Dennis Davis, Individually and D/B/A Aqua Tech Marine Industries Debbie Desmond, Individually and D/B/A Aqua Tech Marine Industries And Aqua Tech Marine Industries, Inc. v. Steven L. Johnston, Maria Estella Arguinde-Johnston, Stephen H. Gay and Carilynne Yaffe Gay

CourtCourt of Appeals of Texas
DecidedJune 28, 2012
Docket03-10-00712-CV
StatusPublished

This text of Dennis Davis, Individually and D/B/A Aqua Tech Marine Industries Debbie Desmond, Individually and D/B/A Aqua Tech Marine Industries And Aqua Tech Marine Industries, Inc. v. Steven L. Johnston, Maria Estella Arguinde-Johnston, Stephen H. Gay and Carilynne Yaffe Gay (Dennis Davis, Individually and D/B/A Aqua Tech Marine Industries Debbie Desmond, Individually and D/B/A Aqua Tech Marine Industries And Aqua Tech Marine Industries, Inc. v. Steven L. Johnston, Maria Estella Arguinde-Johnston, Stephen H. Gay and Carilynne Yaffe Gay) 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
Dennis Davis, Individually and D/B/A Aqua Tech Marine Industries Debbie Desmond, Individually and D/B/A Aqua Tech Marine Industries And Aqua Tech Marine Industries, Inc. v. Steven L. Johnston, Maria Estella Arguinde-Johnston, Stephen H. Gay and Carilynne Yaffe Gay, (Tex. Ct. App. 2012).

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN

NO. 03-10-00712-CV

Dennis Davis, Individually and d/b/a Aqua Tech Marine Industries; Debbie Desmond, Individually and d/b/a Aqua Tech Marine Industries; and Aqua Tech Marine Industries, Inc., Appellants

v.

Steven L. Johnston, Maria Estella Arguinde-Johnston, Stephen H. Gay and Carilynne Yaffe Gay, Appellees

FROM THE DISTRICT COURT OF TRAVIS COUNTY, 98TH JUDICIAL DISTRICT NO. D-1-GN-06-00403, HONORABLE RHONDA HURLEY, JUDGE PRESIDING

MEMORANDUM OPINION

This appeal arises from a dispute concerning the existence and scope of easements

that were alleged to burden two waterfront lots on Lake Travis. One of the lots is owned by

appellant Dennis Davis and the other by appellant Debbie Desmond. Davis and Desmond are jointly

engaged in a business known as Aqua Tech Marine Industries, which had conducted its operations

on the lots since 2004. Following a bench trial, the district court rendered judgment declaring that

the Davis and Desmond lots are burdened by easements appurtenant permitting two married couples

who each own residential lots in the area—the Johnstons and Gays, appellees—to traverse the Davis

and Desmond lots to access the lake waters, attach boats and floating docks to the lots, and linger

upon and use the lots for various recreational activities. The judgment further declared that the

two waterfront lots are burdened by a “negative implied restrictive covenant” prohibiting commercial use, in effect outlawing Aqua Tech’s operations there. The district court subsequently made findings

of fact and conclusions of law that the positive easement burdening the Davis and Desmond lots

existed by virtue of express grant, estoppel, implication, and prescription.

Davis, Desmond, and Aqua Tech appealed, challenging primarily the legal and factual

sufficiency of the evidence supporting each easement theory on which the district court relied. While

we affirm, under a prescription theory, the district court’s declaration that a positive easement

burdens the properties, we will reverse its declaration that a “negative implied restrictive covenant”

bars the lots’ commercial use and remand the cause to the district court for further proceedings made

necessary by these holdings.

BACKGROUND

Some geography

All of the properties at issue are located on the Graveyard Point peninsula on

Lake Travis, not far from the present-day City of Lakeway. The geographic relationship of these

properties and others described herein is best understood by referring to Appendix A, a 2003 map

prepared by Travis Central Appraisal District that was in evidence at trial.

At relevant times, the Gays and Johnstons have owned adjacent groups of lots

bordering Oak Hurst Road, whose path is depicted as an inverted “U” traversing the lower left corner

of Appendix A. These lots are each situated below or to the south of Oak Hurst and a short distance

to the right or east of the apex of the street’s inverted “U.”1 Since 1999, the Gays have owned the

three lots labeled in Appendix A with their names, one of .325 acres and the other two are

1 A directional arrow is provided in the margin of Appendix A.

2 each roughly half that size. To the immediate lower right or southeast of the Gays’ .325-acre lot is

a lot labeled “Todd & Ann Kimbriel.” Below or to the south of the “Kimbriel” lot are five lots of

varying sizes and shapes, bordered to the right (east) by Oak Hurst, to the lower left (southwest) by

Rabbit Run Circle, and to the bottom (south) by Max Drive. These five lots were all acquired by the

Johnstons between 2001 and 2002. Subsequent to the date Appendix A was prepared, in 2006, the

Johnstons purchased the “Kimbriel” lot as well.

The lots now owned by appellants Davis and Desmond are located along the eastern

Lake Travis shoreline depicted in the lower center of Appendix A. In 2005, Davis would purchase

the roughly 1-acre lot labeled “Annie Stewart Estate,” which encompasses a portion of shoreline

that bends to the west and then southeastward around a cove, then turns northward. In 2006,

Desmond would acquire the .16-acre lot, labeled “Thelma Stewart,” that is immediately adjacent to

the Davis lot as the shoreline continues northward. With evident reference to the configuration of

these properties’ boundaries or the Lake Travis shoreline within them, the parties and witnesses have

termed the Davis property “the Point” and Desmond’s “the Notch,” and we will do the same.

Some history

Some historical background concerning the ownership and development of these and

other Graveyard Point properties is helpful in understanding and analyzing the issues on appeal.

Most if not all of the land comprising the present-day Graveyard Point once was owned by the late

Annie Stewart (the same person whose estate had owned the Point until Davis purchased it in 2005)

and her late husband, A.K. The couple and other members of the Stewart family had farmed and

ranched along the Colorado River for decades before the construction of the Marshall Ford dam

3 downstream formed Lake Travis—and created the peninsula now known as Graveyard Point—in the

early 1940s. In fact, an old Stewart family cabin predating Lake Travis still stands on what is now

a residential lot situated at the north or top side of the intersection of Chipmonk and Hurst View.

That lot and cabin, coincidentally, were acquired by appellant Desmond in 1998, and the record

reflects that she and appellant Davis resided there through time of trial.

In connection with Lake Travis’s formation, large portions of the Stewarts’ acreage

were burdened with overflow easements in favor of the Lower Colorado River Authority (LCRA)

up to, originally, the elevation contour of 670 feet above mean sea level (m.s.l.), and later up to

715 feet m.s.l. Although these changes greatly limited the Stewarts’ agricultural use of their land

(at least if one assumes the lake remains anywhere close to the 681 feet m.s.l. elevation at which it

is considered “full”), they also had the salutary effect of transforming the Stewarts’ remaining

acreage into “lakefront” property suitable for residential or recreational development.

The couple began subdividing and selling residential lots on Graveyard Point in 1943.

As lots were being developed, the Stewarts retained ownership of adjacent strips of land over

which private roads were cut to provide access. The first lots conveyed by the Stewarts in 1943 and

through mid-1944 were generally of precisely one acre in size, rectangular in shape, with long sides

oriented perpendicularly to the eastern shore of Graveyard Point, and located between the paths

of present-day Chipmonk and Oak Hurst as those roads continue southward and below the area

depicted in Appendix A. The eastern or lakeside boundaries of these lots, as well as this portion of

Chipmonk, corresponded roughly to the 715 m.s.l. contour that marked the upper limits of the

LCRA’s overflow easement. In these early conveyances, the Stewarts typically granted the lot

owners an easement appurtenant permitting use of the “roadway now open on the East of the

4 land herein conveyed”—the road now known as Chipmonk. The Stewarts also typically granted an

easement across the land they continued to own between the lot’s eastern boundary and the 670 m.s.l.

contour “for the purpose of ingress and egress from the tract of land herein conveyed to Lake Travis

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Dennis Davis, Individually and D/B/A Aqua Tech Marine Industries Debbie Desmond, Individually and D/B/A Aqua Tech Marine Industries And Aqua Tech Marine Industries, Inc. v. Steven L. Johnston, Maria Estella Arguinde-Johnston, Stephen H. Gay and Carilynne Yaffe Gay, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dennis-davis-individually-and-dba-aqua-tech-marine-industries-debbie-texapp-2012.