In re City of Dallas

445 S.W.3d 456, 2014 Tex. App. LEXIS 10946, 2014 WL 4900455
Court of Appeals of Texas·Decided October 1, 2014·No. No. 05-14-00922-CV·Published·Cited by 23 cases

Opinion

OPINION

Opinion by

Justice FITZGERALD.

Relator, City of Dallas, filed this petition for writ of mandamus requesting that the [458] Court order the trial court to vacate its order denying the City leave to file its fourth amended answer and counterclaim. Because we conclude that the City has not established its right to relief, we deny the petition.

Factual and Procedural Context

Real parties in interest, Buckley Oil and Rosebud Holding, L.L.C., own three contiguous lots near downtown Dallas where they operate a petrochemical business that stores flammable and combustible liquids in above-ground tanks. They have operated their business on this land since 1957. In 2011, the City’s building official revoked the certificate of occupancy for the facility for one of the lots, denied certificates of occupancy for the other two lots, and required the land owners to cease operating immediately. The land owners appealed the decision to the City’s board of adjustment, which upheld the building official’s decision.

In June 2012, the land owners filed suit against the City, the City’s acting building official, and the City’s assistant fire marshal. The land owners alleged in their petition that in reviewing and approving any building permits for the property, chapter 245 of the Texas Local Government Code required the city to apply only ordinances in effect at the time the land owners first submitted a permit request. They argued that because the City was attempting to enforce ordinances enacted after the first permit for the project on the property was issued in 1957, the ordinances the City was attempting to enforce could not be applied to the land owners’ business. They sought, among other things, to enjoin the enforcement of later enacted ordinances and sought a declaration that the City’s fire code, building codes and other ordinances adopted after-the initial permits for the project were granted could not be applied to the property. The City answered, asserting the affirmative defense that “Section 245.004 provides certain exemptions to the application of Chapter 245, including, but not limited to, uniform building and fire codes, municipal zoning regulations, and regulations to prevent the imminent destruction of property or injury to persons.” The land owners subsequently amended their pleadings to seek a writ of certiorari finding that the action of the board of adjustment was improper and not authorized by the law or facts.

The trial court signed an agreed amended level 2 scheduling order on April 22, 2013, setting the trial date for September 22, 2013. The agreed amended scheduling provided: “The parties may, by signed written agreement, alter the Pretrial deadlines.” Under this provision of the scheduling order, the parties agreed to amend the scheduling order to close discovery on August 9, 2013, to extend the deadline for amending pleadings to August 12, 2013, and to extend the deadline for filing dis-positive motions to August 12, 2013.

Pursuant to the agreed scheduling order, the parties conducted extensive deposition discovery during the spring and summer of 2013, including deposing fifteen fact and expert witnesses regarding compliance with the current fire code. The trial court noted and the mandamus record shows that during the course of discovery, the land owners were consistently careful to determine whether witnesses for the City — whether fact or expert witnesses— asserted violations of any prior version of the fire code or whether the experts had developed opinions regarding any prior versions of the fire code. In addition, the land owners sent interrogatories to the City to clarify which versions of the fire code the City contended applied to the case. The City answered, “The Dallas [459] Fire Code provisions that have been violated by [the land owners] were passed by Ordinance No. 26744, which adopted the 2006 Edition of the International Fire Code.” Throughout the course of discovery, with the exception of various incidental mentions in passing of prior versions of the fee code, the City and its witnesses professed to assert only violations of the current fee code, and the City’s expert witnesses stated that they had not developed opinions regarding compliance with prior versions of the fee code.

Following the completion of discovery, both the City and the landowners filed amended pleadings on August 12, 2013— which was the last day to file amended pleadings under the agreed scheduling order. In its third amended answer and counterclaim filed that day, the City increased the number of violations of the 2006 fee code it asserted from 38 violations to 128 violations, but the City did not at that point assert any violations of any prior version of the fee code. The land owners also filed a motion for partial summary judgment on that date, requesting that the trial court grant summary judgment on the City’s counterclaim in whole or in part, grant judgment as a matter of law on the land owners’ claim for declaratory judgment, and order that the City could not introduce evidence at trial or complain that the property did not comply with ordinances, regulations, or statutes enacted after 1957. In response to the land owners’ motion for summary judgment, the City argued that the property violated “several provisions” of the 1948 fire code, which was the version of the fire code in effect on the date the land owners first submitted a permit request. In support of its argument that the property violated several provisions of the 1948 fire code, the City cited two provisions of that code, but once again the City did not at that time seek leave to amend its counterclaim to assert any such violations.

Although the scheduling order had initially designated September 22, 2013 as the trial date for the entire case, the trial court determined that it would bifurcate the case, beginning the trial of the case on September 23, 2013 with a determination of the issues involved in the portion of the land owners’ petition seeking a writ of certiorari compelling the building official to grant or reinstate the relevant certificates of occupancy. The trial court’s proceedings in connection with the writ of certiorari lasted four days. The corporate representative and an expert witness for the land owners testified that the land owners had appropriate permits issued by the City for the tanks installed on the property at the time the tanks were installed. At various points during the four days the trial court devoted to this initial portion of the trial, the trial judge made clear that she was still considering which fee code applied to the property, requested that the parties provide her with information regarding the text of the fee codes at various points in the past, and suggested that the City might wish to consider adding allegations or causes of actions to its pleadings regarding violations of prior versions of the fee code. The City continued to assert that only the current version of the fire code applied, did not at that time attempt to amend its pleadings or seek a trial amendment to assert violations of the 1948 fee code, and adduced no testimony regarding whether or not the facility complied with the 1948 fire code.

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In re City of Dallas, 445 S.W.3d 456, 2014 Tex. App. LEXIS 10946, 2014 WL 4900455 (Tex. Ct. App. 2014).

445 S.W.3d 456 (In re City of Dallas) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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