Hazel v. Lonesome Ranch Prop. Owners Ass'n
| Decision Date | 27 October 2022 |
| Docket Number | 08-20-00075-CV |
| Citation | 656 S.W.3d 468 |
| Parties | Bruce HAZEL and Debbie Hazel, Appellants, v. LONESOME RANCH PROPERTY OWNERS ASSOCIATION a/k/a High Lonesome Ranch Property Owners Association, Appellee. |
| Court | Texas Court of Appeals |
ATTORNEY FOR APPELLANT: Joel Gordon, Joel Amos Gordon, Esq., PLLC, PO Box 52688, Midland, TX 79710.
ATTORNEY FOR APPELLEE: Matt Catalano, David W. Lauritzen, Cotton, Bledsoe, Tighe & Dawson, PC, P.O. Box 2776, Midland, TX 79702.
Before Rodriguez, C.J., Palafox, and Alley, JJ.
This case presents a dispute over the enforceability of an easement and certain covenants pertaining to property situated in a ranch subdivision of Crockett County, Texas. Appellants Bruce and Debbie Hazel (collectively, the Hazels) appeal a bench trial judgment granting a permanent injunction and awarding attorney's fees in favor of Appellee Lonesome Ranch Property Owners Association a/k/a High Lonesome Ranch Property Owners Association (the Association). In four issues, the Hazels not only challenge the Association's standing to bring suit but also contest the trial court's determination that a perpetual easement ran with the property, that covenants and restrictions were enforceable, and that some attorney's fees were recoverable. We affirm in part and reverse and remand in part.
Texas Land & Ranches, Inc., a corporation that bought and developed property, purchased several thousand acres of property from a hospital. Texas Land & Ranches then subdivided the purchased acres and sold the lots to individual property buyers. As its goal, the corporation intended to develop the acreage such that every lot had road frontage, each would meet certain requirements, and each would be platted as a part of a subdivision.
Renee Howes was the vice-president in charge of acquisitions for Texas Land & Ranches during the time the acreage was being subdivided. In 2003, Howes filed Articles of Incorporation and Bylaws with the Texas Secretary of State creating the Lonesome Ranch Property Owners Association. Howes testified that Texas Land & Ranches created the property owners’ association for buyers of tracts to have "a reasonable expectation of what their neighborhood would look like," and for owners to be treated equally. Howes became an original director of the Association's board of directors. Howes also filed a "Declaration of Covenants, Conditions and Restrictions," (CCRs), which applied to properties located in the planned subdivision.
Texas Land & Ranches platted the property for recreational and residential purposes. Howes began working with a surveyor to develop the land plan and appeared before the Crockett County Commissioner's Court to gain approval for the different plats. In May 2004, Howes filed three Plats (the Plat or Plats) in Crockett County. Each was certified by Texas Land & Ranches, contained surveyor's certificates, and were approved by the County Commissioner's Court. Along with the Plats, Howes also filed an amended and restated declaration of CCRs for the subdivision. Both the original and the amended CCRs referred to a "High Lonesome Property Owners Association." The CCRs were created to "establish a general plan for the development, sale, lease, and use" of property within "High Lonesome Ranch" and indicated all property within the subdivision "shall be held, sold and conveyed subject to" the CCRs. Upon purchase, all property owners in the High Lonesome Ranch became association members, they could not opt out of such membership, and each was bound by the terms and conditions of the CCRs. In 2018, Howes executed a correction instrument amending the name of the grantee of the easements contained in the Plats to "Lonesome Ranch Property Owners Association," not "High Lonesome Ranch Property Owners Association," and further stating that all other terms and provisions of the original Plats were to remain valid and enforceable. The correction instrument described a "non-material error" made in "that certain High Lonesome Ranch Phase 2 Sheet 1 of 1 of Final Plat," dated May 10, 2004, by Texas Land and Ranches, Inc.
Howes testified at trial that three different plats were created for High Lonesome Ranch due to differences in timing of their preparation and in getting the surveys done. Because of the large size of the subdivision, the surveying was completed over time. Each of the Plats contained a physical layout of High Lonesome Ranch along with a map legend. Relevant to the issues of this case, each Plat included the following text:
Texas Land & Ranches, Inc. hereby grants and dedicates the following: A sixty feet (60’) perpetual roadway easement shown and described on this plat by centerline and being thirty feet (30’) on either side of said centerline to the "High Lonesome Ranch Property Owners Association," a Texas Non-profit Corporation, for maintenance, repairs, ingress, egress, utility lines, and maintenance for benefit of its members.
The legend on the Plat identified the "roadway easement" as Bowline Road, which extended across subdivision tracts 28 and 29.
Howes testified that Bowline Road was designed as the entryway and main entrance to the Ranch. She described that the road had already been in existence, it had the proper permits, and it was in the "logical" location. Since 2004, the members of the Association used Bowline Road to access their properties from U.S. Highway 190. The Association erected a green gate on Bowline Road, at the entrance to High Lonesome Ranch, and it maintained the road over time.
On February 16, 2005, the Hazels purchased Tracts 28, 29, and 31 of High Lonesome Ranch. The Hazels’ Warranty Deed with Vendor's Lien from grantor Texas Land & Ranches, Inc., includes the following description of the property and reservations from the conveyances and warranty:
Initially, the Hazels were absentee owners; but they resided at High Lonesome Ranch beginning in 2008. Bruce Hazel testified he understood their deed referenced a Plat when he purchased the property. He also testified he understood that easements, rights-of-way, and prescriptive rights were reserved and excepted from the conveyance. He also acknowledged he had seen the Plat pertaining to his property. He confirmed the access easement language had existed since the Plat was created, that the Bowline Road description had been on the Plat when created, and that he purchased his property subject to the Plat that is referenced. Bruce Hazel also acknowledged that neighboring property owners used Bowline Road to access their properties.
In 2009, Bruce Hazel was elected president of the Association. During his tenure, he attempted to improve the Lone Star Trail, which is another road located within the subdivision. Howes testified that Lone Star Trail was not considered as a main entrance for High Lonesome Ranch because it was "very steep and had a switchback." Additionally, the other property owners portrayed the conditions of the road as being dangerous. Bruce claimed he "fixed" the road and disagreed with the other owners’ characterization as such.
In 2016, the Hazels proposed to the Association the relocation of Bowline Road from crossing the middle of their tracts to a place along the property line they shared with their neighbor, James Wright. Bruce Hazel also indicated that he had planned to let oil companies enter the subdivision and charge them a toll.
Responding, the then current President of the Association sent Bruce Hazel a letter. In relevant part, the letter stated:
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