the Unknown Stockholders of the K.M. Van Zandt Land Company and the Unknown Heirs, Successors, and Assigns of the Unknown Stockholders of the K.M. Van Zandt Land Company AND Edmund P. Cranz and Neil L. Van Zandt v. Whitehead Equities, JV., Jagee Real Properties, L.P., Garview Partners, L.P., Spokane Ventures, Ltd., Inc., Nona, Inc., Will Ed Wadley and FPA Foundation

CourtCourt of Appeals of Texas
DecidedJune 19, 2008
Docket02-06-00294-CV
StatusPublished

This text of the Unknown Stockholders of the K.M. Van Zandt Land Company and the Unknown Heirs, Successors, and Assigns of the Unknown Stockholders of the K.M. Van Zandt Land Company AND Edmund P. Cranz and Neil L. Van Zandt v. Whitehead Equities, JV., Jagee Real Properties, L.P., Garview Partners, L.P., Spokane Ventures, Ltd., Inc., Nona, Inc., Will Ed Wadley and FPA Foundation (the Unknown Stockholders of the K.M. Van Zandt Land Company and the Unknown Heirs, Successors, and Assigns of the Unknown Stockholders of the K.M. Van Zandt Land Company AND Edmund P. Cranz and Neil L. Van Zandt v. Whitehead Equities, JV., Jagee Real Properties, L.P., Garview Partners, L.P., Spokane Ventures, Ltd., Inc., Nona, Inc., Will Ed Wadley and FPA Foundation) 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
the Unknown Stockholders of the K.M. Van Zandt Land Company and the Unknown Heirs, Successors, and Assigns of the Unknown Stockholders of the K.M. Van Zandt Land Company AND Edmund P. Cranz and Neil L. Van Zandt v. Whitehead Equities, JV., Jagee Real Properties, L.P., Garview Partners, L.P., Spokane Ventures, Ltd., Inc., Nona, Inc., Will Ed Wadley and FPA Foundation, (Tex. Ct. App. 2008).

Opinion

COURT OF APPEALS SECOND DISTRICT OF TEXAS FORT WORTH

NO. 2-06-294-CV

THE UNKNOWN STOCKHOLDERS APPELLANTS OF THE K.M. VAN ZANDT LAND COMPANY AND THE UNKNOWN HEIRS, SUCCESSORS, AND ASSIGNS OF THE UNKNOWN STOCKHOLDERS OF THE K.M. VAN ZANDT LAND COMPANY AND EDMUND P. CRANZ AND NEIL L. VAN ZANDT

V.

WHITEHEAD EQUITIES, JV.; APPELLEES JAGEE REAL PROPERTIES, L.P.; GARVIEW PARTNERS, L.P.; SPOKANE VENTURES, LTD., INC.; NONA, INC.; WILL ED WADLEY; AND FPA FOUNDATION

------------

FROM THE 67TH DISTRICT COURT OF TARRANT COUNTY

MEMORANDUM OPINION 1

1 … See T EX. R. A PP. P. 47.4. ------------ Appellants, the unknown stockholders of the K.M. Van Zandt Land

Company (“the Land Company”) and the unknown heirs, successors, and

assigns of the unknown stockholders (“the Unknown Heirs”), and Edmund P.

Cranz and Neil L. Van Zandt (“the Cranz Appellants”), challenge the summary

judgment granted for Appellees Whitehead Equities, JV.; Jagee Real Properties,

L.P.; Garview Partners, L.V.; Spokane Ventures, Ltd., Inc.; Nona, Inc.; Will Ed

Wadley; and FPA Foundation. In one broad issue, the Unknown Heirs contend

that the trial court erred by granting summary judgment for Appellees. The

Cranz Appellants bring two issues, arguing that the trial court erred by granting

summary judgment and by granting Appellees’ peremptory motion to strike

Appellants’ request for class certification. Because we hold that the trial court

did not err by granting summary judgment, we affirm.

I. F ACTS AND P ROCEDURAL H ISTORY

In the early part of the twentieth century, the Land Company dedicated

several additions, divided into lots, around the West Seventh Street area of Fort

Worth (“the subdivisions”) and conveyed the real property under deeds

containing restrictions against, among other things, the sale of alcohol on the

conveyed property (“the Van Zandt deeds”). The restrictions state,

This conveyance is however made upon the following condition and limitations: That if . . . intoxicating liquor shall ever be sold

2 upon said premises or any part thereof, then . . . the said premises hereby conveyed shall thereupon immediately revert to the grantor herein and its legal representatives, and the estate hereby granted shall thereupon terminate.

The Land Company formally dissolved in 1947.

Appellees own tracts of land in Fort Worth that were conveyed to them

by deeds containing these provisions. Appellees filed suit seeking a declaratory

judgment that the restrictions in the deeds are invalid and unenforceable and to

have the trial court remove the encumbrance from the title to the property.

Prior to the instant suit, some other property owners in the same area who held

land under deeds from the Land Company with these restrictions had brought

suit against the corporation, its directors, or its unknown shareholders to set

aside the reversionary rights (as Appellants call them) or restrictive covenants

(as characterized by Appellees) relating to their properties. In each of those

cases, either the plaintiffs obtained a post-answer default judgment, or the

parties settled, with the defendants agreeing to the removal of the restrictions.

In at least one case, the trial court granted summary judgment for the plaintiffs,

setting aside the “restrictive covenants, conditions subsequent, and reverter

clauses” contained in the plaintiffs’ deeds. But the summary judgment

evidence here does not include the pleadings in that case, and so we cannot

3 say whether the restrictions at issue or the summary judgment grounds

asserted in that case were the same as those here.

Appellees moved for summary judgment on six grounds: (1) there are no

persons or entities with a right to enforce the restrictions; (2) Appellants are

collaterally estopped from contesting Appellees’ claims concerning the invalidity

and unenforceability of the restrictions; (3) the restrictions are unenforceable

due to Appellants’ waiver and abandonment of the restrictions; (4) Appellants

are prevented from enforcing the restrictions due to the changed conditions that

make it impractical and inequitable to enforce the restrictions; (5) the

restrictions in question are barred by the rule against perpetuities; and (6) the

restrictions, if left in place, act as an impermissible restraint on the alienation

of the real property in question. The trial court granted summary judgment

without specifying the grounds.

II. S TANDARD OF R EVIEW

A plaintiff is entitled to summary judgment on a cause of action if it

conclusively proves all essential elements of the claim. 2 When reviewing a

summary judgment, we take as true all evidence favorable to the nonmovant,

and we indulge every reasonable inference and resolve any doubts in the

2 … See T EX. R. C IV. P. 166a(a), (c); MMP, Ltd. v. Jones, 710 S.W.2d 59, 60 (Tex. 1986).

4 nonmovant’s favor. 3 The summary judgment will be affirmed only if the record

establishes that the movant has conclusively proved all essential elements of

the movant’s cause of action or defense as a matter of law. 4

III. A NALYSIS

In the Unknown Heirs’ sole issue and the Cranz Appellants’ first issue,

they contend that the trial court erred by finding that the deed restrictions

created restrictive covenants and by granting summary judgment on the ground

that there are no persons or entities with a right to enforce the restrictions. We

hold that the trial court did not err by granting summary judgment regardless

of whether the restrictions are characterized as restrictive covenants or

reversionary interests.

A court may refuse to enforce a restrictive covenant where the parties

entitled to enforce it have acquiesced “in such substantial violations within the

restricted area as to amount to an abandonment of the covenant or a waiver of

the right to enforce it” or where “there has been such a change of conditions

in the restricted area or surrounding it that it is no longer possible to secure in

3 … IHS Cedars Treatment Ctr. of DeSoto, Tex., Inc. v. Mason, 143 S.W.3d 794, 798 (Tex. 2004). 4 … City of Houston v. Clear Creek Basin Auth., 589 S.W.2d 671, 678 (Tex. 1979).

5 a substantial degree the benefits sought to be realized through the covenant.” 5

In this case, Appellees introduced thousands of pages of summary judgment

evidence, including evidence relating to the character of the neighborhood. This

evidence includes a report from the Fort Worth Planning Department that

identifies West Seventh Street as a commercial corridor that the city wishes to

revitalize and finds that the corridor is an area “characterized by predominantly

commercial land uses,” including restaurants. Appellees’ evidence also includes

a newspaper article, two affidavits, alcoholic beverage receipts from the Texas

Comptroller of Public Accounts, and mixed beverage permits and wine and beer

retailer permits, which, when taken together, indicate that there are over

twenty businesses in and around the vicinity of Appellees’ property that are

openly selling alcoholic beverages, at least twelve of which are on property

conveyed by the Land Company by deeds containing the same restrictions as

Free access — add to your briefcase to read the full text and ask questions with AI

Related

McMahan v. Greenwood
108 S.W.3d 467 (Court of Appeals of Texas, 2003)
Wichita Falls Grain Co. v. Taylor Foundry Co.
649 S.W.2d 798 (Court of Appeals of Texas, 1983)
James v. Dalhart Consol. Independent School Dist.
254 S.W.2d 826 (Court of Appeals of Texas, 1952)
Field v. Shaw
535 S.W.2d 3 (Court of Appeals of Texas, 1976)
Dilbeck v. Bill Gaynier, Inc.
368 S.W.2d 804 (Court of Appeals of Texas, 1963)
City of Houston v. Clear Creek Basin Authority
589 S.W.2d 671 (Texas Supreme Court, 1979)
El T. Mexican Restaurants, Inc. v. Bacon
921 S.W.2d 247 (Court of Appeals of Texas, 1996)
Anderson v. New Property Owners' Ass'n of Newport, Inc.
122 S.W.3d 378 (Court of Appeals of Texas, 2003)
International Ass'n of MacHinists, Lodge No. 6 v. Falstaff Brewing Corp.
328 S.W.2d 778 (Court of Appeals of Texas, 1959)
MMP, Ltd. v. Jones
710 S.W.2d 59 (Texas Supreme Court, 1986)
Cowling v. Colligan
312 S.W.2d 943 (Texas Supreme Court, 1958)
Altman v. Blake
712 S.W.2d 117 (Texas Supreme Court, 1986)
Hanover Insurance Company v. Hoch
469 S.W.2d 717 (Court of Appeals of Texas, 1971)
Gladewater County Line Independent School Dist. v. Hughes
59 S.W.2d 351 (Court of Appeals of Texas, 1933)
Sugg v. Smith
205 S.W. 363 (Court of Appeals of Texas, 1918)
Knight v. Chicago Corp.
183 S.W.2d 666 (Court of Appeals of Texas, 1944)
Knight v. Chicago Corp.
188 S.W.2d 564 (Texas Supreme Court, 1945)
Hemphill v. Cayce
197 S.W.2d 137 (Court of Appeals of Texas, 1946)
Daggett v. City of Ft. Worth
177 S.W. 222 (Court of Appeals of Texas, 1915)
Newton v. Newton
14 S.W. 157 (Texas Supreme Court, 1890)

Cite This Page — Counsel Stack

Bluebook (online)
the Unknown Stockholders of the K.M. Van Zandt Land Company and the Unknown Heirs, Successors, and Assigns of the Unknown Stockholders of the K.M. Van Zandt Land Company AND Edmund P. Cranz and Neil L. Van Zandt v. Whitehead Equities, JV., Jagee Real Properties, L.P., Garview Partners, L.P., Spokane Ventures, Ltd., Inc., Nona, Inc., Will Ed Wadley and FPA Foundation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-unknown-stockholders-of-the-km-van-zandt-land-company-and-the-unknown-texapp-2008.