1717 Bissonnet, L.L.C. v. Penelope Loughhead

500 S.W.3d 488, 2016 Tex. App. LEXIS 7073, 2016 WL 5462579
Court of Appeals of Texas·Decided June 30, 2016·No. NO. 14-14-00589-CV·Published·Cited by 9 cases

Opinion

OPINION

John Donovan, Justice

Appellant/Cross-Appellee, 1717 Bisson-net, LLC (hereinafter “Developer”), plan's to build a multi-use high-rise building (“the project”) in Houston and has obtained city approval. Appellees/Cross-Appellants (hereinafter “Homeowners”) own homes in the neighborhood where the project will be located. Homeowners sued Developer, seeking an injunction precluding construction of the project, or alternatively damages, on the ground that the project will be a permanent nuisance. Pursuant to a jury’s finding that the project will be a nuisance, if built, as to Homeowners, the trial court rendered judgment (1) awarding Homeowners one category of damages assessed by the jury—lost market value to their properties, (2) disregarding the jury’s finding that Homeowners sustained another category of damages—loss of use and *492 enjoyment, (3) taxing all court costs against Developer except for certain costs taxed against other plaintiffs who did not prevail at trial, and (4) denying Homeowners’ application for a permanent injunction. 1

Developer appeals the award of damages and costs to Homeowners and requests that we tax costs against Homeowners. Homeowners cross-appeal, challenging the denial of their application for an injunction. 2 We reverse the portion of the judgment awarding damages to Homeowners and render judgment that Homeowners take nothing on their claim for damages without prejudice to their right to seek damages once a cause of action for an existing nuisance accrues. We also reverse the portion of the judgment taxing costs against Developer and render judgment taxing all costs against Homeowners except for those costs that the trial court taxed against the non-prevailing plaintiffs. We affirm the remainder of the judgment' including the denial of the application for a permanent, injunction..

I.Background

A. Factual History

In 2006, Developer purchased a 1.6 acre lot at the corner of Bissonnet Street and Ashby Street in Houston. 3 At the time, the property was occupied by a two-story apartment complex with 67 units. The property is located near Rice University, the Texas Medical Center, and the Museum District. The surrounding neighborhood consists of numerous homes, but there also are several small businesses, including restaurants, several four-to-six-story apartment buildings, and a six-story medical clinic.

In 2007, Developer devised plans to build a 23-story mixed-use building, which would include 226 apartments, a spa, retail, restaurant and office space, and a multi-level parking garage. Developer filed its plans with the City. Knowing the project would be a departure in scale from surrounding properties, Developer anticipated opposition from area residents and advised the neighborhood associations about the plans.

The opposition was vehement, with residents fearing negative effects on their established neighborhoods, including impacts on traffic, aesthetics, privacy, and market values of their homes. Residents mobilized into a group called “Stop Ashby Highrise,” erected signs in the area, sent numerous letters to Developer’s principals and city officials, and signed petitions, all imploring Developer not to build the project. The two Houston mayors who served consecutively during relevant times also opposed *493 the project. The residents and Developer attempted, unsuccessfully, to negotiate a compromise with respect to the size and nature of the project. Otherwise, the parties have remained entrenched in their positions for years, with Developer determined to build and area residents determined to stop the project.

Meanwhile, Developer applied for city approval. The City initially approved Developer’s traffic-impact analysis but withdrew the approval shortly thereafter. Developer revised its application ten times with each one being rejected by the City. Ultimately, the City approved another revised application submitted under protest, which called for a reduction (from the original application) of the trip count—the number of automobile trips from the project during peak traffic hours. But, Developer believed the City wrongfully rejected its original application and unsuccessfully appealed through the City process.

Developer then sued the City in a separate suit. In March 2012, those parties settled that suit. The settlement agreement provided that the City will approve all building permits for the project if it satisfies the following requirements: (1) it will be a 21-story residential or mixed-use structure with 228 residential high-rise units, 10,075 square feet of restaurant space, and four townhomes—subject to modification of the intended uses if the other requirements of the settlement agreement are met and the project satisfies a certain maximum trip count (a figure below that originally proposed by Developer); (2) the project will contain a pedestrian plaza in front; (3) the project will have a limited number of, and uses for, driveways; (4) traffic mitigation measures will be implemented, including providing shuttle service and bicycles; (5) there will be a fence along certain property lines and a “green screen” on certain walls of the parking garage; (6) lighting will be hooded or directed away from adjacent residents; and (7) noise-mitigation measures will be implemented. The then-mayor announced the settlement, reiterating her belief “this [is] the wrong project in the wrong place,” but expressing that the City lacked a legal basis to stop the project and that the settlement at least gave the City some control over the scope.

The City’s final building permit issued in March 2013. Developer proceeded to advance its plans and razed the existing apartment complex but has not begun construction of the project.

B. Procedural History

According to the residents, they were unable to obtain detailed plans for the project during the permit process. One resident’s open records request with the City was denied. Developer refused to provide the plans until approval by the City out of concern that the plans might spawn litigation. In January 2013, one resident filed an action to obtain pre-suit discovery about the plans. The trial court ordered Developer to produce certain information regarding construction. In May 2013, that resident plus six additional residents filed the present suit, alleging, inter alia, the project would constitute a nuisance and seeking damages and a permanent injunction precluding construction. That suit was transferred to the present trial court below, which was hearing the pre-suit action. After various amendments, forty-five plaintiffs, as owners of thirty homes, were parties by the time of trial.

At trial, the plaintiffs presented evidence, albeit contested by Developer, regarding various negative effects anticipated because of the project: increased traffic; shadows cast on some homes; increased lighting and noise; the ability of project residents to view into some plaintiffs’ *494 yards; and an expert’s opinion that the weight of the project will cause foundation and structural damage to some homes.

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1717 Bissonnet, L.L.C. v. Penelope Loughhead, 500 S.W.3d 488, 2016 Tex. App. LEXIS 7073, 2016 WL 5462579 (Tex. Ct. App. 2016).

500 S.W.3d 488 (1717 Bissonnet, L.L.C. v. Penelope Loughhead) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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