645 S.W.3d 174
Tex.2022Background:
- Schrock (landlord) sued City of Baytown alleging the City’s denial of municipal utilities and imposition of a lien over a tenant’s unpaid bills damaged his rental property and amounted to a taking.
- The City’s ordinance allowed denial of utilities and liens for unpaid service charges; Schrock had not filed a preemptive rental declaration that would have protected the property.
- Schrock disputed the charges, declined to pay under protest, delayed seeking reinstatement of utilities, and left the property vacant and deteriorating; he owned many rental properties.
- The Texas legislature forbids conditioning utility access on third‑party debts; the City conceded its ordinance violated state law, but the dispute proceeded on takings grounds.
- The Court (per the lead opinion) held no federally cognizable taking occurred; Justice Young concurred in that judgment but wrote separately to emphasize state constitutional differences and reserve Texas‑law questions.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether City’s denial of utilities and lien constituted a taking under the U.S. Constitution | Schrock: withholding utilities and placing a lien damaged/destroyed property amounting to a Fifth Amendment taking | City: actions did not rise to a federal taking | No federally cognizable taking; judgment for City affirmed |
| Whether Texas Takings Clause provides broader protection than the federal clause | Schrock: treated state clause as coextensive with federal law | City: treated claims identically; no separate Texas claim briefed | Not decided on the merits; Justice Young emphasizes Texas clause is textually broader and the question remains open |
| Whether plaintiff's failure to mitigate (e.g., file rental declaration, pay under protest, seek service reinstatement) affects causation or damages | Schrock: City’s actions proximately caused the property damage | City: Schrock’s omissions substantially contributed and could reduce or bar recovery | Court did not decide; concurring opinion signals plaintiff conduct may limit or defeat recovery and stresses need for causation/mitigation analysis |
| Whether courts may assume federal takings analysis applies verbatim to Texas takings claims | Schrock: (implicitly) treated both clauses identically in briefing | City: likewise relied on federal doctrine | Rejected as a default approach by Justice Young — litigants must brief state‑constitutional differences for the Court to address them |
Key Cases Cited
- Jim Olive Photography v. Univ. of Houston, 624 S.W.3d 764 (Tex. 2021) (concurrence noting Texas Takings Clause can provide broader protection)
- City of Houston v. Carlson, 451 S.W.3d 828 (Tex. 2014) (Texas takings jurisprudence discussed alongside federal law)
- Hearts Bluff Game Ranch, Inc. v. State, 381 S.W.3d 468 (Tex. 2012) (proximate cause is essential in takings cases)
- Travelers’ Ins. Co. v. Marshall, 76 S.W.2d 1007 (Tex. 1934) (interpretation of constitutional provision adoption)
- Trinity & S. Ry. Co. v. Meadows, 11 S.W. 145 (Tex. 1889) (explaining inclusion of "damaged or destroyed" in Texas Constitution)
- DuPuy v. City of Waco, 396 S.W.2d 103 (Tex. 1965) (historical discussion of Texas takings protection)
- State v. Hale, 146 S.W.2d 731 (Tex. 1941) (government acts must be proximate cause of taking or damage)
- Austin Hill Country Realty, Inc. v. Palisades Plaza, Inc., 948 S.W.2d 293 (Tex. 1997) (landlord duty to mitigate by reasonable efforts to relet)
- 767 Third Ave. Assocs. v. United States, 48 F.3d 1575 (Fed. Cir. 1995) (lessor’s failure to mitigate barred regulatory‑takings recovery)
- Allstate Ins. Co. v. King, 444 S.W.2d 602 (Tex. 1969) (ignorance of filing requirement does not excuse failure to comply)
