Alan W. Nalle, Sr. v. James Bagan, Meredith Bagan, and Westlake Oaks Property Owners Association

Texas Court of Appeals, 3rd District (Austin)·Decided August 14, 2026·No. 03-25-00583-CV·Published

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN

NO. 03-25-00583-CV

Alan W. Nalle, Sr., Appellant v.

James Bagan, Meredith Bagan, and Westlake Oaks Property Owners Association, Appellees

FROM THE 345TH DISTRICT COURT OF TRAVIS COUNTY NO. D-1-GN-19-006781, THE HONORABLE JAN SOIFER, JUDGE PRESIDING

MEMORANDUM OPINION

Appellant Alan W. Nalle, Sr., appeals from summary judgments granted in favor of appellees James Bagan, Meredith Bagan, and Westlake Oaks Property Owners Association (the POA). We will affirm in part and reverse and remand in part.

BACKGROUND

Nalle owns property in the Westlake Oaks subdivision in Austin, Texas, and, like all homeowners in the subdivision, is a member of the POA. The POA’s Declaration restricts the types of homes that can be constructed in the neighborhood and requires that “plans and specifications” for all buildings be “approved in writing as to harmony of external design and location in relation to surrounding structures and topography” by the POA Board or its architectural control committee. Meredith and James Bagan purchased a lot adjacent to Nalle’s home and, in 2017, began constructing a residence there. The Bagans obtained approval for the

plans for the residence from the POA’s architectural control committee, and they later received a variance to allow the residence to exceed two stories and have a four-car garage. Nalle describes the Bagan residence as more than sixteen-thousand square feet in size, sitting on a foundation that is up to twenty-seven feet tall, with at least two stories above the foundation that are each ten to twelve feet in height. He asserts that the residence’s height exceeds the limits contained in the Declaration and its size renders it out of “harmony” when “compared to neighboring two story, 4,800 square-foot homes.” He also states that “[t]he Bagans’ reflective roof and windows caused blinding glare, rendering Nalle’s media room, dining room, kitchen, and hallway unusable 2-3 hours daily in winter”; the windows facing his home in conjunction with “Meredith Bagan’s photography created a ‘fishbowl effect’” that infringes on his privacy; and that the commercial-scale equipment used to construct the residence generated excessive noise and dust. He contacted the Bagans several times to request that they mitigate the reflections. The Bagans did not. Nalle alleges that his “property with the nuisances is $1,350,000 less than the unencumbered current market value of his property, all based on the Bagans’ disharmonious home and nuisances.” He further alleges that he has suffered physical and mental harm and emotional damage, including eye strain, headaches, and vision impairment from the glare as well as privacy loss. Nalle concludes that the Bagans’ “actions, facilitated by [the POA’s] and [a member of the architectural control committee’s] conduct, resulted in a home vastly larger than permitted, and much more valuable for the Bagans, while Nalle bore the consequences.”

After becoming aware of the plans for the Bagan residence, Nalle sued the POA in 2016 for breach of contract and negligence for failing to enforce the Declaration and asserted that the POA’s architectural control committee had failed to comply with requirements for granting a variance. He alleged that the POA’s conduct was intentional because it knew that

approval of the variance and plans for the Bagan residence would cause him damages and violate his rights to privacy and quiet enjoyment of his home. Through his counsel, Nalle sent a series of emails in 2017 to the Bagans and to the POA complaining of reflections from the residence’s roof, which were caused initially by reflective underlayment and later by the “brownish” standing-seam metal used as the final roof material. The residence was completed in 2019.

In March 2019, Nalle and the POA reached a settlement pursuant to which the POA paid Nalle $300,000 “in full and final settlement of all claims” against the POA “in any way related to, based upon, or arising out of any of the facts, events, occurrences, circumstances, acts, omissions, transactions, or relationships that he described in his Second Amended Petition.” The settlement addressed “all monetary damages, statutory or exemplary damages, attorney’s fees, court costs, and interest that could be recoverable against any Defendant who ha[s] been named as parties to this lawsuit.” The agreement provided: “Alan W. Nalle, Sr. hereby accepts the above-referenced payment in full settlement, compromise and release of all claims as arising out of or in connection with the Lawsuit, pursuant to this Settlement Agreement, against Defendant Westlake Oaks Property Owners Association, Inc.” Pursuant to the settlement agreement, Nalle filed a motion to dismiss, which the trial court granted, dismissing Nalle’s claims against the POA “and its current and former officers, board members, agents, attorneys, representatives, heirs, and assigns” with prejudice. Despite the settlement, Nalle later sued two members of the POA’s architectural control committee: Eric Moreland, who was also the realtor who sold the Bagans the lot, and Kathryn Hale, who signed the variance as a representative of the committee. The defendants prevailed on summary judgment in both suits. See Nalle v. Hale, No. 14-22-00303-CV, 2023 WL 2609336, at *5 (Tex. App.—Houston [14th Dist.] Mar. 23, 2023, no pet.) (mem. op.) (affirming summary judgment based on one-satisfaction rule); Nalle

v. Moreland, No. 03-21-00538-CV, 2023 WL 2025709, at *2 (Tex. App.—Austin Feb. 16, 2023, no pet.) (mem. op.) (affirming summary judgment based on res judicata).

In September 2019, Nalle sued the Bagans for damages arising from alleged nuisances the Bagans created either negligently or intentionally as a result of the construction of their residence. Nalle’s Fifth Amended Petition asserts a claim for negligence based on the nuisances and an additional claim seeking to enforce the Declaration based on the Bagans’ removal of trees from their property in 2021 without the POA’s authorization. 1 Specifically, Nalle complained of (1) the large size of the residence; (2) sunlight reflected by the residence’s standing-seam metal roof that “render[s] Nalle’s media room, dining room, kitchen, and hallway unusable” for two to three hours each day during winter; (3) the dust and noise generated by the construction process; and (4) the Bagans’ 2021 removal of trees that “opened sightlines,” thereby allowing reflections from the Bagans’ windows to shine into his home, exacerbating the loss of privacy for Nalle, and eliminating “the buffer” “that had previously mitigated the harm caused by the oversized, non-harmonious house.” He specified that “the unauthorized removal of trees by the Bagans in January 2021 allowed a previously unseen reflection to enter Plaintiff’s home. During this time of day and year, blinding focused sunlight reflected from the Bagans’ windows enters Plaintiff’s windows, rendering the affected spaces unusable.” According to Nalle, around the time of the unauthorized tree removal, James Bagan commented, “if you think the reflections were bad before, wait until you see them now.”

In response to Nalle’s negligence claims, the Bagans joined the POA as a third-party defendant, asserting claims against the POA for negligence, negligent

1 The Declaration specifies that “Approval shall be obtained from the [architectural control committee] to cut down, clear, or kill any trees on any lot.”

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