JLMH Investments, LLC v. Family Dollar Stores of Texas, LLC, ARCP FDCCC1403 LLC, 7B Building & Development, LLC, Triple C Development, Inc., Burkhardt Engineering Company, and M&S Utility Construction, LLC

Court of Appeals of Texas·Decided June 13, 2024·No. 02-23-00233-CV·Published

Opinion

In the

Court of Appeals

Second Appellate District of Texas at Fort Worth

No. 02-23-00233-CV

JLMH INVESTMENTS, LLC, Appellant V.

FAMILY DOLLAR STORES OF TEXAS, LLC, ARCP FDCCC1403 LLC, 7B BUILDING & DEVELOPMENT, LLC, TRIPLE C DEVELOPMENT, INC., BURKHARDT ENGINEERING COMPANY, AND M&S UTILITY CONSTRUCTION, LLC, Appellees

On Appeal from the 342nd District Court Tarrant County, Texas

Trial Court No. 342-316818-20

Before Kerr and Walker, JJ.; and Ruben Gonzalez, J. (Sitting by Assignment)

Memorandum Opinion by Justice Walker Justice Gonzalez concurs without opinion

MEMORANDUM OPINION

In this nuisance case, Appellees1 constructed a retail store adjacent to property owned by Appellant JLMH Investments, LLC (JLMH). JLMH sued when its property started flooding after every rainfall, allegedly due to an improper drainage design at the retail store. The trial court granted Appellees’ motions for summary judgment on limitations grounds, and JLMH raises three appellate issues challenging the propriety of that judgment. We will affirm in part and reverse and remand in part.

I. BACKGROUND

The material summary-judgment facts in this case are undisputed. Between 2014 and 2016, Appellees built a Family Dollar Store (the Store) adjacent to JLMH’s commercial property in Fort Worth, Texas. As the Store’s construction neared completion in 2016, one of JLMH’s owners, Mary Hyatt, noticed that JLMH’s property had started to flood heavily “[e]very time it rained,” which deposited trash and silt across the property. Around the same time, Mark Cummins—an employee who worked at a business occupying JLMH’s property—alerted Hyatt to cracks that had recently appeared in JLMH’s parking lot allegedly caused by standing water. The cracks in the parking lot and the flooding had not occurred prior to the Store’s construction.

Appellees are Family Dollar Stores of Texas, LLC, (Family Dollar); ARCP 1

FDCCC1403 LLC (ARCP); 7B Building & Development, LLC (7B Building); Triple C Development, Inc. (Triple C); Burkhardt Engineering Company (Burkhardt); and M&S Utility Construction, LLC (M&S).

For the next two years, Hyatt sought help—with little success—from the City of Fort Worth to ameliorate the problem. She contended that JLMH’s property was flooding due to issues brought on by the shoddy design of the Store’s drainage system. In March 2019, JLMH hired a plumber to inspect the property for water leaks. The plumber reported that there were no water leaks on the property but informed Hyatt that JLMH’s building was “sitting in the middle of a lake.” Then, in May 2019, JLMH hired an engineer to perform a foundation inspection at its property. The engineer reported that “the [Store’s] drainage system ha[d] caused the groundwater of [JLMH’s] property to increase significantly and caused a heave pattern and started to distress the [] property.”

The flooding persisted, so, on May 8, 2020, JLMH filed its original petition against Family Dollar and ARCP.2 Initially, JLMH sought only money damages for claims of nuisance, trespass, negligent and intentional diversion of water, and violations of Section 11.086 of the Texas Water Code. Appellees moved jointly for summary judgment, contending that “all of [JLMH’s] claims . . . [were] barred by the applicable statute of limitations.”

JLMH then filed its first amended petition on March 10, 2023, which added a request for permanent injunctive relief to abate the flooding issue. 7B Building

The remaining Appellees were later added as third-party defendants.

followed this with another motion for summary judgment.3 It asserted that it was entitled to summary judgment because “all of [JLMH’s] claims were barred by the applicable statute of limitations,” though it did not specifically address JLMH’s request for injunctive relief.

JLMH responded to both motions for summary judgment on April 10, 2023—

the same day that it filed its second amended petition.4 In its response, JLMH argued that its claims were timely because the applicable accrual date occurred at the earliest in March 2019 (when the plumber reported to Hyatt that JLMH’s building was “sitting in a lake”) or May 2019 (when the engineer attributed the flooding at the property to the Store’s poor drainage design). JLMH also argued that the continuing-tort doctrine applied and that the flooding was a temporary rather than permanent nuisance—both of which would defeat the limitations defense. At no point did JLMH plead the discovery rule.

On April 14, 2023, the trial court granted 7B Building’s motion.5 Then, on April 17, 2023, the trial court granted Appellees’ initial motion for summary judgment,

Three other Appellees joined 7B Building’s motion: Burkhardt, Triple C, and 3

Family Dollar.

4 The only apparent difference between the first and second amended petitions is that the second amended petition included factual allegations to identify how each Appellee related to the dispute.

5 The April 14 order dismissed only the claims brought against 7B Building.

which dismissed all claims against all Appellees.6 Finally, the trial court entered an “Order Clarifying Summary Judgment Orders and Order Allowing Permissive Interlocutory Appeal” (Clarifying Order) on May 8, 2023.7 On July 7, 2023, JLMH directly appealed the trial court’s “final and appealable”

summary-judgment orders. It did not file a permissive interlocutory appeal.

II. STANDARD OF REVIEW

We review a summary judgment de novo. Travelers Ins. v. Joachim, 315 S.W.3d 860, 862 (Tex. 2010). We consider the evidence presented in the light most favorable to the nonmovant, crediting evidence favorable to the nonmovant if reasonable jurors could, and disregarding evidence contrary to the nonmovant unless reasonable jurors could not. Mann Frankfort Stein & Lipp Advisors, Inc. v. Fielding, 289 S.W.3d 844, 848 (Tex. 2009). We indulge every reasonable inference and resolve any doubts in the nonmovant’s favor. 20801, Inc. v. Parker, 249 S.W.3d 392, 399 (Tex. 2008). A defendant is entitled to summary judgment on an affirmative defense if the defendant conclusively proves all elements of that defense. Frost Nat’l Bank v. Fernandez,

6 The April 17 order dismissed all causes of action “against all Defendants and Third-Party Defendants” and purported to be final, appealable, and disposing of all parties and claims.

7 The Clarifying Order noted that it had considered an oral motion made by JLMH to clarify the summary-judgment orders and to proceed with trial on injunctive relief. It granted JLMH’s requests for an interlocutory appeal and a stay pending that interlocutory appeal. It made no further orders and made no perceivable clarifications to its prior orders.

315 S.W.3d 494, 508–09 (Tex. 2010); see Tex. R. Civ. P. 166a(b), (c). To be entitled to summary judgment on a limitations defense, the defendant must conclusively prove when the cause of action accrued and negate the discovery rule if it is applicable and has been properly pleaded. KPMG Peat Marwick v. Harrison Cnty. Hous. Fin. Corp., 988 S.W.2d 746, 748 (Tex. 1999). If the defendant establishes that the action is barred by limitations, the plaintiff must then provide evidence that raises a fact issue on limitations to avoid summary judgment. Id.

III. DISCUSSION

JLMH contends that the trial court erred by granting summary judgment for three reasons: (1) Appellees did not address JLMH’s claim for a permanent injunction in their motions for summary judgment; (2) a limitations defense does not bar JLMH’s request for injunctive relief to abate a nuisance; and (3) JLMH timely filed its claims for nuisance, trespass, negligence, and violations of the Texas Water Code.

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JLMH Investments, LLC v. Family Dollar Stores of Texas, LLC, ARCP FDCCC1403 LLC, 7B Building & Development, LLC, Triple C Development, Inc., Burkhardt Engineering Company, and M&S Utility Construction, LLC, (Tex. Ct. App. 2024).

JLMH Investments, LLC v. Family Dollar Stores of Texas, LLC, ARCP FDCCC1403 LLC, 7B Building & Development, LLC, Triple C Development, Inc., Burkhardt Engineering Company, and M&S Utility Construction, LLC (JLMH Investments, LLC v. Family Dollar Stores of Texas, LLC, ARCP FDCCC1403 LLC, 7B Building & Development, LLC, Triple C Development, Inc., Burkhardt Engineering Company, and M&S Utility Construction, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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