TCI West End, Inc. v. City of Dallas

486 S.W.3d 692, 2016 Tex. App. LEXIS 2476, 2016 WL 890883
CourtCourt of Appeals of Texas
DecidedMarch 9, 2016
DocketNo. 05-11-00582-CV
StatusPublished
Cited by2 cases

This text of 486 S.W.3d 692 (TCI West End, Inc. v. City of Dallas) 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
TCI West End, Inc. v. City of Dallas, 486 S.W.3d 692, 2016 Tex. App. LEXIS 2476, 2016 WL 890883 (Tex. Ct. App. 2016).

Opinion

OPINION ON REMAND

Opinion by

Justice Evans

This case comes to us on remand from the Texas Supreme Court.

I. Introduction

The central issue is whether the City of Dallas may recover civil penalties from TCI West End, Inc. under section 54.017 of the Texas Local Government Code based, on TCI’s demolition of the MKT Freight Station, a building in the West End Historic District, without the prior approval of the Landmark Commission of the City of Dallas. According to the City, prior approval of the landmark commission was required by city ordinance 21391, as amended by ordinance 22158. In our original opinion, we concluded, among other things, that the civil penalty provision relied upon by the City, which is found in the portion of the Texas Local Government Code pertaining to the enforcement of health and safety ordinances, did not apply to ordinances unrelated to health or safety. See TCI West End v. City of Dallas, 407 S.W.3d 292, 301 (Tex.App.—Dallas 2013) (TCI West End I), rev’d in part, City of Dallas v. TCI West End, 463 S.W.3d 53 (Tex.2015) (TCI West End II). The supreme court disagreedy holding that the penalty provision could be applied to the zoning ordinances at issue. TCI West End II, 463 S.W.3d at 58.

We further concluded in our original opinion that. the. City failed to prove the notice required for application of the penalty provision because there was no evidence that TCI was actually notified of the ordinances before it demolished the building. TCI West End I, 407 S.W.3d at 301. Without addressing this holding, the supreme court remanded the cause to us to determine whether TCI could be held liable for civil penalties for failing to obtain landmark commission approval for the demolition after the demolition was completed and TCI was notified of its alleged violation. TCI West End II, 463 S.W.3d at [695]*69558. ■ Given the supreme court’s- holding regarding the applicability of the penalty provision to the • ordinances at issue, and the record before us on appeal, we must affirm the award of civil penalties in this case. Because the background of the case has been set forth in the prior opinions, we discuss the facts only as they are relevant to the analysis of the issues presented.

II. Enforceability of the Ordinances

The jury in this case awarded the City civil penalties in response to the following questions:

Question No. 11.
Did TCI West End violate the provisions of Ordinance No. 21391, as amended by Ordinance No. 22158, which provides that a person may not demolish a structure within the West End Historic District without first obtaining approval of the Landmark Commission of the City of Dallas?
To answer “Yes” to this question, you must find all of the following:
(a) TCI West End, Inc. was the owner of the real property where the MKT freight station was located at the time of the violation;
(b) TCI West End, Inc. was actually notified of the foregoing provisions of Ordinance No. 21391, as amended by Ordinance No. 22158; and
(c) Thereafter TCI West End, Inc. committed acts in violation of these provisions or failed to take action necessary for compliance with these provisions. Answer Wes” or “No.”
Answer: yes
Question No. 12:
If the answer to Question Number 11 is Wes,” what civil penalty should' be imposed against TCI West End, Inc. for each day the condition found by you in answer to Question No. 11 existed, not to exceed $1,000 per day?
You are instructed that if the City stopped or prevented TCI West End, Inc. from taking action necessaiy for complying -with Ordinance No. 21391, as amended by Ordinance No. 22158, you shall not consider those days in your calculation of the number of days that such condition existed.
Answer in dollars and cents, if any.
Answer: _$750,000.00_

The jury was further instructed that the City could recover a civil penalty only if it proved that

(1) the property owner was actually notified of the ordinance, and (2) after the property owner received notice of the violations of the ordinance, the property owner committed acts in violation of the ordinance or failed to take action necessary for compliance with the ordinance.3

TCI first argues that it cannot be held liable for. violating the ordinances as a matter of law because the ordinances were not effective at the time of the demolition. In making this argument, TCI relies on section 51 A-4.501 (f)(2) of the Dallas Development Code, which states that “upon passage of an historic overlay district ordinance, the director shall file a copy of the ordinance in the county deed records to [696]*696give notice of the historic regulations.” See Dallas Development Code § 51A-4.501(f)(2). TCI contends there is no evidence that either ordinance 21391 or ordinance 22158 was ever filed in the county-deed records before the building was demolished and there is conclusive evidence they were not. Because the filing requirement was not met, TCI argues the ordinances at issue were unenforceable.

TCI cites two cases to support its argument that the ordinances were not enforceable against it: Bolton v. Sparks, 362 S.W.2d 946 (Tex.1962) and Appolo Development, Inc. v. City of Garland, 476 S.W.2d 365 (Tex.App.—Dallas 1972, writ ref'd n.r.e.). In both Bolton and Appolo, the courts held that the zoning ordinances at issue were invalid because they did not comply with the mandatory notice and hearing provisions of the superior state zoning statute. See Bolton, 362 S.W.2d at 950; Appolo, 476 S.W.2d at 367-68. The supreme court held in Bolton that “[m]u-nicipal ordinances must conform to the limitations imposed by the superior statutes, and only where the ordinance is consistent with them, and each of them, will it be enforced.” See Bolton, 362 S.W.2d at 950. The superior state statute at issue in Bolton and Appolo explicitly required that, with respect to zoning ordinances, “no such regulation, restriction, or boundary shall become effective until after a public hearing in relation thereto ... [and a]t least 15 days’ notice of the time and place of such hearing shall be published in an official paper, or a paper of general circulation, in such municipality.” See Bolton, 362 S.W.2d at 949; Appolo, 476 S.W.2d at 366. It was undisputed in both Bolton and Appolo that no public hearing with proper notice was conducted.

TCI would have us read Bolton and Appolo

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486 S.W.3d 692, 2016 Tex. App. LEXIS 2476, 2016 WL 890883, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tci-west-end-inc-v-city-of-dallas-texapp-2016.