BLF LLC, Bradford W. Bayliff, and Lisa E. W. Bayliff v. the Landing at Blanco Property Owners Association
Date Filed2023-12-13
Docket03-22-00423-CV
Cited0 times
StatusPublished
Full Opinion (html_with_citations)
TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN
NO. 03-22-00423-CV
BLF LLC, Bradford W. Bayliff, and Lisa E. W. Bayliff, Appellants
v.
The Landing at Blanco Property Owners Association, Appellee
FROM THE 33RD DISTRICT COURT OF BLANCO COUNTY
NO. CV09083, THE HONORABLE J. ALLAN GARRETT, JUDGE PRESIDING
MEMORANDUM OPINION
BLF LLC, Bradford W. Bayliff, and Lisa E.W. Bayliff (collectively, the
âBayliffsâ) filed suit to prevent their property owners association, The Landing at Blanco
Property Owners Association (the âAssociationâ), from selling a certain tract of common-area
property. In their petition, the Bayliffs allege that they hold legal and equitable property rights in
the tract and that any sale without their consent would infringe on those rights.
After the trial granted summary judgment in favor of the Association and
dismissed their suit, the Bayliffs filed a notice of appeal in this Court. On appeal, the Bayliffs
contend that the trial court erred in granting summary judgment and, alternatively, abused its
discretion in denying their motion for continuance. We affirm the trial courtâs judgment.
1
BACKGROUND
The Landing at Blanco (the âLandingâ) is a 1,013.71-acre residential subdivision
in Blanco County. The Landing was platted in 2004 for 38 lotsâdescribed on the plat as
â37 residential lots,â â1 amenities center,â and â1 airstrip common area.â That same year, the
Association was formed as a nonprofit corporation. The Landingâs Declaration of Covenants,
Conditions, and Restrictions (the âDeclarationâ), first recorded in January 2005, states that
the Associationâs purpose is âto further the common interest of the Members,â the Landing
property owners.
As authorized by the Declaration, in November 2005, the developer conveyed one
of the platted lotsâLot 15, a 39-acre tractâto the Association for use as a common area. 1 Since
its conveyance, the Association has used Lot 15 to provide the Landing property owners with
various amenities, including a ranch house with cabins, available for rent; a swimming pool; a
tennis court; a pond; and an equestrian center. Costs for maintaining the amenities are paid by
the Association through assessment funds levied on and collected from the property owners.
In 2018, the Association commissioned two studies to evaluate the necessity and
cost of repairs and maintenance of the amenities on Lot 15. The Association first commissioned
a property-inspection service, licensed by the Texas Real Estate Commission, to inspect the
property and its infrastructure and to report on their condition. Upon completion of the
inspection, the inspector recommended replacing the roofs, HVAC systems, and water heaters,
1 Section 8.03 states: Developerâs Rights to Convey Common Area to the
Association. Developer shall have and hereby reserves the right, but shall not be
obligated to, convey Real Property and improvements thereon, if any, to the
Association for use as a Common Area at any time and from time to time in
accordance with this Declaration, without the consent of any other Owner or
the Association.
2
and addressing plumbing leaks and electrical repairs in the ranch house. The Association then
commissioned Lone Star Reserve Studies, LLC, to assess its reserve funds, predict maintenance
costs, and develop a funding plan for Lot 15. The results of this study revealed that all but
necessary maintenance to the pool and interiors of the buildings had been deferred since 1995,
that the Association had not increased membersâ dues in ten years, and that the reserve fund was
$244,548 short of ânormal acceptable funding.â
After analyzing the results of the commissioned studies, the Association presented
the Landing property owners with a choice with regard to Lot 15, in the form of a proposed
amendment to its Declaration. At the Associationâs annual meeting in June 2021, property
owners were asked to vote on whether the Association should (1) restore and maintain existing
amenities on Lot 15, which would require a one-time assessment of $13,850 per lot and a
27% increase in annual dues, or (2) sell Lot 15, likely resulting in a decrease in annual dues. The
property owners voted 26 to 8 to amend the Declaration to specifically allow for the sale of
Lot 15 (hereafter, the âJune 2021 Amendmentâ).
The Bayliffs filed suit against the Association to prevent it from selling Lot 15. 2
According to the Bayliffsâ allegations, the Landing was represented in marketing materials as
having fifty-eight-acres of common area that included amenities such as tennis courts, a
swimming pool, a fishing pond, and a ranch house. The Bayliffs further allege that they relied
on these representations in deciding to purchase their lots. As a result, they sought a declaration
2 The Declaration was amended in June 2015. Bradford and Lisa Bayliff purchased
Lot 36 in The Landing in 2014; BLF, LLC, purchased Lot 37 in 2016. The original 2005 version
of the Declaration was in effect when Bradford and Lisa Bayliff purchased their lot, and the
2015 version of the Declaration was in effect when BLF purchased its lot. Because no changes
relevant to this dispute were made to the Declaration when it was amended in 2015, all
references to the Declaration in this opinion are to both versions, unless otherwise noted.
3
that any attempt by the Association to sell Lot 15 was âunlawful, unenforceable, and/or
unconstitutionalâ because it would deprive them of their equitable ownership interests and
easement rights in Lot 15. See Tex. Civ. Prac. & Rem. Code §§ 37.001-.011.
The Association moved for traditional summary judgment on the Bayliffsâ claims.
See Tex. R. Civ. P. 166a. The Association argued that as a matter of law it possesses broad
authority to act in the common interest of the Landing property owners, including the authority
to sell common-area property, such as Lot 15. The Association further asserted that the
undisputed summary-judgment evidence establishes that Lot 15 was conveyed to it in fee simple,
that nothing in the Declaration expressly prohibits the sale of property owned by the Association,
and that the Declaration expressly requires it to âdo anything that may be necessary or desirable
to further the common interest of the [Association] members.â 3 Finally, in the alternative, the
Association argued that to the extent the Declaration may be construed as prohibiting such a sale,
it has properly and validly amended the Declaration to permit the sale of Lot 15 by obtaining the
vote of at least two-thirds of the Landing property owners.
In response, the Bayliffs filed a motion for continuance, asserting that additional
time was needed to conduct discovery on their claims before a summary judgment would be
proper. Subject to their request for a continuance, the Bayliffs filed a response to the
3 Section 9.01 states: General Duties and Powers of the Association. The
Association has been formed to further the common interest of the Members. The
Association, acting through the Board of Directors or through persons to whom the
Board of Directors has delegated¡such powers (and subject to the provisions of the
Bylaws), shall have the duties and powers hereinafter set forth and, in general, the
power to do anything that may be necessary or desirable to further the common
interest of the members and to improve and enhance the attractiveness, desirability
and safety of the Property. The Association shall have the authority to act as the
agent to enter into any and all contracts on behalf of the Members in order to
carry out the duties, powers, and obligations of the Association as set forth in
this Declaration.
4
Associationâs motion for summary judgment. In their response, the Bayliffs argued that fact
issues exist as to whether they have certain legal and equitable property rights in Lot 15 that
prevent the Association from selling Lot 15 over their objections. The Bayliffs supported their
response with their own summary-judgment evidence, including a copy of the subdivision plat,
the deed conveying Lot 15 from the developer to the Association, and affidavits from
Bradford Bayliff and Lisa Bayliff.
The trial court denied the Bayliffsâ motion for continuance, granted the
Associationâs motion for summary judgment, and dismissed the Bayliffsâ suit. In three issues on
appeal, the Bayliffs challenge the trial courtâs summary-judgment ruling and, in the alternative,
the trial courtâs denial of their motion for continuance.
STANDARD OF REVIEW
A party moving for traditional summary judgment must demonstrate that there is
no genuine issue as to any material fact and that it is entitled to judgment as a matter of law. Tex.
R. Civ. P. 166a(c). We review de novo a trial courtâs ruling on a motion for summary judgment,
viewing the evidence in the light most favorable to the nonmovant, crediting evidence favorable
to the nonmovant if reasonable jurors could, and disregarding contrary evidence unless
reasonable jurors could not. Erikson v. Renda, 590 S.W.3d 557, 563 (Tex. 2019). When a trial court grants summary judgment without specifying the grounds for its decision, summary judgment will be affirmed on appeal if âany of the theories advanced are meritorious.â Western Invs., Inc. v. Urena,162 S.W.3d 547, 550
(Tex. 2005).
To the extent resolution of the Associationâs motion for summary judgment
required the trial court to construe the Declaration and its restrictive covenants, we review these
5
issues de novo. See Tarr v. Timberwood Park Owners Assân, 556 S.W.3d 274, 279(Tex. 2018). In construing the Declaration, we apply general rules of contract construction. Purvis v. Stoney Creek Cmty. Assân,631 S.W.3d 287
, 292 (Tex. App.âHouston [14th Dist.] 2020, no pet.) (âRegardless of whether the parts of the Declaration that we are construing amount to restrictive covenants, we apply the same contract-interpretation rules to the Declaration.â). Our primary task is to determine the drafterâs intent from the Declarationâs language. Garrett v. Sympson,523 S.W.3d 862, 866
(Tex. App.âFort Worth 2017, pet. denied). To determine the partiesâ true
intentions, we examine the entire Declaration in an effort to harmonize and give effect to all of
its provisions so that none will be rendered meaningless. Purvis, 631 S.W.3d at 292. If the
Declaration is so worded that it can be given a certain or definite legal meaning or interpretation,
it is unambiguous, and we construe it as a matter of law. Id.
DISCUSSION
In two issues on appeal, the Bayliffs assert that the trial court erred in granting
summary judgment in favor of the Association. In their first issue, the Bayliffs argue that the
plat and the Declaration restrict the Associationâs authority to sell common-area property,
including Lot 15, because the developerâs âoriginal scheme,â as reflected in the plat and
Declaration, was âpremised on centrally situated community parkland and recreational facilities
[that] cannot be destroyed.â The Bayliffs also argue that, for that same reason, the June 2021
Amendment purporting to authorize the Association to sell Lot 15 is invalid and unenforceable.
In their second issue, the Bayliffs assert that any sale of Lot 15 would be invalid because they
have legal and equitable property rights in the property that cannot be conveyed without
their consent.
6
In addressing the Bayliffsâ appellate issues, we will assume without deciding that
prior to the June 2021 Amendment, the Association lacked any authority to sell Lot 15, as the
Bayliffs contend, and we will examine whether the June 2021 Amendment, purporting to
authorize it to do so now, is valid and enforceable.
Law Governing Valid Amendments
Generally, an instrument containing restrictive covenants in a subdivision defines
the rights and obligations of property ownership in the subdivision, and the mutual and
reciprocal obligations undertaken by all purchasers in a subdivision creates a property interest,
possessed by all purchasers. Adlong v. Twin Shores Prop. Owners Assân, No. 09-21-00166-CV,
2022 Tex. App. LEXIS 1970, at *22 (Tex. App.âBeaumont Mar. 24, 2022, pet. denied) (mem. op.). When buyers purchase property governed by a declaration capable of amendment if certain procedures are followed, they are on notice that âthe unique form of ownership they acquired when they purchased their [property] was subject to change through the amendment process, and that they would be bound by properly adopted amendments.â Angelwylde HOA, Inc. v. Fournier, No. 03-21-00269-CV,2023 Tex. App. LEXIS 1733
, at *8 (Tex. App.âAustin Mar. 17, 2023, pet. filed) (mem. op.) (quoting Adlong,2022 Tex. App. LEXIS 1970
, at *23).
To validly amend deed restrictions, three conditions must be met. Poole Point
Subdivision Homeownersâ Assân v. DeGon, No. 03-20-00618-CV, 2022 Tex. App. LEXIS 1935, at *7 (Tex. App.âAustin Mar. 24, 2022, pet. denied) (mem. op.) (citing Wilchester W. Concerned Homeowners LDEF, Inc. v. Wilchester West Fund, Inc.,177 S.W.3d 552, 562
(Tex. App.âHouston [1st Dist.] 2005, pet. denied); Dyegard Land Pâship v. Hoover,39 S.W.3d 300, 313
(Tex. App.âFort Worth 2001, no pet.)). First, the instrument creating the original
7
restrictions must establish both the right to amend and the method of amendment. Id.Second, the right to amend implies only those changes contemplating a correction, improvement, or reformation of the agreement rather than its complete destruction.Id.
Third, the amendment must not be illegal or against public policy.Id.
First Condition for a Valid Amendment
As to the first condition for amending, it is undisputed that the clear and
unambiguous language of the Declaration provides a âright to amend and the method of
amendment.â See id. (setting out first condition for valid amendment). Section 10.02 of the
Declaration states:
Amendments. Except for amendment affecting the existing dwelling and the
airstrip, this Declaration may be amended or changed, in whole or in part, at any
time by the written agreement or by signed ballots voting for such amendment, of
the owners having not less than two-thirds (2/3rds) of all of the votes (including
Developer) of the Subdivision. . . . Amendment affecting the airstrip requires the
above vote and the agreement of seventy-five percent (75%) of the lot owners
using the airstrip.
The Bayliffs do not contend that the Association failed to follow the amending procedures under
Section 10.02 in adopting the June 2021 Amendment, including the requirement of obtaining a
two-thirds vote. 4 Instead, the Bayliffsâ argument, liberally construed, is that the June 2021
Amendment is void because the second and third conditions for a valid amendment are not met.
4 Chapter 209 of the Property Code provides certain protections to residential property
owners whose property is subject to restrictions and assessment imposed by a homeownersâ
association. Even where the declaration is silent as to the voting rights for an amendment,
however, the declaration may be amended by a vote of sixty-seven percent (67%) of the lots
subject to the declaration. See Tex. Prop. Code § 209.0041. However, if the declaration contains
a lower percentage, the percentage in the declaration controls. Id. § 209.0041(h-2). Here, the
Declaration provides that it may be amended by sixty-seven percent (two-thirds) of âall the votes
8
Second Condition for a Valid Amendment
As to the second condition for a valid amendment, the Bayliffs contend that the
June 2021 Amendment constitutes a âcomplete destructionâ of the Declaration rather than a
âcorrection, improvement, or reformation.â See id. at *7 (setting out second condition for valid
amendment). In their view, the Declaration establishes that Lot 15 and its amenities are part of a
uniform scheme of the Landing developmentâspecifically, a scheme to provide and maintain
âthe parkland and amenities at the center of the communityââsuch that any sale of Lot 15 would
effectively âdestroy the original scheme of development or change its essential nature.â See
Couch v. Southern Methodist Univ., 10 S.W.2d 973, 974 (Tex. Commân App. 1928, judgmât
adopted) (âNow, a change of these conditions in any or all respects is not a destruction of the
contract, nor does it change the essential nature of the same. It is still a deed of conveyance.â).
Based on the plain language of the Declaration, we disagree.
The Declaration states that the Association âhas been formed to further the
common interests of the Members.â To this end, the Declaration grants the Association with
âthe power to do anything that may be necessary or desirable to further the common interest of
the members and to improve and enhance the attractiveness, desirability and safetyâ of the
Landing subdivision. The Declaration authorizes, but does not require, the developer to convey
additional property to the Association for use as common area, as the developer did for Lot 15.
Conversely, the Declaration tasks the Association with accepting any property conveyed by the
developer âsubject to the terms of . . . all easements, covenants, conditions, restrictions and
in the subdivision.â Thus, the undisputed summary-judgment evidence shows that the voting
requirements under both the Declaration and the Property Code were satisfied.
9
equitable servitude or other encumbrances set forth in the transfer.â The Association is required
by the Declaration to levy, collect, and enforce maintenance charges, which âshall be used,â in
part, for âthe maintenance of the common areas.â The Declaration defines âcommon areasâ as:
that portion of the Subdivision owned by the Association for the
common use and enjoyment of the Members of the Association
including but not limited to, all parks, recreational facilities,
airstrips, airstrip facilities, gates, walkways, and parking lots.
As to specific common areas, the original 2005 Declaration sets out that the
Landing âwill include an air park, with its related airstrip, and runwaysâ and that â[t]hese [air
park] features are essential to the development of the Property and the [homeowners] are
encouraged to use such features.â The Declaration defines â[a]irstripâ as âapproximately 14.34
acres located within the property, identified as âAir Strip Common Areaâ on the platâ and states
that the âAssociation shall have full power and authority to do all such things as are necessary, or
deemed by the Association to be advisable, in order to preserve and maintain the air strip.â The
Declaration provides that the Association may stop maintaining the airstrip only if seventy-five
percent (75%) of all property owners and a hundred percent (100%) of the property owners using
the airstrip vote not to maintain the airstrip. Similarly, the Association may âdemolish any
existing improvements, except for the airstrip,â which requires the approval of seventy-five (75)
percent of all property owners and 100 percent of the property owners using the airstrip.
Although the plain language of the Declaration and the plat contemplate that some
portion of the Landing subdivision may be used as common area, it does not set aside any
specific lot or require the creation of any particular common area or amenityâsave and except
the air park. Similarly, the Declaration does not mention or expressly refer to parkland,
amenities, a ranch house, a swimming pool, tennis courts, a fishing pond, or similar terms. In
10
sum, we disagree that the âoriginal schemeâ and âessential natureâ of the Landing development
calls for the Association to indefinitely hold and maintain common-area property as parkland or
as a recreational area when it reasonably believes that it would be contrary to the collective
interest of the property owners to do so. As a matter of law, the Associationâs June 2021
Amendment satisfies the second condition necessary for a valid amendment.
Third Condition for a Valid Amendment
As to the third condition required for a valid amendment, the Bayliffs do not
expressly state that the June 2021 Amendment of the Declaration is invalid because it is âillegal
or against public policy.â See DeGon, 2022 Tex. App. LEXIS 1935, at *7 (setting out third
condition for valid amendment). However, in their second issue on appeal, the Bayliffs assert
that the June 2021 Amendment is a âlegal nullityâ because it authorizes the Association to
convey, without their consent, what they contend are property interests held by Landing property
owners and not the Associationânamely, equitable title, an express easement, and an easement
by estoppel. The Bayliffs also argue that any sale of Lot 15 amounts to an unconstitutional
taking of these property interests. See U.S. Const. amend V; Tex. Const. art. I, § 17. In other
words, reasonably construed, the Bayliffsâ argument is that the June 2021 Amendment is illegal
and against public policy because it would allow for the conveyance of their individual property
rights in Lot 15 over their objections. To determine whether the Association met its
summary-judgment burden to establish that the third condition for a valid amendment has been
satisfied, we will examine the Bayliffsâ claim for declaratory relief as to each of these alleged
property interests.
11
Equitable Title
First, the Bayliffs assert that the trial court erred in granting summary judgment
because the summary-judgment evidence is sufficient to create a fact issue as to whether they
have âequitable title in an undivided interest of the parkland and amenitiesâ that prevents the
Association from selling Lot 15 over their objections.
Equitable title is a right, enforceable in equity, to have the legal title to real estate
transferred to the owner of the right upon performance of specified conditions. Eagle Oil & Gas
Co. v. TRO-X, L.P., 619 S.W.3d 699, 706 (Tex. 2021); City of Houston v. Guthrie,332 S.W.3d 578, 588
(Tex. App.âHouston [1st Dist.] 2009, pet. denied); Langoria v. Lasater,292 S.W.3d 156, 165
(Tex. App.âSan Antonio 2009, pet. denied). In the trust context, the holders of equitable title to property âare considered the real owners,â and the trustee vested with legal title âholds [the property] for the benefit ofâ the equitable-title holder. Eagle Oil & Gas Co., 619 S.W.3d at 706 (quoting Bradley v. Shaffer,535 S.W.3d 242, 248
(Tex. App.âEastland 2017, no pet.)). In effect, the Bayliffs contend that the developer created a trust in Lot 15, with the homeowners as the beneficiaries and the Association as the trustee. See Faulkner v. Bost,137 S.W.3d 254, 259
(Tex. App.âTyler 2004) (âWhen a valid trust is created, the beneficiaries become the owners of
the equitable or beneficial title to the trust property and are considered the real owners.â).
A trust is a method used to transfer property. Sarah v. Primarily Primates, Inc.,
255 S.W.3d 132, 144(Tex. App.âSan Antonio 2008, pet denied); Restatement (Second) of Trusts, § 17 (1959) (noting that a trust may be created by âa transfer inter vivos by the owner of property to another person as trustee for the transferor or for a third personâ). To determine if a trust has been created, we look to the settlorâs intent. Sarah,255 S.W.3d at 144
; Hubbard v. Shankle,138 S.W.3d 474, 486
(Tex. App.âFort Worth 2004, pet. denied). While technical
12
words are not necessary, the beneficiary, the res, and the trust purpose must be identified in the
written instrument. Sarah, 255 S.W.3d at 145(citing Perfect Union Lodge No. 10 v. Interfirst Bank,748 S.W.2d 218, 220
(Tex. 1988)).
In this case, nothing in the deed language conveying Lot 15 from the developer to
the Association suggests that the developer intended for the Association to hold title to the
property in trust. For example, the deed does not use the terms âtrust,â âbeneficiaries,â or
âtrustee.â See Restatement (Second) of Trusts, § 25 (âPrecatory Wordsâ). Although the
Declaration generally defines âcommon areasâ as âthat portion of the subdivision owned by the
Association for the common use and enjoyment of the members of the Association,â including
âthose areas of land and improvements thereon deeded to the Association,â we conclude that this
language fails to demonstrate a clear intent to create a trust for the individual benefit of the
Bayliffs in Lot 15. Id. (âNo trust is created unless the settlor manifests an intention to impose
enforceable duties.â) At best, the Declaration requires the Association to act in the collective
interest of the Landing property owners in its maintenance of the Landing common areas,
including Lot 15. In short, nothing in the language of the Declaration suggests that the
Bayliffs have equitable title to Lot 15, such that any future transfer of the lot by the
Association without the Bayliffsâ consent would be âillegal or against public policy.â See
DeGon, 2022 Tex. App. LEXIS 1935, at *7.
Easements
Next, we consider the Bayliffsâ argument that a fact issue exists as to whether
they have an express easement or, alternatively, an easement by estoppel that prevents the
Association from selling Lot 15 without their consent. See Fallis v. River Mt. Ranch Prop.
13
Owners Assân, No. 04-09-00256-CV, 2010 Tex. App. LEXIS 5152, at *12 (Tex. App.âSan Antonio July 7, 2010, no pet.) (mem. op.) (explaining that easement âmay be created by express grant, implication, necessity, estoppel, or prescriptionâ). An easement is a nonpossessory interest that allows a holder to use anotherâs property for a particular purpose, but without conveying title. Stephen F. Austin v. Flynn,228 S.W.3d 653, 658
(Tex. 2007). An express easement is considered an interest in land subject to the statute of frauds. Pick v. Bartel,659 S.W.2d 636, 637
(Tex. 1983); see Tex. Bus. & Com. Code § 26.01. âTo be sufficient, the writing must furnish within itself, or by reference to some other existing writing, the means or date by which the land to be conveyed may be identified with reasonable certainty.â West Beach Marina, Ltd. v. Erdeljac,94 S.W.3d 248, 264
(Tex. App.âAustin 2002, no pet.).
To determine whether the Landing property owners, including the Bayliffs, hold
an express easement in Lot 15, we examine the deed transferring ownership of Lot 15 from the
developer to the Association, along with the Declaration to determine the scope of the transfer.
The deed transferring ownership of Lot 15 to the Association does not contain any language
suggesting that the developer intended, in the deed itself, to reserve any nonpossessory interests
in Lot 15 for the benefit of the property owners. The deed does, however, state that the
conveyance to the Association is made âsubject to . . . easements . . . and other instruments that
affect the property.â
The Declaration includes a section entitled, âArticle II, Reservations, Exception
and Dedications.â In Section 2.03 of Article II, the Declaration states:
Title Subject to Easements. It is expressly agreed and understood
that the title conveyed by the developer to any of the Tracts . . .
shall be subject to any easement affecting same for roadways or
drainage, electric lighting, electric power, telegraph or telephone
14
purposes and other easements hereafter granted affecting
the Tracts.
In Sections 2.04, 2.05, and 2.06, the Declaration clearly and unequivocally sets aside âutility
easements,â an âairspace easement,â and a âroad easement.â Notably absent in Article II is any
language purporting to set aside any property as a recreational easement, and the Declaration
does not include similar âeasementâ language in defining âcommon areas.â In short, nothing in
the language of the Declaration suggests that the developer intended to grant an express
easement on Lot 15 or, even more generally, on any property subsequently conveyed to the
Association for use as a common area. See Sundance at Stone Oak Assân v. Northeastern Indep.
Sch. Dist., No. 04-12-00610-CV, 2013 Tex. App. LEXIS 13857, at *8 (Tex. App.âSan Antonio
Nov. 13, 2013, no pet.) (mem. op.) (âWhen considering the express easementâs terms, the
partiesâ intentionsâas expressed in the grantâdetermine the scope of the easement.â). We
disagree with the Bayliffsâ assertion that Lot 15 is encumbered by an express easement held by
Landing property owners.
Next, we consider whether there is a fact issue as to whether Lot 15 is
encumbered by an easement by estoppel. Easement by estoppel is an equitable doctrine whereby
courts may, in certain situations, bar a property owner from disputing the existence of an
easement on his or her property where the owner has led another property owner to rely to his or
her detriment on the easementâs existence. Cambridge Holdings, Ltd., v. Cambridge Condos.
Council of Owners, No. 03-08-00353-CV, 2010 Tex. App. LEXIS 4415, at *50-51 (Tex. App.â Austin June 11, 2010, no pet) (mem. op.); see also Byrd v. Mahrou, No. 03-14-00441-CV,2016 Tex. App. LEXIS 7805
, at *9-10 (Tex. App.âAustin July 22, 2016, pet. denied) (mem. op.)
(âThe essence of the doctrine of easement by estoppel is that the owner of a servient estate may
15
be estopped from denying the existence of an easement by making representations that the
owner of the dominant estate then relies on.â). An easement by estoppel is an exception to
the requirement that the conveyance of an interest in land be in writing. Storms v. Tuck,
579 S.W.2d 447, 451(Tex. 1979). The elements for establishing an easement by estoppel are (1) representation of the easement communicated, either by words or action, by the owner to the promisee; (2) the communication was believed; and (3) the promisee relied upon the communication. Schwendeman v. BT SFRL I, LLC, No. 02-19-00007-CV,2020 Tex. App. LEXIS 861
, at *20 (Tex. App.âFort Worth Jan. 30, 2020, pet. denied) (mem. op.).
In support of their response to the Associationâs motion for summary judgment,
the Bayliffs submitted affidavits by Bradford and Lisa Bayliff. The Bayliffs also attached copies
of the Landingâs website and other marketing materials, describing the Landing as having
fifty-eight acres of common area with âAmenities Galoreââincluding an equestrian barn,
cantina-style bar, pool, and tennis courts. Both Bradford and Lisa Bayliff state in their affidavits
that they relied on these materials and, specifically, the promise of access to the common area
and its amenities in deciding to purchase and improve their lots. Based on this evidence, we
conclude that a fact issue exists as to whether the Bayliffs relied on representations made by the
developer that property owners at the Landing would have access to and recreational use of
Lot 15. See Byrd, 2016 Tex. App. LEXIS 7805, at *13-15 (concluding that evidence was legally
sufficient to support finding of easement by estoppel where representations of creek access,
including depictions of creek, were made in advertising and e-mails and induced plaintiffs to
purchase property in subdivision).
Nevertheless, despite the existence of a fact issue as to whether Lot 15 is
encumbered by an easement by estoppel, we cannot conclude that the trial court erred in
16
dismissing the Bayliffsâ claim for a declaration that the Association is prohibited from selling
Lot 15 without their consent. Once created, an easement is transferable with the propertyâs title
and is enforceable by and against subsequent owners with actual or constructive notice of its
existence. Goodenberger v. Ellis, 343 S.W.3d 536, 541(Tex. App.âDallas 2011, pet. denied). Therefore, even if the Bayliffs successfully prove that they have an easement by estoppel over Lot 15, the existence of the easement would not prevent the Association from selling Lot 15 and, consequently, transferring the easement to a buyer with notice of the easement. Consequently, no genuine issue of material fact exists as to the Bayliffsâ claim that (1) they hold property interests in Lot 15 that prevent the Association from selling the lot without their consent, and (2) because the June 2021 Amendment authorizes such a sale, it is âillegal and against public policy.â See DeGon,2022 Tex. App. LEXIS 1935
, at *7.
Constitutional Claim
Finally, we consider the Bayliffsâ argument that any conclusion by the trial court
or this Court that the June 2021 Amendment is valid amounts to an unconstitutional taking of
their âvaluable property rights.â See U.S. Const. amend. V (stating, ânor shall private property
be taken for public use without just compensationâ); Tex. Const. art. I, § 17 (stating that â[n]o
personâs property shall be taken, damaged or destroyed for or applied to public use without
adequate compensation being madeâ). Even assuming that the Bayliffs have a property right in
Lot 15, as they contend, nothing in the summary-judgment record suggests that Lot 15 would be
taken for âpublic useâ without compensation. No genuine issue of material fact exists as to the
Bayliffsâ claim that the June 2021 Amendment is unconstitutional. See also Chu v. Windermere
Lakes Homeowners Assân, 652 S.W.3d 899, 904 (Tex. App.âHouston [14th Dist.] 2022, pet.
17
filed) (explaining that âcourts should refrain from nullifying a transaction because it is contrary
to public policy, âunless the transaction contravenes some positive statute or some
well-established rule of lawââ).
The trial court did not err in concluding that as a matter of law the June 2021
Amendment is not âillegal or against public policy.â See DeGon, 2022 Tex. App. LEXIS 1935, at *7. The summary-judgment record establishes that the three conditions for a valid amendment are satisfied and that, consequently, the June 2021 Amendmentâauthorizing the Association to sell Lot 15âis valid and enforceable.Id.
We conclude that the trial court did not err in granting
summary judgment against the Bayliffs on their claim for a declaration that any attempt by the
Association to sell Lot 15 is unlawful, unenforceable, or unconstitutional. We overrule the
Bayliffsâ first and second appellate issues.
Motion for Continuance
In their third issue, the Bayliffs argue that âto the extent there is any doubt or
ambiguity about what the plat and governing documents mean, the trial court abused its
discretionâ in denying their motion for continuance so that additional discovery may be
conducted on this issue. Because we have concluded that the June 2021 Amendment is valid and
enforceable based on the plain and unambiguous language of the plat and the governing
documents, we overrule this issue.
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CONCLUSION
Having overruled the appellantsâ issues on appeal, we affirm the trial courtâs
summary judgment. 5
__________________________________________
Chari L. Kelly, Justice
Before Justices Baker, Kelly, and Smith
Affirmed
Filed: December 13, 2023
5 On November 1, 2023, we conditionally granted the Bayliffsâ petition for writ of
injunction, prohibiting the Association from selling Lot 15 during the pendency of this appeal.
See In re BLF LLC, No. 03-23-00487-CV, 2023 Tex. App. LEXIS 8301, at *3 (Tex. App.â
Austin Nov. 1, 2023, orig. proceeding) (mem. op.). Having resolved this appeal, we hereby lift
our injunction order in cause number 03-23-00487-CV.
19