Southern National Bank of Houston v. City of Austin

582 S.W.2d 229, 1979 Tex. App. LEXIS 3676
CourtCourt of Appeals of Texas
DecidedMay 17, 1979
Docket1245
StatusPublished
Cited by35 cases

This text of 582 S.W.2d 229 (Southern National Bank of Houston v. City of Austin) 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
Southern National Bank of Houston v. City of Austin, 582 S.W.2d 229, 1979 Tex. App. LEXIS 3676 (Tex. Ct. App. 1979).

Opinion

McKAY, Justice.

This is a suit contesting the validity of a Historical Preservation Ordinance of the City of Austin.

Southern National Bank of Houston, Trustee (Trustee), and Highland Resources, Inc. (Highland), brought this suit against the City of Austin (City), seeking an injunction and declaratory judgment against the City, its City Council members, the Historic Landmark Commission and its members, the Planning Commission and its members, and all City officers, agents and representatives to prevent them from enforcing against their property certain ordinances of the City pertaining to Historic Landmark Preservation. The Heritage Society of Austin, Inc., the State of Texas, and certain shareholders of the Driskill Hotel Corporation intervened. Driskill Operating Company became an involuntary plaintiff by court order, and Louis Page, owner of property adjacent to the Driskill Hotel, filed an intervention.

Highland and its Trustee alleged that the Trustee had legal title in trust and Highland was beneficiary of the trust containing the property known as the Driskill Hotel located in downtown Austin, Texas; that the premises consisted of two component and integrated parts, described generally as the old portion (being generally the south portion of the hotel), and the tower (newer) portion, located on the north area of the property; that in 1971 Highland deeded the north or tower portion (with a part of the old section) to the predecessors in title of the present hotel owner-operator, Braniff Airlines, Inc. (which owns and acts through the Driskill Operating Company), retaining ownership of the balance of the property, and leasing same to the lessee-predecessors of Braniff, under which lease Braniff is tenant and current hotel operator; that the Driskill Hotel for approximately 40 years has been operated as a complete, unified, integrated business, using the entire physical properties of both the tower and the old section, which are joined and unified, both exteriorly and interiorly, in every respect, into a single structure — the tower section having been added as an integrated part of the hotel and being so used and operated.

The pleadings of Highland and its Trustee further alleged that on March 7, 1974, the City enacted Ordinance No. 740307 — A, amending Chapter 45 of the Code of the City of 1967, as amended, and by said amendments enacted provisions identified as Sections 45 — 42 through 45-55 of the City Code of 1967, and has thereby added a new Article IV, “Historic Landmark Preservation,” and created a commission known as Historic Landmark Commission, assigning to it various powers and authority; that purporting to act under color of authority of said 1974 ordinance the City, acting through its City Council, Planning Commission and Landmark Commission, caused certain proceedings to be brought to have the property of Highland zoned “Commercial-Historic District” (C-2-H zoning), by Ordi *232 nance No. 760415-E; and that such zoning ordinance described and covered generally the older or southern portion of the premises known as the Driskill Hotel.

The petition then alleged that the City by acting on inadequate notice to Highland denied Highland and its Trustee a reasonable opportunity to protect their rights and property, as well as those owning the leasehold interests; that such ordinance infringed upon and impaired the contractual rights and obligations of the parties and their tenant, and created unreasonable hardships in the maintenance, operation and management of the hotel properties and business in violation of the pre-existing lease and contracts of the parties, and effectively appropriated the rights of the owner and tenant to control, manage and operate their property, and transferred such rights to the City’s boards and agencies; that the City violated their constitutional rights, as well as their rights under Articles 1011a-1011e, Tex.Rev.Civ.Stat.Ann., and acted arbitrarily, capriciously and unlawfully in zoning their property, and that such action was without factual or legal support.

The pleadings of Highland and its Trustee prayed (1) that the City, the City Council members, the Planning Commission and its members, and all the City’s officers, agents and representatives be enjoined from enforcing, or threatening to enforce, directly or indirectly, as against them, their lessee and their property the provisions of Article IV pertaining to Historic Landmark Preservation, being Sections 45 — 42 through 45-55 of the City Code of 1967, as amended, and any amendments thereto; (2) for a declaratory judgment, finding and declaring that the ordinances are unlawful and void as applied to their property, and are violative of their contract rights and impair said contractual obligations with their lessee-tenant; that the court make further declarations of the rights and status of their property as they may be entitled thereto, including a declaration, where applicable, that various provisions of the ordinances have no applicability to their property.

The trial court held that Ordinance No. 760415-E which applied to and zoned the older section of the Driskill Hotel as a Historic Landmark was unlawful, in' violation of the Constitutions of the United States and the State of Texas, and was therefore null and void. That portion of the trial court’s judgment is not appealed from. All other declaratory relief was denied; the prayer of Highland, its Trustee, and the intervenors for a permanent injunction enjoining the City from enforcing Article IV of Chapter 45 of the Code of the City was denied. Driskill Operating Co. was dismissed from the case by the judgment.

Highland, its Trustee, and the Driskill Hotel Corporation, all appellants in this Court, appeal from those portions of the judgment which deny all declaratory and injunctive relief other than that granted against Ordinance No. 760415-E. Appellee, the City of Austin, gave notice of appeal from that portion of the judgment dismissing the involuntary plaintiff, the Driskill Operating Co.

Since Ordinance No. 760415-E has been held to bfe invalid by the trial court, and no appeal is before us on that issue, we deem it unnecessary to detail the findings of fact filed by the trial court setting out the procedures and actions taken by the Historic Landmark Commission, the Planning Commission or the City Council in zoning the older section of the Driskill Hotel as a Historic Landmark (H). In this appeal the attack is made upon Article IV in its entirety as being invalid under the statutes and Constitution of Texas and the Constitution of the United States.

Sec. 45-42 of Article IV, entitled “Historic Landmark” Defined, provides that

“. . . the term ‘historic landmark’ shall mean any building, structure, site[,] district, area, or land of architectural, historical, archaeological or cultural importance or value, which the city council determines shall be protected, enhanced, and preserved in the interest of the culture, prosperity, education and general welfare of the people.”

Sec. 45^43 of Article IV, entitled Declaration of Policy, provides, in part:

*233 “The city council hereby finds and declares as a matter of public policy that the protection, enhancement, preservation and use of historic landmarks is a public necessity and is required in the interest of the culture, prosperity, education and general welfare of the people.

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Bluebook (online)
582 S.W.2d 229, 1979 Tex. App. LEXIS 3676, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-national-bank-of-houston-v-city-of-austin-texapp-1979.