City of Houston v. Festival Properties, Inc.
09-24-00158-CV
| Tex. App. | May 1, 2025Background
- Festival Properties, Inc. owns a multiplex movie theater on a 10.446-acre property in Montgomery County, Texas.
- The City of Houston approved the Northpark Drive Project, which expanded Northpark Drive to a six-lane highway and closed two driveways ("Critical Drives") that provided direct access to Festival's theater parking lot.
- Festival claimed these Critical Drives were essential for ingress and egress, particularly during high-traffic times, and that their closure harmed the property's commercial viability and market value.
- Festival sued for inverse condemnation, alleging the City's project resulted in a compensable taking under the Texas Constitution.
- The City filed a plea to the jurisdiction, arguing governmental immunity and that no taking occurred since other public access points remained.
- The trial court denied the City's plea, leading to this interlocutory appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was there a material and substantial impairment of property access constituting a taking? | Closure of two critical access drives severely impaired use and value for a multiplex; remaining access insufficient for theater operation | Multiple access points remain; mere inconvenience, increased congestion, or circuitous access does not amount to compensable taking | No material and substantial impairment; City retains immunity and suit dismissed |
| Should Festival be allowed to replead if pleadings are deficient? | Festival asked for opportunity to amend if deficiencies identified | Pleading affirmatively negates jurisdiction, not a mere deficiency | No right to amend since defects negated jurisdiction |
Key Cases Cited
- City of Hous. v. Carlson, 451 S.W.3d 828 (Tex. 2014) (governmental immunity waived for inverse condemnation only upon viable taking claim)
- State v. Heal, 917 S.W.2d 6 (Tex. 1996) (no compensable taking where reasonable access remains after public improvement)
- City of San Antonio v. TPLP Off. Park Props., 218 S.W.3d 60 (Tex. 2007) (closing an access point, causing traffic circuity, does not result in a compensable taking)
- State v. Dawmar Partners, Ltd., 267 S.W.3d 875 (Tex. 2008) (material and substantial impairment of access is threshold determinable de novo)
- Sabine River Auth. of Tex. v. Hughes, 92 S.W.3d 640 (Tex. App.—Beaumont 2002) (plaintiff must show governmental act resulted in a taking for public use)