Lanny v. Dao v. Mission Bend Homeowners Association, Inc.

Texas Court of Appeals, 1st District (Houston)·Decided July 21, 2026·No. 01-24-00402-CV·Published

Opinion

Opinion issued July 21, 2026

In The

Court of Appeals

For The

First District of Texas

it lacked subject matter jurisdiction over Dao’s claims, (2) misinterpreting the “amount in controversy” requirement, (3) finding that Texas Property Code section 209.005(n) grants exclusive jurisdiction to justice courts, (4) finding that the district court was not the proper venue for Dao’s claims, (5) dismissing the case without considering the substantive right of homeowners to access homeowner association records under Texas Property Code section 209.005, and (6) ignoring Texas Government Code section 24.007 which provides separate and independent bases for district court jurisdiction.

We reverse and remand.

Background

Dao is a homeowner in Mission Bend, a residential deed-restricted community in Harris County, Texas. The Association enforces the deed restrictions related to properties within Mission Bend.

In November 2023, Dao, proceeding pro se, filed an original petition in district court seeking injunctive relief against the Association, alleging that it had refused to provide him with requested financial information in violation of Texas Property Code section 209.005. Dao sought the production of:

“(1) All relevant financial statements from all financial institutions handling association funds from August 2022 to the present, including bank statements and meeting minutes[;]

(2) Documentation for check 7293 ($21,437.50) on August 17, 2018, including purpose, board authorization, vendor invoices, and vendor tax form 1099-MISC[;]

(3) Documentation of payments to Ramos, Lopez, and Classic Sports, including vendor invoices, contracts, and board authorization[;]

(4) Relevant records clarifying the $50,000 withdrawal by Terry Blair on May 30, 2018[;]

(5) A copy of the individual life insurance policy for board member Terry G.

Blair and pertinent approval documents[;]

(6) Details of the fidelity bond insurance for the Treasurer’s position as mandated by the by-laws[; and]

(7) Documentation of payments to board member Lynne Alwine during the time frame of 2015 to 2022, including several large payments during the pandemic year (2020).”

The petition further alleged that Dao “reserves the right to amend these pleadings to allege other and further damages as may be determined once discovery is complete and before the case proceeds to trial.”

The Association filed a plea to the jurisdiction and motion to dismiss Dao’s claims. It asserted that the district court lacked jurisdiction over the claims because justice courts have exclusive jurisdiction over matters arising under Texas Property Code section 209.005(n) relating to the denial of access to a homeowner association’s books and records. The Association sought dismissal of Dao’s claims against it for lack of jurisdiction.

In his response to the Association’s plea, Dao asserted that the district court has original jurisdiction over civil matters in which, as here, the amount in controversy is more than $500. He asserted that although Texas Property Code section 209.005(n) does, in fact, provide an option for homeowners to file a petition with the justice court, the statute does not confer exclusive jurisdiction on justice courts as evidenced by the use of “may” in the statute, which is permissive rather than mandatory. Dao further asserted that he had paid more than $1,500 in annual assessments from 2015 to 2022 for the benefits and betterment of the community, and the Association had collected more than $2 million in annual assessments from more than 1,400 homeowners. Thus, Dao argued, the amount in controversy exceeded the $500 threshold requirement to file suit in district court, and the Association’s refusal to provide him with the requested records constituted an injury-in-fact to his legally protected interests.

In its reply to Dao’s response, the Association argued that Dao’s petition failed to substantiate an “amount in controversy” sufficient to confer jurisdiction upon the district court. It asserted that Dao’s petition exclusively sought the production of documents—association records, financial statements, and related documents—without alleging any monetary damages directly attributable to the Association’s actions. It asserted that the “amount in controversy” requirement pertains to the monetary value of the claim itself and must be based on direct,

personal loss due to the Association’s actions, not the aggregate of unrelated transactions or the total assessments collected over several years. The Association noted that the clear legislative intent behind Texas Property Code section 209.005(n) is that disputes concerning a property owner’s access to homeowner association records are to be resolved within the jurisdiction of the justice court. It argued that while it is true that the statute contains discretionary language by its use of “may,” this discretion does not concern the selection of the court by the aggrieved party, but rather the decision of whether to initiate the lawsuit in the first place.

Dao filed a sur-reply asserting that he sufficiently pleaded an amount in controversy because his petition identified financial transactions and expenditures by the Association totaling more than $500. He argued that the Association denied him access to records which he had a legally protected right to obtain, and that this denial constituted a direct, personal loss in itself, even if the precise monetary value of the loss was not yet quantified. Dao asserted that the deprivation of his legally protected right, combined with the possible financial implications of the information contained in the records, was sufficient to establish the requisite “amount in controversy” at this stage of the proceedings. He argued that the permissive language in section 209.005(n), which allows for suits in justice court, does not negate the district court’s general jurisdiction.

The trial court entered an order granting the Association’s plea to the jurisdiction and dismissing Dao’s claims for lack of jurisdiction on May 22, 2024. Upon Dao’s request, the trial court entered findings of fact and conclusions of law.1 This appeal followed.

Plea to the Jurisdiction

The existence of subject matter jurisdiction is a question of law that can be challenged by a plea to the jurisdiction. See Harris Cnty. v. Annab, 547 S.W.3d 609, 612 (Tex. 2018). A plea to the jurisdiction is the proper procedural device for challenging a suit brought in one court when another court has continuing and exclusive jurisdiction. Tex. Dep’t of Crim. Just. v. Bovee, 632 S.W.3d 244, 251 (Tex. App.—Houston [1st Dist.] 2021, no pet.). We review the trial court’s denial of such a plea de novo. Annab, 547 S.W.3d at 612. If the court does not have jurisdiction over the subject matter of the suit, it must dismiss the case without

1 A party is entitled to findings of fact and conclusions of law after a conventional trial on the merits to the court. IKB Indus. (Nigeria) Ltd. v. Pro–Line Corp., 938 S.W.2d 440, 442 (Tex. 1997). A “trial” is a hearing in which the court hears and receives evidence. U. Lawrence Boze’ & Assocs., P.C. v. Harris Cnty. Appraisal Dist., 368 S.W.3d 17, 33 (Tex. App.—Houston [1st Dist.] 2011, no pet.). If the trial court renders judgment as a matter of law, such as when a court grants dismissal for lack of jurisdiction, findings and conclusions are not improper, but they have no purpose and should not be requested or considered on appeal. See IKB Indus., 938 S.W.2d at 443; U. Lawrence Boze’, 368 S.W.3d at 33. When reviewing these decisions, we exercise our own judgment in determining each issue, and, therefore, we “cannot consider findings and conclusions even if they are included in the record.” U. Lawrence Boze’, 368 S.W.3d at 33.

prejudice. See Jansen v. Fitzpatrick, 14 S.W.3d 426, 431 (Tex. App.—Houston [14th Dist.] 2000, no pet.) (citing Bell v. State Dept. of Highways & Pub. Transp., 945 S.W.2d 292, 295 (Tex. App.—Houston [1st Dist.] 1997, writ denied)).

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