HOUSTON – Two property management companies lost an appeal of a plea to jurisdiction involving the rebuilding of an apartment complex damaged by a hurricane.
Justice William Boyce of the Texas 14th Court of Appeals issued a 13-page ruling on Sep. 18 affirming the Harris County Civil Court at Law No. 3's decision in the lawsuit filed by the companies APTBP LLC and Gatesco Inc. against the city of Baytown.
The two enterprises sued Baytown over some issues when rebuilding a complex that was damaged by Hurricane Ike.
As stated in the ruling, APTBP "purchased Bay Pointe Apartments located in Baytown in 2014," and it "started repairing the buildings in the complex after the purchase." The company claimed that the city "allegedly refused to release electricity to repaired, vacant units in the apartment complex" and a dispute arose, the ruling states.
APTBP filed a suit over allegations of inverse condemnation/regulatory taking under Article 1, section 17 of the state constitution against the city on June 16, 2016. It alleged that the city "'arbitrarily decided' that Bay Pointe could not receive electricity until the 'entire apartment complex obtains a new final Certificate of Occupancy.'"
Baytown filed a plea to the jurisdiction on July 8, 2016, stating that "the court lacked subject matter jurisdiction because the facts APTBP pleaded are insufficient to establish a viable takings claim under the Texas Constitution," as well as it affirmed governmental immunity, the ruling states.
The city's plea was granted on March 6, 2017.
In his ruling, Boyce dismissed APTBP's claims of takings by the city, stating that "no viable takings claim is presented based on APTBP’s allegations that the city misapplied its regulations and standards because it required only APTBP to comply with them, and treated other apartment complex owners in Baytown differently or more leniently."
Texas 14th Court of Appeals case number 14-17-00183-CV