City of Corpus Christi v. Taylor

• Decision Date: 12 February 2004
• Docket Number: No. 13-02-077-CV.,13-02-077-CV.
• Citation: 126 S.W.3d 712
• Parties: CITY OF CORPUS CHRISTI, Appellant, v. George Kines TAYLOR and Sandra G. Taylor, as Independent Coexecutors of the Estate of Fay K. Taylor, Jennifer Taylor Labrie, and George Kelley Taylor, Appellees.
• Court: Texas Court of Appeals

126 S.W.3d 712

CITY OF CORPUS CHRISTI, Appellant, v. George Kines TAYLOR and Sandra G. Taylor, as Independent Coexecutors of the Estate of Fay K. Taylor, Jennifer Taylor Labrie, and George Kelley Taylor, Appellees.

No. 13-02-077-CV.

Court of Appeals of Texas, Corpus Christi-Edinburg.

February 12, 2004.

Carol Estes Bray, Asst. City Atty., Corpus Christi, for Appellant.

Andrew M. Greenwell, Harris & Greenwell, Corpus Christi, for Appellee.

Before Chief Justice VALDEZ and Justices RODRIGUEZ and J. BONNER DORSEY.¹

OPINION

Opinion by Justice RODRIGUEZ.

Appellees, George Kines Taylor and Sandra G. Taylor, as independent coexecutors of the estate of Fay K. Taylor,² Jennifer Taylor Labrie, and George Kelley Taylor (Taylors), sued appellant, the City of Corpus Christi (City), seeking a declaration that restrictions against building on the real property at issue were void or unenforceable. The Taylors also sought money damages. After a bench trial, the court entered judgment in favor of the Taylors, holding the contract between George and Fay Taylor and the City, signed November 27, 1974, and the deed restrictions in the contract were terminated. The judgment released the Taylors from the restrictions. The trial court awarded attorney's fees to the Taylors pursuant to the Declaratory Judgment Act. The court did not award damages.

By twelve issues, the City challenges the trial court's findings of fact and conclusions of law contending the evidence is factually and legally insufficient to support the judgment. Specifically, the City complains that the court erred in its declaratory judgment rulings because: (1) the contract and restrictions are not illegal and void; (2) the contract does not contemplate a continuing performance which is indefinite in duration and is not terminable at will; (3) there is no violation of public policy against alienation, and the property is usable; (4) the City did not violate article 5421(c)-12, section 1 of the revised civil statutes by selling or exchanging land without public notice and public sale; (5) there was no anticipated breach, deceit, fraud, fraudulent inducement or unconscionable conduct; (6) there is no entitlement to attorney's fees; (7) the affirmative defenses of limitations, sovereign immunity, estoppel, laches, and estoppel by deed or contract preclude recovery; (8) the acts of the City are validated by statute; (9) it is not a taking or an unjust enrichment claim; and (10) the restrictive covenants cannot be unilaterally terminated. By one cross-issue, the Taylors assert the trial court should have awarded damages. We affirm.

I. Background

In the early 1970s, as part of a federally-funded program aimed at having and maintaining a series of open spaces and parks along Ocean Drive, the City sought to obtain George and Fay Taylor's undeveloped property bordering Corpus Christi Bay (Ocean Drive property). This property was to become part of an area now known as Ropes Park. George and Fay Taylor opposed the City's efforts to acquire their property. After three years of unsuccessful negotiations, the City began condemnation proceedings on the Ocean Drive property. The proceedings were hotly contested. In December 1973, following a hearing on the matter, appointed commissioners awarded the Taylors a total $39,275.00 for the Ocean Drive property. Both the City and George and Fay Taylor appealed the commissioners' award. A jury trial resulted in a $27,600.00 judgment to George and Fay Taylor for the property. They appealed that judgment.

In November 1974, George and Fay Taylor and the City entered into an agreement³ (1974 Agreement) that settled the condemnation proceeding. The 1974 Agreement was approved by the Corpus Christi City Council. Pursuant to the 1974 Agreement the following documents were executed and filed of record: (1) a document setting out covenants restricting building and certain vegetation on the Ocean Drive property; (2) a deed conveying to the City a one-half interest in property described as two lots on Water Street, presently the site of the Selena Auditorium (Water Street property); and (3) a quitclaim deed from the City to George and Fay Taylor for the Ocean Drive property.

The document restricting building and vegetation on the Ocean Drive property provided "[n]o building, fence or other structure shall be erected, placed or permitted to remain on said property," and "vegetation ... will be planted and maintained in such a manner that the driver of an automobile ... will be able to view Corpus Christi Bay over at least fifty (50%) of the property's Ocean Drive frontage." It also stated that,

[t]hese restrictions and covenants are hereby declared to be covenants running with the land forever and shall be binding upon all persons acquiring the above-described property whether by descent, devise, purchase or otherwise, and any person by the acceptance of title to said property or any part thereof shall thereby agree and covenant to abide by and fully perform the foregoing restrictions and covenants.

This restrictive covenant document further provided that if any person violated any of the restrictions and covenants, the City could "prosecute proceedings at law or in equity against the person violating or attempting to violate any such restriction and covenant...."

The second document required by the 1974 Agreement was a deed conveying a one-half interest in the Water Street property from George and Fay Taylor to the City. This conveyance was subject to the covenant that the City "shall never file or prosecute any suit to condemn" the Ocean Drive property. The conveyance also provided that should the City violate or not observe this covenant, the City agreed to pay George and Fay Taylor, "their heirs or assigns, in cash, the same amount paid to acquire the other one half (1/2) interest in" the Water Street property. The third document was a quitclaim deed from the City to George and Fay Taylor for the Ocean Drive property.

After the parties entered into the 1974 Agreement, the appeal of the condemnation proceeding was dismissed. The Ocean Drive property was taken out of the park project and was never condemned.

On August 20, 1997, Sandra G. Taylor and George Kines Taylor, independent coexecutors of the estate of Fay Taylor, signed an affidavit terminating and releasing restrictions on the Ocean Drive property. In December 1998, the Taylors filed their original petition and request for declaratory relief. The trial court's judgment terminated the 1974 Agreement and the restrictions contained therein, and released the Taylors from the restrictions. The trial court entered findings of fact and conclusions of law and later, at the request of the Taylors and the City, entered additional findings of fact and conclusions of law. The City appeals from the trial court's judgment.

II. Standard of Review

A. Findings of Fact

Findings of fact in a case tried to the court have the same force and dignity as a jury's verdict upon jury questions. Catalina v. Blasdel, 881 S.W.2d 295, 297 (Tex.1994); Taiwan Shrimp Farm Vill. Ass'n v. U.S.A. Shrimp Farm Dev., Inc., 915 S.W.2d 61, 70 (Tex.App.-Corpus Christi 1996, writ denied). Findings of fact are not, however, conclusive when a complete reporter's record appears in the record, as in this case. Tucker v. Tucker, 908 S.W.2d 530, 532 (Tex.App.-San Antonio 1995, writ denied). When challenged, such trial court's findings of fact are reviewed for legal and factual sufficiency of the evidence by the same standards applied when reviewing evidence supporting jury findings. Ortiz v. Jones, 917 S.W.2d 770, 772 (Tex.1996) (per curiam); Catalina, 881 S.W.2d at 297; Taiwan Shrimp Farm Vill., 915 S.W.2d at 70; see In re Doe, 19 S.W.3d 249, 253 (Tex.2000). If a reporter's record is filed, unchallenged findings of fact are binding on the appellate court unless the contrary is established as a matter of law, or if there is no evidence to support the finding. See McGalliard v. Kuhlmann, 722 S.W.2d 694, 696-97 (Tex. 1986).

1. Legal Sufficiency

Legal sufficiency issues are called "no evidence" issues or "matter of law" issues, depending upon whether the complaining party had the burden of proof. Raw Hide Oil & Gas, Inc. v. Maxus Exploration Co., 766 S.W.2d 264, 275 (Tex.App.-Amarillo 1988, writ denied). Challenges to the legal sufficiency of the evidence must be sustained if the record reflects one of the following:

(1) a complete absence of evidence of a vital fact; (2) the court is barred by rules of law or of evidence from giving weight to the only evidence offered to prove a vital fact; (3) the evidence offered to prove a vital fact is no more than a mere scintilla; or (4) the evidence establishes conclusively the opposite of [a] vital fact.

Uniroyal Goodrich Tire Co. v. Martinez, 977 S.W.2d 328, 334 (Tex.1998). Under a legal-sufficiency review we must disregard all evidence and inferences contrary to the findings in the case. Lenz v. Lenz, 79 S.W.3d 10, 19 (Tex.2002).

2. Factual Sufficiency

When reviewing a challenge to the factual sufficiency of the evidence, we consider all of the evidence. Plas-Tex, Inc. v. U.S. Steel Corp., 772 S.W.2d 442, 445 (Tex.1989) (per curiam). "Factual sufficiency [issues] are designated as `insufficient evidence [issues]' or `great weight and preponderance evidence [issues],' depending upon whether the complaining party had the burden of proof." Maxus, 766 S.W.2d at 275; see Dow Chem. Co. v. Francis, 46 S.W.3d 237, 241 (Tex.2001) (per curiam) (when complaining party did bear burden of proof at trial, he must demonstrate on appeal that adverse finding is against great weight and preponderance of evidence); Croucher v. Croucher, 660 S.W.2d 55, 58 (Tex.1983) (if complaining party did not have burden of proof at trial, must demonstrate there is insufficient evidence to support adverse finding); Hickey v. Couchman, 797 S.W.2d 103, 109 (Tex.App.-Corpus Christi 1990, writ denied) (same).

B. ...