Gardens of Connemara Ltd. and Emerson Farm Company, Ltd. v. Longhorn Creek Ltd.

CourtTexas Supreme Court
DecidedJanuary 23, 2026
Docket24-0271
StatusPublished

This text of Gardens of Connemara Ltd. and Emerson Farm Company, Ltd. v. Longhorn Creek Ltd. (Gardens of Connemara Ltd. and Emerson Farm Company, Ltd. v. Longhorn Creek Ltd.) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gardens of Connemara Ltd. and Emerson Farm Company, Ltd. v. Longhorn Creek Ltd., (Tex. 2026).

Opinion

Supreme Court of Texas ══════════ No. 24-0271 ══════════

Gardens of Connemara Ltd. and Emerson Farm Company, Ltd., Petitioners,

v.

Longhorn Creek Ltd., Respondent

═══════════════════════════════════════ On Petition for Review from the Court of Appeals for the Fifth District of Texas ═══════════════════════════════════════

JUSTICE YOUNG, concurring in the denial of the petition for review.

This case raises the important question of when a trial court must consider pleading exhibits appended to a petition in ruling on a Rule 91a motion to dismiss. The answer depends on yet another question: whether the pleading exhibits constitute, “in whole or in part, the claim sued on.” Texas courts should carefully analyze these questions, and this Court will likely need to resolve them in a future case—but not this one. I write separately to address why the Rule 91a issue is important, why I have some doubts about how the court of appeals resolved it here, and why other issues in the case nonetheless would sufficiently complicate our review as to warrant denial of this petition. I

First, the facts. Longhorn Creek filed a declaratory-judgment suit against Gardens of Connemara and Emerson Farm Company (together, Connemara) seeking to avoid a private transfer fee. A private transfer fee is “an amount of money . . . that is payable on the transfer of an interest in real property or payable for a right to make or accept a transfer.” Tex. Prop. Code § 5.201(4). The basis for the private transfer fee here arose in 2005 when, ostensibly for the rest of time, Connemara burdened every subsequent purchaser of hundreds of acres of land with the obligation to pay Connemara “a fee equal to 1% of the Value of the Conveyed Land.” A $100,000 house subject to the fee, for example, would generate $1,000 for Connemara every time the house sold, no matter how frequently or rarely. Private transfer fees sound rather like the toll demanded by the troll under the bridge in children’s fairy tales. The theory underlying them is more benign: that imposing private transfer fees on future resales of affected land may give real-estate developers an opportunity to “spread[] the purchase price of property over time” and to “allocat[e] risk and shar[e] profit from property development.” See Restatement (Third) of Prop. (Servitudes): Indirect Restraints on Alienation and Irrational Servitudes § 3.5 cmt. a (2000). Notwithstanding these commercial benefits, critics of private transfer fees have argued that the covenants “constitut[e] unsound public policy” because, among other reasons, they impose “unwarranted transaction costs” that “com[e] at the expense of the public.” E.g., R. Wilson Freyermuth, Putting the Brakes on Private Transfer Fee Covenants, 24 Prob. & Prop. 20, 23–24 (2010).

2 The legislature has come down more on the side of the critics. In 2011, it passed, and the governor signed, a bill “relating to prohibiting certain private transfer fees and the preservation of private real property rights.” Act of May 24, 2011, 82d Leg., R.S., ch. 211, 2011 Tex. Gen. Laws 780, 780 (codified at Tex. Prop. Code §§ 5.201–.207). Through the new statute, Texas law now “in large part prohibit[s] the use of private transfer fees associated with real property transactions.” Tex. Att’y Gen. Op. No. KP-0195, at 1 (2018). With certain exceptions, it ensures that “a private transfer fee obligation created on or after [June 17, 2011] is not binding or enforceable against a subsequent owner or subsequent purchaser of an interest in real property and is void.” Tex. Prop. Code § 5.202(a). The statute, however, affords a measure of protection to preexisting private-transfer-fee obligations like the one that Connemara claims. See generally id. § 5.203(a), (c)–(d), (f ). For Connemara to maintain its right to the payments, beginning in 2012 and every three years thereafter, see id. § 5.203(d)(1), it must file a “Notice of Private Transfer Fee Obligation . . . in the real property records of [the] county in which the [encumbered] property is located,” see id. § 5.203(a). Among other things, the notice must (1) “be printed in at least 14-point boldface type” and (2) “state the legal description of the property subject to the private transfer fee obligation.” Id. § 5.203(c)(1), (8). To that end, Connemara filed notices in Collin County’s real-property records in 2012, 2015, 2018, and 2021. Longhorn Creek purchased acreage that Connemara maintains is subject to the private transfer fee. To escape its obligation, Longhorn

3 Creek seeks a declaration that the fee is void. Its primary allegation is that the notices Connemara filed in the real-property records did not strictly comply with § 5.203(c)—specifically, that they were not printed in at least 14-point boldface type and failed to state the legal description of the property subject to the obligation. Longhorn Creek’s amended petition—and this is key—attached as exhibits the notices that Connemara filed in 2012, 2015, 2018, and 2021. Connemara filed a Rule 91a motion to dismiss, arguing that this and Longhorn Creek’s other theories “ha[ve] no basis in law.” Tex. R. Civ. P. 91a.1. The trial court granted the motion, but the court of appeals reversed. 686 S.W.3d 418, 430 (Tex. App.—Dallas 2024). Significantly, the court of appeals reached this result while refusing to consider the actual notices, which Longhorn Creek itself had appended and which are available in the real-property records. The court instead “consider[ed] only Longhorn Creek’s [amended petition].” Id. at 428–29 (emphasis added). Connemara argues that this approach to Rule 91a was error. According to Connemara, Longhorn Creek’s pleading exhibits “establish that [Connemara] complied with the statutory notice requirements for private transfer fees,” thus disposing of Longhorn Creek’s lead theory for declaratory judgment. In other words, Connemara asserts, the court of appeals should have decided the Rule 91a motion based on Longhorn Creek’s amended petition “together with” the notices, see Tex. R. Civ. P. 91a.6, which “constitut[e], in whole or in part, the claim sued on,” id. R. 59 (emphasis added). Longhorn Creek also advanced two entirely distinct theories that, if meritorious, would (allegedly) defeat its obligation: (1) Connemara

4 waived the private-transfer-fee obligation by releasing third parties from it in exchange for an increased transfer fee upon the sale of certain property; and (2) the fee does not “touch and concern the land.” The court of appeals ruled for Longhorn Creek on both of those issues, too. 686 S.W.3d at 429–30.

II

If the Rule 91a issue were the only one presented by the petition, and if the issue had been fully aired in other courts of appeals,* this Court

* Connemara helpfully observes that courts of appeals have “consider[ed] pleading exhibits that are the subject of a declaratory judgment action” when ruling on a Rule 91a motion to dismiss. Pet. 8 (first citing Raider Ranch, LP v. Lugano, Ltd., 579 S.W.3d 131 (Tex. App.—Amarillo 2019, no pet.); then citing Parsley Mins., LLC v. Flat Creek Res., LLC, No. 03-21-00337-CV, 2023 WL 2052315 (Tex. App.—Austin Feb. 17, 2023, no pet.); and then citing Farr v. Barnes, No. 04-19-00895-CV, 2020 WL 6048770 (Tex. App.—San Antonio Oct. 14, 2020, no pet.)). Clearly, courts are enforcing Rule 91a.6 and excluding evidence from consideration when they deem it appropriate. E.g., City of Houston v. De La Cruz, No. 01-24-00797-CV, 2025 WL 3672311, at *5 (Tex. App.—Houston [1st Dist.] Dec. 18, 2025, no pet. h.); Brady v.

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Gardens of Connemara Ltd. and Emerson Farm Company, Ltd. v. Longhorn Creek Ltd., Counsel Stack Legal Research, https://law.counselstack.com/opinion/gardens-of-connemara-ltd-and-emerson-farm-company-ltd-v-longhorn-creek-tex-2026.