TH Investments Inc v. Kirby Inland Marine L.P. and Port of Houston Authority of Harris County, Texas

CourtCourt of Appeals of Texas
DecidedFebruary 1, 2007
Docket14-05-00204-CV
StatusPublished

This text of TH Investments Inc v. Kirby Inland Marine L.P. and Port of Houston Authority of Harris County, Texas (TH Investments Inc v. Kirby Inland Marine L.P. and Port of Houston Authority of Harris County, Texas) 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
TH Investments Inc v. Kirby Inland Marine L.P. and Port of Houston Authority of Harris County, Texas, (Tex. Ct. App. 2007).

Opinion

Affirmed; Opinion of January 9, 2007 Withdrawn; Corrected Opinion filed February 1, 2007

Affirmed; Opinion of January 9, 2007 Withdrawn; Corrected Opinion filed February 1, 2007.

In The

Fourteenth Court of Appeals

____________

NO. 14-05-00204-CV

TH INVESTMENTS, INC., Appellant

V.

KIRBY INLAND MARINE, L.P. AND PORT OF HOUSTON AUTHORITY OF HARRIS COUNTY, TEXAS, Appellees

On Appeal from the 269th District Court

Harris County, Texas

Trial Court Cause No. 03-12846

C OR R E C T E D   O P I N I O N

We originally issued our opinion affirming the trial court=s judgment on January 9, 2007.  On Kirby Inland Marine, L.P.,=s unopposed motion to correct the opinion, we withdraw our previous opinion and substitute this corrected opinion in its place.[1]


This appeal by a private landowner, TH Investments (ATHI@) against the Port of Houston Authority and Kirby Inland Marine, asks us to decide who owns two tracts of property on the Old River and the San Jacinto River. As will be discussed in greater detail below, both rivers are subject to the tides.  Three broad issuesCand many sub-issuesCare presented.

The first two issues pertain to the first tract, Tract 1.  We first must determine whether the State has gained ownership of it because the property is covered by shallow tidal waters.  Second, we are asked to decide if the location the trial court chose for the southern boundary of Tract 1 coincides with the boundary set by the original 1838 survey of the property.  The third issue involves Tract 2.  We are asked to decide whether THI owns Tract 2.  In the body of the opinion we will address the many sub-issues, but for purposes of this overview, we hold the following regarding the three broad issues.  First, the State did gain ownership of Tract 1 because it became submerged as a result of indistinguishable effects of erosion and subsidence.  Therefore, the trial court correctly ruled that the Port owns Tract 1.  Second, the southern boundary set by the trial court for Tract 1 is the same as boundary set by the original 1838 survey.  Third, as the trial court held, THI does not own Tract 2.  In short, we affirm the trial court=s rulings.

Factual and Procedural Background


The property lies near the confluence of the Old River and the San Jacinto River, east of Houston near Channelview, in Harris County, Texas.  Tract 1, which historically consisted of 27 acres, is now a Aflat,@ almost completely submerged beneath the waters of the two rivers.[2]  Occasionally, Tract 1 becomes exposed during the fall and winter months during low tide when a north wind blows.  Tract 2 is a small parcel of land to the east consisting of 6.1 acres variously described as an island or a strip of riverbank. The two tracts are sometimes identified by their acreage as Athe 27 Acre Tract@ and Athe 6.1 Acre Tract.@  The area around the property is subject to significant commercial maritime use, as well as occasional use for recreational purposes by pleasure craft and for fishing. 

What follows are the relevant facts framing the dispute; more specific details are developed in the discussion of the issues.

THI=s Purchase of the Property

In November 2002, THI acquired record title to Tract 1 by a non-warranty deed from the record owners, known collectively as the ACarter Heirs,@ and acquired Tract 2 by quitclam deed from the Carter Heirs.  The contract of sale for Tract 1 included an AAddendum for Coastal Area Property,@ which provided to THI the following notice:

NOTICE REGARDING COASTAL AREA PROPERTY

1.       The real property described in and subject to this contract adjoins and shares a common boundary with the tidally influenced submerged lands of the state.  The boundary is subject to change and can be determined accurately only by a survey on the ground made by a licensed state land surveyor in accordance with the original grant from the sovereign.  The owner of the property described in this contract may gain or lose portions of the tract because of changes in the boundary.

***

3.       State law prohibits the use, encumbrance, construction, or placing of any structure in, on, or over state-owned submerged lands below the applicable tide line, without proper permission.

4.       The purchaser or grantee is hereby advised to seek the advice of an attorney or other qualified person as to the legal nature and effect of the facts set forth in this notice on the property described in and subject to this contract.  Information regarding the location of the applicable tide line as to the property described in and subject to this contract may be obtained from the surveying division of the General Land Office in Austin.

(emphasis added).  When he signed the contract for sale, THI=s president, Earl Thrift, neither read the deeds himself nor engaged counsel to do so.


When THI purchased the land from the Carter Heirs in 2002, the Carter Heirs also assigned to THI a lease with Kirby Inland Marine, L.P.  THI, which intended to start its own barge fleeting business, then informed Kirby that it would either have to vacate the area and remove any improvements made or start paying $35,000 monthly in rent.[3]  When Kirby did not agree to THI=s demands, THI terminated the lease and threatened to evict Kirby.

The Lawsuit

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TH Investments Inc v. Kirby Inland Marine L.P. and Port of Houston Authority of Harris County, Texas, Counsel Stack Legal Research, https://law.counselstack.com/opinion/th-investments-inc-v-kirby-inland-marine-lp-and-po-texapp-2007.