In Re Spiritas Ranch Enterprises, L.L.P.

218 S.W.3d 887, 2007 Tex. App. LEXIS 2305, 2007 WL 865824
Court of Appeals of Texas·Decided March 22, 2007·No. 2-06-463-CV·Published·Cited by 17 cases

Opinion

OPINION ON REHEARING

TERRIE LIVINGSTON, Justice.

Introduction

After reconsidering our prior opinion on the Town of Little Elm’s motion for rehearing, we deny the motion, but we withdraw our opinion and judgment of February 22, 2007 and substitute the following in their place.

This original proceeding concerns the Town of Little Elm’s proposed annexation of property owned by relator Spiritas Ranch Enterprises, L.L.P. The main issue is whether the trial court should have issued a temporary restraining order (TRO) prohibiting the Town from annexing or taking steps to annex Spiritas’s property until after Spiritas had been given the opportunity to arbitrate whether the property could be annexed without inclusion in the Town’s three-year annexation plan. For the reasons set forth below, having considered all of the filings from both parties, 1 we determine that Spiritas is entitled to mandamus relief.

Background Facts

In late September 2006, the Town began the process of annexing approximately 1,103 acres of nonresidential properties located within its extraterritorial jurisdiction 2 along State Highway 380 pursuant to *892 section 43.052(h)(1) of the local government code, which allows largely undeveloped property to be annexed without inclusion in the Town’s three-year annexation plan. 3 Tex. Loo. Gov’t Code ANN. § 43.052(h)(1) (Vernon Supp.2006). Spiri-tas owns multiple tracts 4 included within this proposed fast-track annexation. 5 In October 2006, in accordance with the statutorily-required annexation process applicable to fast-track annexations, the Town sent written notice to landowners of its intent to annex their properties. See id. § 43.062. Between November 1 and November 10, 2006, it posted public hearing notices in accordance with the statute. Id. § 43.063.

On November 6, 2006, Spiritas sent a letter to the Town asking that its property be included in the Town’s three-year annexation plan rather than being annexed according to the fast-track procedures. The Town Council held public hearings on the fast-track annexation ordinance on November 21, 2006, 6 but it did not vote on Spiritas’s request at that time because there was not enough time to place it on the agenda. At a subsequent meeting on December 5, 2006, the Town Council voted not to include Spiritas’s land in the three-year annexation plan and instead to proceed with the fast-track annexation of Spi-ritas’s property. Accordingly, on December 6, 2006, Spiritas requested that the Town arbitrate the issue under section 43.052(i) of the local government code. Id. § 43.052(i). In a December 7, 2006 letter to Spiritas, the Town’s attorney confirmed that the Council would consider whether to arbitrate at a meeting scheduled for December 19, 2006.

The agenda for the December 19 Council meeting was published on Friday, December 15, 2006. Item 11.e. was titled, “Discussion and consideration to adopt Ordinances No. 809 an Ordinance of the Town of Little Elm, Texas annexing territory described in Exhibit A attached hereto to the Town, and extending the boundary limits of the Town so as to include the said property within the corporation limits of the Town....” Item 12 read as follows:

The Town Council will hold a Closed (executive) session meeting pursuant to the provisions of Chapter 551, Texas Government Code, ... in accordance with the authority contained in:
Section 551.071 Consultation with Town Attorney to receive legal advice concerning Spiritas Ranch Enterprises L.L.P. request for arbitration petition regarding the Little Elm U.S. 380 annexation, and contemplated litigation.
Discussion and consideration to take any action necessary as the result of the Closed (executive) session:
Section 551.071 Consultation with Town Attorney to receive legal [advice] concerning Spirit[a]s Ranch Enterprises L.L.P. request for arbitration petition regarding the Little Elm *893 U.S. 380 annexation, and contemplated litigations.

The last page of the agenda contains a notation that “[plursuant to the Texas Open Meeting Act ..., one or more of the above items may be considered in executive closed session to the public. Any decision on any item will be taken or conducted in open session following the conclusion of the executive closed session.” Accordingly, the agenda appeared to allow the Council to vote on whether Spiritas’s property should be annexed before considering Spiritas’s request to arbitrate the matter.

On Monday, December 18, 2006, Spiritas filed suit against the Town, asking for a declaratory judgment and a temporary and permanent injunction. More specifically, Spiritas asked the trial court to enjoin the Town from taking any action to directly or indirectly annex the property according to the fast-track annexation procedures until arbitration is completed under sections 43.052(i), 43.0565, and 43.0564 of the local government code. Id. §§ 43.052(f), .0565, .0564. Spiritas also filed an application for a TRO, asking the trial court to issue a TRO restraining the Town from directly or indirectly taking any steps to annex the property before notice could be given and a hearing held on Spiritas’s temporary injunction request. That same day, the Town filed a response, the trial court held a hearing at which it heard argument from both parties, and the trial court denied the TRO application. Because the Town Council meeting was to occur at 7:00 p.m. the next day, Spiritas did not have enough time to schedule a hearing on its request for temporary injunctive relief. See Tex.R. Civ. P. 21 (requiring at least three days’ notice of hearing unless shortened by trial court); Tex. Dep’t of Parks & Wildlife v. Miranda, 133 S.W.3d 217, 229 (Tex.2004) (noting rule 21’s three-day notice period).

On December 19, 2006, Spiritas filed a petition for writ of mandamus, asking this court to compel the trial court to reverse its order denying the TRO and order the trial court to enter a TRO “maintaining the status quo” and “precluding [the Town] ... from taking any action to annex the [property until the trial court can determine the merits of Spiritas’s temporary injunction request.” Spiritas also requested that this court issue temporary emergency relief prohibiting the Town from taking any action to annex the property while Spiritas’s petition was pending. After reviewing Spiritas’s motion, petition, and a faxed response from the Town, we issued an order granting Spiritas’s motion for emergency temporary relief.

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In Re Spiritas Ranch Enterprises, L.L.P., 218 S.W.3d 887, 2007 Tex. App. LEXIS 2305, 2007 WL 865824 (Tex. Ct. App. 2007).

218 S.W.3d 887 (In Re Spiritas Ranch Enterprises, L.L.P.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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