City of Dallas and Board of Adjustment of the City of Dallas v. PDT Holdings, Inc. and Phillip Thompson Homes, Inc, D/B/A Phillip Thompson Custom Homes

Court of Appeals of Texas·Decided August 24, 2021·No. 05-21-00018-CV·Published

Opinion

Affirmed in Part and Reversed and Rendered in Part; Opinion Filed August 24, 2021

In The

Court of Appeals

Fifth District of Texas at Dallas No. 05-21-00018-CV

CITY OF DALLAS AND BOARD OF ADJUSTMENT OF THE CITY OF DALLAS, Appellants

V.

PDT HOLDINGS, INC. AND PHILLIP THOMPSON HOMES, INC, D/B/A PHILLIP THOMPSON CUSTOM HOMES, Appellees

On Appeal from the 14th Judicial District Court Dallas County, Texas

Trial Court Cause No. DC-18-08484

MEMORANDUM OPINION

Before Justices Osborne, Pedersen, III, and Nowell Opinion by Justice Nowell The City of Dallas and the Board of Adjustment of the City of Dallas

(collectively the Board) appeal the trial court’s denial of their plea to the jurisdiction. PDT Holdings, Inc. and Phillip Thompson Homes, Inc., d/b/a Phillip Thompson Custom Homes (collectively PDT) sought a variance from the Board after the City issued a stop work order for violation of the residential proximity slope (RPS) ordinance on one of PDT’s projects. The Board denied the variance and PDT sought judicial review of that decision in the district court. PDT also brought claims for

violation of the due course of law, estoppel, laches, and waiver. It requested the court to reverse the Board’s decision or, alternatively, award it damages for complying with the RPS ordinance. The Board filed a plea to the jurisdiction asserting governmental immunity. The trial court denied the plea to the jurisdiction after a hearing.

We conclude the trial court has jurisdiction to review the Board’s decision under the terms of local government code section 211.011. However, we agree with the Board that the trial court lacks jurisdiction to grant relief apart from section 211.011, including PDT’s request for damages and the constitutional claim. We reverse in part and render judgment dismissing PDT’s claims for damages and for violation of the due course of law for want of jurisdiction. In all other respects, we affirm the trial court’s order and remand for further proceedings consistent with this opinion.

Background

PDT applied for a permit from the City to build a duplex on its property in Dallas. The property is zoned for residential use and the general height restriction for the property is thirty-six feet. However, the RPS height restriction, which limits height based on a projected line emanating from any residentially zoned property, limited the height of a structure on the property to twenty-six feet.

PDT alleged that before submitting plans, it inquired with the City to verify provisions of the Dallas Development Code (Code) and their applicability to the

property. PDT relied on the City to provide it with accurate information about the Code’s application to the property and the City’s enforcement of the Code.

In September 2017, PDT submitted detailed plans for the project to the City.

The plans called for construction of a three-story duplex with a total height of thirty- six feet. The City approved the plans and issued building permits for the project as submitted.

In reliance on the building permits and approved plans, PDT began construction in October 2017. In November 2017, a building inspector notified PDT of a violation of the thirty-six-foot height restriction and issued a hold on the property. Construction continued while the parties discussed the height issue. In January 2018, a City inspector cited PDT and issued a stop work order on the grounds that the structure did not comply with the thirty-six-foot height restriction. PDT adjusted the structure to comply with the restriction and the stop work order was lifted.

In April 2018, with the project 90% complete, the City indicated for the first time that the property was subject to a height restriction of twenty-six feet due to application of the RPS ordinance. A stop work order was issued on April 13, 2018 for noncompliance with the RPS ordinance.

PDT alleged that despite multiple opportunities, the City failed to inform it of the height restriction required by the RPS ordinance. If the City had done so before or at the time PDT submitted the development plans or even at the time of the

January stop work order, PDT would have taken the RPS restriction into account and would have adjusted the plans to comply with the RPS restriction. According to PDT, compliance with RPS at the time it was finally raised would require removal of a portion of the structure above twenty-six feet at a cost of thousands of dollars and lengthy delays in completing the project.

PDT applied to the Board for a variance from the RPS height restriction in May 2018. PDT sought a ten-foot variance to the height restrictions to maintain the structure at its current height of thirty-six feet. The Board denied the variance without prejudice after a hearing on May 21, 2018. PDT filed a second application for the variance with newly submitted site plans and elevations on May 27, 2018. City staff recommended approval of the variance. The Board, however, denied the variance with prejudice at a hearing on June 18, 2018. At this point, the project was 95% completed.

PDT filed this suit on June 28, 2018. It sought a writ of certiorari to the Board and judicial review of the decision to deny the variance under local government code section 211.011. TEX. LOC. GOV’T CODE § 211.011. PDT asserted the Board abused its discretion and acted in an arbitrary and capricious manner in refusing to grant the variance. It also alleged the Board’s decision was erroneous and illegal and asked the court to reverse the Board and render judgment granting the variance. PDT also alleged that denial of the variance was arbitrary and capricious in violation of PDT’s right to the due course of law under the Texas Constitution. See TEX. CONST. art. I,

§ 19. The Board filed a plea to the jurisdiction on the grounds of governmental immunity. Afterwards, PDT filed an amended petition based on its original petition but adding the defenses of laches and waiver. PDT alleged that the City’s delay in raising the RPS restriction for six months while PDT continued construction in accordance with the approved plans and permits precluded the City from enforcing the RPS ordinance and from denying the variance.

Following mediation, the parties filed an agreed motion to abate the case while PDT sought another hearing on its request for a variance. The trial court abated the case and ordered the Board to set a new hearing on PDT’s request for a variance. The hearing was held on May 18, 2020. City staff again recommended approval of the variance. The Board, consisting of entirely new members, denied the variance at the conclusion of the hearing.

The parties filed an agreed motion to lift the abatement on October 2, 2020.

They advised the court of the May 18, 2020 hearing before the Board and the denial of PDT’s application for a variance. The trial court granted the motion on October 8, 2020.

PDT filed its second amended petition on October 15, 2020. In addition to its previous allegations, PDT pleaded equitable estoppel, alleging the Board was estopped from enforcing the RPS ordinance and requested damages in the

alternative. PDT prayed for a judgment declaring1 the Board is estopped from enforcing the RPS or, alternatively, awarding PDT damages for complying with the RPS ordinance.

After a hearing on the Board’s plea to the jurisdiction, the trial court denied the plea and the Board perfected this interlocutory appeal of the order.

The Board raises six issues on appeal: (1) the trial court erred by denying the plea to the jurisdiction; (2) the court lacked jurisdiction to review the Board’s decision at the May 18, 2020 hearing; (3) there is no jurisdiction over PDT’s equitable defenses; (4) there is no jurisdiction over any claim for damages; (5) this is not an exceptional case where estoppel applies against a city; and (6) there is no jurisdiction over PDT’s constitutional claim.

Standard of Review

Free access — add to your briefcase to read the full text and ask questions with AI

City of Dallas and Board of Adjustment of the City of Dallas v. PDT Holdings, Inc. and Phillip Thompson Homes, Inc, D/B/A Phillip Thompson Custom Homes, (Tex. Ct. App. 2021).

City of Dallas and Board of Adjustment of the City of Dallas v. PDT Holdings, Inc. and Phillip Thompson Homes, Inc, D/B/A Phillip Thompson Custom Homes (City of Dallas and Board of Adjustment of the City of Dallas v. PDT Holdings, Inc. and Phillip Thompson Homes, Inc, D/B/A Phillip Thompson Custom Homes) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Texas Department of Parks & Wildlife v. Miranda
133 S.W.3d 217 (Texas Supreme Court, 2004)
Joe v. Two Thirty Nine Joint Venture
145 S.W.3d 150 (Texas Supreme Court, 2004)
City of White Settlement v. Super Wash, Inc.
198 S.W.3d 770 (Texas Supreme Court, 2006)
City of Dallas v. Vanesko
189 S.W.3d 769 (Texas Supreme Court, 2006)
Tellez v. City of Socorro
226 S.W.3d 413 (Texas Supreme Court, 2007)
Alfonso v. Skadden
251 S.W.3d 52 (Texas Supreme Court, 2008)
Andrade v. NAACP of Austin
345 S.W.3d 1 (Texas Supreme Court, 2011)
Tooke v. City of Mexia
197 S.W.3d 325 (Texas Supreme Court, 2006)
Flynt v. Garcia
587 S.W.2d 109 (Texas Supreme Court, 1979)
Swain v. Board of Adjustment of City of Univ. Park
433 S.W.2d 727 (Court of Appeals of Texas, 1968)
City of Hutchins v. Prasifka
450 S.W.2d 829 (Texas Supreme Court, 1970)
Wilmer-Hutchins Independent School District v. Sullivan
51 S.W.3d 293 (Texas Supreme Court, 2001)
Dubai Petroleum Co. v. Kazi
12 S.W.3d 71 (Texas Supreme Court, 2000)
Dallas Area Rapid Transit v. Whitley
104 S.W.3d 540 (Texas Supreme Court, 2003)
Davis v. City of Abilene
250 S.W.2d 685 (Court of Appeals of Texas, 1952)
City of Dallas v. Rosenthal
239 S.W.2d 636 (Court of Appeals of Texas, 1951)
Jim Rutherford Investment Inc. v. Terramar Beach Community Ass'n
25 S.W.3d 845 (Court of Appeals of Texas, 2000)
Texas Southern University v. State Street Bank & Trust Co.
212 S.W.3d 893 (Court of Appeals of Texas, 2007)
Maguire Oil Co. v. City of Houston
69 S.W.3d 350 (Court of Appeals of Texas, 2002)