Meehl v. Wise

285 S.W.3d 561
Court of Appeals of Texas·Decided July 1, 2009·Published·Cited by 1 cases

Opinion

MAJORITY OPINION

ADELE HEDGES, Chief Justice.

In this case, we are asked to determine whether the trial court erred in enforcing

[566]*566tends to do an act that would breach the restrictive covenant.” Id. We review a trial court’s interpretation of the law de novo. In re Dep't of Family & Protective Servs., 273 S.W.3d 637, 642 (Tex.2009). A trial court has no discretion in determining what the law is or properly applying the law. Id. If the trial court fails to properly interpret the law or applies the law incorrectly, it abuses its discretion. Id. at 642-43.

IV. Analysis

A. The Property Code and Community Homes Act

We begin our analysis with chapter 202 of the Texas Property Code. Section 202.002, which pertains to enforcement of restrictive covenants, provides as follows:

(a) This chapter applies to all restrictive covenants regardless of the date on which they were created.
(b) This chapter does not affect the requirements of the Community Homes for Disabled Persons Location Act (Article 101 In, Vernon’s Texas Civil Statutes).

Tex. Prop. Code Ann. § 202.002 (Vernon 2007).

Section 202.003(b) further provides:

In this subsection, “family home” is a residential home that meets the definition of and requirements applicable to a family home under the Community Homes for Disabled Persons Location Act (Article lOlln, Vernon’s Texas Civil Statutes). A dedieaiory instrument or restrictive covenant may not be construed, to prevent the use of property as a. family home. However, any restrictive covenant that applies to property used as a family home shall be liberally construed to give effect to its purposes and intent except to the extent that the construction would restrict the use as a family home.

Id. § 202.003 (footnote omitted) (emphasis added).

We must compare these provisions with the Community Homes Act, which provides in relevant part:

(a) The use and operation of a community home that meets the qualifications imposed under this chapter is a use by right that is authorized in any district zoned as residential.
(b) A restriction, reservation, exception, or other provision in an instrument created or amended on or after September 1, 1985, that relates to the transfer, sale, lease, or use of property may not prohibit the use of the property as a community home.

Tex. Hum. Res. Code Ann. § 123.003 (Vernon 2001).

B. Reconciliation of the Statutes

We now determine which statute controls the enforcement of the instant restrictive covenant: the Property Code provision providing for universal coverage or the Human Resources Code provision that controls only those covenants created or amended on or after September 1,1985. See Tex. Prop. Code Ann. §§ 202.001-.002; Tex. Hum. Res. Code Ann. § 123.003. Chapter 202 of the Texas Property Code generally controls the enforcement of restrictive covenants. See Tex. Prop. Code Ann. § 202.002(a). However, chapter 202 yields to the Community Homes Act. See id. § 202.002(b) (“This chapter does not affect the requirements of the Community Homes for Disabled Persons Location Act....”).

The Community Homes Act limits the enforceability of public and private regulations preventing the use of property as a community home. See Tex. Hum. Res. Code Ann. § 123.003. Section 123.003(a) [567]*567applies to city zoning regulations while section 123.003(b) applies to private regulations such as restrictive covenants. See id. § 123.003(a), (b). More specifically, section 123.003(a) allows property “zoned as residential” to be used as a community home. This right to use residentially-zoned property as a community home is a limitation on city zoning regulations and enforcement thereof. Because section 123.003(a) applies only to zoning regulations restricting the use of property as a community home and the Neighbors seek to enforce a private restrictive covenant, section 123.003(a) is not applicable to this case.

By contrast, section 123.003(b) limits the enforceability of private covenants. Looking forward at the time of its effective date, section 123.003(b) provides that as of September 1, 1985, private covenants restricting the use of property as a community home are not enforceable. The instant restrictive covenant, adopted in 1965, would appear to avoid the restrictions of section 123.003(b) absent contrary controlling authority such as section 202.003(b) of the Texas Property Code. We must therefore reconcile the conflicting language of these two statutes.

Section 202.003(b) of the Property Code provides that “[a] dedicatory instrument or restrictive covenant may not be construed to prevent the use of property as a family home.”1 Tex. Prop. Code Ann. § 202.003(b). The tension between section 202.003(b) of the Texas Property Code and section 123.003(b) of the Human Resources Code is readily apparent with respect to enforceability of a restrictive covenant depending on the date in which the covenant was created. The Human Resources Code bars enforcement of a covenant restricting the use of property as a community home created after September 1, 1985, while the Property Code bars enforcement of the same covenant regardless of the date in which the instrument was created. Because section 202.003(b) is the later statute, enacted in 1987, its general prohibition controls the less restrictive section of 123.003(b) passed in 1985. We conclude that the universal applicability of the Property Code’s section 202.003(b) controls if the use of property comports with definition of a community home articulated in the Human Resources Code. Applying section 202.003(b), we further conclude that the disputed restrictive covenant is enforceable to the extent that the Meehls

[570]*570its issuance of a permanent injunction constitutes an abuse of discretion. Contrary to the trial court’s analysis, the deed restriction must yield to the Foundation’s right to operate a community home in accordance with the Community Homes Act. We therefore sustain appellants’ second, third, fourth, eighth, and ninth issues; dissolve the permanent injunction; and reverse the trial court’s judgment.

D. Standing to Assert Fair Housing Act Claims

In their fifth issue, appellants ask “whether the court erred as a matter of law when it concluded that the Meehls were not [in] a protected class within the meaning of the Federal Fair Housing Act” (“the FHA”).

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Meehl v. Wise
285 S.W.3d 561 (Court of Appeals of Texas, 2009)