Alan Schrock v. City of Baytown

CourtCourt of Appeals of Texas
DecidedApril 23, 2015
Docket01-13-00618-CV
StatusPublished

This text of Alan Schrock v. City of Baytown (Alan Schrock v. City of Baytown) 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
Alan Schrock v. City of Baytown, (Tex. Ct. App. 2015).

Opinion

Opinion issued April 23, 2015

In The

Court of Appeals For The

First District of Texas ———————————— NO. 01-13-00618-CV ——————————— ALAN SCHROCK, Appellant

V.

CITY OF BAYTOWN, Appellee

On Appeal from County Civil Court at Law No. 1 Harris County, Texas Trial Court Case No. 1007923

MEMORANDUM OPINION

Appellant, Alan Schrock, challenges the trial court’s rendition of summary

judgment against him in his lawsuit against appellee, the City of Baytown (“the City”), for a declaratory judgment 1 and for taking his property. 2 In five issues,

Schrock contends that the trial court erred in granting the City summary judgment

dismissing his lawsuit.

We reverse and remand.

Background

In his second amended petition, Schrock alleges that in 1993, he purchased a

house at 606 Vista Avenue in the City to use as a rental property (the “property”).

From 1993 to 2008, each time he leased the property to a new tenant, the City

required, before it connected utility services (water, sewer, and trash disposal) in

the tenant’s name, that the tenant pay it a deposit and provide it a copy of the lease.

Each time he leased the property, Schrock provided the City with a copy of the

lease agreement, either by furnishing the new tenant with an extra copy to give to

the City or by providing a copy of the lease agreement directly to the City.

In 2009, the City notified Schrock that he owed it $1,999.67 for utility

services provided to ten of his prior tenants, dating back to 1993. It gave him with

copies of billing invoices, listing the names and account numbers of the prior

tenants. And the City demanded that Schrock pay the outstanding sum within

fourteen days to avoid having a lien placed on the property. After a hearing, the

1 See TEX. CIV. PRAC. & REM. CODE ANN. §§ 37.001–.011 (Vernon 2015). 2 See TEX. CONST. art. I, § 17.

2 City reduced the amount due to $1,157.39 for unpaid utility bills that had accrued

over the preceding four years, rather than the preceding sixteen years. And it gave

Schrock fourteen days to pay. However, Schrock did not receive notice of the

City’s decision, and, after he did not pay the sum assessed, the City filed a lien

against the property. According to Schrock, the City failed to perfect its lien or

provide him with notice of the lien. And the City continued to provide utility

services to the property until January 20, 2010, when it refused to provide services

to Schrock’s new tenant.

Schrock further alleges that he first learned in 2009 that the City had in 1991

enacted an ordinance3 that requires landlords who wish to prevent the City from

3 City of Baytown Code of Ordinances, section 98-65, provides in pertinent part as follows: (a) Water. Liens for unpaid water charges shall be filed according to the following: (1) After the city has terminated a customer’s water . . . , the supervisor shall file a lien on the property served by the terminated water service and in the amount the customer whose service was terminated owed to the city for water service at the time of the termination of services. .... (g) Reconnection of services. No water, garbage or sewer services shall be provided to property encumbered by a lien filed pursuant to this section. However, the supervisor of the utility billing division shall be authorized to reconnect water, garbage and wastewater services if the customer agrees in writing to pay the accrued water and wastewater charges . . . . ....

3 filing liens against their rental properties and discontinue utility services to those

properties, to submit a “declaration” that their properties are “rental properties],

which [they] d[o] not wish to be security” [sic] for a tenant’s utility bills.

According to Schrock, he complied with the ordinance each time he had leased the

property to a new tenant by providing a copy of the lease to the City. Thus, the

City at all times had notice that he was using the property as rental property. Also,

he complied with the Texas Local Government Code, which provides that a

“municipality’s lien shall not apply to bills for service connected in a tenant’s

name after notice by the property owner to the municipality that the property is

rental property.” 4 And he notes that the statute prohibits requiring, as a condition

(i) Rental property. (1) The owner of any property . . . rented to another [in which the] tenant carries city water, sewer or garbage collection services in the tenant’s name, may prevent the city from using that property as security for the . . . charges for service to that property and from filing any lien on such property . . . by filing with the city utility billing division a declaration in writing specifically naming the service address of that property and declaring such to be rental property which the owner does not wish to be security for the water, sewer and garbage collection services to that property. (2) When such declaration has been filed with the city prior to the time the account holder begins to receive services, the city shall collect a deposit in the amount of $125.00 . . . . Baytown, Tex., Code of Ordinances, ch. 98, art. III, § 98-65 (1967) (amended 2012) (emphasis added). 4 TEX. LOCAL GOV’T CODE ANN. § 552.0025(e) (Vernon 2015).

4 of connecting service, a third party guarantee of a customer’s utility bill or

requiring, as a condition of connecting or continuing service, a customer to pay for

service previously furnished to another customer at the same address. 5

In 2011, the City amended its ordinance, removing the requirement that

landlords file rental property declarations. Rather, if the City “knows” that a

property is occupied by a tenant, it may not file a lien against the property;

however, it may report the tenant’s delinquency to a credit bureau. In 2012, the

City further amended its ordinance, allowing utility services to continue to be

provided to a property in accordance with the Local Government Code.

Regardless, the City, Schrock alleges, has refused to provide water and

wastewater services to the property since January 2010, and, on several occasions,

it has refused to allow him to satisfy the lien for the retention of utility services.

Without water and wastewater services to the property, Schrock has not been able

to use the property as a rental property, and he has been denied all economically

viable use of the property. As a result, the property has fallen into disrepair and

has become uninhabitable. Schrock further alleges that the City’s actions

constitute an unreasonable interference with his right to use and enjoy the property.

And they further constitute an “unlawful exercise of police power which primarily

5 See id. § 552.0025(a), (b).

5 and adversely affected a small number of landlords of single family residences.”6

Schrock notes that from 1991 to 2012, the City had filed eighteen liens against

rental properties, but only eight remained, including the lien on the property. 7 He

argues that the City’s enforcement of the ordinance was not “in response to a great

public necessity,” but constituted an “attempt to coerce a small number of

landlords into paying their tenants’ water bills” out of convenience because it was

difficult for the City to collect from tenants who had moved. Schrock seeks

damages and a declaration clarifying his rights under the current version of the

ordinance.

In its third amended answer, the City generally denied Schrock’s claims and

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