North Texas Natural Select Material, LLC v. City of Denison, Texas

CourtDistrict Court, E.D. Texas
DecidedOctober 31, 2024
Docket4:24-cv-00717
StatusUnknown

This text of North Texas Natural Select Material, LLC v. City of Denison, Texas (North Texas Natural Select Material, LLC v. City of Denison, Texas) is published on Counsel Stack Legal Research, covering District Court, E.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
North Texas Natural Select Material, LLC v. City of Denison, Texas, (E.D. Tex. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF TEXAS SHERMAN DIVISION

NORTH TEXAS NATURAL SELECT § MATERIAL, LLC § § CIVIL ACTION NO. 4:24-CV-00717-AGD v. § § CITY OF DENISON, TEXAS, ET AL.

MEMORANDUM OPINION & ORDER

Pending before the court is Defendants City of Denison, Texas (the “City”) and Ronnie Bates’ Motion to Dismiss and Brief in Support (Dkt. #10). Having considered the Motion, Plaintiff North Texas Natural Select Material, LLC’s Response (Dkt. #26), Defendants’ Reply (Dkt. #31), and all other relevant filings, the court finds that Defendants’ Motion should be granted in part and denied in part. The court further orders that this case should be remanded to the 59th Judicial District Court, Grayson County, Texas for lack of subject-matter jurisdiction. BACKGROUND Factual History Plaintiff is a supplier of sand and select fill in the Dallas/Fort Worth, Texas area (Dkt. #5 at p. 2). In January 2022, Plaintiff purchased approximately 146 acres of real property and facilities in Denison, Texas (the “Property”) in order to provide material for developments in Grayson County, Texas (Dkt. #5 at p. 2). The Property is located within the extraterritorial jurisdiction of Denison (Dkt. #5 at p. 3). Since February 2022, Plaintiff and its customers have used the same route for access to and transport of materials from the Property: driving north on Fannin Street to Spur 503 (Eisenhower Parkway) then west to U.S. 75 (and the reverse when traveling to the Property) (the “Route”). Fannin Street is a north/south public road that abuts the east boundary of the Property (Dkt. #5 at p. 4). Plaintiff alleges that on April 8, 2024, the City installed “No Trucks” signs at two points on the Route pursuant to City of Denison Ordinance § 25-19 (the “Ordinance”) without notice to

Plaintiff (Dkt. #5 at p. 6). The Ordinance prohibits commercial trucks weighing over 18,000 pounds from travelling on streets not designated as truck routes (Dkt. #5 at p. 8). On April 12, 2024, the City police began giving warnings to commercial trucks on the Route (Dkt. #5 at p. 6). The City subsequently began ticketing commercial trucks on the Route (Dkt. #5 at p. 6). Procedural History On July 29, 2024, Plaintiff filed suit against Defendants and requested injunctive relief in the 59th Judicial District Court of Grayson County, Texas, alleging that the City’s road restrictions are the “producing cause” of Plaintiff’s damages (Dkt. #5 at p. 9). Plaintiff’s Application for Injunctive Relief was set for a hearing on August 13, 2024 (Dkt. #1, Exhibit 8). On August 12, 2024, Defendants removed the case to the Eastern District of Texas, Sherman Division (Dkt. #1)

alleging federal question jurisdiction. On September 6, 2024, Plaintiff filed its first Amended Complaint, alleging nine causes of action against Defendants as follows: 1. Claim for Recission of Governmental Action Pursuant to the Private Real Property Rights Preservation Act, Tex. Gov. Code § 2007.001–043, seeking an injunction and monetary damages. 2. Claim for Declaratory Judgment that the “No Trucks” signs and enforcement of the same conflicts with City Ordinance Section 25-19. 3. Claim for Declaratory Judgment that the “No Trucks” signs and enforcement of the same violates Texas Civil Practice and Remedies Code § 37.004, Texas Natural Resource Code § 81.0523, and the Texas Constitution, art. XI, § 5 4. Claim for Declaratory Judgment that the “No Trucks” signs and enforcement of the same violates federal law under 49 U.S.C. § 31114(a) and 23 C.F.R. § 658.19. 5. Claim for Declaratory Judgment and Ultra Vires Action against Defendant Ronnie Bates. 6. Nuisance. 7. Substantial Impairment. 8. Inverse Condemnation under the Texas Constitution and the 5th Amendment of the United States Constitution. 9. Request for Preliminary and Permanent Injunctive Relief.

On September 26, 2024, Plaintiff filed a Motion for Temporary Restraining Order, Preliminary Injunction, and Expedited Preliminary Injunction Hearing (Dkt. #8) which is fully briefed. On September 26 and 27, 2024, the Parties consented to proceed before a United States Magistrate Judge (Dkt. #9; Dkt. #11). On October 1, 2024, the District Judge referred this matter to the undersigned for all further proceedings and the entry of judgment in accordance with 28 U.S.C. Section 636(c) (Dkt. #16). On September 26, 2024, Defendants filed a Motion to Dismiss (Dkt. #10), which is presently before the court. On October 10, 2024, the court acknowledged that while there is a Motion for Temporary Restraining Order before the court, (Dkt. #8), Defendants alleged that the court lacks subject-matter jurisdiction (Dkt. #23). Accordingly, the court ordered Plaintiff to advise the court whether it intended to dismiss its federal claims (Court Four, Count Eight) to allow litigation to proceed in state court (Dkt. #23). In response to the court’s Order, Plaintiff filed a Notice Regarding Federal Claims, stating that “Plaintiff does not intend to drop its federal claim or seek to have this case remanded to proceed in state court.” (Dkt. #24). On October 17, 2024, Plaintiff filed a Response to the Motion (Dkt. #26). On October 28, 2024, Defendants filed a Reply (Dkt. #31). LEGAL STANDARD Federal Rule of Civil Procedure 12(b)(1) A party may challenge the court’s jurisdiction by filing a motion under Federal Rule of Civil Procedure 12(b)(1). Subject matter jurisdiction in a federal court can be established in two ways: federal question or diversity. 28 U.S.C. §§ 1331, 1332. Federal question jurisdiction includes “all civil actions arising under the constitution, laws, or treaties of the United States.” 28 U.S.C. § 1331. Diversity jurisdiction is established when the amount in controversy exceeds $75,000.00 and the matter is between “(1) citizens of different States; (2) citizens of a State and citizens or subjects of a foreign state . . . ; (3) citizens of different States and in which citizens or subjects of

a foreign state are additional parties; and (4) a foreign state . . . as plaintiff and citizens of a State or different States.” 28 U.S.C. § 1332.1 The court will accept as true all well-pleaded allegations set forth in the complaint and construe those allegations in the light most favorable to the plaintiff. Truman v. United States, 26 F.3d 592, 594 (5th Cir. 1994). Once a defendant files a motion to dismiss under Rule 12(b)(1) and challenges jurisdiction, the party invoking jurisdiction has the burden to establish subject matter jurisdiction. See Menchaca v. Chrysler Credit Corp., 613 F.2d 507, 511 (5th Cir. 1980). Federal courts “have an independent obligation to determine whether subject-matter jurisdiction exists, even in the absence of a challenge from any party.” Arbaugh v.

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North Texas Natural Select Material, LLC v. City of Denison, Texas, Counsel Stack Legal Research, https://law.counselstack.com/opinion/north-texas-natural-select-material-llc-v-city-of-denison-texas-txed-2024.