DocketNumber: No. 08-16-00209-CV
Citation Numbers: 551 S.W.3d 290
Judges: McClure, Palafox, Rodriguez
Filed Date: 4/25/2018
Status: Precedential
Modified Date: 10/19/2024
ANN CRAWFORD McCLURE, Chief Justice *294Texas cities enjoy governmental immunity and cannot be sued absent some recognized waiver of that immunity.
We agree with the trial court that governmental immunity precludes a declaratory judgment claim against the City of Austin to construe its ordinances. The holding is somewhat academic in this case, however, because we must construe the same ordinances to determine if the land owners have validly asserted an ultra vires claim against several City officials. In doing so, we conclude that the trial court correctly construed the ordinances (and thus correctly dismissed the ultra vires claims). Finally, we conclude the trial court did not err in denying leave to amend, and affirm the judgment below.
BACKGROUND
This case arises from a dispute between the Ali and Donna Tabrizi (the Tabrizis) and the City of Austin (the City) over the Tabrizis' desire to build a house on an undeveloped piece of land. The Tabrizis allege in their last live pleading that they purchased the lot in 2013, which was a .56 acre "remainder" lot from four subdivisions developed around it. Their lot is not itself in a subdivision, nor has it been platted. It has, however, been on the tax *295roles for more than forty years and is zoned for residential use.
When the Tabrizis investigated obtaining a building permit, they were told by the City that they would need to first obtain a plat, which required them to file a subdivision application. Title 25 of the City's municipal code governs development. Subdivision and platting regulations are found in Chapter 25-4 of that title. See Austin, Tex. Austin City Code, ch. 25-4 et. seq. (2018) (hereinafter, City Code). But as a part of that application process, the City required the Tabrizis to comply with its environmental restrictions, as found in Chapter 25-8. That chapter includes a section addressing "critical environmental features." Id. at 25-8, § 25-8-281. As it turns out, there is a "seep" on the back end of the Tabrizis' lot which is one type of critical environmental feature referenced in the code.
The Tabrizis then sought to circumvent the subdivision platting altogether. Under Chapter 25-4, a property is exempt from platting if it (1) is five acres or less, (2) existed in its current configuration on January 1, 1995, (3) was receiving utility services on January 1, 1995, as authorized under the rules of a utility provider, (4) is located on an existing street, and (5) complies with the requirements for roadway frontage. Id . at ch. 25-4, § 25-4-2(D). The only predicate at issue in this case was whether the lot had received utility service on January 1, 1995. The lot abuts a street with curbs and gutters. The Tabrizis contended that the curb and gutter drainage facilities qualified the lot as receiving utility service. The City disagreed and declined to grant an exemption.
The Tabrizis then filed this lawsuit against the City and three of its employees in their official capacity. The Tabrizis' last amended petition seeks a declaration that (1) the requirements of Chapter 25-8 (the environmental rules) do not apply to their subdivision application and that the actions of the several officials were ultra vires by applying 25-8 to their application, and (2) they meet the exception from platting as found in Section 25-4-2 because the lot was "receiving utility service" on January 1, 1995.
The City and its officials filed a plea to the jurisdiction supported in part with the affidavit of Charles Lesniak, the chief environmental officer for the City. The Tabrizis objected to portions of his affidavit. Eventually his entire deposition was attached to the plea to the jurisdiction record. The trial court sustained the objections to Lesniak's affidavit, but viewed the matter as a legal dispute that could be decided from the petition and the City ordinances. Based on its review, the trial court concluded that it had no jurisdiction to consider a declaratory suit against the City to construe its ordinances. The court also concluded the ultra vires claims failed because the City officials were acting pursuant to their authority under the development ordinance. The Tabrizis sought leave to amend their petition, which the trial court denied. This appeal follows.
STANDARD OF REVIEW GOVERNING LAW
When it applies, governmental immunity protects political subdivisions of *296the State, including cities, from suit. See Wichita Falls State Hospital v. Taylor ,
As here, a governmental unit may raise its immunity through a plea to the jurisdiction. Texas Dept. of Parks & Wildlife v. Miranda ,
We review de novo the question of whether a plaintiff has alleged facts sufficient to affirmatively demonstrate a trial court's subject matter jurisdiction, and whether the jurisdictional facts establish a trial court's jurisdiction (or lack thereof). State Dept. of Highways and Public Transp. v. Gonzalez ,
DISCUSSION
The Tabrizis raise five issues for our review that contend the trial court erred: in dismissing the claim against the City (Issue One); dismissing the ultra vires claims against the City officials (Issues Two and Three); and in denying them leave to amend their petition (Issues Four and Five). We take each in turn.
The Declaratory Judgment Act does not waive Governmental Immunity to Construe an Ordinance
In their first issue, the Tabrizis contend that the trial court erred in dismissing the claim against the City because a court has jurisdiction to construe a statute against a governmental entity so long as no monetary relief is sought. The Tabrizis' suit seeks a declaration under the Texas Declaratory Judgment Act (the *297DJA). That act expressly allows for a "person ... whose rights, status, or other legal relations are affected by a ... municipal ordinance ... [to] have determined any question of construction or validity arising under the ... ordinance ... and obtain a declaration of rights, status, or other legal relations thereunder." TEX.CIV.PRAC.&REM.CODE ANN. § 37.004(a) (West 2015). The DJA, however, does not grant a trial court's subject matter jurisdiction-it is "merely a procedural device for deciding cases already within a court's jurisdiction." Texas Ass'n of Bus. v. Texas Air Control Bd. ,
The extent of "those certain claims" is at the heart of the Tabrizis' first issue. The Tabrizis contend that the Texas Supreme Court's decision in Texas Lottery Com'n v. First State Bank of DeQueen ,
*298The court in DeQueen had to decide which of two conflicting statutes controlled the assignability of lottery winnings.
Governmental immunity does not apply when a government official acts outside his or her authority. See Houston Belt & Terminal Ry. Co. v. City of Houston ,
To determine whether a party has asserted a valid ultra vires claim, we must construe the relevant statutory provisions, apply them to the facts as alleged in the pleadings, and determine whether those facts constitute acts beyond the official's authority or establish a failure to perform a purely ministerial act. See Texas Dep't of Transp. v. Sunset Transp., Inc. ,
Although ordinarily we would first consider whether the Commissioners have governmental immunity from suit, which would implicate the trial court's subject matter jurisdiction, we begin by considering the proper construction of Texas Water Code § 49.223. That is because whether the Commissioners' conduct constitutes ultra vires actions that falls within an exception to governmental immunity depends on what the statute required of the District.
*299The Officials Did Not Act Ultra Vires in Applying the Environmental Chapter
The Tabrizis second issue contends the trial court erred in concluding that the environmental regulations in Chapter 25-8 applied to a Chapter 25-4 application to obtain a subdivision plat. Specifically, the Tabrizis claim the trial court erred in overlooking deposition testimony from the City's chief environmental officer. They claim that testimony shows he was unable to cite any direct authority for applying the environmental rules to platting applications. The Tabrizis claim that they only seek to plat the property, which they contend requires nothing more than a proper survey.
We apply rules of statutory construction to construe municipal ordinances. Houston Belt ,
As noted, provisions related to land development are found in Title 25 of the City Code. Section 25-1-61 requires that a person developing land "must obtain approvals in the following order: (1) zoning; (2) subdivision; (3) site plan; and (4) building permit." City Code, ch. 25-1, § 25-1-61.
*300Section 25-4-84 addresses who may approve a plat and the criteria to be used. The decision rests, depending on the circumstances, with either the Director, the Land Use Commission, or City Council.
The City also calls our attention to Section 25-8-21 within the environmental chapter, titled "Applicability." It states that except "as provided in Subsection (B), this subchapter applies in the planning jurisdiction."
There is an additional indication these chapters were all meant to be considered together. Section 25-1-251 sets out a procedure for "Applications for Adjustment" for water quality rules under Chapter 25-8. The ordinance provides that Applications "may be considered only in connection with the review of: (1) a site plan; (2) a subdivision; or (3) other specific development project or proposal." Id. at 25-1, § 25-1-251(A). The Application for Adjustment procedure therefore contemplates that in the consideration of a subdivision, Chapter 25-8 environmental issues could be addressed.
The Tabrizis point out, however, that the City's chief environmental officer *301was unable during his oral deposition to point out any authority for tying the environmental rules to the plat requirements. He also walked back some of the claims that he made in an affidavit about the requirements under the development code. "Construction of a statute by the administrative agency charged with its enforcement is entitled to serious consideration, so long as the construction is reasonable and does not contradict the plain language of the statute." Tarrant Appraisal Dist. v. Moore,
The Tabrizis also argue that the applicable watershed protection rules in Section 25-8 only apply to "development" and their application to subdivision decision by itself, does not involve "development." The argument overlooks that the subdivision plan is a defined predicate step towards the eventual construction of a home. In a sterile vacuum, a site plan, or even an application for a building permit, are not technically "development" under the ordinance's definition because by themselves, they are not the "construction" of a building. They are, however, critical to the process. We do not apply a construction that leads to absurd results, and therefore decline the Tabrizis' hyper-technical cabining the term "development" in Section 25-8-421.
Finally, we find no support in the textual language of the ordinance for the Tabrizis' view that they only need a proper survey to plat the property. "Plat approval, like zoning, is an exercise of the [governing entities'] police power. The police power is a grant of authority from the people to their governmental agents 'to promote the public convenience or the general prosperity, as well as regulations designed to promote the public health, the public morals, or the public safety.' " City of Round Rock v. Smith ,
The Officials Did Not Act Ultra Vires in Denying the Exemption
In Issue Three, the Tabrizis claim that City officials acted ultra vires in denying them an exemption from the subdivision platting requirement under a grandfathering exception. The only relevant question under that exception was whether the lot was receiving "utility service that was authorized under the rules of the utility provider" on January 1, 1995. City Code ch. 25-4, § 25-4-2(B). The term "utility service" is not defined in the ordinance. The Tabrizis pleaded that the street gutter abutting the lot qualifies as "utility service."
*302The City attached to its plea to the jurisdiction an informational document for those pursuing the exception. That document states, "Utility service means that the property has an electric, water, wastewater, or gas meter. Water and wastewater tap permits without a meter or utility accounts are not acceptable." The trial court concluded that while the City's "definition may be imprecise or too narrow, ... there is no ordinary meaning of 'utility' that includes a gutter."
We find no ready definition of the term "utility service." The word utility or utility provider is defined by statute in some technical applications, such as for the Public Utilities Commission. See e.g. Pub. Util. Commn. of Texas v. City of Austin ,
The City does charge property owners a "drainage utility fee" to pay for the City's operation and maintenance of its drainage infrastructure. That infrastructure includes street gutters, and the discharge culverts they feed. The fee, however, was never assessed to this property. The Tabrizis argue, however, that the City cannot consider drainage a "utility" for charging a fee, but consider it something else for the purposes of the grandfathering exception. The City responds in part that the drainage utility fee is charged to property that discharges storm water into the City's drainage system. From the limited record here, the property appears to slope away from the roadway, and it is unclear if storm water flows from the property to the street of vice versa. But equally important, the exemption statute already contains a condition that the grandfathered property must be located on an existing street. City Code, ch. 25-4, § 25-4-2(D)(4). If a drainage utility fee based on curbs and gutters qualified as a utility, it would be redundant to specify it again as a part of the "utility service" requirement.
An ultra vires claim here requires that a City official (1) acted without legal authority in denying the exemption, or (2) had a ministerial duty to grant the exemption. See Emmett ,
The Texas Supreme Court recently clarified what it means for an official to act "without legal authority" in Houston Belt & Terminal Ry. Co. v. City of Houston ,
Neither party here provides any insights into what discretion the City ordinances give to the officials to interpret or apply the development code. But in that way, this case is analogous to Hall v. McRaven ,
And even assuming the officials have some, but not total discretion to define the otherwise undefined "utility service" term, the Tabrizis have not pleaded, nor otherwise shown the officials' interpretation conflicts with ordinary meaning of "utility service" under Section 25-4-2(D). We agree, therefore, that the Tabrizis have not asserted a valid ultra vires claim for the denial of the exemption under Section 25-4-2(D) and we overrule Issue Three.
Motion to Amend
After the trial court issued a letter ruling stating that it would grant the plea to the jurisdiction, the Tabrizis moved for leave to amend their petition. They attached a proposed Third Amended Petition to the Motion for Leave. The trial court denied leave, and the Tabrizis now raise in Issues Four and Five their objection to that ruling. We take up both issues together.
If the pleadings lack sufficient facts to affirmatively demonstrate the trial court's jurisdiction but do not reveal incurable defects in jurisdiction, the issue is one of pleading sufficiency, and the trial court should afford the plaintiff an opportunity to amend. Miranda ,
The Tabrizis' proposed third amended petition contains three substantive changes. First, the petition adds the factual allegation that the Tabrizis initially submitted a one-lot subdivision application. They were then told that an environmental assessment report was needed. When that *304environmental assessment was performed, the City required the Tabrizis to resubmit their application as a two-lot subdivision to create the "buffer zone lot" for the seep.
The second change adds an allegation that because of the approval of four subdivisions surrounding their orphaned property, the Tabrizis' lot had already been subdivided. They made this claim by adding the following italicized language to their earlier allegation: "This property is a remainder parcel that was subdivided from its parent property decades earlier. Four subdivisions, all of which were approved by the City of Austin, surround the property in its entirety."
Finally, they sought to add a third alternative claim, seeking:
(a) a declaration that they are not subdividing land within the meaning of Chapter 25-4 of the Austin City Code and (b) that the actions of the Officials were ultra vires to the extent that they required the Tabrizis to submit a subdivision application as a prerequisite for submission of an application for a building permit.
The trial court concluded that none of these changes would support an ultra vires claim. We agree.
By alleging that they were told to resubmit their platting request to subdivide the property, the Tabrizis only confirm that the City believed that the environmental rules pertaining to a seep applied to a platting request. We also conclude that the proper construction of the City Code supports that view. Thus, whether they originally submitted a one-lot or two-lot application is of no moment. No City official acted in an ultra vires fashion by insisting on enforcement of the environmental provisions.
The additional clarification of the petition that alleges the property had been de facto subdivided years earlier also does not change our analysis. As the trial judge alluded to, the Tabrizis point to no code provision that addresses or sanctions de facto subdivisions. Without such authority, an official could hardly have a ministerial duty to recognize such a subdivision, nor be without legal authority to resist it. Moreover, the allegation claims only that the property had been subdivided, not that it had already been platted. As we point out, an express requirement for platting is compliance with the title 25, which includes the environmental chapter. City Code, ch. 25-4, § 25-4-84 (B). Thus, even is the Tabrizis claim is limited to platting, it still must meet chapter 25-8.
The last proposed change adds the allegation that the Tabrizis need not "submit a subdivision application as a prerequisite for submission of an application for a building permit." That claim, however, is starkly at odds with the "Order of Process" provision that provides:
§ 25-1-61-ORDER OF PROCESS.
(A) An applicant must obtain approvals in the following order:
(1) zoning;
(2) subdivision;
(3) site plan; and
(4) building permit.
(B) An applicant may concurrently file applications for the approvals listed in Subsection (A).
*305CONCLUSION
As the Austin Court of Appeals wrote, "merely asserting legal conclusions or labeling a defendant's actions as 'ultra vires,' 'illegal,' or 'unconstitutional' does not suffice to plead an ultra vires claim-what matters is whether the facts alleged constitute actions beyond the governmental actor's statutory authority, properly construed." [Emphasis in original]. Texas Dept. of Transp. v. Sunset Transp., Inc. ,
E.g. Tooke v. City of Mexia ,
See e.g. Mayhew v. Town of Sunnyvale ,
See Patel v. Tex. Dep't of Licensing & Regulation ,
This case was transferred to us from the 3rd Court of Appeals pursuant to the Texas Supreme Court's docket equalization efforts. We apply the precedents from that court where they might conflict with our own. Tex.R.App.P. 41.3.
A seep is defined as a small spring, or place where a fluid, such as water, oozes slowly to the surface and forms a small pond. Webster's Third New Int'l Dictionary 2056 (2002).
Hunt v. City of Diboll , No. 12-17-00001-CV, --- S.W.3d ----, ----,
Town of Shady Shores v. Swanson , No. 02-15-00338-CV,
The parties attached complete copies of Chapters 25-4 and 25-8, and only the definition section of 25-1 to the plea and responses below. We are required to construe enactments as a whole, rather than looking to isolated provisions. See TGS-NOPEC Geophysical Co. v. Combs ,
The four predicates for development are (in order): (1) zoning; (2) subdivision; (3) site plan; and (4) a building permit. City Code, ch. 25-1, § 25-1-61. The property was already zoned for residential construction. Section 25-5-2 (B) appears to exempt construction of a single-family residences from the requirements of a site plan when not in a flood plain, or where it would have an insignificant effect on a waterway. The Tabrizis include excerpts from the deposition of the environmental officer that the building permit application process for a single-family home does not always include a thorough environmental review under Chapter 25-8's watershed protection rules. The subdivision/platting stage might then be the only opportunity to consider the environmental impact of a project such as this.
The environmental officer also expressed that he was not responsible for platting, and does not enforce that section of the code, though he is generally familiar with it.