OHAH, Ltd., D/B/A Oak Haven Apartment Homes v. LNG Builders, LLC, Odom Texas Development, LLC and the City of Shenandoah

Court of Appeals of Texas·Decided November 17, 2022·No. 09-20-00292-CV·Published

Opinion

In The

Court of Appeals

Ninth District of Texas at Beaumont

NO. 09-20-00292-CV

OHAH, LTD., D/B/A OAK HAVEN APARTMENT HOMES, Appellant V.

LNG BUILDERS, LLC, ODOM TEXAS DEVELOPMENT, LLC, AND THE CITY OF SHENANDOAH, Appellees

On Appeal from the 284th District Court Montgomery County, Texas

Trial Cause No. 18-09-12429-CV

MEMORANDUM OPINION

Appellant OHAH, Ltd., d/b/a Oak Haven Apartment Homes (Oak Haven)

appeals the trial court’s final judgment granting a summary judgment in favor of Appellees LNG Builders, LLC (LNG) and Odom Texas Development, LLC (OTD) as Defendants and in favor of the City of Shenandoah (the City) as Intervenor, in a

dispute over an easement and drainage line1 which the defendants built on Oak Haven’s property. We vacate the trial court’s judgment in part, we reverse the trial court’s judgment in part, and we remand the matter to the trial court for further proceedings.

Background 2

Oak Haven provides apartment homes for senior citizens at Oak Haven’s property located at 19445 David Memorial Drive (Oak Haven’s Property) in Shenandoah, Texas. OTD owns the real property located at 19391 David Memorial Drive (OTD’s Property), which is adjacent to one side of Oak Haven’s Property. OTD’s general contractor, LNG, built a hotel for OTD on OTD’s Property. During the construction of the hotel, Oak Haven filed an Original Petition with Application for Temporary Restraining Order, Application for Temporary Injunction, and Application for Permanent Injunction against LNG and OTD (the Defendants). According to the allegations in the petition, the Defendants indicated they intended

1 In this matter the parties have referred to the 24-inch pipeline as a “storm water pipeline,” “storm sewer line,” “drainage line,” and “storm sewer drainage line.” It is unclear on the record before us whether the pipeline will function to drain only stormwater or whether it may also act as a sewer line. That said, all the parties seem to agree that the 24-inch pipeline will drain something from OTD’s Property, across or through Oak Haven’s Property, and into a detention pond. For purposes of consistency, we will refer to the 24-inch pipeline as a “drainage line,” which is the initial term used by Oak Haven in its Original Petition.

2 When possible, we have limited our discussion to the pleadings, procedural information, and factual allegations relevant to our disposition.

to construct a 24-inch drainage line from OTD’s Property and across or through Oak Haven’s Property to connect the hotel’s storm sewer drainage to a nearby detention pond owned by the City of Shenandoah, and Oak Haven alleged that the Defendants had no legal right to construct a drainage line on Oak Haven’s Property. Oak Haven alleged that the Defendants had already trespassed on Oak Haven’s Property at least on three occasions: once to place some wooden stakes, once to destroy Oak Haven’s fence, and once to place netting on Oak Haven’s land. Oak Haven alleged that it made a demand on LNG to cease, desist, and refrain from trespassing on Oak Haven’s Property, but LNG ignored the demand and continued to trespass on Oak Haven’s Property. According to Oak Haven’s petition, if the Defendants were not enjoined from trespassing on Oak Haven’s Property, Oak Haven would suffer immediate and irreparable harm for which Oak Haven would have no adequate remedy at law.

Oak Haven included claims against the Defendants for trespass, requested a TRO to order the Defendants to refrain from entering upon Oak Haven’s Property until the trial court could hear Oak Haven’s Application for Temporary Injunction Pendente Lite, requested that the trial court issue a temporary injunction to order Defendants to refrain from entering Oak Haven’s Property until the trial court could hear Oak Haven’s Application for Permanent Injunction, and requested that the trial court issue a permanent injunction for the Defendants to refrain from entering Oak

Haven’s Property permanently. Oak Haven sought monetary damages in excess of $500 but under $100,000, and Oak Haven attached an affidavit of its Chief Financial Officer in support of its petition.

Oak Haven obtained an Ex-Parte Temporary Restraining Order against the Defendants. In response, Defendants answered and raised the following defenses, alleging that: (1) Oak Haven has no probable right of recovery and no legal right to injunctive relief because Defendants have the legal right to construct a drainage line pursuant to the 80-foot utility easement; (2) based on the 80-foot utility easement Defendants are not guilty of trespass; (3) Oak Haven has not demonstrated irreparable harm, probable injury, or that Oak Haven is without an adequate remedy at law; (4) the underground storm sewer construction is necessary and without it would likely cause flooding into Oak Haven’s senior living facility; (5) waiver, estoppel, laches, and unclean hands bar the claims; and (6) the requested temporary injunction and related affidavits lack factual specificity and fail to comply with Rule 680 of the Texas Rule of Civil Procedure. Defendants also asserted a counterclaim, alleging Oak Haven wrongfully obtained the temporary restraining order.

The City intervened and filed a third-party claim against Oak Haven. The City alleged that it had issued LNG a permit to construct the hotel, and as part of the hotel construction, the City required LNG to provide storm water drainage to protect the City’s residents from flooding. According to the City, it owns an 80-foot easement

between the hotel and the detention pond which was dedicated to the City by Oak Haven in May 2000. The City alleged that the dedication was made in a plat from May 2000 (the Plat), recorded in the Real Property Records of Montgomery County, Texas, on or about August 31, 2000. The City alleged that, because it owns 3 an 80- foot easement, the City has the absolute right under the dedication language on the Plat to allow LNG to construct storm water drainage within the easement and the City asserted it is a necessary party to the litigation. The City filed a claim against Oak Haven for tortious interference with an existing contract for Oak Haven’s interference with the City’s contract with the Defendants to construct storm water drainage in the City’s easement, and the City asserted a claim against Oak Haven for violating Chapter 10 of the Civil Practices and Remedies Code, for acting “in bad faith[,]” and for failing to disclose to the trial court that Oak Haven had dedicated an easement to the City. The City sought damages of over $200,000 but not more than $1,000,000 for lost property taxes, hotel occupancy taxes, sales tax and lost alcohol sales, allegedly caused by the delay in construction caused by Oak Haven.

Relying on the Plat, the City alleged that there was a dedication of the “80’

U.E.” from Senior Housing Development II, LLC (Oak Haven’s predecessor in title)

3 The City does not state whether it claims to own an exclusive or nonexclusive easement. In its brief on appeal, the City refers to the 80-foot area solely as an “easement.” Additionally, OTD and LNG also refer to the 80-foot area as depicting nothing more than an “easement.”

to the City of Shenandoah as contained on the recorded Plat, which the City claims gave it the right to allow OTD to build another drainage line within the 80 feet so OTD could drain OTD’s property across and through Oak Haven’s property. The City relied on the following language from the Plat to support this argument:

That SENIOR HOUSING DEVELOPMENTS II, LLC., duly organized and existing under the laws of the State of Texas, with offices at 11934 ARBORDALE, HOUSTON, TEXAS 77024, owner of the property shown on this plat, SENIOR HOUSING DEVELOPMENTS II, LLC.

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OHAH, Ltd., D/B/A Oak Haven Apartment Homes v. LNG Builders, LLC, Odom Texas Development, LLC and the City of Shenandoah, (Tex. Ct. App. 2022).

OHAH, Ltd., D/B/A Oak Haven Apartment Homes v. LNG Builders, LLC, Odom Texas Development, LLC and the City of Shenandoah (OHAH, Ltd., D/B/A Oak Haven Apartment Homes v. LNG Builders, LLC, Odom Texas Development, LLC and the City of Shenandoah) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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