Austin JSB, Ltd. v. Otwell Realty, Ltd.

CourtCourt of Appeals of Texas
DecidedAugust 18, 2023
Docket03-22-00459-CV
StatusPublished

This text of Austin JSB, Ltd. v. Otwell Realty, Ltd. (Austin JSB, Ltd. v. Otwell Realty, Ltd.) 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
Austin JSB, Ltd. v. Otwell Realty, Ltd., (Tex. Ct. App. 2023).

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN

NO. 03-22-00459-CV

Austin JSB, Ltd., Appellant

v.

Otwell Realty, Ltd., Appellee

FROM THE 353RD DISTRICT COURT OF TRAVIS COUNTY NO. D-1-GN-20-002756, THE HONORABLE JESSICA MANGRUM, JUDGE PRESIDING

MEMORANDUM OPINION

In this dispute over the permissible uses of an easement, Austin JSB, Ltd. appeals

from the trial court’s final judgment following a bench trial. For the following reasons, we

affirm in part and reverse and remand in part.

BACKGROUND

Otwell Realty, Ltd. owns property on the shoreline and under the water of

Lake Travis and Mossy Hollow Cove (the Otwell Property). Austin JSB owns hilltop property

that is adjacent to the Otwell Property and that abuts Lake Travis. When Austin JSB acquired its

property in 2017, it also acquired an easement (the Easement) to use portions of the

Otwell Property. The geographic relationship of Austin JSB’s property and the area of the

Otwell Property covered by the Easement is best understood by referring to an aerial photograph

that was admitted as part of an exhibit at trial: Austin JSB’s property is the area within the red lines, and the area within the green lines shows

the area of the Easement. 1

The Easement provides in relevant part:

Under this easement Grantees may use this real property for picnicking, fishing, bathing, boating and other similar activities in common with such uses by [Grantor], [his] heirs and assigns. This non-exclusive easement permits Grantees to install and maintain floating boat docks, water pumps, and other facilities for their private use within the area herein described, so long as such installations do not unreasonably interfere with access to and along the waterline by Grantor, his heirs, and assigns, and other persons holding similar easements. Neither Grantor nor Grantees shall construct any permanent facilities on the easement except Grantees may construct floating boat docks, water pumps and similar facilities and Grantor may install hike and bike trails and anchors for boat docks. . . . Grantor reserves the right to use the property covered by this easement for

1 “Lake Travis is a flood control lake with widely varying surface levels. The shoreline of Lake Travis moves as the surface level of the lake changes.” Sierra Assoc. Grp., Inc. v. Hardeman, No. 03-08-00324-CV, 2009 Tex. App. LEXIS 1181, at *2–3 (Tex. App.—Austin Feb. 20, 2009, no pet.) (mem. op.). 2 purposes that do not unreasonably interfere with the easement granted herein, including but not limited to allowing floating boat docks to float over the easement, provided they are not connected to the shore of the easement and do not significantly interfere with the passage of boats. Grantees agree to abide by the rules and regulations of all applicable regulatory agencies when utilizing the easement granted hereby. Grantees hereby covenant to keep the easement clean and free of litter generated by Grantees and their guests.

Austin JSB plans to develop its property as a gated multifamily residential

community with access to Lake Travis. In 2019, Austin JSB installed a 1,500 square-foot

floating dock (the Dock) within the area covered by the Easement. The Dock is physically

anchored to the Otwell Property with four cables and anchors—two are attached to the dry shore

and two are attached to the lakebed beneath the water. Austin JSB also installed an electric

“2,000 pound capacity trolley and carriage system with a 2,000 pound traction drive chassis,

double cable drive sheaves, and 300 linear feet of 6" Ibeam galvanized adjustable tract system,

with steel support legs and bracings” (the Tram) that provides access from Austin JSB’s property

across the Otwell Property to the Dock. 2 The terrain is steep and rocky from the hilltop to the

shoreline where the Dock is located. The location of the Dock and Tram on the Otwell Property

is best understood by referring to a photograph that was admitted in evidence at trial:

2 According to testimony at trial, the Tram was designed to carry four people along with “floaties and picnic baskets, et cetera.” 3 After James Otwell, who owns Otwell Realty, became aware of the Tram and

Dock, he contacted the Lower Colorado River Authority (LCRA), and in November 2019,

LCRA posted a notice of violation for “construction of a marina facility on Lake Travis without

a permit.” According to LCRA, under a Highland Lakes Marina Ordinance, Austin JSB should

have obtained a permit before beginning construction of the Dock. 3 After receiving the notice,

3 In letters to Austin JSB, which were admitted as an exhibit at trial, the representative from LCRA states that the ordinance provides that generally a person must obtain a permit from LCRA before constructing a “Marina Facility on any of the Highland Lakes” and defines a “Marina Facility” to include a “Community Marina” and a “Community Marina” as “[a] marina used in lieu of multiple Residential Docks.” 4 Austin JSB applied to obtain a permit from LCRA, but LCRA placed the application on hold

pending resolution of the parties’ dispute.

In March 2020, Austin JSB signed a development and annexation agreement

concerning its property with the City of Lago Vista. The City approved Austin JSB’s “Concept

Plan” for the development, which included “no more than 70 residential units, consisting of a

mixture of two-family residential units, condominium residential units, and apartment hotel

units, with amenity areas, parks, and open areas.” In the agreement, an “apartment hotel” was

defined “as a living unit for transient guests of the Project which are available for rent as an

amenity within the Project, and in the event the apartment hotel units are not in use for the

benefit of a resident, shall be available for rent to the public.”

In May 2020, Otwell Realty sued Austin JSB seeking declaratory relief that the

Easement does not allow the Tram or “any other permanent improvements” on the Otwell

Property, damages based on breach of contract, and attorney’s fees. 4 Austin JSB filed an

answer, counterclaims, and special exceptions to Otwell Realty’s petition. In its special

exceptions, Austin JSB contended that Otwell Realty’s claims could only be brought as a

trespass-to-try-title action. See Tex. Prop. Code § 22.001(a) (stating that trespass-to-try-title

action “is the method of determining title to lands, tenements, or other real property”).

Following a hearing, the trial court overruled Austin JSB’s special exceptions.

The parties then filed motions for summary judgment. Otwell Realty’s motion for

partial summary judgment asked the trial court to construe the plain language of the Easement

4 Before filing suit, Otwell Realty through counsel sent a demand letter to Austin JSB to remove its anchors, cables, and the Tram from the Otwell Property within 15 days and notified it that the failure to do so would result in the filing of a lawsuit. Austin JSB responded through counsel that it had the right to construct and maintain the Dock at its present location based on the Easement. 5 and determine that the Tram is a “permanent facility” that is not allowed under the terms of the

Easement. Austin JSB’s motion asked the trial court to determine that an earlier easement

authorized the Dock and Tram. Following a hearing, the trial court denied Austin JSB’s motion

and granted Otwell Realty’s motion in part, concluding that the Tram was a “permanent facility”

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Austin JSB, Ltd. v. Otwell Realty, Ltd., Counsel Stack Legal Research, https://law.counselstack.com/opinion/austin-jsb-ltd-v-otwell-realty-ltd-texapp-2023.