Hhb, LLC v. D & F, LLC

843 So. 2d 116
Procedural entryThis page is a short order in Hhb, LLC v. D & F, LLC. Read the opinion of the Court — 2002 Ala. LEXIS 157
Supreme Court of Alabama·Decided May 24, 2002·No. 1001925 and 1002011·Published

Opinion

843 So.2d 116 (2002)

H.H.B., L.L.C.
v.
D & F, L.L.C.
D & F, L.L.C.
v.
H.H.B., L.L.C.

1001925 and 1002011.

Supreme Court of Alabama.

May 24, 2002.
Rehearing Applications Denied August 30, 2002.

J. Patrick Courtney III, Mobile; and Gordon G. Armstrong III, Mobile, for H.H.B., L.L.C.

William M. Lyon, Jr., of McFadden, Lyon & Rouse, L.L.C., Mobile; and Allan R. Chason of Chason & Chason, Bay Minette, for D & F, L.L.C.

*117 PER CURIAM.

H.H.B., L.L.C., appeals from the trial court's judgment reversing a zoning decision made by the Mobile City Council. D & F, L.L.C., cross-appeals from the trial court's ruling allowing H.H.B. to intervene in the case. We affirm the trial court's ruling as to H.H.B.'s intervention, but we reverse its judgment as to the zoning decision.

Factual Background and Procedural History

H.H.B., L.L.C., is a limited liability company, whose owners are accountants. D & F, L.L.C., is a limited liability company, whose owners are the principals of The Mitchell Company, a real-estate company, and other real-estate companies in Mobile. D & F owns a 1.7-acre corner parcel of property located at the intersection of Dauphin Street, North Florida Street, and Woodruff Street in Mobile ("the subject property"). The building in which H.H.B. is located is across North Florida Street from the subject property. All of the property in the immediate neighborhood is zoned, as defined in the zoning ordinance of the City of Mobile, R-1 (One-Family Residential Districts) or B-1 (Buffer Business Districts). D & F intends to build a 10,000-square-foot CVS retail discount store with 60 parking places on the subject property. In order to do so, however, D & F must have the zoning designation of the subject property changed to B-2 (Neighborhood Business Districts).

Woodruff Street is exclusively residential. Dauphin Street and North Florida Street are a mixture of residential areas and buffer-business areas. Buffer businesses are by definition those businesses in which permitted uses are uses of a semicommercial nature, such as professional offices and studios. The subject property previously consisted of eight lots, almost all of which have been zoned for the past 50 years as either R-1 or B-1. During the 1960s, a drugstore occupied the corner site for several years. Before D & F acquired the property, three residences and a building used as a real-estate office were situated on it. The subject property has since been cleared and all buildings removed.

In order to obtain a zoning change, an applicant must first obtain the approval of the Mobile City Planning Commission, followed by the approval of the Mobile City Council. D & F began its efforts to obtain B-2 zoning in 1999. It withdrew its first two applications after they were submitted to the planning commission, but before the city council considered the matter. D & F submitted its third application to the planning commission in August 2000. Between the filing of the second and third applications, D & F voluntarily incorporated numerous changes to its plans and restrictions on otherwise acceptable B-2 uses in an effort to accommodate the concerns of residents of the neighborhood. Those changes and restrictions included eliminating any use that could be made of the property under B-2 zoning except for a drugstore, designing a building that would be architecturally compatible with the neighborhood's surrounding buildings, not allowing the sale of beer and wine, not providing outside telephones, restricting dumpster pickups to daylight hours, and constructing a brick wall behind the store. Despite D & F's efforts, however, the planning commission's staff recommended to the commission, as it had with the first two applications, that it deny the third application. In spite of its staff's recommendation, the planning commission, in September 2000, voted 6-2 to recommend to the city council that it approve D & F's application to change the subject property's zoning designation to B-2. The planning commission's recommendation was *118 subject to the conditions and restrictions D & F had voluntarily attached to its application. The proposed amendment to the zoning ordinance to effectuate the zoning change for the subject property was presented to the city council in October 2000. Although the council members voted 4-3 to approve the amendment to the zoning ordinance, § 11-44C-28, Ala.Code 1975, requires a "supermajority" of the city council before an ordinance can be adopted, which meant that five votes were required in order for the amendment to the zoning ordinance to become effective;[1] the amendment was therefore denied. In December 2000, D & F appealed the denial of the zoning-ordinance amendment to the Mobile Circuit Court. D & F alleged that the city council's denial of its requested zoning change was "arbitrary and capricious," that it bore "no substantial relationship to the health, safety, morals, or general welfare of the City of Mobile," and that the decision not to rezone the subject property was "not fairly debatable" because D & F was not seeking to change the basic use of the property.

On June 6, 2001, the day before the case was set for trial, H.H.B. filed a motion to intervene as a party in the case pursuant to Rule 24, Ala. R. Civ. P. H.H.B. explained that it had not sought to intervene earlier because it did not know it had a right to do so and it did not know that a trial date had been set. D & F objected to the intervention. After a hearing, the trial court concluded that H.H.B., as a neighboring landowner, "had an absolute right to intervene under Rule 24." H.H.B. participated in the nonjury trial along with D & F and the City of Mobile.

At the conclusion of the bench trial, the trial court requested briefs from the parties. The court then entered a written order in which it concluded that the City's decision not to amend the zoning ordinance to change the zoning of the subject property to B-2 was arbitrary and capricious as applied to D & F, that keeping the subject property zoned R-1 and B-1 bore no substantial relationship to the health, safety, morals, or general welfare of the City, and that the City's decision not to rezone was not fairly debatable because D & F was not seeking to change the basic use of the property. Only H.H.B. appealed. The City is not a party to these appellate proceedings.

Intervention

We first address D & F's argument in its cross-appeal that the trial court erred when it allowed H.H.B. to intervene in this case. D & F contends that H.H.B. lacked standing to intervene, that its intervention therefore was not proper, and that it lacks standing to appeal.

D & F argues that H.H.B. lacked standing to intervene because, it says, there was no justiciable controversy at the time it entered into the case, and it now lacks standing to appeal because, D & F says, any previously arguable justiciable claim has been eliminated. D & F relies upon testimony by one of H.H.B.'s corporate representatives, Randy Jones, that the accounting firm did not oppose the subject property's being used as a drugstore, but opposed only the change in zoning to B-2, which would have permitted the property to be used in other ways. Jones stated:

"Q. Now, I take it that you object to this project.
*119 "A. We object not necessarily to the project, but to B-2 zoning.
"Q. So you don't object to the drugstore?
"A.

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Hhb, LLC v. D & F, LLC, 843 So. 2d 116 (Ala. 2002).

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