held the original Spanish Land Grant to Padre island. The heirs of the good father -- who sold the island to a New York lawyer in 1938 -- won mineral rights to the island after a lengthy jury trial in 2005. The jury's verdict was upheld on appeal, but reversed by the Texas Supreme Court in 2008.

Thus, the stage is set for a very exciting effort that involves real estate, and lots of money derived from it. In the words of Quixote, "Paciencia y barajar" (Patience, and shuffle the cards). We'll be watching this one from the front row.