Canadian Real Estate Holdings, LP v. Karen F. Newton Revocable Trust

CourtCourt of Appeals of Texas
DecidedSeptember 29, 2022
Docket05-20-00747-CV
StatusPublished

This text of Canadian Real Estate Holdings, LP v. Karen F. Newton Revocable Trust (Canadian Real Estate Holdings, LP v. Karen F. Newton Revocable Trust) 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
Canadian Real Estate Holdings, LP v. Karen F. Newton Revocable Trust, (Tex. Ct. App. 2022).

Opinion

Affirmed in part and Vacated in part and Opinion Filed September 29, 2022

In The Court of Appeals Fifth District of Texas at Dallas No. 05-20-00747-CV

CANADIAN REAL ESTATE HOLDINGS, LP, Appellant V. KAREN F. NEWTON REVOCABLE TRUST, SATHU SUBBIAH, JANET ANDERS, TIM ANDERS, RAUL PEREZ, JR., JERRY BROWN, TREY MONSON, COLEEN MONSON, JILL RUSE-PETERSON, TERRY A. PETERSON, BILL TROTTER, KRIS TROTTER, ROBERT CARTER, JOAN PYNE, CHARLIE PYNE, ROBERT SOLTYSIK, LINDA SOLTYSIK, GARY PIERCE, MELINDA PIERCE, DAVID COX, JENNIFER COX, MIKE SHEPHERD, STEPHANIE SHEPHERD, HARVEY GRAHAM, SANDRA GRAHAM, BEAU DAVIS, TISHA DAVIS, MARIA MERCER, JON MERCER, MIKE BELL, JAMES EVANS, MARILEE EVANS, WILLIAM JONES, PAULA JONES, JERRY LONG, SHERRI LONG, JOAN ROSE, TED ROSE, JOE W. CHESNEY, KAREN CHESNEY, JOE K. CHESNEY, DEBBIE CHESNEY, GREGG JERNIGAN, GRETCHEN JERNIGAN, KENT VANMETER, CAROL VANMETER, JAMES SCHWARTZ and SARAH SCHWARTZ, Appellees

On Appeal from the 296th Judicial District Court Collin County, Texas Trial Court Cause No. 296-02588-2019

MEMORANDUM OPINION Before Justices Pedersen, III, Goldstein, and Smith Opinion by Justice Pedersen, III Canadian Real Estate Holdings, LP (Canadian REH) appeals the trial court’s

Final Judgment, which awarded attorney’s fees in the amount of $45,529.13, plus conditional appellant fees, to the above-listed appellees. In three issues, Canadian

REH contends that (1) the trial court’s judgment is void for lack of subject matter

jurisdiction, (2) no evidence supports the award of attorney’s fees, and (3) the trial

court’s fee award is inequitable and unjust. We vacate the court’s award of

conditional appellate fees, but in all other respects we affirm the trial court’s

judgment.

BACKGROUND1

Canadian REH purchased property in the Walnut Grove Estates neighborhood

in McKinney, Texas, intending to construct an assisted living facility for patients

suffering from Alzheimer’s disease. Canadian REH applied to Collin County for the

permits necessary to begin construction.

Walnut Groves Estates is composed of two subdivisions (Walnut Grove 1 and

Walnut Grove 2), both of which are governed by restrictive covenants. Canadian

REH’s property is located in Walnut Grove 1. Appellees are residents of the two

subdivisions. They sued Canadian REH for injunctive and declaratory relief—

seeking attorney’s fees under the Uniform Declaratory Judgment Act (UDJA)—

based upon the restrictive covenants governing Walnut Grove 1, which required lots

to be used only for single family residences that were at least 1200 square feet in

size. According to the restrictions, “No commercial nor industrial operations will be

1 We accept as true the facts stated by Canadian REH. Appellees did not file a brief in this case to contradict those facts. See TEX. R. APP. P. 38.1(g). –2– permitted.” Appellees obtained a temporary restraining order, prohibiting Canadian

REH “from constructing on its [purchased lot] any assisted living facility or any

improvements other than a single family residence of a size not less than 1,200

square feet.”

Canadian REH filed a motion to dismiss appellees’ suit based on the Texas

Citizens Participation Act (the TCPA), contending that the suit was an effort to

prevent Canadian REH’s rights of free speech, petition, and association. Appellees

responded to the TCPA motion, but before that motion or appellees’ application for

temporary injunction could be heard, Canadian REH removed the case to federal

court. Canadian REH filed another TCPA motion to dismiss after the removal.

However, appellees successfully moved to have the case remanded to state court,2

and the TCPA motion was not addressed in federal court.

Canadian REH relates that—while the case was still pending in federal

court—Collin County refused the permits it needed for its building plan, and

Canadian REH decided not to go through with that plan and to sell the property. It

filed Defendant’s Notice of Mooted Issues, which informed the court “that certain

issues in this Case are now moot,” and continued, “Defendant no longer has any

intention of developing the Property at issue, much less operating living facilities on

the Property in the way Plaintiffs are trying to stop. . . Therefore, the relief sought

2 The Magistrate Judge agreed that the case did not meet requirements for federal-question removal, but she denied appellees’ request for attorney’s fees. –3– by Plaintiffs is moot.” Canadian REH asked the court to dismiss the case for lack of

jurisdiction rather than remand it to state court. Nevertheless, the case was

remanded. A footnote in the Magistrate Judge’s Memorandum Opinion and Order

stated, “The Court notes that Plaintiffs’ claims will likely be moot upon remand

because the property at issue is being sold.”

On remand, Canadian re-urged its earlier-filed TCPA motion to dismiss. After

setting it for hearing and receiving appellees’ response, Canadian REH cancelled the

hearing. And on the same day, it filed its Plea to the Jurisdiction (the Plea), seeking

dismissal of the case for want of subject matter jurisdiction. Canadian REH urged

three grounds for its Plea: mootness, lack of standing, and lack of ripeness.

Following a hearing, the trial court signed an order ruling:

Plaintiffs’ claim for declaratory relief is dismissed as moot;

Plaintiffs’ claim for injunctive relief is dismissed as moot; and Plaintiffs’ request for attorney’s fees arising under the Texas Uniform Declaratory Judgments Act remain.

The parties agreed to have the issue of attorney’s fees decided by submission.

Appellees submitted the Affidavit of Robert J. Garrey, which attached billing

records from the attorneys who had represented appellees during the litigation and,

subsequently, their Additional Submission on Request for Attorneys’ Fees, which

attached the Supplemental Declaration of Robert J. Garrey. Canadian REH filed its

Brief on Plaintiffs’ Failure to Prove Attorney’s Fees and Brief on the Equities.

–4– The trial court’s judgment awarded appellees attorney’s fees in the amount of

$45,529.13 for services performed in the trial court. The court also awarded

conditional appellate fees of $14,000.00 if Canadian REH were unsuccessful on

appeal and an additional $7,000 if Canadian REH filed a petition for review in the

Supreme Court of Texas and were not successful in that court.

This appeal followed.

VALIDITY OF THE JUDGMENT BASED ON MOOTNESS

In its first issue, Canadian REH argues the trial court’s judgment awarding

fees to HCB is void. It contends that the trial court erred as a matter of law by (1)

refusing to dismiss appellees’ request for attorney’s fees for lack of ripeness or

standing, and (2) thereafter awarding attorney’s fees to appellees under the UDJA.

It asks us to vacate the court’s judgment and dismiss this appeal.

As we summarized above, Canadian REH filed its Plea after the case was

remanded from federal court. That was the first time Canadian REH brought the

issue of subject matter jurisdiction before the trial court for a ruling, and it based its

request for dismissal on three grounds: mootness, lack of standing, and lack of

ripeness. Canadian REH presented and briefed those three grounds—in that order—

and ultimately prayed generally “that this Court dismiss the cause of action for want

of subject matter jurisdiction.” The trial court granted the Plea, dismissing appellees’

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Canadian Real Estate Holdings, LP v. Karen F. Newton Revocable Trust, Counsel Stack Legal Research, https://law.counselstack.com/opinion/canadian-real-estate-holdings-lp-v-karen-f-newton-revocable-trust-texapp-2022.