City of Balch Springs, Tex. v. Lucas

• Decision Date: 23 December 2002
• Docket Number: No. 05-02-01126-CV.,05-02-01126-CV.
• Parties: CITY OF BALCH SPRINGS, TEXAS, Appellant, v. The George F. LUCAS, Irrevocable Family Trust, Carolyn L. Bass, Trustee, Richard W. Caudle, United Investment Trust, Go Crete, Hanson Aggregates Central, Inc., Texas Industries, Inc., Lucas Bass Holdings, Ltd., David Paulson and Barbara Paulson, Appellees.
• Court: Texas Court of Appeals

101 S.W.3d 116

CITY OF BALCH SPRINGS, TEXAS, Appellant, v. The George F. LUCAS, Irrevocable Family Trust, Carolyn L. Bass, Trustee, Richard W. Caudle, United Investment Trust, Go Crete, Hanson Aggregates Central, Inc., Texas Industries, Inc., Lucas Bass Holdings, Ltd., David Paulson and Barbara Paulson, Appellees.

No. 05-02-01126-CV.

Court of Appeals of Texas, Dallas.

December 23, 2002.

COPYRIGHT MATERIAL OMITTED

David Berman, Nichols Jackson Dillard & Smith, LLP, Dallas, for Appellant.

Arthur J. Anderson, Winstead Sechrest & Minick, P.C., Dallas, for Appellee.

Before Justices MOSELEY, LANG, and LAGARDE.¹

OPINION

Opinion by Justice LANG.

This is an interlocutory appeal by the City of Balch Springs (hereinafter "City") of the trial court's denial of its plea to the jurisdiction and entry of a temporary injunction prohibiting it from annexing, by ordinance, certain property within the City's extraterritorial jurisdiction. In four issues on appeal, the City contends that it was acting within the lawful exercise of its legislative authority in pursuing the annexation, and appellees' complaints are procedural, not substantive, which, if sustained, would render the proposed action voidable, not void. Accordingly, the City says the exclusive remedy is a quo warranto proceeding, and appellees have no standing to bring a private cause of action. Hence, the trial court had no jurisdiction over the case. The City further contends that because the trial court had no jurisdiction over the case, it had no jurisdiction to enjoin the City from annexing the property in question. For reasons that follow, we resolve the jurisdictional issue in the City's favor, vacate the trial court's orders and dismiss the case. TEX.R.APP. P. 43.2(e).

Factual and Procedural Background

The City, a home-rule city with a population of over 19,000 residents, sought to annex three tracts of land consisting of approximately 480 acres which include land owned by the appellees. The land in question is contiguous to the city and within its extraterritorial jurisdiction. The issues in this case arose as a result of certain amendments to chapter 43 of the Texas Local Government Code (the Municipal Annexation Act) enacted through Senate Bill 89, which became effective September 1, 1999. TEX. LOCAL GOV'T CODE ANN. § 43 (Vernon Supp.2003) (the "Act"). Under the new section 43.052 cities are required to prepare an annexation plan identifying anticipated annexations and wait three years before annexing those identified properties. The City adopted a municipal annexation plan on December 13, 1999; that plan did not include or identify any properties. The City contends, however, that under section 17, a transitional provision of Senate Bill 89, it is entitled to lawfully annex the property in question under pre-amendment law; therefore, the requirements of section 43.052 do not apply.

In March of 2002, the City published a notice in a local newspaper announcing public hearings regarding the proposed annexation. In April, the City conducted public hearings and scheduled consideration of the annexation ordinance for a city council meeting on May 13, 2002.

On May 3, 2002, appellees filed their original petition and application for declaratory and injunctive relief claiming that the City's proposed annexation was unlawful because it did not comply with the requirements of the new section 43.052(b)(c) of the Act. On May 13, 2002, before the city council could consider the proposed annexation ordinance, the appellees sought and obtained a temporary restraining order. After a hearing, the trial court entered a temporary injunction preventing the City from completing its proposed annexation. The temporary injunction ordered in relevant part that the City "desist and refrain from: 1. Annexing the approximately 480 acres of property located in its extraterritorial jurisdiction until the City complies with the requirements of § 43.052 of the Texas Local Government Code."

The City filed a plea to the jurisdiction of the trial court challenging the appellees' standing to bring this suit. According to the City, the appellees' complaints regarding the proposed annexation address solely procedural issues. The City contended that, even if appellees were correct in their claim that irregularities exist in the process, such alleged defects would render the annexation only voidable, not void. Accordingly, the City reasons, the only proper action by which the challenge to the annexation can be pursued is by a quo warranto proceeding brought by the State of Texas and not by way of a private action. Thus, the appellees had no standing to bring this private cause of action and the trial court had no jurisdiction to grant injunctive relief. The City's plea to the jurisdiction was denied July 15, 2002. This interlocutory appeal ensued from both the grant of the temporary injunction and the denial of the plea to the jurisdiction. TEX. CIV. PRAC. & REM.CODE ANN. § 51.014(a)(4), (8) (Vernon Supp.2003).

Specifically, appellees claim the trial court has jurisdiction because the City is attempting to annex their land without complying with the provisions of section 43.052 of the Act because: the City is not acting in accordance with its own annexation plan; is attempting to annex property under an exception to the applicable statute, section 43.052(h), which is not applicable to this annexation; and is attempting to circumvent the requirements of section 43.052 by arbitrarily omitting certain parcels from the annexation ordinance. Further, appellees claim that the requirements of section 43.052, which it contends the City failed to follow, are not procedural. Rather, appellees contend the requirements in section 43.052 are limits upon the City's annexation authority. Hence, the City's proposed annexation ordinance would be void if passed for lack of authority to pass it. Therefore, the City is subject to being enjoined by a suit brought by a private party.

Standard of Review as to the Plea to Jurisdiction

"In deciding a plea to the jurisdiction, a court may not weigh the claims' merits but must consider only the plaintiffs' pleadings and the evidence pertinent to the jurisdictional inquiry. County of Cameron v. Brown, 80 S.W.3d 549, 555 (Tex.2002), (citing Tex. Natural Res. Conservation Com'n v. White, 46 S.W.3d 864, 868 (Tex.2001), Bland Indep. Sch. Dist. v. Blue, 34 S.W.3d 547, 554-55 (Tex.2000))." "Because jurisdiction is a question of law, we review the trial court's ruling on a plea to the jurisdiction de novo, applying the same standards that the trial court applies." Godley Indep. Sch. Dist. v. Woods, 21 S.W.3d 656, 658 (Tex. App.-Waco 2000, pet. denied).

A review of an individual party's standing to challenge annexations centers on an inquiry of whether the challenge attacks the city's authority to annex the area in question or simply complains of some violation of statutory procedure. City of San Antonio v. Hardee, 70 S.W.3d 207, 210 (Tex.App.-San Antonio 2001, no pet.). See City of Wichita Falls v. Pearce, 33 S.W.3d 415, 417(Tex.App,-Fort Worth 2000, no pet.). "Distinction should be drawn between municipal acts unauthorized by law or color of law, and those consisting of a mere irregular exercise of power." Hardee, 70 S.W.3d at 210 (citing Forbes v. City of Houston, 304 S.W.2d 542, 546 (Tex.Civ.App.-Galveston 1957, writ ref'd n.r.e.)). Private causes of action have been allowed to challenge:

(1) annexation of territory exceeding the statutory municipal size limits; (2) attempts to annex areas included in the extraterritorial jurisdiction of another city; (3) attempts to annex areas not contiguous with current city limits; and (4) annexation of an area with a boundary description that does not close.... A quo warranto suit is the proper way to challenge procedural irregularities such as lack of notice, adequacy of the service plan, lack of quorum for hearing, and other deficiencies in the procedure of adopting the annexation ordinance. See Laidlaw Waste Sys. (Dallas) Inc. v. City of Wilmer, 904 S.W.2d 656, 658 (Tex.1995); Pearce, 33 S.W.3d at 417; Forbes, 304 S.W.2d at 546.

Hardee, 70 S.W.3d at 210.

In Alexander Oil Company v. City of Seguin, 825 S.W.2d 434, 437 (Tex.1991), the Texas Supreme Court described the history of the court's directions respecting relief pursuant to quo warranto:

Through quo warranto proceedings, the State acts to protect itself and the good of the public generally, through the duly chosen agents of the State who have full control of the proceeding.' Fuller Springs v. State ex rel. City of Lufkin, 513 S.W.2d 17,19 (Tex.1974). Therefore, the State must bring the action to question irregular use of the delegated annexation authority.

Furthermore, quo warranto proceedings serve another purpose. By requiring that the State bring such a proceeding, we avoid the specter of numerous successive suits by private parties attacking the validity of annexations. Kuhn v. City of Yoakum, 6 S.W.2d 91, 92 (Tex. Comm'n. App.1928, jdgm't adopted). The judgments of suits brought by private parties are binding only on the parties thereto so conflicting results might be reached in subsequent suits by other individuals. These problems are avoided by requiring quo warranto proceedings because the judgment settles the validity of the annexation on behalf of all property holders in the affected area. Id.; see also Superior Oil Co. v. City of Port Arthur, 726 F.2d 203, 206 (5th Cir.1984).

The requirement that an action seeking to set aside annexation for irregular use of power be brought as a quo warranto proceeding dates back as early as 1886. Graham v. City of Greenville, 67 Tex. 62, 2 S.W. 742, 744-45 (1886). It continues to be followed today. [] The fact that the Legislature has reacted to other holdings regarding annexation, but has not acted to expressly provide a private action to set aside annexation in reaction to these cases, supports the position...