We granted rehearing in this cause February 19, 2016, and now withdraw the opinion and judgment previously issued and substitute the following opinion.
This long-running dispute poses a question of constitutional law: 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 fully implementing a previously approved flood-control plan. Under the circumstances presented, we answer no.
Plaintiffs (the homeowners) consist of about 400 homeowners whose homes were located in the upper White Oak Bayou watershed of Harris County. The homes suffered flood damage one or more times when flooding occurred during Tropical Storm Francis in 1998, Tropical Storm Allison in 2001, and another unnamed storm in 2002. The homeowners sued Harris County and the Harris County Flood Control District (collectively the County), asserting a takings cause of action.
The District was created under Article XVI, section 59 of the Constitution, which authorizes the creation of conservation and reclamation districts. The District is charged with "the control ... of the storm and flood waters, and the waters of the rivers and streams in Harris County and their tributaries for ... flood control ... and other useful purposes."
The County concurred with Corps' findings and agreed to act as a sponsor for the project, but federal funding was slow to materialize. The County approved new residential developments in the 1976-1984 period. The District began requiring new developments in the upper Bayou watershed to provide on-site detention ponds. The parties disagree on the extent to which the District deviated from this policy. The District eventually hired Pate Engineers to develop a flood-control plan, which was presented in a written report in 1984. The Pate Plan noted a "current policy requiring on-site stormwater detention on all new development projects in the Upper White Oak Bayou watershed," and proposed channel improvements combined with detention basins, with the goal of eliminating "the [100-year] flood plain in the upper portion of the watershed." The Plan stated that its implementation "should eliminate the existing flood plains through the existing developed portion of upper White Oak Bayou and provide for phased implementation of the ultimate plan to maintain 100-year flood protection on White Oak Bayou as future development occurs." In 1984, the County approved the Pate Plan and authorized the District to implement it. The Plan was to be funded through local taxes and impact fees, because federal funding was no longer available, and was to be implemented in phases. Developers who did not construct on-site detention facilities could pay an impact fee that would fund the construction of regional detention facilities.
The Pate Plan was never fully implemented, and flooding continued. In 1990 the District commissioned a new study by Klotz Associates to address flood concerns. The Klotz Plan called for measures that were different from the Pate Plan measures. The parties offer different characterizations of the shift from the Pate Plan to the Klotz Plan. The County contends that the Klotz Plan was necessary because assumptions in the Pate Plan proved wrong, and that the Klotz Plan was more ambitious than the Pate Plan. The homeowners contend that the Klotz Plan was less extensive than the Pate Plan for various reasons.
The homeowners claim that the flooding of their homes was caused by the County's approval of "unmitigated" upstream development, combined with a failure to fully
The County filed a combined plea to the jurisdiction and motion for summary judgment, contending that no genuine issue of material fact had been raised on the elements of the takings claim. The trial court grudgingly denied the motion,
The parties raise many arguments. Briefly, the County contends the homeowners failed to raise a fact issue on the issues of intent, causation, and public use.
On intent, the County argues that it never intended to cause flood damage to the homeowners' properties. The County disputes that the evidence raised a fact
On causation, the County contends that Mays opined that full implementation of the Pate Plan would have prevented flooding of the homeowners' properties, because the three floods were all less than the 100-year flood and the Pate Plan would have prevented flooding up to the 100-year event. The County contends Mays made no attempt to show, with scientifically reliable analysis, that full implementation of the Plan would have met this goal. The County offered evidence that assumptions in the Pate Plan became outdated, and argues that the Plan's goal of preventing flooding for anything less than a 100-year event was aspirational only. It points out that Mays, in his deposition, could not say that full implementation would have contained "the 100-year flood," only that "the intent of [the Pate Plan] was to contain" such a flood. The County also disputes that it ever authorized "unmitigated" development as described by Mays. It further complains of "Mays' failure to connect any particular unmitigated development to any particular flooded property."
On public use, the County argues that when, as here, property damage is merely the accidental result of the government's acts, there is no public benefit and the property is not taken or damaged for public use under the Texas Constitution. The County also argues there was no evidence the County consciously sacrificed the homeowners' properties for a perceived public use.
The homeowners respond to all of these arguments, contending that the trial court's denial of summary judgment on the takings claim was proper. They argue that the County's failure to fully implement the Pate Plan, combined with its approval of unmitigated development, resulted in flooding of their homes and amounted to a constitutional taking of their property. On the issue of intent, the homeowners contended in the trial court that Mays provided reliable expert testimony that unmitigated development "was substantially certain to result in increased flooding along the bayou in the vicinity of the Plaintiffs' properties." He claimed that, based on his analysis of the relevant data, the floods that damaged the homeowners' homes were not 100-year floods, and that full implementation of the Pate Plan would have prevented flooding of all properties not in the 100-year flood plain. He stated in the last of three expert reports: "`But for' the actions by the County of approving this unmitigated development, and/or by not fully implementing the Pate Plan (which would have eliminated the risk of flooding along the bayou for up to a 100-year event), the Plaintiffs' properties would not have flooded during these three flood events." The homeowners contend that the affidavit of District Director David Talbott, submitted to negate the intent element, was conclusory and self-serving.
Where, as here, evidence is presented with a plea to the jurisdiction, the court reviews the relevant evidence and may rule on the plea as a matter of law if the evidence does not raise a fact issue on the jurisdictional question, a standard that generally mirrors the summary-judgment standard.
Article I, section 17 of our Constitution provides:
Generally, plaintiffs seeking recovery for a taking must prove the government "intentionally took or damaged their property for public use, or was substantially certain that would be the result."
Much of our takings jurisprudence focuses on mens rea. We have made clear that a taking cannot be established by proof of mere negligent conduct by the government.
Much of the briefing focuses on the element of intent, but there are other elements of a taking that render the homeowners' claim problematic.
Only affirmative conduct by the government will support a takings claim. We have always characterized a takings claim as based on some affirmative "act" or "action" of the government. For example, in Gragg, we held "that the requisite intent is present when a governmental entity knows that a specific act is causing identifiable harm...."
In addition, a specificity element runs through our jurisprudence. The caselaw indicates that in order to form the requisite intent, the government ordinarily knows which property it is taking. For example, Jennings describes the intent requirement as covering situations where "a governmental entity is aware that its action will necessarily cause physical damage to certain private property."
This most certainly is not an ordinary regulatory takings case, one where the
This uncharted theory should give us pause to ponder whether the claim, even if factually supported, is the stuff of a constitutional taking. If a private developer, after routine approval of its plat, uses its property in a manner causing damage to other properties, might the remedy lie against the developer rather than the county?
One way of analyzing this question is through the element of public use. Article I, section 17 of our Constitution provides for compensation where the property is "taken, damaged or destroyed for or applied to public use." We have recognized that a taking may occur "if an injury results from either the construction of public works or their subsequent maintenance and operation,"
The homeowners argue that the public-use element is met here because it was met in City of Keller v. Wilson. That case is factually distinguishable. In City of Keller, the city adopted a master drainage plan that called for a drainage easement on land belonging to the plaintiffs, the Wilsons.
City of Keller is factually distinguishable because the city there planned to condemn an easement and build a ditch across the plaintiffs' property, knowing drainage across that specific property was part of the master plan. The jury found that the failure to build that leg of the ditch resulted in flooding on the Wilson property. As the court of appeals reasoned:
Hence, the public-use element as to the particular plaintiffs was not established merely by the approval of private development on other properties.
We also find the United States Supreme Court's landmark decision in Kelo v. City of New London
The Washington Supreme Court considered a case similar to today's case where plaintiffs filed an inverse condemnation claim against a county, alleging that plaintiffs' property flooded after the county approved a development plat for a neighboring property. The court held that mere approval of the plat could not support a takings claim:
The approval of private development in this case — doing nothing more than allowing private parties to use their properties as they wish — presents at best a highly attenuated basis for meeting the public-use element of a takings claim.
While compensation to those whose property is taken for public use is an important and constitutionally imposed obligation of democratic government, governments must also be allowed to survive financially and carry out their public functions. They cannot be expected to insure against every misfortune occurring within their geographical boundaries, on the theory that they could have done more. No government could afford such obligations. Justices Jackson and Goldberg both recognized that the Bill of Rights is not a suicide pact.
This Court has repeatedly, recently, and unanimously recognized that strong judicial protection for individual property rights is essential to "freedom itself."
But there is always tension between the compensation obligation of the Takings Clause and the necessary doctrine of sovereign immunity, also a doctrine of constitutional significance.
Because inaction cannot give rise to a taking, we cannot consider any alleged failure to take further steps to control flooding, such as the failure to complete the Pate Plan. Because a taking cannot be premised on negligent conduct, we must limit our consideration to affirmative conduct the County was substantially certain would cause flooding to the homeowners' properties and that would not have taken place otherwise. The only affirmative conduct on which the homeowners rely is the approval of private development. Further, the homeowners offered no proof that the County was substantially certain that the homeowners' particular properties would flood if the County approved new housing developments. The homeowners did not even assert such a claim, alleging instead that the County was substantially certain that its actions in approving "unmitigated development" would result in flooding "in the vicinity of Plaintiffs' properties." They never explained whether the "vicinity" is a few square miles or hundreds of square miles. They never identified precisely or even approximately the area of unmitigated development. The Pate Plan described the White Oak Bayou watershed as 110 square miles in size. The homeowners' expert Mays admitted that "I haven't been asked to do anything concerning specific plaintiffs." A County expert, Melvin Spinks, agreed that "Mays was unable to demonstrate that any actions of Defendants were the proximate cause of flooding of any particular Plaintiff's property," nor did Mays "determine the causation of flooding subdivision by subdivision." In the trial court, the County accurately described the homeowners' particular parcels as "scattered in a checker board fashion in the upper White Oak Bayou watershed, stretching several miles."
Further, the homeowners offered no evidence that the County was consciously aware that approval of unmitigated development in one defined area, such as a specific block or neighborhood, was substantially likely to cause flooding in another specifically defined area of the White Oak Bayou watershed that included the homeowners' properties. The County offered evidence to the contrary. District Director David Talbott attested that "[t]he District did not approve of land development knowing that there was inadequate stormwater runoff mitigation associated with a particular development," and pointed out that the District was tasked with addressing severe flooding problems not only in the White Oak Bayou watershed where the homeowners resided, but also in the Clear Creek, Greens Bayou, Cypress Creek, and Brays Bayou watersheds. While the homeowners number 400 who suffered flood damage during three events, Talbott pointed out that Tropical Storm Allison alone flooded 73,000 residences. Talbott and the vice president of Klotz both attested that it is against District policy to "move a flood" — sparing one neighborhood that would otherwise flood by causing another neighborhood to flood. Talbott also attested: "Although White Oak Bayou was always a high priority, with limited District funding the District also had to consider other high priority projects throughout the County. District funds that were available were allocated to various projects around the County, with White Oak Bayou receiving an appropriate share."
The homeowners contend that Kopplow and Gragg are helpful to their case because both decisions recognized that the recurrence of flooding is probative on the issue of intent.
The determination of whether a taking has occurred is ultimately a question of law.
The homeowners' theory of takings liability would vastly and unwisely expand the liability of governmental entities, a view shared by the many public and private amicus curiae who have urged rehearing of this cause.
The homeowners' notion of a taking is expansive indeed. Take, for example, a government such as the City of Austin that supplies electric utility service to its citizens. It surely knows that in running power lines throughout the service area, fires or other damaging events will occasionally occur when acts of nature knock down lines or poles. Witness the recent devastating fires in the Bastrop area allegedly caused by power lines. The government also surely knows that some private properties — those adjacent to the lines, or, in the homeowners' vernacular, "in the vicinity" of the lines, are especially vulnerable to such events. Under the homeowners' theory, an Act of God, such as a bolt of lightning, that causes a high-voltage line to topple or a transformer to blow, which in turn causes damage to a private property, is arguably a taking on the notion that properties near the grid have been sacrificed for the greater public good of providing electricity service to the whole community. Negligent maintenance of the utility grid is irrelevant, so long as the city is substantially certain that fires somewhere, someday, will occur along the grid, as surely is the case. It matters not that a storm contributed to the downed line, because in today's case storms also played an essential role. Traditional fault-based tort law, sovereign immunity, and the Tort Claims Act are irrelevant if the claim is framed as a taking. The hypothetical is arguably a stronger case for a taking than today's case, because providing an electric utility grid unquestionably involves a public use of property, whereas in today's case the only affirmative conduct allegedly resulting in a taking was granting approval of private development, perhaps not a public use at all.
Amicus curiae Texas Department of Transportation (TxDOT) raises a similar hypothetical. It points out that it is required by law, in determining roadway access, to balance "the needs of mobility and safety on a highway system with the needs of access to adjacent land uses."
Or take any large city with its contingent of high-rise buildings. A city may know that somewhere, someday, a fire will occur on a floor the city fire trucks cannot reach. Suppose a city has a study in hand recommending larger ladder trucks, but fails to purchase the trucks due to funding problems or other priorities. Under the homeowners' approach, if a fire occurs on a higher floor of a building, and damages adjacent properties, the adjacent property owners have a takings claim if they can show that a larger ladder truck would have contained the fire. It does not matter whether the city's conduct was reasonable given its tax base or funding priorities. In today's case, too, the record shows that funding issues played a role in the County's decisions. All that matters is that the city issued building permits, knowing that somewhere, someday, a fire would likely occur on an upper floor. This knowledge supplies the intent element, and the building permits supply the causation element, regardless of whether an act of nature started the fire. It does not matter whether the building in issue was privately owned, because according to the homeowners
Amicus Curiae Harris County Metropolitan Transit Authority (METRO) imagines an even more disturbing hypothetical, asking whether hurricanes allegedly caused by global warming would be a compensable taking under the homeowners' reasoning. After all, METRO contends, "Experts can be hired who will testify that burning fossil fuels raises sea levels and makes storms more intense. Yet governments issue permits allowing exploration and production of fossil fuels, and construction and operation of the power plants that burn them."
And, as several amici curiae fear in urging rehearing, the homeowners' theory of takings would place governments in a unending dilemma of requiring extreme flood-control measures and facing a regulatory takings claim from the owners directly subjected to such measures, or requiring less extensive measures and facing a takings claim when downstream property owners experience flooding. In the words of amicus curiae City of San Antonio, flood-control decisions will be reduced to "picking your plaintiff rather than responsible flood control management."
We decline to extend takings liability vastly beyond the extant jurisprudence, in a manner that makes the government an insurer for all manner of natural disasters and inevitable man-made accidents.
The plea to the jurisdiction was well-taken and should have been granted. We reverse the judgment of the court of appeals and render judgment dismissing the case.
JUSTICE LEHRMANN filed a concurring opinion.
JUSTICE LEHRMANN, concurring.
"[A]ware of the tendency of power to degenerate into abuse," Thomas Jefferson said that "our own country [has] secured its independence by the establishment of a constitution and form of government for our nation, calculated to prevent as well as to correct abuse." 8 THOMAS JEFFERSON, To the Tammany Society of Columbian Order of the City of Washington (March 2, 1809), in THE WRITINGS OF THOMAS JEFFERSON 156, 156-57 (1854). Recognizing the same need to set in stone the limits on government's capacity to invade certain essential rights, "Texans have adopted state constitutions to restrict governmental power." Vinson v. Burgess, 773 S.W.2d 263, 267 (Tex.1989). In that sense, the constitutional bedrock underlying and supporting Texas's legal system assumes both the possibility that the government will abuse its authority and the wisdom of curtailing that abuse from the outset.
To that end, Article I, section 17 of the Texas Constitution contains an important limitation on the government's authority to invade Texans' property rights, providing that "[n]o person's property shall be taken, damaged or destroyed for or applied to public use without adequate compensation being made." In this case, the plaintiffs contend that the government took their property without compensation by approving private development that resulted in the flooding of their homes. I agree with the Court that the circumstances of this case do not give rise to a cognizable takings claim and join the Court's opinion in full. I write separately to call attention to the Court's recognition that "if a taking for public use is compensable, then surely a taking for private use would also be compensable." Ante at 803 n. 41. While not crucial to the dispute at hand, this point warrants further discussion.
In compliance with Article I, section 17's restrictive mandate, we have consistently held that the State must justify its exercise of eminent domain by establishing the taking is for public use. See, e.g., City of Austin v. Whittington, 384 S.W.3d 766, 772 (Tex.2012); Davis v. City of Lubbock, 160 Tex. 38, 326 S.W.2d 699, 702-03 (1959). And quoting that same constitutional language — perhaps carelessly — we have also stated that an aggrieved property owner's claim for inverse condemnation is predicated on a showing that the government "intentionally took or damaged [private] property for public use, or was substantially certain that would be the result." City of Keller v. Wilson, 168 S.W.3d 802, 808 (Tex.2005); see also State v. Hale, 136 Tex. 29, 146 S.W.2d 731, 736 (1941); Gulf, C. & S.F. Ry. Co. v. Donahoo, 59 Tex. 128, 133 (1883). But we have never held that a taking that fails to satisfy the public-use element is not compensable. To the contrary, we have broadly held that when "the government takes private property without first paying for it, the owner may recover damages for inverse condemnation." Tarrant Reg'l Water Dist. v. Gragg, 151 S.W.3d 546, 554 (Tex.2004). Our inclusion of "public use" as an element of an inverse-condemnation claim — stated with no analysis in cases in which public use was not even at issue — should not be read to imply that an inverse-condemnation claimant would not be entitled to compensation if property were taken for private use or the public-use requirement were not satisfied. See, e.g., City of Keller, 168 S.W.3d at 808.
Moreover, the Court has explicitly addressed the propriety (or rather, the impropriety) of a private-use taking within other contexts. We did so with greatest
But this precedent does not clearly address whether an inverse-condemnation plaintiff is entitled to compensation for a private taking. Unlike Maher, in which the government's declaration that the plaintiff's property was no longer private was declared void, in this case the County cannot undo the water damage to the plaintiffs' homes. The proverbial bell has been rung. Maher addresses what Texas courts should do when title to property is taken outright for private use, but it fails to suggest a solution when a taking for private use damages property and reduces its value.
The need for this Court to address the compensability of a private taking is particularly important in Texas because such a taking is a real possibility. See Osburn v. Denton Cty., 124 S.W.3d 289, 293 (Tex. App.-Fort Worth 2003, pet. denied) (holding that a private-use taking did not warrant compensation). By contrast, private takings are ostensibly a non-issue under the federal Constitution. The Sixth Circuit has stated that "[e]xamples of a taking for a private use tend to be esoteric ... because all that is required for the taking to be considered for public use is a rational relationship to some conceivable public purpose." Montgomery v. Carter Cty., Tenn., 226 F.3d 758, 765 (6th Cir.2000). As such, "[v]ery few takings will fail to satisfy that standard." Id. at 765-66. The Seventh Circuit has similarly characterized the burden of establishing a public use as "remarkably light." Daniels v. Area Plan Comm'n of Allen Cty., 306 F.3d 445, 460 (7th Cir.2002).
In what has widely been viewed as a response to Kelo, the Texas Legislature passed the Limitations on Use of Eminent Domain Act during a 2005 special session. Act of Aug. 16, 2005, 79th Leg., 2d C.S., ch. 1, § 1, 2005 Tex. Gen. Laws 1, 1-2; see also W. Seafood Co. v. United States, 202 Fed.Appx. 670, 677 (5th Cir.2006) (noting that the Act was passed in response to the Kelo decision). Codified as Texas Government Code section 2206.001, the Act precludes a government taking that (1) would confer "a private benefit on a particular private party through the use of the property," (2) was "merely a pretext to confer a private benefit," or (3) served purely "economic development purposes." The Act was amended in 2011 to make clear that the government may not condemn property if it "is not for a public use." Act of May 6, 2011, 82d Leg., R.S., ch. 81, § 2, sec. 2206.001, 2011 Tex. Gen. Laws 354, 354.
These provisions are aimed squarely at the federal courts' deferential approach to the public-use requirement. The Legislature has clearly exercised its prerogative to protect Texans' property rights by narrowly defining public use. As a result, government actions that satisfy the federal public-use requirements could very well fail to satisfy such requirements in Texas. Because the Texas Legislature has opted to give greater protection to individual property rights, any suggestion that a private-use taking might bar a property owner's right to recovery is misplaced. The Constitution limits government power; it does not limit Texans' rights to obtain appropriate relief when that power is exceeded.
Although a few cases from other jurisdictions addressing those states' constitutions have held that a taking for private use is not compensable, I find the reasoning in these cases unpersuasive. E.g., Clark v. Asheville Contracting Co., 316 N.C. 475, 342 S.E.2d 832, 839 (1986); Tulare Irrigation Dist. v. Lindsay-Strathmore Irrigation Dist., 3 Cal.2d 489, 45 P.2d 972, 990 (1935). Such a holding improperly infers from the constitutionally placed burden on the government a reciprocal burden on property owners. Just as crucially, however, it ignores the Texas Constitution's goal of anticipating and preventing potentially abusive government action. Declaring that a private-use taking is not compensable would create a perverse set of incentives for State actors by encouraging takings that do not serve a public use. In turn, a public shield against improper government action would be converted into a sword to enable that same improper action. Put simply, it makes no sense to say that a property owner is entitled to compensation if the government does the right thing but not if it does the wrong thing.
With these additional thoughts, I join the Court's opinion and judgment.
JUSTICE DEVINE delivered a dissenting opinion, in which CHIEF JUSTICE HECHT, JUSTICE GREEN, and JUSTICE BOYD joined.
This inverse condemnation case concerns whether homeowners raised a fact
The plaintiffs in this case are more than 400 residents and homeowners in the upper White Oak Bayou watershed in Harris County. Their homes were built mostly in the mid-to-late 1970s and early 1980s. Despite a history of flooding in the area, they initially suffered little to no flood damage. This changed, however, when Tropical Storm Francis in 1998, Tropical Storm Allison in 2001, and an unnamed storm in 2002 flooded their homes one or more times. The homeowners blame Harris County and Harris County Flood Control District, asserting that they approved new upstream development without implementing appropriate flood-control measures, all the while being substantially certain flooding would result.
The government entities have long known that expanding development in the watershed could cause flooding. In 1976, the U.S. Army Corps of Engineers prepared a report on the upper White Oak Bayou. The report noted recurrent damaging floods, which it attributed primarily to "inadequate channel capacities of the streams." This problem was "compounded by the continuing increases in suburban development which reduces the infiltration of rainfall and increases and accelerates runoff to the streams." Inadequate street drainage and storm sewers also caused severe localized flooding. The report predicted: "Additional residential development is expected to occur with or without an adequate plan for controlling the floods. Although current local regulations require that new structures be built above the level of the 100-year flood, damages will increase substantially in the future with increased rainfall runoff rates." Accordingly, the Corps proposed channel improvements and other changes to reduce flooding caused by existing and future development. The plan was to be funded primarily by the federal government.
The government entities concurred with the Corps' findings and agreed to facilitate the project. Their ostensible goal following the Corps' report was to maintain or reduce the bayou's 100-year flood plain. But federal funding was slow to materialize, even as thousands of acres were developed in the bayou's watershed and the County continued approving more. Construction in the 100-year flood plain had been prohibited since the early 1970s, meaning that almost none of the new development or the plaintiffs' homes were in the 100-year flood plain when built or approved.
The delay in federal funding for the Corps' plan led County officials to develop their own flood-control plan. The District had already begun requiring new developments in the upper part of the watershed to provide on-site detention ponds, though the parties disagree on whether the District deviated from this policy. The government entities commissioned Pate Engineers to develop a plan. The "Pate Plan," adopted by the County in 1984, proposed to eliminate flooding along the upper bayou
A 1989 flood led residents to inquire about the flood-control measures. The District's director assured them of plans to protect their property from 100-year floods. Yet the 1989 flood revealed flaws in the Pate Plan's engineering analysis, and the District commissioned another report on the upper White Oak Bayou watershed. Klotz Associates presented their findings in the early 1990s, concluding that the Pate Plan seriously underestimated the bayou's flood flows and levels. Though the Klotz Plan's features were more extensive in some regards than the Pate Plan, the Klotz Plan was modeled around containing 10-year (as opposed to 100-year) flood events. The government entities adopted these changes.
The new information led FEMA to update the bayou's flood-plain maps in the 1990s. Revisions exposed an expanding flood plain, encompassing more and more of the plaintiffs' homes. According to the homeowners, by 1999, all of their homes were within the 100-year flood plain — something the government entities do not dispute here. Indeed, from 1998 to 2002, most of their homes were inundated in three successive floods.
The homeowners filed an inverse condemnation suit. The government entities responded with a combined plea to the jurisdiction and motion for summary judgment, contending that no genuine issue of material fact had been raised on the elements of the takings claim. The trial court denied the motion, and the court of appeals affirmed the denial of the plea to the jurisdiction. 445 S.W.3d 242, 247 (Tex. App.-Houston [1st Dist.] 2013).
Article I, Section 17 of the Texas Constitution provides:
TEX. CONST. art. I, § 17(a).
Those seeking recovery for a taking must prove the government "intentionally took or damaged their property for public use, or was substantially certain that would be the result." City of Keller v. Wilson, 168 S.W.3d 802, 808 (Tex.2005). Sovereign immunity does not shield the government from liability for compensation under the takings clause. Gen. Servs. Comm'n v. Little-Tex Insulation Co., 39 S.W.3d 591, 598 (Tex.2001).
In a takings case, "the requisite intent is present when a governmental entity knows that a specific act is causing identifiable harm or knows that the harm is substantially certain to result." Tarrant Reg'l Water Dist. v. Gragg, 151 S.W.3d 546, 555 (Tex.2004). It is not enough that the act causing the harm be intentional — there must also be knowledge to a substantial certainty that the harm will occur. City of Dallas v. Jennings, 142 S.W.3d 310, 313-14 (Tex.2004). Intent, in takings cases as in other contexts, may be proven by circumstantial evidence. See Spoljaric v. Percival Tours, Inc., 708 S.W.2d 432, 435 (Tex.1986). But a taking cannot rest on the mere negligence of the government. City of Tyler v. Likes, 962 S.W.2d 489, 505 (Tex.1997). The issue here is whether the homeowners' circumstantial evidence raises a fact question as to the government entities' knowledge that "harm [was] substantially certain to result" to the homeowners' homes because of the entities' actions. See Gragg, 151 S.W.3d at 555.
The homeowners do not argue that the government entities have a general legal duty to prevent all flooding. Instead, they urge that the entities approved private development in the White Oak Bayou watershed without mitigating its consequences, being substantially certain the unmitigated development would bring flooding with it. The government entities respond that they did not intend the flooding; indeed, the District's very purpose is to plan for storm-water runoff and control flooding. They assert that they cannot stop all flooding, and to the extent flooding does occur, their intent is to reduce or prevent it, not cause it.
The summary judgment evidence shows a fact question exists regarding whether the government entities were substantially certain their actions in approving development without appropriately mitigating it would cause the plaintiffs' homes to flood. The Corps' report, Pate Plan, and Klotz report confirm that the entities have known for several decades that development in the bayou's watershed exacerbates flooding in the upper bayou. The homeowners point to evidence that the County approved development without the previously required on-site detention.
The government entities respond that their "knowledge must be determined as of the time [they] acted, not with benefit of hindsight." City of San Antonio v. Pollock, 284 S.W.3d 809, 821 (Tex.2009). The entities urge that they changed from the Pate Plan to the Klotz Plan because the Pate Plan was flawed. There is no evidence they knew of the flaws at the time they adopted it or approved most of the development. In other words, no evidence exists that at the time they approved most of the development at issue, they were substantially certain the flood-control measures would fail and flooding would result. When the 1989 flood revealed the Pate Plan's flaws, the entities followed their engineers' advice and adopted the Klotz Plan. Since then, they have spent millions of dollars on drainage and infrastructure that, according to their experts, goes far beyond the Pate Plan, and no evidence exists that the Pate Plan would have stopped the floods the homeowners complain about. Michael David Talbott, an expert witness for the entities, explained that the District's knowledge of the watershed "changed significantly over time" and continued to change "with the advent of new technologies and with observations of actual events." The changing flood plains and changing plans were not premeditated; they resulted from new data and knowledge.
This competing evidence demonstrates, in the words of the court of appeals below, "the factual complexity surrounding this issue and the difficulty of pinpointing precisely what [the government entities] knew about flooding in the upper watershed and when they knew it." 445 S.W.3d at 258. Evidence exists that the entities approved development without appropriately mitigating it, and that at times they deviated from their early policy of requiring on-site detention ponds. There is also evidence that they abandoned plans protecting against 100-year floods for plans targeting only 10-year floods. Though none of the evidence on its own might raise a fact question, together it raises a question of fact as to the entities' intent to take the homeowners' property to facilitate new development without appropriate mitigation.
The homeowners also submit that the recurring nature of these floods is probative of the government entities' intent and the extent of the taking. See Gragg, 151 S.W.3d at 555 ("In the case of flood-water impacts, recurrence is a probative factor in determining the extent of the taking and whether it is necessarily incident to authorized government activity, and therefore substantially certain to occur."); see also Kopplow Dev., Inc. v. City of San Antonio, 399 S.W.3d 532, 537 (Tex.2013) ("With flood water impacts, recurrence is a probative factor in assessing intent and the extent of the taking."). Here, the entities knew that flooding occurred frequently in the bayou, and they originally planned for 100-year events. Yet there is evidence that they later planned only for 10-year events. The fact that storms sometimes surpass 10-year events is no surprise to the entities. The recurring nature of the flood events is evidence of intent and the extent of the taking.
The government entities invoke City of Keller v. Wilson, where the Court held that a city could rely on engineers' conclusions that a drainage ditch was unnecessary,
In sum, the homeowners have raised a fact question regarding intent. This case is unlike others where there was no "evidence that the act ... was substantially certain to lead to such damage." Jennings, 142 S.W.3d at 315.
To prevail, the homeowners must also raise a fact issue as to whether the government entities' actions "resulted in a `taking' of property." Little-Tex Insulation Co., 39 S.W.3d at 598. The entities assert that the homeowners failed to do so. I disagree.
The homeowners' expert, Dr. Mays, performed a study that raises a fact question regarding whether the government entities' approval of development and subsequent failure to properly mitigate it caused the homes to flood. Dr. Mays investigated the effects of unmitigated development on the watershed, performing his "Effect of Urbanization on Peak Discharges" analysis to demonstrate the difference between 1982 land use conditions and 1990 land use conditions. He compared peak discharges and runoff hydrographs from conditions in 1982 to peak discharges and runoff hydrographs from conditions in 1998, concluding that the primary cause of flooding along White Oak Bayou was development "without the implementation of proper stormwater management measures (such as detention and/or retention)." This caused "significant increases in flows and corresponding water surface elevations for an approximate 10-year flood event." Dr. Mays determined that two of the three flood events between 1998 and 2002 were 10-year flood events. He concluded: "But for' the actions by the County of approving this unmitigated development, and/or by not fully implementing the Pate Plan (which would have eliminated the risk of flooding along the bayou for up to a 100-year event), the Plaintiffs' properties would not have flooded during these three flood events."
The government entities point to purported "analytical gaps" in Dr. Mays' study. For example, the entities point out that Dr. Mays freely admitted that he never modeled or tested the Pate Plan to show that it would have stopped the flooding. Without proving there was a way to stop the flooding, Dr. Mays could not prove the entities caused it. The entities present evidence that the expanding flood plain was caused (at least in part) by new knowledge about existing conditions as opposed to changes in conditions. The entities assert that intense, unexpected rainfall — not their own actions — caused the floods, observing that flooding occurred all over Harris County during these storms, not just in the White Oak Bayou watershed. They also challenge Dr. Mays' method of determining the size of the storms, arguing that they were larger.
I believe the homeowners have raised a fact issue regarding whether the entities' actions caused the flooding. The homeowners presented evidence that the Klotz Plan targeted 10-year events, whereas the Pate Plan had aspired to contain 100-year floods. Dr. Mays presented data supporting his conclusion that the flooding was caused by water exceeding the bounds of
In sum, several unresolved fact questions exist. For example, the parties dispute the nature and degree of the three flood events. The government entities have contended that two of the storms produced unprecedented rainfall, yet evidence exists that these storms were within the parameters planned for by the Pate Plan and the Corps' study. The parties also dispute the degree to which unmitigated development contributed to the 100-year flood plain's expansion, the relative benefits and shortcomings of the Pate and Klotz Plans, and the entities' ability to manage and control development in the bayou's watershed, as well as the entities' efforts to mitigate the effects of new development. Experts have weighed in on both sides of the debate, but the questions remain unsettled, and the merits of these homeowners' claims depend on their resolution.
The government entities assert that no evidence exists of a taking for public use. They argue that property is only "damaged for public use" if the "governmental entity is aware that its action will necessarily cause physical damage to certain private property, and yet determines that the benefit to the public outweighs the harm caused to that property." Jennings, 142 S.W.3d at 314. The entities' arguments on this point, however, merely repeat their arguments concerning intent and causation: the entities made no conscious decision to sacrifice the plaintiffs' property for public use, and their conduct did not cause the flooding, so it was not for public use. In response, the homeowners contend the entities approved development and made drainage-plan decisions for the sake of the public.
At least some evidence exists that in approving new development and drainage plans causing flooding, the entities' were acting for a public use. To the extent the government entities were substantially certain the homeowners' homes would flood because of unmitigated development, but sacrificed their homes for the sake of new development, this was for a public use. If the homeowners bore the burden of the growing community, then, "in all fairness and justice, [the burden] should be borne by the public as a whole." Gragg, 151 S.W.3d at 554.
A fact question exists as to each element of the homeowners' takings claim. To conclude that there is a question of fact is not to hold that government entities have a duty to prevent all flooding. Rather, it means the plaintiffs have presented at least some evidence of their takings claim, and a jury should evaluate the evidence to reach a conclusion. In other words, the government entities' plea to the jurisdiction