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

CourtCourt of Appeals of Texas
DecidedJune 13, 2024
Docket02-23-00233-CV
StatusPublished

This text of 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) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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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).

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).

2 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. 2

3 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.

4 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.

5 315 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.,

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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, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jlmh-investments-llc-v-family-dollar-stores-of-texas-llc-arcp-fdccc1403-texapp-2024.