Develo-Cepts, Inc. v. City of Galveston

668 S.W.2d 790, 1984 Tex. App. LEXIS 5054
CourtCourt of Appeals of Texas
DecidedFebruary 16, 1984
DocketB14-83-302CV
StatusPublished
Cited by32 cases

This text of 668 S.W.2d 790 (Develo-Cepts, Inc. v. City of Galveston) 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
Develo-Cepts, Inc. v. City of Galveston, 668 S.W.2d 790, 1984 Tex. App. LEXIS 5054 (Tex. Ct. App. 1984).

Opinion

OPINION

ELLIS, Justice.

Appellant, Develo-eepts, Inc., appeals from the trial court’s judgment dismissing or abating this case because of Develo-eepts’ lack of standing to sue. We affirm.

Develo-eepts, a profit-making Texas corporation interested in providing residential custodial care to mentally retarded persons, wanted to establish a fifteen-bed group home at 2214 Avenue M in Galveston. This location is zoned “R-Retail”, and the city zoning ordinance would require a specific use permit for operation of such facility in that area.

Develo-eepts had no contractual or other interest in the property, but had a verbal agreement with a couple, the Wirths, that if they could purchase the property from its owners, the Matthews, Develo-eepts would lease the property from the Wirths. The Wirths made an offer for the property and deposited earnest money, but the Matthews never accepted the offer.

The Matthews signed an application for a special use permit for the property, and Helen Fitzsimmons, the sole stockholder of Develo-eepts, signed the application as the Fitzsimmons’ agent. The City of Galveston, in the exercise of its zoning authority, denied the specific use permit.

On September 22, 1980, Develo-eepts brought suit for declaratory judgment, in-junctive relief and for damages for alleged lost profits caused by the permit denial.

Subsequently, Texas Department of Human Resources Rule 326.35.03.005, which became effective May 1, 1982, limited certification for participation in the program in which Develo-eepts wished to participate (ICF-MR) to a maximum six-bed facility, and to facilities not located within a three-mile radius of another ICF-MR facility. Develo-eepts proposed a fifteen-bed facility which was located within one mile of another ICF-MR facility.

There is disputed evidence that the Department of Human Resources denied De-velo-cepts’ certification. On January 11, 1982, Ms. Fitzsimmons received a letter stating that the Department denied certification. On March 3, 1982, however, Deve-lo-cepts’ attorney received a letter stating that Develo-eepts would be allowed 120 days after the completion of this litigation “to meet certification requirements.”

On October 23, 1980, appellee filed its Original Answer, and then the parties began discovery. On January 20,1983, appel-lee filed its Motion for Dismissal or Abatement. After a hearing on this Motion, the trial court dismissed the case.

Appellant brings seven points of error on appeal. Points of error one and two concern appellant’s standing to bring this suit. Point of error one claims that by its delay in filing its plea in abatement, appellee waived any claims that appellant lacked standing. Point of error two asserts that the trial court erred in holding that appellant did not have standing. Point of error seven alleges that the trial court erred in dismissing the action rather than allowing appellant to amend its pleadings. We disagree. Because we have determined that appellant did not have standing, that appel-lee did not waive its objection to appellant’s lack of standing and that the trial court did *793 not err in refusing to allow appellant to amend its pleadings, we need not discuss appellant’s other points of error: (3), (5) and (6) that the trial court erred in considering matters not in issue at the hearing on the Motion for Dismissal or Abatement, and (4) that the trial court erred in holding that the case was moot.

A challenge that a party lacks standing is similar to a challenge that a party lacks capacity to sue. Appellee recognized this similarity by filing a verified plea in abatement pursuant to Rule 93(e) in order to challenge appellant’s standing.

Appellant, however, attempts to equate a challenge that a party lacks standing to a challenge that a party lacks capacity to sue. A party who wishes to contest his opponent’s lack of capacity to sue, must do so by a verified plea in abatement. Bluebonnet Farms v. Gibraltar Savings Ass’n, 618 S.W.2d 81 (Tex.Civ.App.—Houston [1st Dist.1980], writ ref’d n.r.e.). Such a pleading is dilatory and is susceptible to waiver. Bluebonnet Farms, 618 S.W.2d at 83. In Bluebonnet Farms, the Court of Civil Appeals determined that in allowing the appellee’s plea in abatement four years after it had answered the suit and without any explanation for the delay, the trial court had worked an injustice on the appellant.

A challenge that a party lacks standing to sue, however, is not the same thing as a challenge that a party lacks capacity to sue. Lack of capacity can be cured by amended pleadings, and a proper response to a challenge to capacity is to afford the party challenged with an opportunity to amend. In Bluebonnet Farms, the corporation which brought suit had forfeited its corporate charter by failing to pay franchise taxes. The corporate entity, no longer existed, and therefore lacked capacity to sue. The shareholders, however, could have amended the pleadings and carried on the litigation.

Conversely, the lack of standing in our case could not be cured by amended pleadings. Appellant asserts that given the opportunity to amend its pleadings, it could attempt to obtain an interest in the property. This action would go beyond the procedural steps contemplated by the Texas Rules of Civil Procedure. These rules are designed to aid in the speedy disposition of litigation. Bluebonnet Farms, 618 S.W.2d at 84. Even if our case had gone through trial on the merits, one fact would remain true, appellant would not be entitled to relief because it lacks standing to sue. The trial court did not err in refusing to allow appellant 'to amend its pleadings. While it is true appellee would have waived this challenge if it had not asserted it at the trial level, but had raised it for the first time on appeal, Texas Industrial Traffic League v. Railroad Commission, 633 S.W.2d 821 (Tex.1982), courts are allowed to look at the equities of the situation to determine whether a plea in abatement is timely filed. Bluebonnet Farms, 618 S.W.2d at 83.

In our case, the city filed its plea in abatement two and one-half years after the suit was filed and after it had undertaken substantial discovery. This discovery provided information necessary for appellee to urge its plea in abatement. The plea was filed, however, one month before trial. In our case, the equities balance differently than in Bluebonnet Farms. The trial court did not err in allowing appellee to file its plea in abatement so late because regardless of when the plea was filed, appellant could not have cured the defect with amended pleadings. Although at some point a challenge to standing becomes waiveable, appellee did not waive that challenge. We overrule points of error one and seven.

Appellant’s point of error two alleges that regardless of whether the issue was waived, appellant had standing to sue. Appellant had no contractual or property interest in the property in question.

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Cite This Page — Counsel Stack

Bluebook (online)
668 S.W.2d 790, 1984 Tex. App. LEXIS 5054, Counsel Stack Legal Research, https://law.counselstack.com/opinion/develo-cepts-inc-v-city-of-galveston-texapp-1984.