Leeco Gas & Oil Co. v. County of Nueces

716 S.W.2d 615, 1986 Tex. App. LEXIS 8452
CourtCourt of Appeals of Texas
DecidedAugust 29, 1986
DocketNo. 13-8-467-CV
StatusPublished
Cited by3 cases

This text of 716 S.W.2d 615 (Leeco Gas & Oil Co. v. County of Nueces) 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
Leeco Gas & Oil Co. v. County of Nueces, 716 S.W.2d 615, 1986 Tex. App. LEXIS 8452 (Tex. Ct. App. 1986).

Opinion

OPINION

BENAVIDES, Justice.

This is an eminent domain case. The Leeco Gas and Oil Company appeals Nuec-es County’s condemnation of Leeco’s rever-sionary interest in land Leeco had previously deeded to the County for use as a park. Leeco’s primary argument is that the County was estopped from taking Leeco’s rever-sionary interest. Alternatively, if the taking was justified, Leeco argues that it should have received much more than nominal damages for its interest.

Only a simplified version of the facts is necessary for the determination of this case. In 1960, Leeco “gift-deeded” 50 acres of land on Padre Island, Texas, to Nueces County “so long as” the County maintained the property as a public park. The deed provided that the consideration for the conveyance was the undertaking by the County to build and maintain a public park on the land. The deed further provided that the land would revert back to Leeco if the County did not abide by numerous specific conditions. The County developed [617]*617and maintained a park on the land, and has at all times abided by the deed restrictions. The park is known as the Packery Channel Park.

In 1983, Nueces County commenced condemnation proceedings against Leeco’s retained interest (possibility of reverter). The trial court granted summary judgment for the County and held that Leeco was entitled to only nominal damages as compensation for its interest. A subsequent bench trial was held to determine the amount of nominal damages to which Lee-co was entitled. The court thereafter awarded Leeco $10.00 in nominal damages.

Leeco’s nineteen points of error can be divided into two groups: those that challenge the authority of the County to take Leeco’s reversionary interest, and those that attack the trial court’s award of nominal damages.

By its twelfth, thirteenth, and eighteenth points of error, Leeco contends that the County was estopped from taking Leeco’s possibility of reverter interest and that the taking violates public policy considerations. Leeco argues that by accepting the gift of the 50 acres in 1960, the County was estopped from later exercising its eminent domain powers to take Leeco’s reversion-ary interest as established in the deed; if the County is allowed to acquire Leeco’s reversionary interest, it would no longer need to abide by the restrictions in the deed and would thus defeat the intentions of Leeco, the grantor, in making the gift.

We cannot agree with Leeco. Counties have the power to appropriate lands within their boundaries for public purposes. TEX.REV.CIV.STAT.ANN. art. 6081e (Vernon 1970). This includes the fee simple title to land and any lesser interest. See Houston North Shore Railway Co. v. Tyrrell, 128 Tex. 248, 98 S.W.2d 786, 793 (1936). When a unit of government is exercising its governmental powers, it is generally not subject to estoppel. City of Hutchins v. Prasifka, 450 S.W.2d 829, 835 (Tex.1970); Capitol Rod & Gun Club v. Lower Colorado River Authority, 622 S.W.2d 887, 896 (Tex.App.—Austin 1981, writ ref’d n.r.e.). Acquiring interests in land to establish and maintain public parks obviously involves a governmental function. See Schooler v. State, 175 S.W.2d 664 (Tex.Civ.App.—El Paso 1943, writ ref’d w.o.m.).

The Texas Supreme Court has rejected an argument similar to the estoppel argument advanced by Leeco. See Houston North Shore Railway Co. v. Tyrrell, 128 Tex. 248, 98 S.W.2d 786, 792-95 (1936). The Tyrrell Court permitted the railroad to condemn land upon which it already owned a conditional easement right. Moreover, the case upon which Leeco relies for support of its estoppel argument deals with a related but inapplicable rule of law. Livonia Township School District v. Wilson, 339 Mich. 454, 64 N.W.2d 563 (1954) involved facts similar to those in the case at bar. The court held that the school district was estopped from asserting that it had no statutory authority for taking land other than in unencumbered fee simple. The court rationalized that a party who accepts the benefits of a deed will not be permitted to later claim that another part of the deed is ineffective. Id., 64 N.W.2d at 565. Nueces County does not seek to avoid or challenge the legitimacy of the deed it acquired from Leeco, however, so Wilson is inapplicable.

Leeco cites no authority for its theory that a governmental body is estopped from asserting its condemnation powers to take its grantor’s reversionary interest, nor are we able, to find any. Relying on Tyrrell, we reject Leeco’s contention that Nueces County was estopped from condemning Leeco’s reversionary interest.

Nor do we find the County’s condemnation proceeding to be against the public policy of this State, as Leeco contends. Leeco argues that to allow a governmental body to take its grantor’s rever-sionary interest will serve to prevent further conditional gifts of property. While we understand and appreciate Leeco’s concern, we hold that under the facts of this case, public policy does not require the [618]*618County to forego its right to condemn a reversionary interest in property. This is not a case where a governmental unit has abused its condemnation authority. By deposition and affidavit, the Honorable Robert Barnes, Nueces County judge, advanced several reasons for the County’s decision to acquire the reversionary interest in the Packery Channel Park. These were also found in the affidavit of J.C. Barr, the Director of the Nueces County Board of Park Commissioners. Among these reasons were the desire to better utilize the park for the benefit of the public, which could not be done with the many restrictions in the deed, and the desire to obtain federal funds to help maintain and improve the park, which could not be obtained as long as the reversionary interest existed. These factors indicate strong public policy support for the condemnation. Additionally, we note that twenty-three years have passed from the time of the conveyance to the condemnation proceeding. This is not a case (nor is it alleged to be a case) where a governmental body has acted in bad faith by accepting gift land and immediately attempted to take its grantor’s remaining interest.

We overrule Leeco’s twelfth, thirteenth and eighteenth points of error.

Leeco’s fourth through sixth points of error complain that the County did not establish a public need for the taking. Lee-co first contends that since the County already had the use of the land for park purposes, it had no power to condemn Lee-co’s reversionary interest. Leeco cites Houston North Shore Railway Co. v. Tyr-rell, 128 Tex. 248, 98 S.W.2d 786 (1936). Tyrrell actually supports the County’s position, however. The court there sets out the general rule that “condemnation rests upon necessity, and there can be no necessity to acquire what one already owns.” Id., 98 S.W.2d at 794.

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Related

Arrington v. County of Dallas
792 S.W.2d 468 (Court of Appeals of Texas, 1990)
Leeco Gas & Oil Co. v. County of Nueces
736 S.W.2d 625 (Texas Supreme Court, 1987)
Leeco Gas & Oil Co. v. Nueces County
736 S.W.2d 629 (Texas Supreme Court, 1987)

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Bluebook (online)
716 S.W.2d 615, 1986 Tex. App. LEXIS 8452, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leeco-gas-oil-co-v-county-of-nueces-texapp-1986.