Mira Mar Dev. Corp. v. City of Coppell

Decision Date07 May 2012
Docket NumberNo. 05–10–00283–CV.,05–10–00283–CV.
PartiesMIRA MAR DEVELOPMENT CORPORATION, Appellant, v. CITY OF COPPELL, Texas, Appellee.
CourtTexas Court of Appeals

OPINION TEXT STARTS HERE

Jeffrey Robert Sandberg, Palmer & Manuel, LLP, Dallas, TX, Walter W. Leonard, Fort Worth, TX, for Appellant.

Carvan E. Adkins, Wayne K. Olson, David Thomas Ritter, Fredrick Quast, Taylor, Olson, Adkins, Sralla & Elam, LLP., Fort Worth, TX, for Appellee.

Before Justices LANG, MURPHY, and MYERS.

OPINION

Opinion By Justice MYERS.

This case involves an appeal from a city council hearing to a district court pursuant to Texas Local Government Code section 212.904(e). Mira Mar Development Corporation appeals the district court's judgment in favor of City of Coppell, Texas on its claims seeking compensation for exactions. Appellant brings nine issues asserting the trial court erred by denying its motion for summary judgment and granting the City's motion for summary judgment and for awarding appellant only $40,280.84. We affirm in part, reverse and render in part, and reverse and remand in part for further proceedings.

BACKGROUND

In 2006, appellant purchased approximately 18.5 acres in Coppell, Texas, to develop a 29–lot residential subdivision called Alexander Court. In 2008, appellant sold the lots to David Weekley Homes, a home builder.

This lawsuit concerns appellant's conflicts with the City in obtaining approval of the development, including delays and changes to the development plan that increased appellant's costs and reduced the sale price of the lots. Appellant demanded the City compensate it for the increased costs and reduced sale price. Appellant sought a review of its grievances in a hearing before the City Council pursuant to section 212.904 of the Texas Local Government Code. SeeTex. Loc. Gov't Code Ann.. § 212.904(b) (West 2008). The City Council approved procedures for the hearing, which did not permit appellant to cross-examine the City's witnesses or present rebuttal evidence. At the conclusion of the hearing, the City awarded appellant $21,709.84 for taking .147 acre of land for a roadway. The City credited $18,444 toward outstanding roadway-assessment fees appellant owed on the project, which left $3265.84 the City owed appellant. SeeTex. Loc. Gov't Code Ann.. § 395.023 (West 2005).

Appellant brought suit in district court appealing the City Council's decision pursuant to section 212.904(b) of the Local Government Code. Appellant also alleged violations of its substantive and procedural due process rights and that the City's actions constituted compensable exactions or takings under the federal and state constitutions. In its first motion for summary judgment, appellant contended the City's procedures for the hearing before the City Council denied it due process, and the trial court agreed. The trial court granted the motion for summary judgment and ordered the City Council to conduct another hearing under procedures that accorded appellant due process. The second hearing before the City Council took place over three days in March and April 2009. After the second hearing, the City issued findings of fact and conclusions of law and awarded appellant an additional $28,230 in compensation consisting of $12,465 for sidewalk construction costs, $11,265 for park fees, and $4500 for an extra water tap. The City Council also awarded appellant $1800 for attorney's fees. This second hearing was recorded by a court reporter.

In its second motion for summary judgment, appellant argued it was entitled to compensation as a matter of law because the City failed to prove the exactions were roughly proportional to the projected impact of the development and because appellant established the amount of compensation to which it was entitled as a matter of law: $792,657 plus attorney's fees. Appellant also argued the City Council's new procedures were unconstitutional. The district court denied appellant's second motion for summary judgment and stated it would “review the record of the proceedings before the Coppell City Council to determine whether the decision of the City Council is supported by substantial evidence.”

On September 21, 2009, the trial court held a hearing under the substantial evidence standard of review. On October 5, 2009, the court signed an order mostly affirming the City Council's findings of fact and conclusions of law as supported by substantial evidence, but the court awarded appellant an additional $8785 for the value of the land occupied by the sidewalk. The court also reversed the award of attorney's fees to appellant, stating in the order that appellant was not a prevailing party.

Appellant then filed its third motion for summary judgment and the City filed its only motion for summary judgment. In these motions, the parties argued they were entitled to judgment as a matter of law concerning whether the procedures in the City Council hearing provided appellant substantive and procedural due process and whether the City's requirements, fees, and delays in the development-approval process were compensable exactions. Appellant's motion sought compensation of $801,762 for the City's exactions, plus attorney's fees.

The trial court granted the City's motion, denied appellant's motion, and rendered judgment for appellant awarding it $40,280.84, consisting of the $31,495.84 awarded by the City and the $8785 awarded by the trial court for the land occupied by the sidewalk. The court denied appellant's request for attorney's fees.

APPLICABLE LAW
Takings

Article I, section 17 of the Texas Constitution prohibits the taking of private property for public use without adequate compensation. Tex. Const. art. I, § 17; see Mayhew v. Town of Sunnyvale, 964 S.W.2d 922, 933 (Tex.1998). This provision and the Just Compensation Clause of the Fifth Amendment to the United States Constitution, applied to the individual states through the Fourteenth Amendment, were “designed to bar Government from forcing some people alone to bear public burdens which, in all fairness and justice, should be borne by the public as a whole.” Armstrong v. United States, 364 U.S. 40, 49, 80 S.Ct. 1563, 4 L.Ed.2d 1554 (1960); seeU.S. Const. amends. V, XIV. Whether particular facts are sufficient to constitute a taking is a question of law. Gen. Servs. v. Little–Tex Insulation Co., 39 S.W.3d 591, 598 (Tex.2001).

Takings can be classified as either physical or regulatory. Mayhew, 964 S.W.2d at 933. A physical taking occurs when the government authorizes an unwarranted physical occupation of an individual's property. Id. A regulatory taking may occur when a government conditions the granting of a permit or some other type of government approval on an exaction from a landowner seeking that approval. See Dolan v. City of Tigard, 512 U.S. 374, 384–85, 114 S.Ct. 2309, 129 L.Ed.2d 304 (1994); Town of Flower Mound v. Stafford Estates Ltd. P'ship, 135 S.W.3d 620, 634 (Tex.2004). An exaction occurs if a governmental entity requires an action by a landowner as a condition to obtaining government approval of a requested land development. 1Town of Flower Mound v. Stafford Estates Ltd. P'ship, 71 S.W.3d 18, 30 (Tex.App.-Fort Worth 2002), aff'd, Town of Flower Mound v. Stafford Estates Ltd. P'ship, 135 S.W.3d 620 (Tex.2004); City of Carrollton v. RIHR, Inc., 308 S.W.3d 444, 449 (Tex.App.-Dallas 2010, pet. denied). At oral argument, appellant's counsel confirmed that all of appellant's takings claims were under the exaction theory.2

For an exaction to be compensable, it must be a cost that, in fairness and justice, should be borne by the public instead of the individual. As the Texas Supreme Court observed, “The touchstone of the constitutional takings protections is that a few not be forced ... “to bear public burdens which, in all fairness and justice, should be borne by the public as a whole.” Stafford Estates, 135 S.W.3d 620, 642 (quoting Nollan v. Cal. Coastal Comm'n, 483 U.S. 825, 835 n. 4, 107 S.Ct. 3141, 97 L.Ed.2d 677 (1987) (quoting Armstrong, 364 U.S. at 49, 4 L.Ed.2d 1554)). To apply this sense of “fairness and justice,” the Texas Supreme Court has adopted a “rough proportionality” test to determine whether an exaction constitutes a compensable taking:

[C]onditioning government approval of a development of property on some exaction is a compensable taking unless the condition (1) bears an essential nexus to the substantial advancement of some legitimategovernment interest and (2) is roughly proportional to the projected impact of the proposed development.

Stafford Estates, 135 S.W.3d at 634;see Dolan, 512 U.S. at 391, 114 S.Ct. 2309;Nollan, 483 U.S. at 837, 107 S.Ct. 3141. Under this test, the government must make an “individualized determination that the required dedication is related both in nature and extent to the impact of the proposed development.” Stafford Estates, 135 S.W.3d at 633 (citing Dolan, 512 U.S. at 391, 114 S.Ct. 2309). Thus, after the plaintiff proves an exaction, the burden of proof shifts to the government to prove the exaction imposed meets the test. See id. at 643. The government's proof of rough proportionality of the impact must be more than bare conclusions; the government is “required to measure that impact in a meaningful, though not precisely mathematical, way, and must show how the impact, thus measured, is roughly proportional in nature and extent to the required improvements.” Id. 644.

Summary Judgment

The standard for reviewing a traditional summary judgment is well established. See Nixon v. Mr. Prop. Mgmt. Co., 690 S.W.2d 546, 548–49 (Tex.1985); McAfee, Inc. v. Agilysys, Inc., 316 S.W.3d 820, 825 (Tex.App.-Dallas 2010, no pet.). The movant has the burden of showing that no genuine issue of material fact exists and that it is entitled to judgment as a matter of law. Tex.R. Civ. P. 166a(c). In deciding whether a disputed material fact issue exists precluding summary judgment, evidence...

To continue reading

Request your trial
4 cases
  • Futerfas Family Partners v. Griffin
    • United States
    • Court of Appeals of Texas
    • 22 May 2012
    ...that it is entitled to judgment as a matter of law. Guynes v. Galveston Cnty., 861 S.W.2d 861, 862 (Tex.1993); Mira Mar Dev. Corp. v. City of Coppell, 364 S.W.3d 366, 375–76 (Tex.App.-Dallas 2012, no pet. h.). “Neither party can prevail because of the other's failure to discharge its burden......
  • Martinez v. Dkta Enters. Ltd.
    • United States
    • Court of Appeals of Texas
    • 29 May 2020
    ...reason. The admission or exclusion of evidence lies within the trial court's discretion. Mira Mar Dev. Corp. v. City of Coppell, 364 S.W.3d 366, 376 (Tex. App.—Dallas 2012, pet. denied). Assuming arguendo that the trial court erred in overruling Martinez's objections to the affidavits, it r......
  • Booklab Inc. v. Konica Minolta Bus. Solutions, Inc., 05-10-00095-CV
    • United States
    • Court of Appeals of Texas
    • 7 September 2012
    ...not reverse unless the error "probably caused the rendition of an improper judgment. Tex. R. App. P. 44.1(a)(1); Mira Mar Dev. Corp. v. City of Coppell, 364 S.W.3d 366, 376 (Tex. App.-Dallas 2012, no pet.). It is the appellant's burden to show harm from an erroneous evidentiary ruling. Mira......
  • Cont'l Foods, Inc. v. Rossmore Enters., 05-11-01668-CV
    • United States
    • Court of Appeals of Texas
    • 1 March 2013
    ...de novo to determine whether a party's right toprevail is established as a matter of law. Mira Mar Dev. Carp, v. City of Coppell, 364 S.W.3d 366, 374 (Tex. App.—Dallas 2012, pet. filed). As noted above, appellant argued in its petition two separate ways in which appellee allegedly breached ......

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT