George M. Bishop v. Chappell Hill Service Company, LLC and High Meadows Land & Cattle, LLC

Court of Appeals of Texas·Decided July 30, 2015·No. 01-14-00360-CV·Published

Opinion

Opinion issued July 30, 2015

In The

Court of Appeals

For The

First District of Texas

Paula Barnett, Marsha W. Zummo, Juan Carlos Lopez de Garcia, Sara English, Antonio Lopez de Garcia, Peter Eischen, Mark Cegielski, Marilyn Sanders, Tom Holy, Robert Stark, D.O., Beth Stark, Maureen Holy, Jack Edwards, and Julie Edwards (collectively, “the Property Owners”), all own property in or around Chappell Hill in Washington County, Texas and sued appellees, Chappell Hill Service Co., LLC and High Meadows Land & Cattle, LLC (collectively, “CHSC”), for nuisance and other causes of action arising out of CHSC’s proposed development of land in Chappell Hill. The trial court granted a plea to the jurisdiction filed by CHSC and dismissed the Property Owners’ claims. In their sole issue on appeal, the Property Owners argue that the trial court erred in granting the plea and dismissing their claims without holding a hearing or allowing them an opportunity to amend their pleadings.

We affirm.

Background

On February 6, 2012, CHSC filed an application for a new Texas Pollutant Discharge Elimination System permit (“TPDES permit”) with the Texas Commission on Environmental Quality (“TCEQ”), so that it could construct a wastewater treatment facility in Chappell Hill, Texas. Notices related to the application and granting of the TPDES permit were published in the Brenham Banner-Press in 2012, and certain interested parties, including some of the

Property Owners, challenged CHSC’s permit application following the procedures set out by the TCEQ.

On December 3, 2013, the Property Owners filed suit in the trial court, raising multiple complaints about CHSC’s construction of the wastewater treatment facility and the TPDES permit. They sought a “declaratory judgment of their rights under the Texas Water Code, the Federal Clean Water Act, [and] section 37.004 et seq[.] of the Texas Civil Practices and Remedies Code.” Several of the Property Owners alleged that they had not received proper notice for the permit application. The Property Owners also asserted that the discharge of wastewater would affect their property values and quality of life and would constitute a nuisance.

The Property Owners also complained about CHSC’s plans to develop approximately 102 acres near Chappell Hill owned by appellee High Meadows Land and Cattle, LLC. The Property Owners argued that the “the noise, congestion, pollution and increased crime caused by the construction, development and inconvenience of 663 single family homes, 80 apartments, 1 hotel with 60 rooms, 244,200 square feet of commercial space, 4 restaurants and 2 medical offices” are potential nuisances caused by CHSC’s proposed development. Thus, they also alleged “that the development proposed by the Defendants in their application for a permit would constitute a nuisance to those people already living

in Chappell Hill,” particularly as there was “the potential to place a [Municipal Utility District, or “M.U.D.”] in Chappell Hill.” The Property Owners also supplemented their petition twice, asserting that the proposed development would affect the area’s water resources, cause light pollution and other nuisances, and damage Chappell Hill’s designation as a National Historic District. Finally, two of the Property Owners included a suit for declaratory judgment of their rights under Texas Natural Resource Code section 21.001(3).

The Property Owners filed, attached to their petition, a copy of the “Justification for Plant Construction” that CHSC had filed with the TCEQ as part of its TPDES permit application. This document explained the purpose and capacity of the proposed wastewater treatment facility. In relevant part, it stated:

CHSC Plant No. 1 will have 663 single family connections, 80 apartment connections, four (4) restaurant connections with a total of 41,563 square feet, one (1) hotel with 60 rooms, 84,061 square feet of commercial connections, 244,200 square feet of retail connections, 49,000 square feet of office connections, and two (2) medical office connections as wastewater connections at buildout.

The Property Owners also provided several maps and surveys of the wind direction in the area affected by the proposed wastewater facility.

On December 6, 2013, the TCEQ granted CHSC’s TPDES permit to build the wastewater facility.

On December 17, 2013, CHSC filed its “Motion to Transfer Venue, Plea to the Jurisdiction, and Original Answer.” It asserted in its motion to transfer venue

that the Property Owners’ complaints regarding water quality, environmental impacts, and notice and hearing requirements arising from the TPDES permit fell within the exclusive jurisdiction of the TCEQ, and any judicial review of TCEQ decisions must be brought in Travis County. See TEX. WATER CODE ANN. § 5.351 (Vernon 2008). CHSC also filed special exceptions to various portions of the Property Owners’ petition, arguing in relevant part that the Property Owners’ nuisance claims were not ripe. Finally, in its plea to the jurisdiction, CHSC asserted that the TCEQ has exclusive jurisdiction over the Property Owners’ claims “arising out of the anticipated discharge of treated wastewater effluent into waters of the State.” CHSC argued that because the Property Owners had not first sought redress in accordance with Texas Water Code section 5.351, they had failed to exhaust their administrative remedies, thereby depriving the trial court of jurisdiction. CHSC attached a copy of the TPDES permit granted by the TCEQ.

The trial court notified the parties that it had set a hearing on the plea to the jurisdiction for January 29, 2014. However, none of the Property Owners appeared at the hearing. The trial court’s docket sheet reflected that the court decided to “rule [on the plea to the jurisdiction] by submission.” Accordingly, on February 5, 2014, the trial court requested that the parties submit briefs on the plea to the jurisdiction by noon on February 18, 2014.

CHSC filed a brief on its plea to the jurisdiction on February 18, 2014. In the brief, CHSC argued that the trial court lacked jurisdiction over all of the Property Owners’ claims because the TCEQ and the district courts of Travis County have exclusive jurisdiction over claims related to the TPDES permit, and none of the remaining claims were ripe “under the well-established ripeness doctrine for tort, property, and takings claims.” It also asserted that no construction had been commenced that was even tangentially related to the TPDES permit and no other construction or development of the proposed building had begun.

The trial court granted the plea to the jurisdiction on February 18, 2014. On February 19, 2014, the Property Owners filed their brief in response to CHSC’s plea. They construed their case as “seeking relief for property damage, annoyance, nuisance, declaratory judgment, equitable relief and a declaration of the rights of two Plaintiffs under the Natural Resources Code” and asserted that they were not asking the trial court to overturn the TPDES permit. The Property Owners also complained about CHSC’s plea seeking to dismiss their claims without presenting evidence and without allowing them to present any evidence. They specifically requested a hearing at which they could present evidence. The Property Owners attached the response of the TCEQ’s executive director to a motion to overturn the granting of CHSC’s TPDES permit. In this response, the executive director

recommended that the TCEQ deny the motion to overturn. The Property Owners did not provide any other evidence with their response to the plea to the jurisdiction.

The Property Owners moved for rehearing on March 11, 2014, generally reasserting the grounds set out in their response. The trial court convened a hearing on April 8, 2014, and again concluded that it did not have jurisdiction. This appeal followed.

Standard of Review

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George M. Bishop v. Chappell Hill Service Company, LLC and High Meadows Land & Cattle, LLC, (Tex. Ct. App. 2015).

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