Laidlaw Waste Systems (Dallas), Inc. v. City of Wilmer

Decision Date14 September 1995
Docket NumberNo. 94-0566,94-0566
Citation904 S.W.2d 656
Parties38 Tex. Sup. Ct. J. 973 LAIDLAW WASTE SYSTEMS (DALLAS), INC., Petitioner v. CITY OF WILMER, Texas, Respondent.
CourtTexas Supreme Court

Kerry N. Cammack, Scott R. Kidd, C. Brian Cassidy, and Douglas W. Alexander, Austin, for petitioner.

Henry W. Fielder and J. Patrick Atkins, Waco, for respondent.

OWEN, Justice, delivered the opinion of the Court, in which PHILLIPS, Chief Justice, and HIGHTOWER, HECHT, GAMMAGE, ENOCH and SPECTOR, Justices, join.

In this case we must determine whether a Type A general-law municipality may annex a contiguous area pursuant to section 43.024 of the Local Government Code, when the annexation causes it to exceed the statutory area limitations that were applicable when it initially incorporated under section 6.001 of the Code. Laidlaw Waste Systems (Dallas), Inc. brought suit to void the annexation of its property by the City of Wilmer, Texas, a Type A municipality. 1 The trial court rendered summary judgment in favor of Laidlaw. The court of appeals reversed. 890 S.W.2d 459. Because we conclude that section 43.024 authorizes such an annexation, we affirm the judgment of the court of appeals.

I

In 1990, Laidlaw received a permit to construct and operate a municipal solid waste landfill on property adjacent to Wilmer. The City subsequently annexed approximately 205 acres of land in its extraterritorial jurisdiction, including a portion of the site of the proposed landfill. The temporary zoning designation for the annexed land does not include operation of a landfill as a permissible use. Laidlaw initiated a declaratory judgment action, challenging the validity of the annexation on several fronts.

Laidlaw filed a motion for summary judgment on a single ground, asserting that the annexation was void and invalid under section 5.901(2) of the Texas Local Government Code because a Type A municipality of Wilmer's size was precluded from having a surface area in excess of four miles, and that the surface area of Wilmer already exceeded that limit. The City filed its own motion for summary judgment, attempting to negate this and the other allegations in Laidlaw's petition. The City's motion asserted that Laidlaw lacked standing to challenge the annexation; that the area limitations in section 5.901(2) applied only to the incorporation of a municipality, not to annexation; that the area annexed did not exceed the one-half mile limitation in section 43.024(a) of the Code; and that the metes and bounds description of the annexed territory did close, contrary to Laidlaw's assertions.

The trial court denied the City's motion and granted Laidlaw's motion for summary judgment, declaring the annexation void. The court of appeals reversed and rendered judgment in favor of the City. 890 S.W.2d 459.

II

The first question we must resolve is whether Laidlaw has standing to challenge the annexation. Generally a quo warranto proceeding is the only appropriate mechanism for challenging the validity of an annexation. Alexander Oil Co. v. City of Seguin, 825 S.W.2d 434, 436 (Tex.1991). The City contends that as a private party, Laidlaw lacks standing. However, a private party may collaterally attack an annexation that exceeds the annexation authority granted by statute. See id. at 436-38. Laidlaw's argument is that the City's attempted annexation is wholly void because it exceeds the statutory area limitations. Laidlaw does have standing to attack the annexation on this ground. However, Laidlaw has no standing to challenge the annexation on procedural grounds, such as alleged failures to meet the notice and signature requirements, and accordingly, we do not consider those procedural challenges.

III

In resolving this case, it is crucial to understand the different classifications of municipalities in the Local Government Code. Municipalities in Texas may be divided into three broad categories: general-law, special-law, and home rule. Laws expressly applicable to one category are not applicable to others. See Forwood v. City of Taylor, 147 Tex. 161, 214 S.W.2d 282, 285 (1948). The Local Government Code further subdivides general-law municipalities into three types: A, B, and C. See TEX.LOCAL GOV'T CODE §§ 5.001-5.003. These classifications preserve distinctions established in the predecessor statutes enacted in the late nineteenth and early twentieth centuries. See former TEX.REV.CIV.STAT.ANN. art. 961 (1875) (repealed 1987), art. 1133 (1897) (repealed 1987), and art. 1154 (1909) (repealed 1987). Communities with 600 or more inhabitants may incorporate as Type A municipalities. TEX.LOCAL GOV'T CODE § 6.001. Communities with more than 200 but less than 10,000 inhabitants may incorporate as Type B municipalities. TEX.LOCAL GOV'T CODE § 7.001. Communities with more than 200 but less than 5,000 inhabitants that adopt a commission form of government may incorporate as Type C municipalities. TEX.LOCAL GOV'T CODE § 8.001.

Section 5.901 of the Local Government Code, which applies to all general-law municipalities, provides that "[a] community may not incorporate as a general-law municipality unless it meets the following territorial requirements: ... a community with 2,001 to 4,999 inhabitants must have not more than four square miles of surface area...." TEX.LOCAL GOV'T CODE § 5.901. It is undisputed that this would prohibit a municipality with fewer than 5,000 inhabitants from incorporating within an area of more than four square miles. The dispute in this case arises from the application of these territorial limits to subsequent annexations.

For Type B municipalities, the application is clear. Section 43.025 of the Local Government Code, which governs annexations by Type B municipalities, provides that "[t]he municipality may not be enlarged under this section to exceed the area requirements established by Section 5.901." TEX.LOCAL GOV'T CODE § 43.025(d). Subsection (d) specifically incorporates the territorial limits of section 5.901. There is no parallel provision in section 43.024, which governs Type A municipalities. The only territorial requirement in section 43.024 is that the annexed area be less than one-half mile in width, which has no counterpart in section 43.025. In fact, section 43.025(d) is the only annexation provision that refers to the limits in section 5.901, and it is applicable only to Type B municipalities. This is entirely consistent with the predecessors of sections 43.024 and 43.025. A Type B municipality (referred to as a town or village under the older statutes) was restricted to its original incorporated limits in annexing contiguous area. See former TEX.REV.CIV.STAT.ANN. art. 1135 (1903) (repealed 1987) and art. 971 (1895) (repealed 1987). A Type A municipality (referred to as a city or town in the older statutes) was not so restricted. See former TEX.REV.CIV.STAT.ANN. art. 974 (1875) (repealed 1987).

In Cameron v. Terrell & Garrett, Inc., 618 S.W.2d 535 (Tex.1981), we held:

It is a rule of statutory construction that every word of a statute must be presumed to have been used for a purpose. Likewise, we believe every word excluded from a statute must also be presumed to have been excluded for a purpose.

Id. at 540 (citations omitted). Laidlaw's construction of the statute in this case violates both of these basic precepts. If, as Laidlaw argues, the territorial limits in section 5.901 apply automatically to any annexation by a general-law municipality, section 43.025(d) is entirely superfluous. By the same token, Laidlaw's construction assumes that the territorial limits were excluded from section 43.024 for no purpose. When the Legislature employs a term in one section of a statute and excludes it in another section, the term should not be implied where excluded. Smith v. Baldwin, 611 S.W.2d 611, 616 (Tex.1980). This principle is related to a more general rule that courts should not insert words in a statute except to give effect to clear legislative intent. Hunter v. Fort Worth Capital Corp., 620 S.W.2d 547, 552 (Tex.1981). In this case, there is no clear legislative intent to apply territorial limits to annexations by Type A municipalities.

On the contrary, an examination of the statute as a whole reveals that the Legislature frequently treats Type A municipalities differently from Type B municipalities. See, e.g., TEX.LOC.GOV'T CODE §§ 315.005 (Type A municipalities may operate free libraries); 341.001 (Type A municipalities may establish police forces); 341.021(e) (marshal of Type A municipality has same power as sheriff); 341.902 (Type A municipalities may build houses of correction); 342.001 (fire protection provisions apply only to Type A municipalities); 402.015 (Type A municipalities may provide municipal water supply system). In light of these statutory distinctions, we would not be justified in assuming that the Legislature intended to apply the same rules to Type A and Type B municipalities.

Laidlaw relies on lower court opinions in City of Northlake v. East Justin Joint Venture and Sentry Environmental, 873 S.W.2d 413 (Tex.App.--Fort Worth 1994, writ denied) and City of Deer Park v. State ex rel. Shell Oil Co., 259 S.W.2d 284 (Tex.Civ.App.--Waco 1953), aff'd on other grounds, 154 Tex. 174, 275 S.W.2d 77 (1955). In Deer Park, the court of appeals concluded that the city was governed by the limits applicable to Type B municipalities. The court went on to note in dicta that the territorial limits would also apply to a Type A municipality. The court of appeals reasoned that allowing unlimited annexation would render the territorial limits "vain, futile and meaningless." Deer Park, 259 S.W.2d at 287. In reviewing Deer Park, our Court expressly declined to reach the issue of whether the territorial limits apply to annexation by a Type A municipality. Deer Park, 275 S.W.2d at 82.

Moreover, the Deer Park analysis is flawed in assuming that...

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