City of Harlingen v. Obra Homes, Inc., Claude Thacker and Catherine Thacker

CourtCourt of Appeals of Texas
DecidedJanuary 13, 2005
Docket13-02-00268-CV
StatusPublished

This text of City of Harlingen v. Obra Homes, Inc., Claude Thacker and Catherine Thacker (City of Harlingen v. Obra Homes, Inc., Claude Thacker and Catherine Thacker) 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
City of Harlingen v. Obra Homes, Inc., Claude Thacker and Catherine Thacker, (Tex. Ct. App. 2005).

Opinion

NUMBER 13-02-268-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS

CORPUS CHRISTI – EDINBURG


CITY OF HARLINGEN,                                                                 Appellant,

v.

OBRA HOMES, INC., CLAUDE THACKER

AND CATHERINE THACKER,                                                     Appellees.




On appeal from the 138th District Court

of Cameron County, Texas.





M E M O R A N D U M O P I N I O N


     Before Chief Justice Valdez and Justices Rodriguez and Garza


                             Opinion by Chief Justice Valdez

          Obra Homes, Inc. (“Obra”) sued the City of Harlingen (“the City”) contending the City’s failure to grant its zoning request was a “taking” under the Texas Constitution and was also a violation of due process and equal protection rights. After a trial, the jury found the City acted unreasonably in failing to approve the zoning request but awarded Obra only $125.00 in lost profits. The trial court increased the damages to $16,000.00.

          Now on appeal, the City contends: (1) Obra’s claims were not ripe; (2) Obra’s claims were rendered moot by subsequent re-zoning of the property; (3) Obra lacked standing to sue for a taking of the property; (4) no taking occurred; (5) loss of profits are not the proper measure of damages for a takings claim; (6) the trial court erred in increasing the award; and (7) Obra presented no evidence that its due process rights were violated. Obra cross-appeals contending the evidence established damages in excess of $16,000 and the trial court abused its discretion in failing to award greater damages. We reverse the judgment of the trial court and render judgment in favor of the City.

I. FACTUAL AND PROCEDURAL BACKGROUND

          Obra is in the business of developing land and selling homes. In June 1998, Obra entered into an earnest-money contract to purchase an undeveloped tract of land from Catherine Thacker. Under the contract, Obra would pay Thacker $606,832 for the property and closing would occur on December 10, 1998. Possession was to be delivered at closing.

          The tract of land consists of about 44.6 acres located in Harlingen. Obra planned to subdivide the property and build between 280 and 287 single-family homes on the property. Each home would be built on a lot measuring about 5,000 square feet.

          The contract required the enactment of certain zoning ordinances which would permit the erection of single family homes on the property. An addendum to the contract gave Obra the right to conduct studies, including inspection of zoning laws, within 160 days of the contract’s effective date. If Obra discovered the property was not suitable for its intended use within the 160-day period, it could notify Thacker and cancel the contract.

          When Obra entered into the earnest money contract, the tract of land was zoned N, which refers to areas not yet zoned or newly annexed or subdivided. In June 1998, Obra applied for a re-zoning of the property to R-2, which refers to an area for the development of primarily duplex family units. Under this designation, Obra contended it would have been able to build single family homes on 5,000-square-foot lots.

          The City staff and the Planning and Zoning Commission both recommended approval of the re-zoning request. The City staff, however, noted the availability of R-1 zoning, which refers to an area designated for the development of single family homes on lots no smaller than 6,000 square feet.

          On August 5, 1998, when the request was presented to the City Commission, several citizens voiced concerns, which included complaints that the lot-size was too small and the plan would negatively impact the value of the lots in surrounding areas and overcrowd local schools. The City Commission did not approve or deny the request, and the request failed by default.

          On the recommendation of the City staff, Obra re-submitted its proposed subdivision under a request to have the property re-zoned to PD. This type of zoning refers to a planned development, allows flexibility in planning, and, according to Obra, could have allowed the building of single-family residences on 5,000-square-foot lots.

          Again, the City staff and the Planning and Zoning Commission recommended approval of the re-zoning request. When the request went before the City Commission, the Mayor proposed postponing the vote so a meeting could be held between Obra, representatives of the homeowners, and City representatives. Obra agreed. At the meeting, however, Obra and the homeowner representatives were not able to reach an agreement that both addressed the representatives’ concerns and was satisfactory to Obra.

          On October 7, 1998, Obra’s request for PD zoning was again considered by the City Commission. Several citizens spoke in opposition to re-zoning, voicing many of the same concerns previously expressed and stating R-1 was the best zoning option. The proposed ordinance changing the zoning from N to PD did not receive the required support and accordingly, failed.

          Although Thacker gave Obra an extension to close on the property for an additional sum of money, Obra ultimately failed to consummate the sale and the contract expired. Thacker retained the property and the earnest money.

          Obra’s initial pleading sought injunctive relief including a permanent injunction preventing the City from denying its request for PD zoning. Obra later amended its pleading to seek economic damages, consequential damages, lost profits, attorney’s fees, and costs.

          Other than questions pertaining to the amount of damages, the only question presented to the jury was whether the City acted “unreasonably in failing to approve or deny [Obra]’s requests for re-zoning.” All but one juror answered yes. The final judgment did not specify on what claims judgment was rendered and awarded only monetary damages.

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City of Harlingen v. Obra Homes, Inc., Claude Thacker and Catherine Thacker, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-harlingen-v-obra-homes-inc-claude-thacker--texapp-2005.