JNC PARTNERS DENTON, LLC v. City of Denton

190 S.W.3d 790, 2006 Tex. App. LEXIS 2261, 2006 WL 741903
CourtCourt of Appeals of Texas
DecidedMarch 23, 2006
Docket2-05-439-CV
StatusPublished
Cited by6 cases

This text of 190 S.W.3d 790 (JNC PARTNERS DENTON, LLC v. City of Denton) 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.

Bluebook
JNC PARTNERS DENTON, LLC v. City of Denton, 190 S.W.3d 790, 2006 Tex. App. LEXIS 2261, 2006 WL 741903 (Tex. Ct. App. 2006).

Opinions

OPINION

ANNE GARDNER, Justice.

I. Introduction

Appellant JNC Partners Denton, LLC appeals from the trial court’s denial of its request for a temporary injunction enjoining Appellee City of Denton from annexing JNC’s property. .The underlying issue is whether JNC has shown a probable right to compel arbitration under section 43.052® of the local government code. See Tex. Loc. Gov’t Code Ann. § 43.052® (Vernon Supp.2005). We affirm the trial court’s order denying the temporary injunction.

II. Local Government Code Section 43.052

■ Because the resolution of this case depends on our interpretation of local government code section 43.052, we will first review the relevant portions of that section to put the facts and issues into context.

Section 43.052(c) requires a municipality to create and make known to the public a formal three-year annexation plan. Id. § 43.052(c). The plan gives three years’ advance notice of the municipality’s intention to annex to persons whose land is described in the plan. Id. An exception to this rule, section 43.052(h)(1), provides that a municipality is not required to include sparsely populated and predominately unimproved land in its three-year plan. Id. § 43.052(h)(1). Further, when proceeding pursuant to that exception, the municipality may annex the land as directed by sections 43.061-.065, which require substantially shorter notice than three years. Id. (providing that annexation outside a three-year plan is permitted if the area contains “fewer than 100 separate tracts of land on which one or more residential dwellings are located on each tract”); id. §§ 43.061-065 (section 43.063 requires advance notice of intention to annex of only thirty days and section 43.064 requires completion of annexation within ninety days) (Vernon Supp.2005). When a landowner is notified that a municipality intends to annex the landowner’s property using section 43.052(h)(1) annexation procedures and believes the procedure to be in violation of section 43.052(c), the landowner may petition the municipality under section 43.052® for inclusion of the land in a three-year annexation plan. Id. § 43.052®. If the municipality “fails to [792]*792take action on the petition,” the landowner may request arbitration. Id. The full text of section 43.052® provides as follows:

A municipality may not circumvent the requirements of this section by proposing to separately annex two or more areas described by Subsection (h)(1) if no reason exists under generally accepted municipal planning principles and practices for separately annexing the areas. If a municipality proposes to separately annex areas in violation of this section, a person residing or owning land in the area may petition the municipality to include the area in the municipality’s annexation plan. If the municipality fails to take action on the petition, the petitioner may request arbitration of the dispute. The petition must request the appointment of an arbitrator in writing to the municipality. Sections 43.0564(b), (c), and (e) apply to the appointment of an arbitrator and the conduct of an arbitration proceeding under this subsection. Except as provided by this subsection, the municipality shall pay the cost of arbitration. If the arbitrator finds that the petitioner’s request for arbitration was groundless or requested in bad faith or for the purposes of harassment, the arbitrator shall require the petitioner to pay the costs of arbitration.

Id.

III. Factual and Procedural History

With section 43.052 as a backdrop, we turn to the factual and procedural history of this case.

JNC owns a large area of land northeast of Denton’s city limits and just south of Lake Ray Roberts. JNC submitted to Denton a petition for consent to create a water control and improvement district involving JNC’s property. Two months later, Denton mailed notices to property owners announcing its intention to annex about 5,900 acres of. territory, including all of JNC’s property, under section 43.052(h).1 JNC’s petition to create a water control district was a triggering event for Denton’s proposed annexation.

JNC submitted a letter to Denton requesting that Denton include its property in Denton’s three-year annexation plan. Denton denied JNC’s request. Meanwhile, Denton proceeded with its proposed annexation by conducting two required public hearings.

JNC submitted a written arbitration request to Denton, and Denton rejected the request. JNC then sued Denton to compel arbitration. JNC sought a temporary restraining order and temporary and permanent injunctions to preserve the status quo pending arbitration. Denton filed a plea to the jurisdiction. The trial court heard Denton’s plea and orally denied it. The trial court then considered JNC’s request for a temporary injunction, which the parties submitted to the court on stipulated facts. The trial court denied JNC’s request.

JNC filed a notice of interlocutory appeal and an emergency motion for temporary stay. We granted a temporary stay and ordered Denton to refrain from taking further steps to annex JNC’s property pending resolution of this appeal. When Denton requested a reciprocal stay, we ordered JNC to refrain from taking steps to complete the formation of its water control district or to seek approval for plats to develop its property pending resolution of this appeal. When Denton later proposed to amend its municipal platting ordinances in a manner that JNC alleged would have a substantial effect on JNC’s rights, we ordered Denton to refrain from [793]*793amending the relevant ordinances pending resolution of this appeal.

IY. Discussion

The issue presented by this appeal is narrow: did the trial court abuse its discretion by denying JNC’s request for temporary injunctive relief? The trial court has not yet ruled on the merits of JNC’s request to compel arbitration; thus, that ultimate issue is not before the court.

Whether to grant or deny a temporary injunction is within the trial court’s sound discretion. Butnaru v. Ford Motor Co., 84 S.W.3d 198, 204 (Tex.2002). The purpose of a temporary injunction is to preserve the status quo of the litigation's subject matter pending a trial on the merits. Id. A temporary injunction is an extraordinary remedy and does not issue as a matter of right. Id.; Walling v. Metcalfe, 863 S.W.2d 56, 57 (Tex.1993). To obtain a temporary injunction, the applicant must plead and prove three specific elements: (1) a cause of action against the defendant; (2) a probable right to the relief sought; and (3) a probable, imminent, and irreparable injury in the interim. Butnaru, 84 S.W.3d at 204.

Our analysis will focus on the second element of the temporary injunction test; that is, whether JNC pleaded and proved a probable right to compel arbitration. To show a probable right of recovery, the applicant need not establish that it will finally prevail in the litigation, but it must, at the very least, present some evidence that, under the applicable rules of law, tends to support its cause of action. In re Tex. Nat. Res. Conserv. Comm’n,

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JNC PARTNERS DENTON, LLC v. City of Denton
190 S.W.3d 790 (Court of Appeals of Texas, 2006)

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190 S.W.3d 790, 2006 Tex. App. LEXIS 2261, 2006 WL 741903, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jnc-partners-denton-llc-v-city-of-denton-texapp-2006.