SAN JACINTO RIVER AUTHORITY, Appellant v. MICHAEL A. BURNEY, GINGER R. BURNEY, CHARLES A. CASEY, MAUREEN S. CASEY, JOHN M. DANIEL, CAROLYN F. DANIEL, ROBERT C. MILES, SHERRY K. MILES, JACK L. NOWLIN, LINDA S. NOWLIN, BARRY L. SHEPHERD, Becky A. SHEPHERD, CHARLES H.F. WHERRY, DIANE S. WHERRY, RODNEY M. WOLF, AND NANCY L. WOLF, Appellees
NO. 01-18-00365-CV
NO. 01-18-00406-CV
NO. 01-18-00407-CV
In The Court of Appeals For The First District of Texas
Opinion issued December 4, 2018
On Appeal from the 151st and 157th District Courts Harris County, Texas Trial Court Case Nos. 2018-10744, 2018-10787, and 2018-10478
SAN JACINTO RIVER AUTHORITY, Appellant
V.
MICHAEL A. BURNEY, GINGER R. BURNEY, CHARLES A. CASEY, MAUREEN S. CASEY, JOHN M. DANIEL, CAROLYN F. DANIEL, ROBERT C. MILES, SHERRY K. MILES, JACK L. NOWLIN, LINDA S. NOWLIN, BARRY L. SHEPHERD, BECKY A. SHEPHERD, CHARLES H.F. WHERRY, DIANE S. WHERRY, RODNEY M. WOLF, AND NANCY L. WOLF, Appellees
* * *
SAN JACINTO RIVER AUTHORITY, Appellant
V.
CHARLES J. ARGENTO, KATHARINE ARGENTO, KRISTOFER D. BUCHAN, MELISSA BUCHAN, BRANDON BURGESS, DIANE BURGESS, JEFF ENSLEY, ANNE ENSLEY, JOHN FAULKINBERRY, LAURIE D. FAULKINBERRY, JOHN R. FREEMAN, BARBARA FREEMAN, KURT V. HUSEMAN, DEBBIE L. HUSEMAN, WILLIAM E. LANGE, JENNIFER
* * *
SAN JACINTO RIVER AUTHORITY, Appellant
V.
VICENTE MEDINA, ASHLEY MEDINA, AND ARIS ANTONIOU, Appellees
O P I N I O N
During Hurricane Harvey, the San Jacinto River Authority released water from Lake Conroe into the San Jacinto River. Owners of homes that flooded in Kingwood, Texas have sued the River Authority in the district courts of Harris County, seeking compensation for their inverse-condemnation and statutory takings claims. The River Authority filed Rule 91a motions to dismiss these three substantively identical lawsuits, which were denied. The River Authority now seeks interlocutory review.
Because the Legislature has given the Harris County civil courts at law exclusive jurisdiction over inverse-condemnation claims, the district courts lack
Background
The San Jacinto River Authority is a water conservation and reclamation district created in 1937.1 Its functions include providing for the control, storage, preservation, distribution, conservation, and reclamation of water, including floodwater.2 The River Authority also may control, abate, or change any shortage or harmful excess of water.3
In 1973, the River Authority constructed a dam across the West Fork of the San Jacinto River, resulting in the formation of a reservoir named Lake Conroe. The River Authority now operates the dam and other infrastructure at Lake Conroe.
In these particular cases, the River Authority filed Rule 91a motions to dismiss the lawsuits as lacking any basis in law or fact. As a political subdivision of the state,4 it asserted governmental immunity as a ground for dismissal. The trial
Analysis
I. Subject-matter jurisdiction over Harris County inverse-condemnation claims
Subject-matter jurisdiction is essential to a court‘s authority to decide a case, cannot be waived, and may be raised for the first time on appeal.6
A. Inverse condemnation
The River Authority asserts for the first time on appeal that the Harris County district courts lack jurisdiction over the inverse-condemnation claims because the Harris County county civil courts at law have exclusive subject-matter
A county civil court at law has exclusive jurisdiction in Harris County of eminent domain proceedings, both statutory and inverse, if the amount in controversy in a statutory proceeding does not exceed the amount provided by Section 25.0003(c) in civil cases. Notwithstanding Section 21.013, Property Code, a party initiating a condemnation proceeding in Harris County may file a petition with the district clerk when the amount in controversy exceeds the amount provided by Section 25.0003(c). The amount in controversy is the amount of the bona fide offer made by the entity with eminent domain authority to acquire the property from the property owner voluntarily.
Inverse-condemnation claims and statutory condemnation claims are distinct categories of eminent-domain proceedings.7 A statutory eminent-domain or condemnation proceeding under the Property Code involves the government‘s acquisition of real property.8 An inverse-condemnation action is a constitutional claim in which the property owner asserts that an entity with eminent-domain power intentionally performed acts that resulted in a “taking” of the property for public use, without formally condemning the property.9 A claimant seeking recovery for inverse condemnation must prove that the governmental entity
Generally, Texas district courts and county courts at law have concurrent jurisdiction in eminent-domain cases.13 Harris County is an exception. Before September 1, 2015, county civil courts at law had exclusive jurisdiction of all eminent-domain proceedings in Harris County. The former statute provided: “A county civil court at law has exclusive jurisdiction in Harris County of eminent domain proceedings, both statutory and inverse, regardless of the amount in controversy.”14 For cases filed on or after September 1, 2015, the Legislature
A county civil court at law has exclusive jurisdiction in Harris County of eminent domain proceedings, both statutory and inverse, if the amount in controversy in a statutory proceeding does not exceed the amount provided by Section 25.0003(c) in civil cases. Notwithstanding Section 21.013, Property Code, a party initiating a condemnation proceeding in Harris County may file a petition with the district clerk when the amount in controversy exceeds the amount provided by Section 25.0003(c). The amount in controversy is the amount of the bona fide offer made by the entity with eminent domain authority to acquire the property from the property owner voluntarily [
regardless of the amount in controversy].15
The River Authority contends that this statute gives the Harris County civil courts at law exclusive subject-matter jurisdiction over the inverse-condemnation claims. In response, the homeowners assert that under the 2015 amendment, the Harris County district courts have subject-matter jurisdiction over their inverse-
We disagree with the homeowners’ interpretation. Before the 2015 amendment, Harris County civil courts at law had exclusive jurisdiction over all eminent-domain proceedings, both statutory and inverse. The 2015 amendment altered the exclusivity of the jurisdiction of the county civil courts at law under the prior law by carving out an exception that applies “if the amount in controversy in a statutory proceeding does not exceed the amount provided by Section 25.0003(c)
The statute as amended cannot be plausibly read, as the homeowners suggest, to make all of the “exclusive jurisdiction” bestowed on the county civil courts at law conditioned on the existence of a bona fide offer made by the condemnor in an amount under $200,000. That would negate the effect of the exclusive jurisdiction including proceedings “both statutory and inverse” because the language relating to “the amount in controversy in a statutory proceeding” will never apply to an inverse (i.e. non-statutory) proceeding. Instead, the only interpretation that gives effect to all parts of the statute limits the application of the “if” clause—whether characterized as a condition of or an exception to the exclusive jurisdiction vested in Harris County civil courts at law over “eminent domain proceedings, both statutory and inverse“—to statutory proceedings, as the plain text requires.
B. Statutory takings claims
The homeowners’ remaining claims are statutory takings claims under Government Code Chapter 2007, the Private Real Property Rights Preservation Act.21 In City of Houston v. Guthrie, this court addressed a district court‘s subject matter jurisdiction in a Harris County case that involved inverse-condemnation
Although subsection 25.1032(c) was amended in 2015 after Guthrie was decided, we hold that the statute still specifies exclusive jurisdiction over inverse condemnation claims in the Harris County civil county courts of law. Therefore the result in this case is similar to the outcome in Guthrie: the Harris County district courts lack subject-matter jurisdiction over the homeowners’ inverse condemnation claims, but it does have subject-matter jurisdiction over the homeowners’ Chapter 2007 claims.
The Harris County district courts in these cases lack subject-matter jurisdiction over the homeowners’ inverse-condemnation claims, and we sustain the River Authority‘s first issue in part. We therefore vacate the district courts’ orders denying the motions to dismiss as to the homeowners’ inverse condemnation claims, and we dismiss those claims without prejudice to their refiling in the Harris County civil courts at law.25
II. Governmental immunity
Governmental immunity consists of immunity from liability and immunity from suit,26 and when applicable it deprives the trial court of subject-matter jurisdiction over claims against the state or one of its political subdivisions, absent waiver of immunity by the state.27 In its Rule 91a motions to dismiss, the River Authority contended that the homeowners failed to plead sufficient facts to establish a takings claim and thus demonstrate a waiver of governmental immunity.
A. Standards applicable to Rule 91a motions to dismiss
We review de novo the merits of a Rule 91a motion.29 Rule 91a‘s dismissal grounds have been analogized to a plea to the jurisdiction, which requires a court to determine whether a plaintiff‘s pleading alleges facts that demonstrate a waiver of governmental immunity and thus the existence of subject-matter jurisdiction.30 Whether a plaintiff has alleged facts that affirmatively demonstrate the existence of subject-matter jurisdiction is a question of law that we review de novo.31 To
The River Authority contends that “Texas courts have not expressly ruled on whether a court may consider facts of which they may or must take judicial notice in connection with a motion to dismiss under Rule 91a.” It further suggests that Texas courts “have analogized a Rule 91a motion to dismiss to a Federal Rule 12(b)(6) motion to dismiss and have noted the applicability of case law interpreting Rule 12(b)(6) as instructive in addressing a motion under Rule 91a.” From this premise, the River Authority argues that we “must” take judicial notice of extensive “adjudicative facts” concerning the circumstances of Hurricane Harvey. The River Authority‘s arguments rely heavily on this proposed evidence.
Because Rule 91a expressly prohibits a court‘s consideration of evidence, and it expressly requires that the motion to dismiss be decided based solely on the
B. Scope of Chapter 2007 takings claims
Chapter 2007 provides that a private real-property owner may bring suit to determine whether the governmental action of a political subdivision “results in a taking.”39 Relying entirely on legislative history,40 the River Authority argues that Chapter 2007 “simply does not apply” to the homeowners’ “claims of inverse condemnation by alleged flooding,” and it only permits challenges against government entities “for enacting regulations that allegedly infringe on an owner‘s property rights.”
(A) a governmental action that affects private real property, in whole or in part or temporarily or permanently, in a manner that requires the governmental entity to compensate the private real property owner as provided by the Fifth and Fourteenth Amendments to the United States Constitution or Section 17 or 19, Article I, Texas Constitution; or
(B) a governmental action that:
(i) affects an owner‘s private real property that is the subject of the governmental action, in whole or in part or temporarily or permanently, in a manner that restricts or limits the owner‘s right to the property that would otherwise exist in the absence of the governmental action; and
(ii) is the producing cause of a reduction of at least 25 percent in the market value of the affected private real property, determined by comparing the market value of the property as if the governmental action is not in effect and the market value of the property determined as if the governmental action is in effect.41
Among other things, the statute expressly applies to a governmental action “that imposes a physical invasion . . . of private real property.”42 We therefore reject the River Authority‘s contention that Chapter 2007 applies only to regulatory takings
Chapter 2007 waives governmental immunity to suit and liability “to the extent of liability created” by the statute.43 It therefore waives immunity for “governmental actions” alleged to have caused a constitutional taking or a reduction of at least 25 percent in the market value of the affected property,44 both of which the homeowners have alleged as the basis of their Chapter 2007 claim.
C. Chapter 2007 constitutional taking (§ 2007.002(5)(A))
“No person‘s property shall be taken, damaged, or destroyed for or applied to public use without adequate compensation being made, unless by the consent of such person.”45 For a constitutional takings claim, a claimant must plead that the governmental entity intentionally performed affirmative acts that resulted in a physical taking of specific property for public use.46
In their effort to state takings claims under Chapter 2007, the homeowners alleged that the River Authority intentionally, knowingly, affirmatively, and
The River Authority argued in its motions to dismiss that the homeowners have not pleaded a taking sufficiently under the Texas Constitution so as to demonstrate a waiver of governmental immunity. It contends that the homeowners have not sufficiently pleaded that their properties were intentionally flooded for a public purpose. And the River Authority argues that the flooding was not a taking because there was a confluence of water and because the peak release of lake water was less than its peak inflow.
1. Specificity of intent
A claimant pleads the necessary intent for a constitutional takings claim by alleging that the governmental entity knew that a specific act would cause the resulting identifiable property damage or knew that the specific property damage was substantially certain to result from the government action.47
The River Authority argues that to plead viable takings claims, the homeowners were required, but failed, to allege that it knew its actions would result in the flooding of each of the homeowners’ specific properties. The River Authority relies on two decisions of the Supreme Court of Texas, City of Dallas v. Jennings48 and Harris County Flood Control District v. Kerr.49
The Jennings case involved a government action to dislodge a clogged sewer main, which caused another sewage backup and a raw sewage flood in the claimants’ home.50 The Court concluded that there was “no evidence that the City knew, when it unclogged the sewer line, that any flooding damage would occur.”51
Kerr involved flooding, but it is also factually distinguishable. The damage alleged in that case did not result from an intentional release of water, but instead from the approval of private development without full implementation of a previously approved flood-control plan.53 The Court recited the general principle that the takings claimants must prove the government “intentionally took or damaged their property for public use, or was substantially certain that would be
Gragg was a case that bore more factual similarities to this case than Jennings or Kerr, because it involved flooding resulting from the government’s intentional release of water from a reservoir.58 In that case, a water district built a reservoir to supply water; it was not constructed to control floods.59 When heavy
None of Jennings, Gragg, or Kerr squarely address the River Authority’s contention that for it to have committed a taking, it had to have intended or known that the flooding of particular homeowners’ specific properties would be the substantially certain result of its release of water. The United States Supreme Court evidently considers this an open question under federal takings law, since it expressly declined to address the matter in its recent opinion in Arkansas Game and Fish Commission.61 Yet even assuming that this was the homeowners’ pleading burden, we conclude that they satisfied it for purposes of surviving a Rule 91a motion to dismiss.
The homeowners specifically alleged that the River Authority “intentionally, knowingly, affirmatively, and consciously flooded” their particular properties,
Liberally construing the homeowners’ pleadings, as we must, we conclude that they included sufficient facts to allege the River Authority’s release of water from Lake Conroe was intended to, or was known to be substantially certain to, result in the flooding or exacerbated flooding of each of the homeowners’ specific
2. Taking
A taking occurs when the government physically appropriates or invades private property or unreasonably interferes with the property owner’s right to use
The River Authority argues that the homeowners have not adequately pleaded a taking. It contends that the homeowners have alleged only in conclusory fashion that the release of water from Lake Conroe was the proximate cause of their damages. The River Authority further suggests the pleadings are deficient because the homeowners’ properties were affected by a confluence of water that included rainfall, because the peak release of water from Lake Conroe was less than its peak inflow, and because the water was released directly into the West Fork of the San Jacinto River, rather than directly onto their property.
Once again we cannot agree with the River Authority’s characterization of the homeowners’ extensive and detailed factual allegations as conclusory. The theory of causation is straightforward: in the middle of a hurricane, the River Authority released water from Lake Conroe, causing the foreseeable flooding (or exacerbation of flooding) of specific homes downstream. That theory of a takings
Relying heavily on evidence that has no bearing on a court’s consideration of a Rule 91a motion to dismiss, the River Authority argues that the flooding resulted from a confluence of water from multiple sources and therefore cannot constitute a taking. To the extent this argument depends on extrinsic evidence, such as the suggestion that peak inflow into Lake Conroe exceeded peak outflow, we may not consider it.
The River Authority argues that Kerr shields it from takings liability because the flooding was the result of a “confluence of particular circumstances” that included other water sources that may have impacted the flooding.68 Kerr, however, arose from a substantially dissimilar factual scenario and involved “whether governmental entities that engage in flood-control efforts are liable to homeowners who suffer flood damage, on the theory that the governments effected a taking of the homeowners’ property by approving private development without
3. Public use
The River Authority also contends that the homeowners failed to sufficiently plead the public-use element of their takings claims.71 A taking is for public use if it is necessary to advance or achieve the intended public use.72 The basis for requiring adequate compensation for a taking is that the government should not “‘forc[e] some people alone to bear public burdens which, in all fairness and justice, should be borne by the public as a whole.’”73
Regarding the public-use element, the homeowners alleged that in the face of Hurricane Harvey and other circumstances, the River Authority faced a choice.
The homeowners also alleged that the River Authority’s intentional, knowing, affirmative, and conscious acts, conduct, and decisions were done for public use. They alleged that the River Authority’s management and operation of the lake, dam, and related infrastructure, combined with its release of water between late August and early September 2017, was done for public use because the governmental actions protected the stability and integrity of the dam, its earthen embankment, and other infrastructure; ensured that the lake would continue to be available for use as a reservoir for critical freshwater storage and for recreational activities and sporting uses like boating and fishing once the storm and its effects had passed; protected and spared homes and other properties on the lake and upstream from flooding; minimized the danger to the public by keeping docks, bulkheads, small islands, and other structures unsubmerged for as long as possible; minimized the danger to the public associated with electrical outlets and equipment coming into contact with water; and enabled the lake, adjacent parks, and adjacent
The River Authority asserts that the release of water from Lake Conroe during Hurricane Harvey was not for a public purpose because, as noted in Wickham, its government-mandated powers do not include functioning as a flood control facility.74 Gragg, however, refutes this argument. In that case, the water district’s function was similar.75 Nevertheless, the Supreme Court held that the evidence supported the findings that the extensive damage the takings claimant experienced was “the inevitable result of the reservoir’s construction and of its operation as intended.”76
The River Authority also relies on Texas Highway Department v. Weber, which involved the unintended and negligent burning of the takings claimant’s hay
We conclude that the homeowners have sufficiently pleaded the public-use element of their constitutional takings claims. The same allegations also sufficiently support the homeowners’ constitutional takings claims for an “inundation, flood, flowage or drainage easement over their property,” or a partial taking.79
D. Chapter 2007 market-value reduction (§ 2007.002(5)(B))
The homeowners also contend that their factual allegations establish their statutory takings claims that the River Authority’s actions affected their private real property by restricting or limiting their rights to their property,82 and that such actions were the producing cause of a reduction of at least 25 percent in the market value of the affected homes because of the floodwater damage and the diminution in value as a result of the flood stigma and the risk of flooding caused by future releases of lake water by the River Authority.83 These allegations, coupled with the homeowners’ other takings allegations, sufficiently state statutory takings claims
Conclusion
We vacate the district courts’ orders denying the River Authority’s motions to dismiss as to the homeowners’ inverse-condemnation claims, which we dismiss without prejudice because the trial courts lack subject-matter jurisdiction over them. We affirm the trial courts’ denials of the River Authority’s motions to dismiss as to the homeowners’ Chapter 2007 statutory takings claims.
Michael Massengale
Justice
Panel consists of Justices Jennings, Higley, and Massengale.
