La Ventana Ranch Owners' Ass'n v. Davis

363 S.W.3d 632, 2011 WL 2162886, 2011 Tex. App. LEXIS 4240
Court of Appeals of Texas·Decided June 3, 2011·No. No. 03-09-00452-CV·Published·Cited by 1 cases

Opinion

OPINION

DIANE M. HENSON, Justice.

La Ventana Ranch Owners’ Association (“the ROA”) appeals from the trial court’s final judgment in this dispute arising from variances granted to certain homeowners within the La Ventana community, allowing for the installation of private water wells and propane tanks. The ROA contends that the trial court erred in declaring that certain water well variance documents were valid and enforceable. Homeowners William D. Davis, Hatton Revocable Trust, Jeffrey L. Burnett, John Czop, Judy Czop, Kenneth R. Hamburger, Maria L. Hamburger, Mark E. Lich, Steven Malone, Robert H. Hughes, Kay C. Hughes, Manley W. Crider, Anna M. Cri-der, Allen Butt, Cindy Butt, Sharon M. Davis, Michael R. Perdue, Phyllis M. Finnemore, Gregory Alec Gowins, Patrick C. Harkins, Sandra K. Harkins, and Jill R. Davis (collectively, “the Individual Homeowners”) cross-appeal, arguing that the trial court erred in determining that members of the community’s architectural committee violated a fiduciary duty to the members of the ROA by granting the variances. The Individual Homeowners further contend that the trial court erred in declaring the propane tank variance documents to be invalid. Interim La Ventana, LLC (“Interim-LV”) appeals from the portion of the trial court’s judgment awarding attorney’s fees. We affirm the trial court’s judgment in part, reverse and render in part, and remand for a redeter-mination of the appropriate amount of attorney’s fees to be awarded.

BACKGROUND

At all relevant times, the Individual Homeowners were property owners in the La Ventana residential community in Hays County, Texas.1 The La Ventana community is. governed by the Declaration of Covenants, Conditions and Restrictions for La Ventana (“the CCRs”).2 The CCRs establish the ROA as the homeowners’ association for La Ventana, vesting it with the power to administer and enforce the terms and provisions of the CCRs. At the time this suit was filed, the property developer for La Ventana was Driftwood Development, LP (“Driftwood”). Under the CCRs, Driftwood retained control and au[636] thority over the membership of the ROA’s board of directors.3

The CCRs establish an Architectural Committee for La Ventana (“the AC”), to consist of voting members and non-voting members serving in an advisory capacity. The AC has the power to approve improvement requests, as well as grant variances from compliance with any provision of the CCRs when the AC determines, “in its sole and absolute discretion,” that the requested variance will not impair or detract from the high quality development of La Ventana and “is justified due to unusual or aesthetic considerations, topographic or septic considerations, or unusual circumstances.” All such variances must be in writing and signed by a majority of the voting members of the AC. Driftwood maintained the right to appoint and remove all members of the AC.

Of relevance to this appeal, section 3.23 of the CCRs provides that no portion of any lot in La Ventana shall be used for the purpose of drilling for or removing water. Section 3.45 prohibits the placement or maintenance of propane tanks or other structures for the storage of combustible fuel on any lot absent written authorization from the AC.

In the spring and summer of 2006, the residents of La Ventana began to experience increasingly severe problems with their water service, including water shortages, inadequate water pressure, and unsafe drinking water. At that time, water service to La Ventana was provided by La Ventana Water Company, an entity composed of the same constituent members as Driftwood. In light of the water problems and what they perceived to be Driftwood’s monopoly control over water service to the community, a number of La Ventana residents sought variances that would allow them to install private water wells on their property. Many of these residents also sought variances allowing them to install buried propane tanks, citing what they believed to be exorbitant gas prices charged by La Ventana’s propane provider.

In November and December of 2006, the AC approved 24 water well variances and 23 propane tank variances for La Ventana property owners, filing the variance documents as public records in Hays County. The variances were approved based on the vote of two members of the AC, Sharon Davis and Manley Crider. The remaining members of the AC, Jeff Gonzales and Richard Kidd, were unaware of the variances prior to their execution and recording.4 Upon learning of the variances, the ROA board of directors threatened legal action against any homeowners who relied on the variances to install buried propane tanks or water wells on their property. A number of the variance recipients then filed suit against Driftwood and the ROA, seeking a declaratory judgment regarding the validity of the variances. The plaintiffs later amended their petition to add Interim-LV as a defendant on the ground that Interim-LV had foreclosed on Driftwood’s ownership interest in La Ventana.5

[637] The ROA then filed an amended answer, counterclaim, and third-party petition, joining the remaining recipients of the variances as third-party defendants and seeking a declaratory judgment that the variances were invalid, as well as in-junctive relief preventing the plaintiffs and third-party defendants from constructing, installing, or maintaining water wells or underground propane tanks on their property. Interim-LV also filed an answer, asserting that it could not be liable for acts or omissions of Driftwood by virtue of its purchase of Driftwood’s rights and interests in La Ventana through foreclosure.

The plaintiffs and the ROA filed cross-motions for partial summary judgment on the issue of whether the variances were valid, with the ROA asserting that the variances represented improper waivers rather than “variances” within the meaning of the OCRs. The trial court granted partial summary judgment in favor of the plaintiffs, concluding that the AC granted the variances in accordance with its own authority and the requirements of the OCRs. The ROA subsequently amended its counterclaim and third-party petition to assert for the first time that at all relevant times, the AC consisted “of four voting members: Plaintiff Sharon Davis, Plaintiff Manley Crider, Jeff Gonzales and Richard Kidd,” and therefore the variances were invalid because Davis and Crider did not represent a majority of the AC at the time they signed the variance documents. The ROA reurged its request for declaratory and injunctive relief, and added claims for fraud and breach of fiduciary duty, arguing that by granting the variances, Davis and Crider committed fraud and breached their fiduciary duties to the property owners who did not receive variances.

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La Ventana Ranch Owners' Ass'n v. Davis, 363 S.W.3d 632, 2011 WL 2162886, 2011 Tex. App. LEXIS 4240 (Tex. Ct. App. 2011).

363 S.W.3d 632 (La Ventana Ranch Owners' Ass'n v. Davis) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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