City of Rusk, Texas v. 260 Office Park, Inc., Jan Evan Pate and B-D-J's Properties, Inc.

CourtCourt of Appeals of Texas
DecidedAugust 31, 2023
Docket12-22-00312-CV
StatusPublished

This text of City of Rusk, Texas v. 260 Office Park, Inc., Jan Evan Pate and B-D-J's Properties, Inc. (City of Rusk, Texas v. 260 Office Park, Inc., Jan Evan Pate and B-D-J's Properties, Inc.) 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 Rusk, Texas v. 260 Office Park, Inc., Jan Evan Pate and B-D-J's Properties, Inc., (Tex. Ct. App. 2023).

Opinion

NO. 12-22-00312-CV

IN THE COURT OF APPEALS

TWELFTH COURT OF APPEALS DISTRICT

TYLER, TEXAS

CITY OF RUSK, TEXAS, ET AL, § APPEAL FROM THE 2ND APPELLANTS

V. § JUDICIAL DISTRICT COURT

260 OFFICE PARK, INC., JAN EVAN PATE, AND B-D-J'S PROPERTIES, INC., APPELLEES § CHEROKEE COUNTY, TEXAS

MEMORANDUM OPINION City of Rusk, Texas (the City), the Honorable Mayor Ben Middlebrooks, in his official capacity, Rusk City Manager Amanda Hill, in her official capacity, Rusk City Council Members Kendall Shoemaker, Walter Session, Zack McNew, Martha Neely and Frances Long, in their official capacities, Rusk City Secretary Cinda Etheridge, in her official capacity, and Rusk City Building Inspector Brandon Scarborough, in his official capacity, (collectively Appellants) appeal the trial court’s order denying their plea to the jurisdiction in favor of Appellees 260 Office Park, Inc., Jan Evan Pate, and B-D-J Properties, Inc. (collectively Appellees). In one issue, Appellants argue that the trial court erred in denying their plea to the jurisdiction. We affirm in part and reverse and remand in part. BACKGROUND 1 The underlying dispute arose over the redevelopment of the Rusk Hotel, which is located in downtown Rusk, Texas. The property is owned by 260 Office Park, which has a contract to sell the property to B-D-J. Pate was conducting the redevelopment of the property, which, when completed, would be used by both commercial and residential tenants. In September 2021, after much of the renovation was complete and a temporary certificate of occupancy for four of the second-floor residential units was issued, the City sought to pass an ordinance which precluded the use of properties located in its “Old Town Center” district for residential purposes. Such an ordinance, if valid, would apply to the Rusk Hotel. According to Appellees’ allegations in their pleadings, the City, based on this ordinance, took steps to halt the continuation of redevelopment work being undertaken at the Rusk Hotel and suspended its residential occupation. Subsequently, according to Appellants, the City determined that, due to an clerical error related to the system it used to upload its ordinances to a website where they can be viewed, the September 2021 ordinance was enacted in error. The City further claimed that its issuance to 260 Office Park of a temporary certificate of occupancy was the erroneous result of a procedural oversight. Thereafter, the City cited 260 Office Park with numerous building code violations, which it alleged rendered the structure “unsafe.” On June 3, 2022, Appellees filed the instant suit against Appellants, by which they sought a declaratory judgment based on, in pertinent part, (1) the alleged violation of the notice requirements of Texas Local Government Code, Chapter 211 with regard to the passage of the September 2021 ordinance, (2) the alleged violations of the Open Meetings Act with regard to the passage of the September 2021 ordinance, and (3) the alleged interference with their vested property rights under Texas Local Government Code, Chapter 245 resulting from the City’s attempt to enforce the residential limitations in the August 2022 ordinances 2 against the Rusk

1 Appellants failed to include any citation to the nearly 700-page record to support the factual assertions made in their brief. See TEX. R. APP. P. 38.1(g). Failure to comply with this rule can result in waiver of appellate issues raised. See, e.g., Shelley v. Colorado Bd. of Governors, No. 07-15-00410-CV, 2016 WL 3977388, at *1 (Tex. App.–Amarillo July 19, 2016, pet. denied) (mem. op.). However, in the interest of justice, and in partial reliance on the citations from Appellees’ brief, we have endeavored to navigate the voluminous record in an effort to resolve this matter. But see Rubsamen v. Wackman, 322 S.W.3d 745, 746 (Tex. App.–El Paso 2010, no pet.) (appellate court not required to sift through the record in search of facts supporting a party’s position). 2 In August 2022, during the pendency of Appellees’ suit, the City passed two new zoning ordinances related, in part, to how property located in the Old Town Center could be used. The first ordinance permits

2 Hotel, which they allege should be governed by a prior zoning regime. Appellants filed an amended plea to the jurisdiction, in which they argued that Appellees’ claims either were not ripe for disposition or had been rendered moot, and that Appellees failed to exhaust their administrative remedies with regard to their Chapter 245 claim. Following a hearing on the matter, the trial court denied Appellants’ plea, and this interlocutory appeal followed. 3

SUBJECT MATTER JURISDICTION In their sole issue, Appellants argue that the trial court erred in denying their plea to the jurisdiction. Standard of Review and Governing Law A plea to the jurisdiction is a dilatory plea by which a party challenges the trial court’s subject matter jurisdiction. Harris Cty. v. Sykes, 136 S.W.3d 635, 638 (Tex. 2004); Bland Indep. Sch. Dist. v. Blue, 34 S.W.3d 547, 554 (Tex. 2000). Its purpose is to defeat a cause of action without regard to whether the claims asserted have merit. Blue, 34 S.W.3d at 554. The trial court’s ruling on a plea to the jurisdiction is subject to de novo review. Suarez v. City of Texas City, 465 S.W.3d 623, 632 (Tex. 2015). A plea to the jurisdiction may challenge either the sufficiency of jurisdictional allegations in the pleadings or the existence of jurisdictional facts. Tex. Dep’t of Parks & Wildlife v. Miranda, 133 S.W.3d 217, 226–27 (Tex. 2004). When a plea to the jurisdiction challenges the sufficiency of the pleadings, we determine whether the plaintiff has met that burden by pleading facts that affirmatively demonstrate the trial court’s subject matter jurisdiction. Id. at 226. In so doing, we construe the pleadings liberally in favor of the plaintiff, look to the pleader’s intent, and accept as true the factual allegations in the pleadings. Id. at 226, 228. If the pleadings are insufficient to establish jurisdiction but do not affirmatively demonstrate an incurable defect, then the issue is one of pleading sufficiency and the plaintiff should be afforded the opportunity to amend. State v. Holland, 221 S.W.3d 639, 643 (Tex. 2007); Miranda, 133 S.W.3d at 226–27. On the other hand, if the pleadings affirmatively negate the existence of the trial court’s

residential use of the properties in the Old Town District only if the City grants the property owner a special use permit. The second ordinance imposes minimum square-footage classifications of 375 square feet of space for any property occupied for residential purposes in the Old Town Center district. In addition to their application for certificate of occupancy, Appellees requested a special use permit in September 2022 (collectively request for special use permit). 3 See TEX. CIV. PRAC. & REM. CODE ANN. § 51.014(8) (West Supp. 2022).

3 jurisdiction, then a plea to the jurisdiction may be granted without allowing the plaintiff an opportunity to amend. Miranda, 133 S.W.3d at 226–27. When a plea to the jurisdiction challenges the existence of jurisdictional facts, we consider relevant evidence submitted by the parties to the extent necessary to resolve the jurisdictional issues, just as the trial court is required to do. Id. at 227.

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City of Rusk, Texas v. 260 Office Park, Inc., Jan Evan Pate and B-D-J's Properties, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-rusk-texas-v-260-office-park-inc-jan-evan-pate-and-b-d-js-texapp-2023.