G.C. Ellis, Mary Ellis, David A. Sampson, Karen Ann Sampson, Christopher Bancroft, Belle Fourche Resources LLC, and Compadre Cattle Company LLC v. Wildcat Creek Wind Farm LLC, Cooke County, Texas, Cooke County Commissioners Court, and John Klement

Court of Appeals of Texas·Decided March 25, 2021·No. 02-20-00050-CV·Published

Opinion

In the Court of Appeals Second Appellate District of Texas at Fort Worth ___________________________ No. 02-20-00050-CV ___________________________

G.C. ELLIS, MARY ELLIS, DAVID A. SAMPSON, KAREN ANN SAMPSON, CHRISTOPHER BANCROFT, BELLE FOURCHE RESOURCES LLC, AND COMPADRE CATTLE COMPANY LLC, Appellants

V.

WILDCAT CREEK WIND FARM LLC, Appellee

AND

G.C. ELLIS, MARY ELLIS, DAVID A. SAMPSON, KAREN ANN SAMPSON, CHRISTOPHER BANCROFT, BELLE FOURCHE RESOURCES LLC, AND COMPADRE CATTLE COMPANY LLC, Appellants and Appellees

V.

COOKE COUNTY, TEXAS, COOKE COUNTY COMMISSIONERS COURT, AND JOHN KLEMENT, Appellees and Appellants On Appeal from the 235th District Court Cooke County, Texas Trial Court No. CV19-00455

Before Kerr, Birdwell, and Bassel, JJ. Memorandum Opinion by Justice Birdwell

2 MEMORANDUM OPINION

Appellants are a group of property owners in Cooke County (the Property

Owners). They brought suit to challenge a resolution that created a reinvestment

zone—a preliminary step in creating tax incentives for Appellee Wildcat Creek Wind

Farm LLC to build a wind power plant or “wind farm” in Cooke County. To that

end, the Property Owners sued Wildcat and the other Appellees, who are a group of

government defendants from Cooke County. The trial court granted Appellees’

dispositive motions and denied or dismissed all of the Property Owners’ claims.

The Property Owners allege that they have suffered damage to their property

values due to the anticipated construction of a wind farm. But at root, that harm

appears to have little to do with Appellees’ challenged actions (a prelude to the

creation of tax incentives) and more to do with contingent future events that may

never come to pass (the eventual construction of a wind farm). We therefore

conclude that the Property Owners have not carried their initial burden to

demonstrate ripeness and standing. We vacate the trial court’s judgment and dismiss

the case for want of jurisdiction.

I.

In 2019, Wildcat’s parent company EDP Renewables approached the Cooke

County Commissioners Court (CCCC) about EDP’s plan to build a wind farm in

Cooke County. EDP proposed to enter a tax abatement agreement with CCCC to

help support the project, whereby CCCC would agree to abate a portion of the

3 property taxes on the wind farm for the next ten years. The first step in securing an

abatement agreement would be designating the project area as a reinvestment zone

pursuant to Texas Tax Code Chapter 312.

CCCC was amenable to the plan, and it kicked off the designation process by

arranging the public hearing that the statute requires. See Tex. Tax Code Ann.

§ 312.201(d). At the hearing, CCCC’s commissioners heard public comment on the

creation of the reinvestment zone, and a project manager for EDP spoke to the court

about the nature of the Wildcat project. County Judge Jason Brinkley clarified that

the only thing that was up for debate was the creation of the reinvestment zone;

discussion of any specific tax abatements would occur later.

During debate, CCCC Commissioner John Klement fielded a question about

whether he had a possible conflict of interest because some of his family members

owned land within the reinvestment zone. Commissioner Klement explained that

because the reinvestment zone did not come with any money benefit, he could legally

vote on the measure. However, he explained that when it came time for CCCC to

pass on any abatement agreement, “I will not have a vote” in light of the potential

conflict. CCCC, including Commissioner Klement, then unanimously passed a

resolution (five votes to none) to create the reinvestment zone.

To challenge the creation of the reinvestment zone, the Property Owners filed

this suit against Wildcat and a group of governmental defendants including

Commissioner Klement, CCCC, and Cooke County itself (the County Defendants).

4 The centerpieces of the Property Owners’ challenge were (1) Commissioner

Klement’s alleged breach of rules concerning conflicts of interest and (2) CCCC’s

alleged failure to include certain statutory findings in the resolution (or, to the extent

that CCCC made the required findings, that those findings were unsupported). The

Property Owners pleaded various claims:

• As to the County Defendants,

o A mandamus claim to compel CCCC to set the resolution aside;

o Temporary and permanent injunctions barring CCCC from giving

effect to the resolution, from considering Wildcat’s application for an

abatement agreement, from allowing Commissioner Klement to

participate in any Wildcat-related proceedings, et cetera;

o Declaratory relief to the effect that Commissioner Klement violated

disclosure rules concerning conflicts of interest and that the

resolution was void as a result; and

o Inverse condemnation in that CCCC had regulatorily taken the

Property Owners’ property by passing the resolution.

• As to Wildcat,

o That Wildcat was unjustly enriched by an illegal tax abatement

agreement; and

5 o A claim for regulatory estoppel, i.e., that Wildcat’s projections

concerning the economic benefits of the wind plant should be held

binding on the company. 1

The County Defendants filed a plea to the jurisdiction arguing that the

Property Owners lacked standing and that their claims were unripe, along with a Rule

91a motion. Wildcat filed several types of attacks on the Property Owners’ claims

including, as pertinent to this appeal, a plea to the jurisdiction arguing lack of

standing.

The trial court rendered a final judgment that largely ruled in Appellees’ favor.

As relevant here, the trial court denied the pleas to the jurisdiction as to the

mandamus and inverse condemnation claims but granted the pleas as to the unjust

enrichment and regulatory estoppel claims. The trial court also denied the injunctive

relief claim on its merits, dismissed the inverse condemnation claim without prejudice,

granted a declaration that Commissioner Klement had violated conflict disclosure

rules, and denied declaratory relief in all other respects.

1 Early in their petition, the Property Owners let it be known that they would be pleading causes of action against Wildcat for “Misrepresentation,” “Unclean hands,” and “Violation of law,” as well as claims against Commissioner Klement for violation of their constitutional rights and the law in general. However, the Property Owners did not subsequently flesh out these labels with any actual pleading concerning what these claims might have entailed, and the trial court ignored all of these would-be claims in its final order except to say that the misrepresentation claim was dismissed with prejudice. Regardless, the Property Owners have not mentioned these other claims on appeal, and the existence of these claims, vel non, does not affect our analysis.

6 II.

The Property Owners appealed the denial and dismissal of their claims. The

Property Owners generally focus on the merits of whether conflict rules were violated

and their prayer to set the resolution aside.

The County Defendants cross-appealed, arguing that the trial court lacked

jurisdiction. Their first issue revolves around the justiciability concerns of standing

and ripeness.

We agree with the County Defendants that a lack of standing and ripeness

requires us to dismiss the case.

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G.C. Ellis, Mary Ellis, David A. Sampson, Karen Ann Sampson, Christopher Bancroft, Belle Fourche Resources LLC, and Compadre Cattle Company LLC v. Wildcat Creek Wind Farm LLC, Cooke County, Texas, Cooke County Commissioners Court, and John Klement, (Tex. Ct. App. 2021).

G.C. Ellis, Mary Ellis, David A. Sampson, Karen Ann Sampson, Christopher Bancroft, Belle Fourche Resources LLC, and Compadre Cattle Company LLC v. Wildcat Creek Wind Farm LLC, Cooke County, Texas, Cooke County Commissioners Court, and John Klement (G.C. Ellis, Mary Ellis, David A. Sampson, Karen Ann Sampson, Christopher Bancroft, Belle Fourche Resources LLC, and Compadre Cattle Company LLC v. Wildcat Creek Wind Farm LLC, Cooke County, Texas, Cooke County Commissioners Court, and John Klement) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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