HOUSTON – The Court of Appeals for the 1st District of Texas has partially ruled against AIC Management Co. in a dispute over a lease for an AT&T cellular tower in Houston.
The appeals court upheld the trial court’s ruling on March 8, saying AIC Management didn’t have a valid ownership of the property. The opinion was written by Chief Justice Sherry Radack.
Although the trial court ruled that Reddy Greensbrook LTD is the owner of the land where the cell tower was built, the appeals court said that ruling is incorrect.
“Because the record does not reflect that Greensbrook requested affirmative relief on its adverse possession claim, we hold that the trial court erred in declaring Greensbrook the legal owner of the property through adverse possession,” the appeals court said.
The trial court had given Greensbrook attorneys’ fees, amounting to "$65,000 through trial, $15,000 through appeal, $7,500 through a petition to the Supreme Court and $10,000 for briefing and argument in the Supreme Court," according to the appeals court.
The appeals court reversed the attorney fees award.
“We reverse the portion of the trial court’s judgment declaring Greensbrook to be the legal owner of the property,” the appeals court said. “We further reverse the portion of the trial court’s judgment awarding Greensbrook its attorney’s fees and render judgment that Greensbrook take nothing on its claim for attorney’s fees.”
According to the court, the conflict began in 1991 after AT&T predecessor Houston Cellular Telephone Co. leased land for a cell tower.
Texas Commerce Bank, owner of the land, sold the property, which was eventually sold again and purchased by Houston North View Park (HNVP) in 1995. The opinion states a judgment was rendered against HNVP in 1997 in favor of Harris County Municipal Utility District No. 221 and Aldine Independent School District for delinquent taxes.
Greensbrook said it gained ownership of the land in 1998 after it was transferred through several properties.
AIC then said it had purchased 0.6 acres on the property in the year 2000, at which time Aldine ISD was named on the deed.
The court said AIC was given a correction deed in 2005, removing Aldine ISD and naming AIC as grantee.
“AT&T, in its interpleader petition, alleged that it became the successor-in-interest to Houston Cellular with respect to the cell tower and the lease,” the appeals court said. “From 1998 to 2011, AT&T made its lease payments to Greensbrook. In 2010, Greensbrook and AT&T renewed the lease.”
AIC said it had a right to AT&T payments and it threatened to terminate the lease and deny AT&T access to its cell tower, the appeals court said.
When the two parties and AT&T went to court regarding the correction deed, the trial court said the case is invalid because Aldine ISD hadn’t signed off on the transfer.
“The trial court denied Greensbrook’s and AIC’s motions for a summary judgment on the validity of AIC’s correction deed and title issues,” the appeals court said.
The trial court then said Greensbrook has superior title and is entitled to attorneys’ fees, which resulted in the appeal court’s latest decision.