Ahmad Zaatari, Marwa Zaatari, Jennifer Gibson Hebert, Joseph "Mike" Hebert, Lindsay Redwine, Ras Redwine VI, and Tim Klitch// City of Austin, Texas And Steve Adler, Mayor of the City of Austin, and the State of Texas v. City of Austin, Texas And Steve Adler, Mayor of the City of Austin//Cross-Appellees, Ahmad Zaatari, Marwa Zaatari, Jennifer Gibson Hebert, Joseph "Mike" Hebert, Lindsay Redwine, Ras Redwine VI, and Tim Klitch

CourtCourt of Appeals of Texas
DecidedNovember 27, 2019
Docket03-17-00812-CV
StatusPublished

This text of Ahmad Zaatari, Marwa Zaatari, Jennifer Gibson Hebert, Joseph "Mike" Hebert, Lindsay Redwine, Ras Redwine VI, and Tim Klitch// City of Austin, Texas And Steve Adler, Mayor of the City of Austin, and the State of Texas v. City of Austin, Texas And Steve Adler, Mayor of the City of Austin//Cross-Appellees, Ahmad Zaatari, Marwa Zaatari, Jennifer Gibson Hebert, Joseph "Mike" Hebert, Lindsay Redwine, Ras Redwine VI, and Tim Klitch (Ahmad Zaatari, Marwa Zaatari, Jennifer Gibson Hebert, Joseph "Mike" Hebert, Lindsay Redwine, Ras Redwine VI, and Tim Klitch// City of Austin, Texas And Steve Adler, Mayor of the City of Austin, and the State of Texas v. City of Austin, Texas And Steve Adler, Mayor of the City of Austin//Cross-Appellees, Ahmad Zaatari, Marwa Zaatari, Jennifer Gibson Hebert, Joseph "Mike" Hebert, Lindsay Redwine, Ras Redwine VI, and Tim Klitch) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ahmad Zaatari, Marwa Zaatari, Jennifer Gibson Hebert, Joseph "Mike" Hebert, Lindsay Redwine, Ras Redwine VI, and Tim Klitch// City of Austin, Texas And Steve Adler, Mayor of the City of Austin, and the State of Texas v. City of Austin, Texas And Steve Adler, Mayor of the City of Austin//Cross-Appellees, Ahmad Zaatari, Marwa Zaatari, Jennifer Gibson Hebert, Joseph "Mike" Hebert, Lindsay Redwine, Ras Redwine VI, and Tim Klitch, (Tex. Ct. App. 2019).

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN

NO. 03-17-00812-CV

Appellants, Ahmad Zaatari, Marwa Zaatari, Jennifer Gibson Hebert, Joseph “Mike” Hebert, Lindsay Redwine, Ras Redwine VI, and Tim Klitch // Cross-Appellants, City of Austin, Texas; Steve Adler, Mayor of the City of Austin; and the State of Texas

v.

Appellees, City of Austin, Texas, and Steve Adler, Mayor of the City of Austin // Cross-Appellees, Ahmad Zaatari, Marwa Zaatari, Jennifer Gibson Hebert, Joseph “Mike” Hebert, Lindsay Redwine, Ras Redwine VI, and Tim Klitch

FROM THE 53RD DISTRICT COURT OF TRAVIS COUNTY NO. D-1-GN-16-002620, THE HONORABLE TIM SULAK, JUDGE PRESIDING

DISSENTING OPINION

The majority opinion expands fundamental-rights jurisprudence to strike down

policy decisions properly left to Austin’s City Council under their zoning power. Its approach

leads to a misapplication of Retroactivity Clause precedent, creating tension with opinions of our

sister courts of appeals; disregards Texas and U.S. history; and is an atextual expansion of the

Assembly Clause. I respectfully dissent.

I. The Retroactivity Clause

The Texas Constitution provides that “[n]o bill of attainder, ex post facto law,

retroactive law, or any law impairing the obligation of contracts, shall be made.” Tex. Const.

art. I, § 16. The Property Owners’ retroactivity challenge to Section 25-2-950—the ban on

non-homestead short-term rentals that would go into effect in April 2022—is a facial constitutional challenge instead of an as-applied one. They “cannot . . . assert that the [ordinance]

is unconstitutional ‘as applied’ because [it] has never been applied to anyone.” See Barshop v.

Medina Cty. Underground Water Conservation Dist., 925 S.W.2d 618, 626 (Tex. 1996). Therefore,

they “must establish that the [ordinance], by its terms, always operates unconstitutionally.” Id.

at 627. And we must interpret the ordinance “to avoid constitutional infirmities” under the

Retroactivity Clause. See id. at 629; see also Union Carbide Corp. v. Synatzke, 386 S.W.3d 278,

313, 317 (Tex. App.—Houston [1st Dist.] 2012) (en banc) (Bland, J., dissenting from retroactivity

reasoning) (“A court must not hold a legislative enactment to be unconstitutional unless it is

absolutely necessary to so hold. . . . If a statutory reading . . . springs constitutional doubt, and

another reasonable interpretation exists, then it is not the interpretation that the legislature

intended.”), rev’d, 438 S.W.3d 39 (Tex. 2014).

“‘Mere retroactivity is not sufficient to invalidate a statute. . . . Most statutes

operate to change existing conditions, and it is not every retroactive law that is

unconstitutional.’ . . . [N]ot all retroactive legislation is bad.” Robinson v. Crown Cork & Seal

Co., 335 S.W.3d 126, 139 (Tex. 2010) (quoting Texas Water Rights Comm’n v. Wright, 464

S.W.2d 642, 648 (Tex. 1971)).

In its entire history, the Supreme Court of Texas has held a law unconstitutionally

retroactive only four times. See Tenet Hosps. Ltd. v. Rivera, 445 S.W.3d 698, 708 (Tex. 2014).

Those four instances involved amendments to statutes of limitations and a new choice-of-law

rule that extinguished a mature tort claim. Id. at 708 & n.34 (citing Robinson, 335 S.W.3d

at 148–49; Baker Hughes, Inc. v. Keco R. & D., Inc., 12 S.W.3d 1, 4 (Tex. 1999); Wilson v. Work,

62 S.W.2d 490, 490–91 (Tex. 1933) (per curiam) (orig. proceeding); Mellinger v. City of Hous.,

3 S.W. 249, 254–55 (Tex. 1887)).

2 Since 2014, the Court has addressed only two retroactivity challenges and has

upheld the challenged law both times. In one instance, the Court concluded that “a charter

school’s charter is not a vested property right to which the . . . prohibition on retrospective laws

appl[ies].” See Honors Acad., Inc. v. Texas Educ. Agency, 555 S.W.3d 54, 68 (Tex. 2018). In

the other, the Court concluded that “a statute authorizing property owners to petition [the

Supreme Court] directly to determine which county is owed the [ad valorem] taxes” imposed on

the owners by multiple counties was “not constitutionally retroactive.” See In re Occidental

Chem. Corp., 561 S.W.3d 146, 150, 162 (Tex. 2018) (orig. proceeding).

Never has the Court struck down a zoning or property-use law as

unconstitutionally retroactive, though Texas municipalities have been zoning and regulating

property for decades.

A. Section 25-2-950 (type-2 rentals) is not retroactive.

A statute is not retroactive merely because it is applied in a case arising from

conduct that existed before the statute’s enactment or if it “upsets expectations based in prior

law.” Mbogo v. City of Dall., No. 05-17-00879-CV, 2018 WL 3198398, at *4 (Tex. App.—

Dallas June 29, 2018, pet. denied) (mem. op.) (applying and quoting Landgraf v. USI Film

Prods., 511 U.S. 244, 269 (1994)). This is true particularly in the area of zoning regulations, for,

there, “strong policy arguments and a demonstrable public need” support municipalities’ “fair

and reasonable termination of nonconforming property uses.” Mbogo, 2018 WL 3198398, at *4

(quoting City of Univ. Park v. Benners, 485 S.W.2d 773, 778 (Tex. 1972)).

The majority opinion asserts that Section 25-2-950 “does not advance a zoning

interest because both short-term rentals and owner-occupied homes are residential in nature.” See

3 ante at 20. However, ordinances differentiating one type of residential property from another are

just as much exercises of the zoning power as are ordinances differentiating between residential

property and commercial property. See, e.g., Barr v. City of Sinton, 295 S.W.3d 287, 289–91,

296–308 (Tex. 2009) (addressing ordinance that differentiated solely within “residential area”

category and nevertheless treating it as zoning-related); Sheffield Dev. Co. v. City of Glenn

Heights, 140 S.W.3d 660, 674–81 (Tex. 2004) (treating ordinance that restricted number of

residences that could be built on undeveloped property as zoning ordinance even though it

applied only to residential property).

Section 25-2-950 is a zoning ordinance. It is found in the Code of Ordinances

chapter titled “Zoning.” See Austin, Tex., Code of Ordinances ch. 25-2. The majority opinion’s

conclusion that Section 25-2-950 is retroactive therefore creates tension with the Fifth Court of

Appeals’ opinion in Mbogo. In that case, when the City of Dallas rezoned a portion of Ross

Avenue to prohibit automobile-related businesses from operating there, the rezoning was not

“retroactive” even though an affected business owner, who would have to discontinue his chosen

business, had been operating his automobile-related business in the area since before the

rezoning. Mbogo, 2018 WL 3198398, at *1, *4. “The ordinance did not change any use in the

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Related

De Jonge v. Oregon
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Ahmad Zaatari, Marwa Zaatari, Jennifer Gibson Hebert, Joseph "Mike" Hebert, Lindsay Redwine, Ras Redwine VI, and Tim Klitch// City of Austin, Texas And Steve Adler, Mayor of the City of Austin, and the State of Texas v. City of Austin, Texas And Steve Adler, Mayor of the City of Austin//Cross-Appellees, Ahmad Zaatari, Marwa Zaatari, Jennifer Gibson Hebert, Joseph "Mike" Hebert, Lindsay Redwine, Ras Redwine VI, and Tim Klitch, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ahmad-zaatari-marwa-zaatari-jennifer-gibson-hebert-joseph-mike-hebert-texapp-2019.