Recreational Land Sales, LLC/James M. Allen, Charles Cedars, and Deborah Cedars v. James M. Allen, Charles Cedars, and Deborah Cedars/Recreational Land Sales, LLC

Court of Appeals of Texas·Decided April 7, 2026·No. 08-24-00375-CV·Published

Opinion

COURT OF APPEALS

EIGHTH DISTRICT OF TEXAS

EL PASO, TEXAS

Appellees/Cross-Appellants initiated suit, the jury found Appellant/Cross-Appellee liable for negligent nuisance and awarded Appellees/Cross-Appellants damages for annoyance, loss of enjoyment, and discomfiture. For the reasons that follow, we reverse and render.

I. FACTUAL AND PROCEDURAL BACKGROUND The defendant below and original Appellant here, is Recreational Land Sales, LLC (RLS).

James M. Allen, Charles Cedars, and Deborah Cedars (collectively, the Neighbors), are the plaintiffs below and Appellees/Cross-Appellants here. In May 2021, RLS purchased a 1,472-acre tract of land now known as Cross Timber Ranch. RLS later subdivided 107 of those acres into 17 lots ranging from about five to eight acres each. These 17 lots are the crux of this appeal.

The deed provided that the 107 acres are subject to restrictive covenants of the subdivision, Blacksmith Ranch. The “Blacksmith Ranch Declaration of Covenants, Conditions, and Restrictions” (the restrictive covenants), executed in 2004, governs the 107 acres and states that “[n]o lot may be resubdivided without the written approval of the Declarant or the [Architectural Control Committee]” (ACC). “Declarant” was identified as four individuals. Because Blacksmith Ranch is an exempt, unplatted subdivision, no recorded map or plat existed, and the 107 acres were described only by metes and bounds. RLS did not know where Blacksmith Ranch was located until it hired a surveyor. RLS manager Richard Grandy testified he discovered no ACC or Home Owners Association (HOA) had ever been formed and that Blacksmith Ranch had been operating without one since 2004. RLS attempted to contact the four declarants but located only one, and after speaking with him, it was confirmed that there was no ACC or HOA and there had been “inactivity in [the] subdivision regarding any kind of enforcement or anything.” Through a private investigator, RLS learned that two declarants were deceased. RLS eventually determined there had been inactivity in enforcing the restrictive covenants.

In October 2021, RLS applied to Burnet County for a subdivision plat of Cross Timber Ranch to divide the 107 acres into 17 lots, and Burnet County approved the plat. RLS then sold all the lots to third-party purchasers. RLS also installed a gate at the entrance of Cross Timber Ranch, powerlines, and a road running through the Cross Timber Ranch subdivision.

The Neighbors own land adjacent to the 17 lots. Charles and Deborah Cedars are a married couple who own 30 acres and built what Charles described as their “forever home” on their land. They were living out their retirement. Charles engaged in many projects on their land—building their home, a barn, a chicken and rabbit pen, and a pond—and Deborah gardened. Brandon Allen owns 60 acres and testified that he planned to move to his land and build a home there with his wife after she retired. Allen specifically planned to build his home facing east to enjoy the Texas sunrise. He had spent the last 20 years fishing, hunting, and working his land, and tending to his Longhorn cattle. The below map illustrates the respective locations of Blacksmith Ranch, the 17 lots, and the Neighbors’ land. 2

2 This demonstrative map, Defendant’s Exhibit 1, was prepared for trial and was admitted without objection at trial and shown to the jury.

On January 24, 2022, Allen filed suit against RLS for breach of contract, fraud, and injunctive relief. The Cedars later joined the suit as plaintiffs. Together, the Neighbors asserted claims for breach of restrictive covenants, intentional nuisance, and negligent nuisance against RLS. Their pleadings alleged that they “had hoped to retain the rural character of their community” and that RLS breached the restrictive covenants by not obtaining approval of “the other property owners in Blacksmith Ranch . . . despite having notice of the express restrictions and the manner of compliance.” They further alleged that “RLS’s subsequent development and marketing of the property has included building roads, gates, installing powerlines, clearing of trees, digging wells, hosting open houses, and other activities” that caused “increased and unreasonable offensive noise and light, trespass onto their property by third-parties, congestion of the single lane road in and out of the property, dust, increased hazard to person and property, impairment of the comfortable enjoyment of their real property, lessening of the enjoyment of their real property, inability to hunt on the land, personal discomfort, and other unreasonable and offensive intrusions.” According to the Neighbors, “future development will, in all reasonable probability, occur[, including] the building of homes, other infrastructure, and a cell phone tower on Lot 48—upon information and belief still owned by RLS. Such activities will, in all reasonable probability, continue and continue to cause substantial and unreasonable interference with Plaintiffs’ use and enjoyment of their property and cause Plaintiffs unreasonable discomfort and annoyance.”

The Neighbors alleged that RLS breached the restrictive covenants by subdividing the land into the 17 lots, that RLS’s knowing breach of the restrictive covenants constituted intentional nuisance, and that RLS’s failure to exercise reasonable care by way of their breach of the restrictive covenants constituted negligent nuisance and substantially interfered with their use and enjoyment of their land. They sought damages for “increased and unreasonable offensive noise and light, invasion of privacy, congestion of the single lane road in and out of the property, dust, increased

hazard to person and property, impairment of the comfortable enjoyment of their real property, lessening of the enjoyment of their real property, annoyance and discomfiture, mental anguish, damage to the intrinsic value of the property, apprehension of danger to person or property, and other unreasonable and offensive intrusions.”

At trial, testimony established that the 17 lots remained undeveloped and that construction of the gate, the road inside Cross Timber Ranch, and the powerlines, had been completed. Photos of the gate, the road, and the lots were admitted. Grandy testified about RLS’s purchase of the 1,472 acres and its process for subdividing the 17 lots. Herb Darling, Development Services Director of Burnet County, and Brewer, the engineer who platted the 17 lots, both testified to the plat approval process. Allen testified about his future retirement plans, the importance of the restrictive covenants to his decision to purchase his land, and the activities he engaged in on his land. He also testified about his diminished “enthusiasm” and mental health since learning about the 17 lots, but acknowledged that although he did not know what the future owners would do with their land, he was still able to engage in the same activities on his land. The Cedars also testified. Charles described the improvements he made on his land and explained how the construction of the gate and road caused dust, cedar mulch he was allergic to, and noise. Both Charles and Deborah testified that the thought of having 17 neighbors had affected Deborah’s mental health and had decreased her motivation to garden. Charles stated he was not prevented from completing his projects or hunting, that Deborah “definitely could” still garden, and that wildlife still roamed their property. The Neighbors presented no evidence of economic damages, and the trial court granted their motion in limine prohibiting any evidence of fair market value.

After the Neighbors rested, RLS moved for directed verdict. The trial court granted RLS’s motion as to the breach of a restrictive covenant claim and dismissed that claim. As to RLS’s

contention that the claimed nuisance was temporary, the trial court disagreed and held the nuisance was permanent.

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Recreational Land Sales, LLC/James M. Allen, Charles Cedars, and Deborah Cedars v. James M. Allen, Charles Cedars, and Deborah Cedars/Recreational Land Sales, LLC, (Tex. Ct. App. 2026).

Recreational Land Sales, LLC/James M. Allen, Charles Cedars, and Deborah Cedars v. James M. Allen, Charles Cedars, and Deborah Cedars/Recreational Land Sales, LLC (Recreational Land Sales, LLC/James M. Allen, Charles Cedars, and Deborah Cedars v. James M. Allen, Charles Cedars, and Deborah Cedars/Recreational Land Sales, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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