Mehran Rahbar, M.D., and Farinaz Arbab, M.D. v. Southampton Civic Club

CourtCourt of Appeals of Texas
DecidedJuly 23, 2024
Docket14-23-00444-CV
StatusPublished

This text of Mehran Rahbar, M.D., and Farinaz Arbab, M.D. v. Southampton Civic Club (Mehran Rahbar, M.D., and Farinaz Arbab, M.D. v. Southampton Civic Club) 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
Mehran Rahbar, M.D., and Farinaz Arbab, M.D. v. Southampton Civic Club, (Tex. Ct. App. 2024).

Opinion

Affirmed and Memorandum Opinion filed July 23, 2024.

In The

Fourteenth Court of Appeals

NO. 14-23-00444-CV

MEHRAN RAHBAR, M.D., AND FARINAZ ARBAB, M.D., Appellants V. SOUTHAMPTON CIVIC CLUB, Appellee

On Appeal from the 151st District Court Harris County, Texas Trial Court Cause No. 2022-05545

MEMORANDUM OPINION

Appellants Mehran Rahbar and Farinaz Arbab challenge the trial court’s summary judgment and award of attorney’s fees in favor of appellee Southampton Civic Club (“SHCC”). The Rahbars 1 argue that the trial court erred in interpreting a deed restriction to prohibit them from renting their home to persons other than family members; that SHCC is not the proper entity to enforce the subject deed

1 The parties refer to appellants as the Rahbars, so we do as well. restriction against them; and that the trial court abused its discretion in awarding SHCC attorney’s fees. We overrule the Rahbars’ issues and affirm the trial court’s judgment.

Background

The Rahbars own a lot with improvements (the “Property”) located in Southampton Place Addition (“Southampton” or the “subdivision”), Block Number 42, Lot Number 17, known as 2135 Bissonnet Street, Houston, Texas 77005. The subdivision was placed on the market for home builders in 1923, following the execution of a trust agreement between E.H. Fleming, its developer, and the San Jacinto Trust Company, trustee. A reference incorporating the trust agreement and restrictions (“Basic Restrictions”) was placed in each deed to lots sold in the subdivision, binding all lot owners to the Basic Restrictions. The Basic Restrictions were effective for an initial term of fifty years and subsequently extended in 1973 and in 2013.

Established as an unincorporated civic association in 1929, SHCC exists to preserve and protect the Basic Restrictions and to promote the maintenance, beautification, and welfare of the subdivision. SHCC was incorporated under the Texas Non-Profit Corporation Act in 2004. See Tex. Bus. Orgs. Code §§ 22.101 et seq. In 2011, SHCC filed a document entitled “Notice Relating to Deed Restrictions Summary for Southampton Place” (the “Notice”) in the Harris County property records. The Notice included SHCC’s summary of certain restrictions, such as those relating to setback lines and alley easements. The Notice directed interested persons to SHCC’s internet website for a “detailed summary” of the applicable deed restrictions, as well as compliance procedures.

2 The Rahbars purchased the Property in 2010 and immediately began renting the house for one-year terms to as many as five unrelated persons, usually students attending a nearby university.

In 2022, SHCC sued the Rahbars for violating the following deed restriction:

No apartment house, or duplex will be permitted in the Addition; the object of this provision being to prohibit multiple housing throughout the entire addition.

SHCC alleged that the Rahbars were leasing the Property to several, unrelated persons. SHCC sought declarations under the Texas Declaratory Judgment Act (“DJA”) that the Basic Restrictions were valid and enforceable, that the Basic Restrictions prohibit the Rahbars from using the Property for multiple housing purposes or for any purpose other than as a residence for a single family, and that the Basic Restrictions prohibit the Rahbars from utilizing the Property primarily for financial gain rather than as a single-family residence. SHCC also sought permanent injunctive relief and attorney’s fees.

The Rahbars filed a counterclaim to quiet title, alleging that the Notice was an invalid encumbrance on their title. They also sought declarations under the DJA concerning interpretation of the Basic Restrictions.

The parties filed competing motions for summary judgment. In an interlocutory order, the trial court found that the Rahbars are bound by the Basic Restrictions, which prohibit them from using the Property for anything other than a single-family residence. The court held that the Rahbars breached the Basic Restrictions and granted a mandatory injunction prohibiting them from leasing, renting, or using in any way the Property for multiple housing purposes or for any purpose other than as a single-family residence. In a separate order, the court

3 dismissed the Rahbars’ counterclaims. In a final judgment, the trial court awarded SHCC its attorney’s fees. The Rahbars filed a timely appeal.

Standard of Review

We review a trial court’s ruling on a motion for summary judgment de novo. Tarr v. Timberwood Park Owners Ass’n, Inc., 556 S.W.3d 274, 278 (Tex. 2018); Texan Land & Cattle II, Ltd. v. ExxonMobil Pipeline Co., 579 S.W.3d 540, 542 (Tex. App.—Houston [14th Dist.] 2019, no pet.). To prevail on a traditional motion for summary judgment, the movant must show that no genuine issue of material fact exists and that it is entitled to judgment as a matter of law. Tex. R. Civ. P. 166a(c). When both parties move for summary judgment on the same issue and the trial court grants one motion and denies the other, we consider the summary judgment evidence presented by both sides, determine all questions presented, and, if we determine that the trial court erred, render the judgment the trial court should have rendered. Tarr, 556 S.W.3d at 278; see also Wausau Underwriters Ins. Co. v. Wedel, 557 S.W.3d 554, 557 (Tex. 2018) (“A declaratory judgment granted on a traditional motion for summary judgment is reviewed de novo.”).

Analysis

The Rahbars raise three issues on appeal. First, they argue that the trial court erred by granting declaratory and injunctive relief regarding the Basic Restrictions’ prohibition against using the Property for anything other than as a residence for a single family. Second, they argue that the trial court erred by dismissing the Rahbars’ counterclaims. Third, they challenge the trial court’s award of attorney’s fees.

4 A. SHCC’s Motion for Summary Judgment

The summary judgment in favor of SHCC requires this court to review the trial court’s interpretation of the Basic Restrictions.

This is not the first occasion for a court to interpret the exact deed restriction at issue. In the first case to address the issue, a homeowner, Pardo, rented her house to a partnership for business purposes. Pardo v. Southampton Civic Club, 239 S.W.2d 141, 142 (Tex. Civ. App.—Galveston 1951, writ ref’d). SHCC sued Pardo for violating the Basic Restrictions and to enjoin her from using or causing her property to be used for any purpose other than as a dwelling and residence for a single family. Id. The court of appeals concluded that it was undisputed that the lots in Southampton “were restricted to the use for single family dwelling and for [certain] business purposes.” Id. at 143. Specifically, all of the lots reserved for residential use “were designated and sold as integral parts of a ‘high class exclusive residential’ area and were restricted to the exclusive use of a residence of a single family.” Id. at 144. Accordingly, the court of appeals affirmed the injunction against Pardo.

The next case was Rudy v. Southampton Civic Club, 271 S.W.2d 431 (Tex. App.—Waco 1954, writ ref’d n.r.e.). The Rudys erected on their lot a garage apartment as a separate structure from their dwelling house and rented it to persons other than members of their family. Id. at 432.

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Mehran Rahbar, M.D., and Farinaz Arbab, M.D. v. Southampton Civic Club, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mehran-rahbar-md-and-farinaz-arbab-md-v-southampton-civic-club-texapp-2024.