Fort Worth & Western Railroad Company v. Nathan D. Albert and Chisholm Trail Redi-Mix, LLC

Court of Appeals of Texas·Decided February 23, 2022·No. 10-18-00219-CV·Published

Opinion

IN THE

TENTH COURT OF APPEALS

No. 10-18-00219-CV

FORT WORTH & WESTERN RAILROAD CO., Appellant

v.

NATHAN D. ALBERT AND CHISHOLM TRAIL REDI-MIX, LLC, Appellees

From the 18th District Court Johnson County, Texas

Trial Court No. DC-C201600307

MEMORANDUM OPINION

Fort Worth & Western Railroad Company appeals from a judgment that created an easement across its property and denied its claims for trespass and injunctive relief. In seven issues, FWWR complains that the evidence was legally and factually insufficient for the jury to have found an easement by estoppel (Issue One), easement by necessity (Issue Two), and prescriptive easement (Issue Three), that the trial court erred by denying its claims for trespass and injunctive relief (Issue Four), that the trial court erred by overruling its objections to the jury charge and entering the judgment because the evidence of the boundaries of the easement was legally and factually insufficient (Issue Five), that the trial court erred by overruling its objections to the jury charge and to the entry of the judgment because there was no description of the permitted uses of the easement (Issue Six), and that the trial court erred by awarding attorney's fees and costs to Albert rather than to FWWR (Issue Seven). Albert and Chisholm Trail Redi-Mix, LLC complain by cross-point that an exhibit was improperly admitted because it was not properly authenticated and constituted impermissible hearsay. We find that the judgment should be reversed and rendered in part as to the easement claims and reversed and remanded for a new trial as to the claims for trespass, injunctive relief, and attorney's fees. GENERAL BACKGROUND FACTS At issue is a railroad crossing across property owned by FWWR which connects a ten-acre tract of land purchased by Nathan Albert to State Highway 171 in Johnson County. The property was purchased by Albert individually in April of 2016 for the purpose of constructing and operating a cement mixing plant to be owned by Chisholm Trail Redi-Mix, LLC. Chisholm was formed for this purpose by Albert and two others, Simpson and Friermood.

The single-lane gravel crossing across FWWR's property was constructed in 1959 or 1960 pursuant to a license agreement for personal and agricultural use only. The agreement between FWWR's predecessor-in-title, Gulf, Colorado & Santa Fe Railway Fort Worth & Western Railroad Co. v. Albert & Chisholm Trail Redi-Mix, LLC Page 2

Company, and Meek, the owner of the adjacent 22.95 acre tract from which the ten acre tract was later divided, gave Meek the right to construct and use the crossing for personal and agricultural purposes only. The license was not assignable by Meek without the written permission of the railroad.

The ten acres of the 22.95 acre tract were sold various times in the intervening years until its purchase by Albert. The crossing was used during that time frame for various purposes, including agricultural, commercial, and personal. A farmhouse and a small shop were the only improvements on the ten acre tract at the time of Albert's purchase. FWWR had objected to the commercial use of the crossing by sending letters to the owners in 2006, 2007, and 2009. Use of the crossing has continued as the only place to access the ten acres for a variety of purposes since that time.

After Albert purchased the property for the benefit of Chisholm, he and his partners in Chisholm constructed and began operating a concrete plant on the property, beginning operations in June of 2016. Their trucks used the crossing because it was the sole point of ingress and egress to the property. The plat for the property and the certificate of occupancy were not approved because Albert had been unable to provide proof of the right to use the crossing to the city of Cleburne.

FWWR sent Albert a letter in May of 2016 to inform him and Chisholm that they did not have the right to use the crossing to access the property. In late May of 2016, Albert and Chisholm filed a declaratory judgment action seeking the establishment of an easement by estoppel, easement by necessity, and a prescriptive easement. That same Fort Worth & Western Railroad Co. v. Albert & Chisholm Trail Redi-Mix, LLC Page 3 day, FWWR filed counterclaims for trespass and damages as well as injunctive relief. A jury ultimately found in favor of Albert on each of the easement theories 1 and rejected FWWR's claims for trespass and injunctive relief against Albert and Chisholm. The trial court entered judgment pursuant to the jury's findings, awarded attorney's fees to Albert, and denied FWWR's claim for attorney's fees. LEGAL AND FACTUAL SUFFICIENCY STANDARD OF REVIEW Because the first three issues involve the sufficiency of the evidence to support the jury's findings, the following standard of review applies to all three issues. A party attacking the legal sufficiency of evidence supporting an adverse finding on an issue on which the party bore the burden of proof must demonstrate all vital facts in support of the issue were established as a matter of law. Dow Chemical Co. v. Francis, 46 S.W.3d 237, 241 (Tex. 2001) (per curiam). The analysis requires that we first examine the record in the light most favorable to the verdict for some evidence supporting the finding, crediting evidence favoring the finding if a reasonable fact finder could and disregarding contrary evidence unless a reasonable fact finder could not. City of Keller v. Wilson, 168 S.W.3d 802, 807, 822 (Tex. 2005). Some evidence, meaning more than a scintilla, exists when the evidence "rises to a level that would enable reasonable and fair-minded people to differ in their conclusions." Merrell Dow Pharms., Inc. v Havner, 953 S.W.2d 706, 711 (Tex. 1997). If, however, no evidence appears to support the finding, we then examine the entire

1Summary judgment had previously been granted in favor of FWWR and against Chisholm on the issue of easement by estoppel as to Chisholm.

Fort Worth & Western Railroad Co. v. Albert & Chisholm Trail Redi-Mix, LLC Page 4 record to determine whether the contrary proposition is established as a matter of law. Francis, 46 S.W.3d at 241. A proposition is established as a matter of law when a reasonable fact finder could draw only one conclusion from the evidence presented. City of Keller, 168 S.W.3d at 814-16. On a factual sufficiency review, the appellate court must consider and weigh all the evidence and will set aside the verdict only if it is so contrary to the overwhelming weight of the evidence as to be clearly wrong and unjust. Cain v. Bain, 709 S.W.2d 175, 176 (Tex. 1986).

EASEMENT BY ESTOPPEL

In its first issue, FWWR complains that the evidence was legally and factually insufficient for the jury to have found that an easement by estoppel should be imposed in favor of Albert. Generally, the grant of an easement must be made in writing and cannot be created by a parol agreement. Pick v. Bartel, 659 S.W.2d 636, 637 (Tex. 1983); Stallman v. Newman, 9 S.W.3d 243, 247 (Tex. App.—Houston [14th Dist.] 1999, pet. denied). The equitable doctrine of easement by estoppel is an exception to the writing requirement. Drye v. Eagle Rock Ranch, Inc., 364 S.W.2d 196, 209 (Tex. 1962); Horner v. Heather, 397 S.W.3d 321, 325 (Tex. App.—Tyler 2013, no pet.). "The owner of land, under some circumstances, may be estopped to deny the existence of an easement by making representations which have been acted upon by a purchaser to his detriment." Drye, 364 S.W.2d at 209—10 (noting that doctrine has been applied when party allows other party to expend money erecting drainage ditch across his land).

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