Town of Flower Mound v. Stafford Estates Ltd. Partnership

135 S.W.3d 620, 47 Tex. Sup. Ct. J. 497, 2004 Tex. LEXIS 437, 2004 WL 1048331
CourtTexas Supreme Court
DecidedMay 7, 2004
Docket02-0369
StatusPublished
Cited by118 cases

This text of 135 S.W.3d 620 (Town of Flower Mound v. Stafford Estates Ltd. Partnership) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Town of Flower Mound v. Stafford Estates Ltd. Partnership, 135 S.W.3d 620, 47 Tex. Sup. Ct. J. 497, 2004 Tex. LEXIS 437, 2004 WL 1048331 (Tex. 2004).

Opinion

Justice HECHT

delivered the opinion of the Court.

The Town of Flower Mound’s Land Development Code requires that a subdivision developer improve abutting streets that do not meet specified standards, even if the improvements are not necessary to accommodate the impact of the subdivision. Accordingly, the Town conditioned its approval of Stafford Estates Limited Partnership’s development of a residential subdivision on Stafford’s rebuilding an abutting road. Stafford rebuilt the road and then sued the Town to recover the cost. The district court held that the condition imposed on Stafford’s development was a taking without compensation in violation of article I, section 17 of the Texas Constitution, 1 the Fifth Amendment to the *623 United States Constitution, 2 and the federal Civil Rights Act of 1871, 3 and awarded Stafford the cost of improvements not necessitated by increased traffic from the subdivision. The district court also awarded Stafford expert witness fees and attorney fees under the federal Civil Rights Attorney’s Fees Awards Act of 1976. 4 The court of appeals reversed the award of expert witness fees and attorney fees and otherwise affirmed. 5

The three principal questions now before us are whether Stafford could wait until after making the improvements to sue, whether the Town’s condition on Stafford’s development amounted to a compen-sable taking, and whether Stafford is entitled to recover fees under federal civil rights laws. We agree with the court of appeals that Stafford is entitled under the Texas Constitution to adequate compensation for the taking of its property but is not entitled to recover under federal civil rights laws. We thus affirm the judgment of the court of appeals.

I

The Town of Flower Mound is a fast-growing suburban municipality (1990 pop. 15,527; 2000 pop. 50,702) in between Dallas, Fort Worth, and Denton. The Town’s Stafford Estates subdivision consists of some 247 homes on 90 acres bounded on the north by McKamy Creek Road and on the west by Simmons Road. Both roads are in the Town’s right-of-way and are not part of the subdivision.

Over a period from 1994 to 1997, the Town approved the development of Stafford Estates in three roughly equal phases. Phases II and III abutted Simmons Road, which was at the time a two-lane asphalt road designated by the Town as a “rural collector roadway”. Section 4.04(o) of the Town’s Land Development Code provided that for all subdivisions and industrial areas, “[a]butting substandard local and collector streets shall be constructed or reconstructed as necessary by the developer to bring them up to minimum standards, and all right-of-way ... dedicated to the Town, with no cost participation from the Town.” 6 One such minimum standard, prescribed by section 4.04(b) of the Code, was that “all builders/developers shall be required to construct concrete streets according to the Engineering Standards Manual.” 7 Based on these provisions, the Town conditioned its approval of the plats for Phases II and III on Stafford’s rebuilding Simmons Road with concrete instead of asphalt.

*624 Stafford objected to this condition and requested an exception under section 4.04(a) of the Code, which stated:

The Town Council may grant an exception to the street design standards as contained in this section, provided that the Council finds and determines that such standards work a hardship on the basis of utility relocation costs, right-of-way acquisition costs, and other related factors. 8

Stafford argued that it should not be required to pay more than half the cost of rebuilding Simmons Road with concrete. The asphalt surface was not in disrepair, and the Town had made no attempt to determine whether the required improvements were roughly proportional to the impact of the subdivision on Simmons Road in particular or on the Town’s roadway system as a whole. Although the Town had exercised its discretion to grant exceptions to other developers on a project-by-project basis, Stafford’s request was denied.

After objecting to the condition on its development at every administrative level in the Town, all to no avail, Stafford rebuilt Simmons Road with concrete as the Town had required at a cost of $484,303.79, transferred the improvements to the Town, and then demanded reimbursement for what it asserted was the Town’s proportionate share of the expense. When the Town still refused to pay any part of the cost, Stafford sued, alleging that by conditioning development of Stafford Estates on improving Simmons Road, the Town had taken Stafford’s property without compensation in violation of the state and federal constitutions and federal law.

By agreement, the takings issue was submitted to the district court on stipulated facts, although after the court announced its ruling, it allowed the Town to submit some testimony by way of a bill of exception, 9 which the court appears to have considered in overruling the Town’s request for reconsideration of its ruling. Stafford argued that the applicable standard under state and federal law for determining whether there was a taking in these circumstances was that announced by the United States Supreme Court in Nollan v. California Coastal Commis sion 10 and Dolan v. City of Tigard,. 11 The Town argued that Nollan and Dolan were inapplicable and that even by their standard the condition on Stafford’s development was not a taking. The court agreed with Stafford and determined that the condition—

• “did not substantially advance a legitimate state interest attributable to the impact of the development of Stafford Estates”;

• “was not roughly proportional to any services provided by the Town to Stafford Estates or a burden placed on the Town by Stafford Estates”;

• was “in substantial excess of the special benefits accruing” to Stafford by the improvement of Simmons Road; and

• “constituted a taking of property for public use without just or adequate compensation in violation of Article I, § 17 of the Texas Constitution, the Fifth Amendment to the U.S. Constitution and 42 U.S.C. § 1983.”

The court then heard evidence on damages, as well as on costs recoverable by federal statute. The Town stipulated that Stafford’s expenses incurred in rebuilding *625 Simmons Road with concrete were reasonable and necessary. The court awarded Stafford damages of only $425,426 without explaining the reduction of $58,877.79, or about 12.2%, from the actual cost.

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Cite This Page — Counsel Stack

Bluebook (online)
135 S.W.3d 620, 47 Tex. Sup. Ct. J. 497, 2004 Tex. LEXIS 437, 2004 WL 1048331, Counsel Stack Legal Research, https://law.counselstack.com/opinion/town-of-flower-mound-v-stafford-estates-ltd-partnership-tex-2004.