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441 S.W.3d 436
Tex. App.
2014
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Background

  • Kopplow Development, Inc. brought a claim for inverse condemnation and the City of San Antonio counterclaimed for condemnation of Kopplow’s easement, arising from a flood-control project that included a concrete inflow wall built on adjacent land.
  • Kopplow had a vested rights permit under Texas Local Government Code Chapter 245 dating to 2004, allowing development under pre-1996 rules, but the City later changed floodplain regulations.
  • The City’s floodplain changes raised additional fill costs (from 741 to 743 feet) that Kopplow wished to present to recover damages.
  • The trial court excluded evidence related to the full cost of fill due to the vesting issue, limiting Kopplow’s damages evidence to a narrower scope.
  • On remand, the Texas Supreme Court directed the appellate court to reconsider Kopplow’s cross-appeal about admitting evidence of vesting-era development costs.
  • The appellate court ultimately held that the trial court erred in excluding the vesting-cost evidence and remanded for a new trial on remainder damages.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether error on vested rights was preserved Kopplow preserved error by objection and offer of proof City argues no preservation due to interlocutory order not appealed Error preserved; trial court erred in excluding vesting evidence
Whether section 245.004(9) exempts vested rights from floodplain rules Kopplow vested rights not barred by exemption (9) City invokes exemption to bar vested-right evidence Exemption (9) does not apply; vesting evidence admissible
Whether exclusion of vesting-cost evidence was harmful Full cost to fill supported higher remainder damages Exclusion harmless as cumulative/uncorroborated Exclusion harmful; must remand for new trial on remainder damages

Key Cases Cited

  • Milestone Potranco Dev., Ltd. v. City of San Antonio, 298 S.W.3d 242 (Tex. App.—San Antonio 2009) (vested rights under chap. 245; preexisting regulations govern)
  • City of San Antonio v. Rogers Shavano Ranch, Ltd., 383 S.W.3d 234 (Tex. App.—San Antonio 2012) (vested rights protections in development; middle-of-game concern)
  • Harper Park Two, LP v. City of Austin, 359 S.W.3d 247 (Tex. App.—Austin 2011) (vesting rules shield from intervening regulations)
  • Denisco v. Commission for Lawyer Discipline, 132 S.W.3d 211 (Tex. App.—Houston [14th Dist.] 2004) (statutory interpretation governs floodplain-related exemptions)
  • Cail v. Service Motors, Inc., 660 S.W.2d 814 (Tex. 1983) (plain meaning governs statutory construction)
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Case Details

Case Name: The CITY OF SAN ANTONIO, Appellant/Cross-Appellee v. KOPPLOW DEVELOPMENT, INC., Appellee/Cross-Appellant
Court Name: Court of Appeals of Texas
Date Published: Feb 5, 2014
Citations: 441 S.W.3d 436; 2014 Tex. App. LEXIS 1282; 2014 WL 462294; 04-09-00403-CV
Docket Number: 04-09-00403-CV
Court Abbreviation: Tex. App.
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