Court Opinion

ID: 9380108
Source: CourtListenerOpinion
Date Created: 2023-03-17 09:09:05.715422+00
Date Added: 2024-06-11T17:17:22.557803
License: Public Domain

IN THE
                         TENTH COURT OF APPEALS

                                No. 10-21-00083-CV

DON MICHAEL HIGGINS AND JANET HIGGINS,
                                   Appellants
v.

CHARLES H. CROWELL, TERESA H. CROWELL, AND
CAMP CREEK WATER COMPANY,
                                    Appellees

                         From the 82nd District Court
                           Robertson County, Texas
                        Trial Court No. 19-04-20784-CV

                         MEMORANDUM OPINION

      In four issues, Don Michael Higgins and Janet Higgins appeal from the trial court’s

judgment signed on March 15, 2021.

                         Factual and Procedural Background

      The Higginses sued Charles H. Crowell, Teresa H. Crowell, and Camp Creek

Water Company (CCWC), alleging as follows in their original petition: In 1983, the
Higginses purchased Lots 340 and 341 at Camp Creek Lake. Lot 341 had a boathouse.1

The Higginses still use the boathouse today, and it has always complied with CCWC’s

building guidelines. Lot 340 has no boathouse.

       The Higginses alleged that in 2016, the Crowells purchased Lot 339 at Camp Creek

Lake. Lot 339 is located across the cove from the Higginses’ lots. When the Crowells

purchased Lot 339, it had no boathouse, but the Crowells wanted to build one. The water

directly in front of Lot 339 was not suitable for boat traffic or swimming, so the Crowells

applied to CCWC for approval to construct a boathouse that would be located directly

perpendicular to the Higginses’ boathouse. CCWC approved the Crowells’ application

even though the proposed construction violated CCWC’s building guidelines, which

prevented any boathouse from extending more than one-third of the distance of the

width of a cove and from encroaching on projected property lines.

       The Higginses alleged that the Crowells thereafter constructed their boathouse but

that after it was complete, the Higginses realized that the Crowells’ boathouse was

“drastically close” to their own boathouse. The Higginses observed that the Crowells’

boathouse almost completely blocked water access to Lot 340 and was a danger and

nuisance to the use and enjoyment of their boathouse because the Crowells’ boathouse

funneled boat traffic close to their boathouse. Mr. Higgins therefore met with two

members of CCWC’s Building Committee. During the meeting, while standing on the

1      In this opinion, the terms “boathouse” and “boat dock” are used interchangeably.

Higgins v. Crowell                                                                        Page 2
Higginses’ dock, one of the members stated that “[the Crowells’ boathouse] is not in the

approved location.” The member then showed Mr. Higgins the approved location.

       The Higginses alleged in their petition that because Mr. Higgins was concerned

about the report from CCWC’s Building Committee, Mr. Higgins then began pursuing a

resolution to the situation. In May 2018, Mr. Higgins appeared before CCWC’s Board of

Directors to protest the location of the Crowells’ boathouse, but CCWC offered no

resolution. Mr. Higgins engaged legal counsel to offer a legal opinion regarding the

situation, and in June 2018, Mr. Higgins forwarded that legal opinion to the president

and director of CCWC, “along with a cover letter reiterating the Higginses’ requests and

asking for a meeting to amicably resolve the dispute.” Around the same time, Mr.

Higgins sent a letter to Mr. Crowell explaining the “nuisance and negative effects” to the

Higginses’ property caused by the location of the Crowells’ boathouse. Mr. Higgins

asked in the letter for “any suggestions that can accomplish [resolution] with minimal

pain and expense to either side.” In late July 2018, Mr. Higgins then sent another letter

to the president and director of CCWC “summarizing the offending boat house situation

and reiterating his request for resolution.” In the letter, Mr. Higgins again asked for a

personal meeting with the president of the board and the chairperson of the building

committee. CCWC did nothing. Around the same time, Mr. Higgins also sent another

letter to the Crowells, but it was not accepted.

       The Higginses alleged that Mr. Crowell eventually sent an email to Mr. Higgins in

August 2018. In the email, Mr. Crowell “justif[ied] the location of his boat house by

saying that the water in front of his lot was not desirable.” Mr. Crowell further stated

Higgins v. Crowell                                                                  Page 3
that he had “no incentive to seek any alternative location” but that if Mr. Higgins was

willing to pay $76,456, Mr. Crowell would “explore the possibility of constructing a new

dock in a location more closely situated to the shoreline in front of [his] lot.”

        The Higginses alleged in their petition that in September 2018, Mr. Higgins finally

delivered to CCWC’s office aerial pictures of the water in front of Lots 340 and 341, other

pictures showing congested ingress and egress into Lots 340 and 341, and an explanation

of the problem with the location of the Crowells’ boathouse. During the CCWC board

meeting on September 22, 2018, a copy of the pictures and explanation from Mr. Higgins

was left for each board member. The board secretary thereafter called Mr. Higgins,

however, and told him that CCWC’s Board of Directors had concluded that “nothing new

had been presented to them regarding the boathouse dispute.”

        The Higginses therefore filed the present lawsuit for nuisance and negligence. The

Crowells and CCWC answered the Higginses’ petition by generally denying all the

Higginses’ allegations. The Crowells then filed a motion to dismiss the Higginses’ claims

under the version of the Texas Citizens Participation Act (TCPA) in effect at that time. 2

After a hearing, the trial court dismissed the Higginses’ claims against the Crowells under

the TCPA and ordered the Higginses to pay $7,000 in attorney’s fees and $10 in sanctions

to the Crowells.

2        The TCPA was substantially amended in 2019, but the 2019 amendments apply only to actions filed
on or after September 1, 2019. See Act of May 17, 2019, 86th Leg., R.S., ch. 378, §§ 11–12. The underlying
claims against the Crowells were filed in April 2019; thus, the 2019 amendments to the TCPA do not apply
in this case, and our discussion of the TCPA in this opinion is of the version of the TCPA in effect before
September 1, 2019. See id.

Higgins v. Crowell                                                                                  Page 4
       Thereafter, CCWC filed a combined traditional and no-evidence motion for

summary judgment against the Higginses. The Higginses then amended their petition

and added a shareholder’s derivative action against CCWC. CCWC then filed a motion

to dismiss the derivative action pursuant to section 21.558 of the Texas Business

Organizations Code.

       The trial court held a hearing. The trial court then signed a final judgment granting

CCWC’s motion for summary judgment and its motion to dismiss. The trial court

ordered that the Higginses take nothing against CCWC by way of their claims for

nuisance and negligence. The trial court also ordered that the derivative action against

CCWC was dismissed pursuant to section 21.558 of the Business Organizations Code.

                                          Issues

       The Higginses present the following four issues in this appeal:

       1.      The trial court erred in granting the Crowells’ TCPA motion to dismiss
               because the TCPA does not apply to the Higginses’ claims.

       2.      The trial court erred in granting the Crowells attorneys’ fees and sanctions
               because the TCPA does not apply to the Higginses’ claims.

       3.      The trial court erred in granting CCWC’s motion for summary judgment
               because fact issues exist on whether CCWC intentionally or negligently
               created a nuisance, causing the Higginses damages.

       4.      The trial court erred in dismissing the Higginses’ derivative claims against
               CCWC under Chapter 21 of the Business Organizations Code given the
               complete lack of evidence supporting the motion.

Higgins v. Crowell                                                                    Page 5
                         The Crowells’ TCPA Motion to Dismiss

       We begin with the Higginses’ first issue in which they contend that the trial court

erred in granting the Crowells’ TCPA motion to dismiss.

STANDARD OF REVIEW

       We review a trial court’s ruling on a TCPA motion to dismiss de novo. Martin v.

Walker, 606 S.W.3d 565, 567 (Tex. App.—Waco 2020, pet. denied); Holcomb v. Waller

County, 546 S.W.3d 833, 839 (Tex. App.—Houston [1st Dist.] 2018, pet. denied). In

reviewing the trial court’s ruling, we “consider the pleadings and supporting and

opposing affidavits stating the facts on which the liability or defense is based.” Act of

May 21, 2011, 82d Leg., R.S., ch. 341, § 2, sec. 27.006(a) (amended 2019) (current version

at TEX. CIV. PRAC. & REM. CODE ANN. § 27.006(a)). “We view the pleadings and evidence

in the light most favorable to the nonmovant.” Robert B. James, DDS, Inc. v. Elkins, 553

S.W.3d 596, 603 (Tex. App.—San Antonio 2018, pet. denied).

DISCUSSION

       “[T]he . . . TCPA protects citizens from retaliatory lawsuits that seek to intimidate

or silence them on matters of public concern.” In re Lipsky, 460 S.W.3d 579, 586 (Tex. 2015)

(citing House Comm. on Judiciary & Civ. Juris., Bill Analysis, Tex. H.B. 2973, 82d Leg.,

R.S. (2011)). The TCPA establishes a three-step process for the expedited dismissal of

such actions. See Castleman v. Internet Money Ltd., 546 S.W.3d 684, 691 (Tex. 2018) (per

curiam). As a threshold matter, the moving party must show by a preponderance of the

evidence that the TCPA properly applies to the “legal action” against it. Youngkin v.

Hines, 546 S.W.3d 675, 679 (Tex. 2018); see Act of May 21, 2011, 82d Leg., R.S., ch. 341, § 2,

Higgins v. Crowell                                                                      Page 6
sec. 27.005(b) (amended 2019) (current version at TEX. CIV. PRAC. & REM. CODE ANN. §

27.005(b)). A “legal action” is defined as “a lawsuit, cause of action, petition, complaint,

cross-claim, or counterclaim or any other judicial pleading or filing that requests legal or

equitable relief.” Act of May 21, 2011, 82d Leg., R.S., ch. 341, § 2, sec. 27.001(6) (amended

2019) (current version at TEX. CIV. PRAC. & REM. CODE ANN. § 27.001(6)). If the moving

party meets the initial burden of showing by a preponderance of the evidence that the

TCPA properly applies to the legal action against it, the nonmoving party must then

establish by clear and specific evidence a prima facie case for each essential element of its

claims against the moving party. Youngkin, 546 S.W.3d at 679; see TEX. CIV. PRAC. & REM.

CODE ANN. § 27.005(c). If the nonmoving party satisfies that requirement, the burden

finally shifts back to the moving party to prove by a preponderance of the evidence each

essential element of any valid defenses to the nonmoving party’s claims. Youngkin, 546

S.W.3d at 679–80; see Act of May 24, 2013, 83d Leg., R.S., ch. 1042, § 2 (amended 2019)

(current version at TEX. CIV. PRAC. & REM. CODE ANN. § 27.005(d)).

       The Higginses’ argument focuses on the first step of the process. The Higginses

claim that the Crowells failed to show by a preponderance of the evidence that the TCPA

applies to the Higginses’ claims against the Crowells.

       Under the version of the TCPA that governs this case, a party may invoke the

TCPA dismissal procedure if the party shows by a preponderance of the evidence that

the legal action against it “is based on, relates to, or is in response to [the] party’s exercise

of the right of free speech, right to petition, or right of association.” Act of May 21, 2011,

82d Leg., R.S., ch. 341, § 2, sec. 27.003(a) (amended 2019) (current version at TEX. CIV.

Higgins v. Crowell                                                                        Page 7
PRAC. & REM. CODE ANN. § 27.003(a)); see Youngkin, 546 S.W.3d at 680. The exercise of the

right of free speech, the exercise of the right to petition, and the exercise of the right of

association, as defined by the TCPA, all require a “communication.” 3 See id.; TEX. CIV.

3        Under the TCPA, the “exercise of the right of free speech” means “a communication made in
connection with a matter of public concern.” TEX. CIV. PRAC. & REM. CODE ANN. § 27.001(3). The “exercise
of the right to petition” means any of the following:

        (A)   a communication in or pertaining to:

              (i)      a judicial proceeding;

              (ii)     an official proceeding, other than a judicial proceeding, to administer the
                       law;

              (iii)    an executive or other proceeding before a department of the state or federal
                       government or a subdivision of the state or federal government;

              (iv)     a legislative proceeding, including a proceeding of a legislative committee;

              (v)      a proceeding before an entity that requires by rule that public notice be given
                       before proceedings of that entity;

              (vi)     a proceeding in or before a managing board of an educational or
                       eleemosynary institution supported directly or indirectly from public
                       revenue;

              (vii)    a proceeding of the governing body of any political subdivision of this state;

              (viii)   a report of or debate and statements made in a proceeding described by
                       Subparagraph (iii), (iv), (v), (vi), or (vii); or

              (ix)     a public meeting dealing with a public purpose, including statements and
                       discussions at the meeting or other matters of public concern occurring at
                       the meeting;

        (B)   a communication in connection with an issue under consideration or review by a
              legislative, executive, judicial, or other governmental body or in another
              governmental or official proceeding;

        (C)   a communication that is reasonably likely to encourage consideration or review of
              an issue by a legislative, executive, judicial, or other governmental body or in
              another governmental or official proceeding;

        (D)   a communication reasonably likely to enlist public participation in an effort to effect
              consideration of an issue by a legislative, executive, judicial, or other governmental
              body or in another governmental or official proceeding; and

Higgins v. Crowell                                                                                       Page 8
PRAC. & REM. CODE ANN. § 27.001(3), (4). Thus, to invoke the TCPA dismissal procedure,

a party must show by a preponderance of the evidence that the legal action against it is

based on, relates to, or is in response to a communication by that party. See TEX. CIV.

PRAC. & REM. CODE ANN. § 27.001(3), (4); Act of May 21, 2011, 82d Leg., R.S., ch. 341, § 2,

secs. 27.001(2), 27.003(a) (amended 2019).              When a legal action does not allege a

communication, and is instead based on a party’s conduct, the TCPA is not implicated.

Allied Orion Grp., LLC v. Pitre, No. 14-19-00681-CV, 2021 WL 2154065, at *3–4 (Tex. App.—

Houston [14th Dist.] May 27, 2021, no pet.) (mem. op.); Pacheco v. Rodriguez, 600 S.W.3d

401, 410 (Tex. App.—El Paso 2020, no pet.).

        In their TCPA motion to dismiss and in their appellate briefing, the Crowells assert

that the Higginses’ petition alleged that the Crowells created a nuisance by applying to

build a boathouse in a place on Camp Creek Lake that offended the Higginses. The

Crowells then focus on the communications that necessarily occurred in the process of

obtaining CCWC’s approval to build the boathouse. See generally TEX. CIV. PRAC. & REM.

CODE ANN. § 27.001(1) (broadly defining “communication” as “the making or submitting

of a statement or document in any form or medium, including oral, visual, written,

        (E)   any other communication that falls within the protection of the right to petition
              government under the Constitution of the United States or the constitution of this
              state.

Id. § 27.001(4). The “exercise of the right of association” means “a communication between individuals
who join together to collectively express, promote, pursue, or defend common interests.” Act of May 21,
2011, 82d Leg., R.S., ch. 341, § 2, sec. 27.001(2) (amended 2019) (current version at TEX. CIV. PRAC. & REM.
CODE ANN. § 27.001(2)).

Higgins v. Crowell                                                                                   Page 9
audiovisual, or electronic”). For instance, the Crowells state that they were “required to

communicate to the CCWC the exact plans and location for the boat dock.”

       The Higginses assert, however, that the Crowells have mischaracterized their

claims. The Higginses contend that their claims against the Crowells are not based on,

do not relate to, and are not in response to the Crowells’ application to build a boathouse

or any other communication by the Crowells but that their claims are instead based on

the Crowells’ conduct of building a boathouse in a manner that interfered with the

Higginses’ property rights. We agree. While the Higginses’ petition does reference as a

background fact the Crowells’ application to build a boathouse, the Higginses’ claims

against the Crowells are not based on, do not relate to, and are not in response to the

Crowells’ application. Instead, the Higginses alleged in their petition that they suffered

damages because of the Crowells’ conduct in building a boathouse in a manner that

interfered with the Higginses’ property rights.

       The Crowells therefore failed to show by a preponderance of the evidence that the

TCPA applies to the Higginses’ claims against them. See Allied Orion Grp., 2021 WL

2154065, at *3–4; Pacheco, 600 S.W.3d at 410. Accordingly, the trial court erred in granting

the Crowells’ TCPA motion to dismiss. See Act of May 21, 2011, 82d Leg., R.S., ch. 341, §

2, sec. 27.005(b) (amended 2019). We sustain the Higginses’ first issue.

                       Attorneys’ Fees & Sanctions Under TCPA

       In their second issue, the Higginses contend that the trial court erred in granting

the Crowells attorneys’ fees and sanctions because the TCPA does not apply to the

Higginses’ claims.

Higgins v. Crowell                                                                   Page 10
       Under the version of the TCPA that governs this case,

       [i]f the court orders dismissal of a legal action under this chapter, the court
       shall award to the moving party:

           (1)   court costs, reasonable attorney’s fees, and other expenses incurred
                 in defending against the legal action as justice and equity may
                 require; and

           (2)   sanctions against the party who brought the legal action as the
                 court determines sufficient to deter the party who brought the legal
                 action from bringing similar actions described in this chapter.

Act of May 21, 2011, 82d Leg., R.S., ch. 341, § 2, sec. 27.009(a) (amended 2019) (current

version at TEX. CIV. PRAC. & REM. CODE ANN. § 27.009(a)).

       Having held that the trial court erred in granting the Crowells’ TCPA motion to

dismiss, we hold that the Crowells are therefore not entitled to attorneys’ fees under the

TCPA, and the sanctions award is not authorized. See id.; City of Port Aransas v. Shodrok,

No. 13-18-00011-CV, 2019 WL 6205466, at *5 (Tex. App.—Corpus Christi–Edinburg Nov.

21, 2019, no pet.) (mem. op.). We sustain the Higginses’ second issue.

                         CCWC’s Motion for Summary Judgment

       In their third issue, the Higginses contend that the trial court erred in granting

CCWC’s motion for summary judgment on the Higginses’ nonderivative claims because

fact issues exist regarding whether CCWC intentionally or negligently created a nuisance,

causing the Higginses damages.

STANDARD OF REVIEW

       We review a trial court’s summary judgment, both traditional and no-evidence, de

novo. Provident Life & Accident Ins. Co. v. Knott, 128 S.W.3d 211, 215 (Tex. 2003); Strandberg

Higgins v. Crowell                                                                       Page 11
v. Spectrum Office Bldg., 293 S.W.3d 736, 738 (Tex. App.—San Antonio 2009, no pet.).

When a party moves for both traditional and no-evidence summary judgments, we first

consider the no-evidence motion. First United Pentecostal Church of Beaumont v. Parker, 514

S.W.3d 214, 219 (Tex. 2017). Any claims that survive the no-evidence review are then

reviewed under the traditional standard. Id. at 219–20.

NO-EVIDENCE SUMMARY JUDGMENT

       A no-evidence motion for summary judgment is essentially a motion for pretrial

directed verdict. Mack Trucks, Inc. v. Tamez, 206 S.W.3d 572, 581 (Tex. 2006); see Humphrey

v. Pelican Isle Owners Ass’n, 238 S.W.3d 811, 813 (Tex. App.—Waco 2007, no pet.). Once

such a motion is filed, the burden shifts to the nonmoving party to present evidence

raising an issue of material fact as to the elements specified in the motion. Tamez, 206

S.W.3d at 582. The nonmovant must produce “summary judgment evidence raising a

genuine issue of material fact.” TEX. R. CIV. P. 166a(i). A genuine issue of material fact

exists if more than a scintilla of evidence establishing the existence of the challenged

element is produced. King Ranch, Inc. v. Chapman, 118 S.W.3d 742, 751 (Tex. 2003). More

than a scintilla of evidence exists when the evidence “‘rises to a level that would enable

reasonable and fair-minded people to differ in their conclusions.’” Id. (quoting Merrell

Dow Pharms., Inc. v. Havner, 953 S.W.2d 706, 711 (Tex. 1997)). On the other hand, the

evidence is no more than a scintilla if it is “so weak as to do no more than create a mere

surmise or suspicion.” Id. When determining if more than a scintilla of evidence has

been produced, the evidence must be viewed in the light most favorable to the

nonmovant. Ford Motor Co. v. Ridgway, 135 S.W.3d 598, 601 (Tex. 2004).

Higgins v. Crowell                                                                  Page 12
       Here, the Higginses’ nonderivative claims against CCWC were based on nuisance

theories. “A ‘nuisance’ is a condition that substantially interferes with the use and

enjoyment of land by causing unreasonable discomfort or annoyance to persons of

ordinary sensibilities attempting to use and enjoy it.” Crosstex N. Tex. Pipeline, L.P. v.

Gardiner, 505 S.W.3d 580, 593–94 (Tex. 2016) (quoting Holubec v. Brandenberger, 111 S.W.3d

32, 37 (Tex. 2003)). The term “nuisance” refers not to a cause of action or to a defendant’s

conduct but to the legal injury that may give rise to a cause of action. Id. at 594. A

defendant can be liable for causing a nuisance if the defendant intentionally causes it,

negligently causes it, or—in limited circumstances—causes it by engaging in abnormally

dangerous or ultra-hazardous activities. Id. at 588.

       The Higginses alleged that CCWC intentionally and/or negligently caused a

nuisance that then caused the Higgenses damages. In the no-evidence portion of its

motion for summary judgment, CCWC then challenged whether there was any evidence

of the following: (1) the Higginses had a real property interest with which CCWC

interfered; (2) CCWC acted intentionally or negligently; and (3) CCWC proximately

caused an injury to the Higginses’ real property interest. The Higginses thereafter

produced the following relevant evidence in response to CCWC’s motion for summary

judgment.

       The Higginses first submitted the affidavit of Mr. Higgins as evidence in response

to CCWC’s motion for summary judgment. In his affidavit, Mr. Higgins stated as follows:

He and his wife own Lots 340 and 341 at Camp Creek Lake, and Lot 341 has a boat dock.

Higgins v. Crowell                                                                   Page 13
When they bought the lots, the Higginses also purchased a share of stock in CCWC.

Additionally, Mr. Higgins pays a “use fee” annually for the use of Camp Creek Lake.

       Mr. Higgins stated that all CCWC stockholders are provided a copy of the rules

and regulations for use of Camp Creek Lake. Mr. Higgins attached a copy of those rules

and regulations to his affidavit. The attachments include copies of the “Rules and

Regulations for CCWC Property and Facilities,” the “[CCWC] Building Permit

Application,” and the 2019 “Application for [CCWC] Annual Use Fee.”

       First, the “Rules and Regulations for CCWC Property and Facilities” provide in

relevant part:

       7[.] Improvements and Alterations on CCWC Property

             7.1 Lot Owners desiring to make ANY improvements on or
                 alterations of CCWC property for any purpose, must first submit
                 a Building Permit application for authorization to use CCWC
                 property, in duplicate, with attached lot survey, accurate site
                 plan and photos of the site, to the Secretary-Treasurer.

             ....

             7.8 The Lot Owner also agrees to remove or pay the cost of removal
                 of any granted improvements when ordered to do so by the
                 CCWC Board of Directors.

             ....

             7.10 The Board of Directors for CCWC reserves the right to revoke
                  these permits at any time.

             ....

             7.13 If improvements include septic systems, buildings, fences,
                  propane tanks or private boat ramps, the permit must be
                  approved by the Building Committee and Board of Directors.

Higgins v. Crowell                                                                 Page 14
       ....

       14. Violations

              14.1 Any person violating any of these Rules and Regulations shall be
                   subject to penalties by the Board of Directors which may include:
                   a. Fines, suspension, or cancellation of Annual Permit privileges.
                   b. Being barred from going on CCL or any property of CCWC.
                   c. Filing of trespassing charges.
                   d. Penalties against guests will be levied against responsible Lot
                      Owner.

       ....

       16. Rules and Regulations

              16.1 The Rules and Regulations may be changed or amended at any
                   time at the discretion of the Board of Directors.

       Next, the “[CCWC] Building Permit Application” contains a list of “Agreement

Conditions.” The “Agreement Conditions” include: “This application must be submitted

to the Secretary/Treasurer and approved by the building committee before any work can

begin. Please allow up to 30 days for review and approval. The project cannot start until

there is an approved application on file.” The “Agreement Conditions” further provide:

“Upon notification by the Board of Directors, the lot owner agrees to repair or remove

any structure or facility considered to be undesirable or hazardous.” Finally, both the

“[CCWC] Building Permit Application” and the 2019 “Application for [CCWC] Annual

Use Fee” require an applicant to acknowledge and agree that “any existing, or future

structure(s) placed upon CCWC property is the personal/private property of the lot

owner” and that “all taxes incurred on the structure(s) as well as up-keep, are the

responsibility of the lot owner.”

Higgins v. Crowell                                                                      Page 15
       Mr. Higgins indicated in his affidavit that when Mr. Crowell decided to build a

boat dock on Camp Creek Lake, he followed CCWC’s rules and regulations by submitting

an application to be approved by CCWC’s Building Committee and Board of Directors.

Mr. Higgins explained in his affidavit that when Mr. Crowell was working with CCWC’s

Board of Directors on his application, Mr. Higgins allowed one of CCWC’s board

members onto his boat dock so that the board member could visually see the location

where CCWC’s Board of Directors would be granting permission for Mr. Crowell to build

his boat dock. Mr. Higgins stated that it became clear once construction of Mr. Crowell’s

boat dock was completed, however, that Mr. Crowell’s boat dock was not built on the

location approved by CCWC’s Board of Directors and was not built in compliance with

CCWC’s published rules, regulations, guidelines, and bylaws. Furthermore, Mr. Higgins

asserted that because of its location, Mr. Crowell’s boat dock is a safety hazard for use of

any boat dock that might be built on Lot 340 and for use of Mr. Higgins’s existing boat

dock on Lot 341. Mr. Higgins stated that Mr. Crowell’s boat dock “prevents [Mr. Higgins]

or any purchasers from [Mr. Higgins from] being able to build a dock on [L]ot 340 that

will allow access to the lake using the cove channel to the lake as a whole.”

       Mr. Higgins stated in his affidavit that he personally informed CCWC’s Board of

Directors about the situation regarding Mr. Crowell’s boat dock and that two board

members subsequently came out to his property to view Mr. Crowell’s boat dock. Mr.

Higgins stated that the two board members admitted at that time that the Crowells’ boat

dock had not been built in the location approved by CCWC’s Board of Directors. Mr.

Higgins asserted in his affidavit that CCWC’s Board of Directors have nevertheless been

Higgins v. Crowell                                                                   Page 16
unwilling to have Mr. Crowell remove his boat dock. Moreover, Mr. Higgins stated in

his affidavit that because Mr. Crowell’s boat dock blocks Lot 340 from lake access, the

Robertson County Appraisal District has reduced Mr. Higgins’s taxable value on Lot 340

by approximately twenty-five percent.

       The Higginses also submitted the minutes from a May 12, 2018 meeting of CCWC’s

Board of Directors as evidence in response to CCWC’s motion for summary judgment.

The minutes show that Mr. Higgins was present at the May 12, 2018 meeting and that he

addressed CCWC’s Board of Directors at that time. Mr. Higgins told CCWC’s Board of

Directors that he was concerned that Mr. Crowell had been allowed to construct a new

boathouse so close to his own boathouse.       Mr. Higgins stated that Mr. Crowell’s

boathouse was only about fifty feet away from his own boathouse. Mr. Higgins further

explained that Mr. Crowell’s boathouse posed safety concerns because Mr. Higgins has

several young grandchildren who swim in the path where Mr. Crowell will have to back

out his boat to get out into the channel. Mr. Higgins specified that Mr. Crowell will get

extremely close to the deck of Mr. Higgins’s boathouse where the children swim.

       The meeting minutes show that during the report by the Building Committee, the

board members then discussed Mr. Higgins’s concerns about Mr. Crowell’s boathouse.

The minutes indicate as follows: Director Libby Stone first explained to the other board

members that Mr. Crowell, the owner of Lot 339, had submitted his boathouse

construction plan the way that he had because Mr. Crowell had wanted to situate his

boathouse where he would have the deepest water. Director Stone went on to state that

the board members had not observed an issue with the proposed location of Mr.

Higgins v. Crowell                                                                Page 17
Crowell’s boathouse at that time and had therefore approved Mr. Crowell’s application

to build his boathouse in the proposed location. Director Stone explained that after being

notified by Mr. Higgins, however, she and another board member went out to the

property and realized that the contractor had built Mr. Crowell’s boathouse in the wrong

location.

       The meeting minutes reflect that after Director Stone provided the foregoing

background information, another board member asserted that it sounded like Mr.

Higgins has been by himself in the cove for many years and that he just does not like that

when he now comes to the lake, there is a new boathouse directly next to his boathouse.

Director Stone agreed, and additional discussion resulted in a consensus by the board

members that Mr. Higgins was just unhappy that there was now a boathouse next to his

boathouse after so many years of having nothing around his boathouse.

       The meeting minutes indicate that Vice President David Dixon then added that

there was no easy solution to this problem. Vice President Dixon commented that

making Mr. Crowell relocate his boat slip was not a reasonable solution because it would

be expensive. Another board member also later stated that “this will be a huge expense

to change this.” President Finley Poe further commented that if they tried to require Mr.

Crowell to move his boat slip at this point, they would also likely incur legal expenses.

Vice President Dixon then remarked that he thought that Mr. Higgins could learn to live

with the situation.

       The meeting minutes reflect that a few board members then expressed concern

that they were not being consistent in these types of situations. The board members noted

Higgins v. Crowell                                                                 Page 18
that in another instance when a lot owner had “not followed the rules,” the Board of

Directors had required the lot owner to correct his boathouse roof. President Poe

expressed that they did need to be consistent. Vice President Dixon then added that the

builder of Mr. Crowell’s boathouse may have encountered stumps that prevented him

from building where he intended. Director Stone agreed, stating that that does happen.

       The meeting minutes show that “[w]ith no end in sight to the discussion,” Vice

President Dixon then made a motion, which was seconded by another board member, to

leave Mr. Crowell’s boathouse where it is. The motion passed. The minutes reflect that

discussion among the board members then focused on implementing a follow-up

process. Director Stone stated that she would contact Mr. Crowell, inform him that a

compliance issue had been brought before the board, and provide him the details and the

board’s decision.

       1.      The Higginses’ Interest in the Land

       We begin by addressing whether the Higginses produced evidence raising a

genuine issue of material fact regarding the first element that CCWC challenged in the

no-evidence portion of its motion for summary judgment—whether the Higginses had a

sufficient interest in the land of which CCWC interfered with the use and enjoyment.

       Actionable nuisance involves an invasion of another’s interests in land. Hot Rod

Hill Motor Park v. Triolo, 293 S.W.3d 788, 790 (Tex. App.—Waco 2009, pet. denied). Thus,

to prove an action for private nuisance, a plaintiff must establish that it had an interest in

the land of which the defendant interfered with the use and enjoyment. See id. at 790–91;

Lederman v. Cunningham, 283 S.W.2d 108, 111 (Tex. App.—Beaumont 1955, no writ). To

Higgins v. Crowell                                                                     Page 19
show such an interest in the land, a plaintiff is not required to show that it possessed legal

title to the land. Triolo, 293 S.W.3d at 790–91; see New v. Khojal, No. 04-98-00768-CV, 1999

WL 675448, at *2–3 (Tex. App.—San Antonio Aug. 31, 1999, no pet.) (not designated for

publication). An occupancy interest in the land is sufficient to vest a person with the right

to assert a claim for private nuisance if the person occupied the land with intent to control

it. Triolo, 293 S.W.3d at 791; see New, 1999 WL 675448, at *2–3.

       The Higginses contend that they produced evidence raising a fact issue regarding

whether they had a sufficient interest in the land of which CCWC interfered with the use

and enjoyment. CCWC responds that the evidence did not raise a fact issue regarding

this element because even though the evidence showed that the Higginses own an

interest in Lots 340 and 341, the Higginses neither pleaded nor produced evidence of any

interference with Lots 340 and 341 and because the Higginses neither pleaded nor

produced any evidence of a real property interest in Camp Creek Lake.

       We agree with CCWC that even though the Higginses produced evidence that

they own the land comprised of Lots 340 and 341, and even though Mr. Higgins indicated

in his affidavit that Mr. Crowell’s boathouse caused the value of Lot 340 to depreciate,

the Higginses neither pleaded nor produced evidence of any interference with the use

and enjoyment of the specific land comprised of Lots 340 and 341. Instead, the Higginses

pleaded and produced evidence only that Mr. Crowell’s boathouse interferes with the

Higginses’ use and enjoyment of Camp Creek Lake.

       But the Higginses produced no evidence that by owning Lots 340 and 341, or for

any other reason, the Higginses own a real property interest in Camp Creek Lake.

Higgins v. Crowell                                                                     Page 20
Instead, viewing the summary-judgment evidence in the light most favorable to the

Higginses, one could conclude only that CCWC owns Camp Creek Lake and that CCWC

granted a license or licenses to the Higginses to use their existing boathouse on the lake

and to use the lake generally. See Thompson v. Clayton, 346 S.W.3d 650, 655 (Tex. App.—

El Paso 2009, no pet.) (“A license is defined as a privilege or authority given to one or

retained by one to do some act or acts on the land of another, but which does not amount

to an interest in the land itself.”).

       Our analysis, however, does not end there. As stated above, an occupancy interest

in land is sufficient to vest a person with the right to assert a claim for private nuisance if

the person occupied the land with intent to control it. See Triolo, 293 S.W.3d at 791; New,

1999 WL 675448, at *2–3. Thus, we must determine if the Higginses produced evidence

that they occupied Camp Creek Lake with intent to control it. See Triolo, 293 S.W.3d at

791; New, 1999 WL 675448, at *2–3.

       The Higginses produced evidence here that they own the existing boathouse for

Lot 341. Both the “[CCWC] Building Permit Application” and the 2019 “Application for

[CCWC] Annual Use Fee” require an applicant to acknowledge and agree that “any

existing, or future structure(s) placed upon CCWC property is the personal/private

property of the lot owner” and that “all taxes incurred on the structure(s) as well as up-

keep, are the responsibility of the lot owner.” Furthermore, we believe that evidence that

the Higginses own the existing boathouse—a structure that continuously occupies a

certain area of Camp Creek Lake—is some evidence that the Higginses intend to control

that portion of the lake that the boathouse occupies. We therefore conclude that the

Higgins v. Crowell                                                                      Page 21
Higginses produced evidence raising a genuine issue of material fact regarding whether

they had a sufficient occupancy interest in that portion of Camp Creek Lake that the

existing boathouse occupies. See Triolo, 293 S.W.3d at 791; New, 1999 WL 675448, at *2–3.

       2.      CCWC’s Conduct

       We next address whether the Higginses produced evidence raising a genuine issue

of material fact regarding the second element challenged by CCWC in the no-evidence

portion of its motion for summary judgment—whether CCWC acted intentionally or

negligently.

       Whether a defendant acted intentionally is measured by a subjective standard.

Crosstex, 505 S.W.3d at 605. A defendant intentionally causes a nuisance if the defendant

acts with the desire to create the interference that constitutes the nuisance or acts with

knowledge that the interference that constitutes the nuisance is substantially certain to

result. Id. at 605–06.

       Culpability under a negligent nuisance theory is governed by ordinary negligence

principles. Id. at 607. “[T]he plaintiff must prove that the defendant’s conduct constituted

negligence, which is ‘simply doing or failing to do what a person of ordinary prudence

in the same or similar circumstances would have not done or done.’” Id. (quoting

Timberwalk Apartments, Partners, Inc. v. Cain, 972 S.W.2d 749, 753 (Tex. 1998)).

       Whether a defendant intentionally or negligently created the interference that

constitutes the nuisance is generally a question of fact for the jury to decide. Id. at 609.

“A court may decide the issues as a matter of law only if the underlying facts are

undisputed or, in light of all the evidence, ‘reasonable minds cannot differ.’” Id.

Higgins v. Crowell                                                                    Page 22
       First, we believe that the summary-judgment evidence detailed above raised a

genuine issue of material fact regarding whether CCWC acted intentionally.               The

Higginses produced some evidence that Mr. Crowell’s boathouse was interfering with

the use of the Higginses’ own boathouse. The Higginses then produced evidence that

Mr. Higgins informed CCWC’s Board of Directors of the situation.              The evidence

indicates that Mr. Higgins apprised CCWC’s Board of Directors that Mr. Crowell’s

boathouse had not been built in the location that the board had approved and that Mr.

Crowell’s boathouse was interfering with the use of the Higginses’ boathouse. The

Higginses then produced evidence that although CCWC’s Board of Directors had the

authority to require Mr. Crowell to move his boathouse or to remodel it in such a way

that it no longer interfered with the use of the Higginses’ boathouse, CCWC’s Board of

Directors voted to leave Mr. Crowell’s boathouse in its current location. We accordingly

conclude that the Higginses produced evidence that raised a genuine issue of material

fact regarding whether CCWC acted with knowledge that the interference that

constituted the nuisance in this case was substantially certain to result. See id. at 605–06.

       We also believe that the Higginses produced evidence that raised a genuine issue

of material fact regarding whether CCWC acted negligently. We concluded above that

the Higginses produced evidence raising a genuine issue of material fact regarding

whether they had a sufficient occupancy interest in that portion of Camp Creek Lake that

their boathouse occupies. If the Higginses had a sufficient occupancy interest in the

portion of Camp Creek Lake that their boathouse occupies, then CCWC owed the

Higginses the duty to do what a person of ordinary prudence in the same or similar

Higgins v. Crowell                                                                    Page 23
circumstances would have done to prevent the use of CCWC’s property, i.e., the use of

Camp Creek Lake, from causing injury or damage to the Higginses’ rights to use their

boathouse. See id. at 607, 614; Ft. Worth & Rio Grande Ry. Co. v. Glenn, 97 Tex. 586, 588, 80

S.W. 992, 993 (1904); Triolo, 293 S.W.3d at 790–91. The Higginses produced evidence that

Mr. Higgins informed CCWC’s Board of Directors that Mr. Crowell’s boathouse had not

been built in the location that the board had approved and that Mr. Crowell’s boathouse

was interfering with the use of the Higginses’ boathouse by causing a safety hazard. The

Higginses then produced evidence that although CCWC’s Board of Directors had the

authority to require Mr. Crowell to move his boathouse to the location that had been

approved or to remodel it in such a way that it no longer interfered with the use of the

Higginses’ boathouse, CCWC’s Board of Directors voted to leave Mr. Crowell’s

boathouse in its current location. The Higginses also produced evidence that members

of CCWC’s Board of Directors expressed concern that they were not being consistent in

these types of situations. In another instance, CCWC’s Board of Directors had required

a lot owner to correct his boathouse roof when the lot owner had “not followed the rules.”

We accordingly conclude that the Higginses produced evidence that raised a genuine

issue of material fact regarding whether CCWC did what a person of ordinary prudence

in the same or similar circumstances would have done. See Crosstex, 505 S.W.3d at 607.

       3.      The Higginses’ Injury

       We finally turn to whether the Higginses produced evidence raising a genuine

issue of material fact regarding the last element challenged by CCWC in the no-evidence

Higgins v. Crowell                                                                    Page 24
portion of its motion for summary judgment—whether CCWC proximately caused an

injury to the Higginses.

       To prove an action for private nuisance, the plaintiff must establish that the

nuisance caused some injury. Mathis v. Barnes, 316 S.W.3d 795, 801 (Tex. App.—Tyler

2010), rev’d on other grounds, 353 S.W.3d 760 (Tex. 2011) (per curiam). A nuisance may

cause two types of injury:      (1) physical harm to the plaintiff’s property, as by

encroachment of a damaging substance or by the property’s destruction, or (2) physical

or emotional harm to the plaintiff. Id.; see Crosstex, 505 S.W.3d at 596. A nuisance that

impairs comfortable enjoyment of real property may give rise to damages for personal

discomfort and annoyance. Mathis, 316 S.W.3d at 801; Cain v. Rust. Indus. Cleaning Servs.,

Inc., 969 S.W.2d 464, 470 (Tex. App.—Texarkana 1998, pet. denied), overruled on other

grounds by Env’t Processing Sys., L.C. v. FPL Farming, Ltd., 457 S.W.3d 414 (Tex. 2015). A

plaintiff is injured by a nuisance when the plaintiff suffers emotional harm from the

deprivation of the enjoyment of his property, such as by fear, apprehension, offense, or

loss of peace of mind. Mathis, 316 S.W.3d at 801; Cain, 969 S.W.2d at 470.

       The Higginses’ evidence specified how Mr. Crowell’s boathouse interfered with

the use and enjoyment of the Higginses’ boat dock on Lot 341, and the summary-

judgment evidence shows that Mr. Higgins told CCWC’s Board of Directors about his

concern about the safety hazard that Mr. Crowell’s boathouse posed to his young

grandchildren who use Mr. Higgins’s boathouse to swim. Viewing the evidence in the

light most favorable to the Higginses, we therefore conclude that the Higginses produced

some evidence raising a genuine issue of material fact regarding whether Mr. Crowell’s

Higgins v. Crowell                                                                 Page 25
boathouse caused Mr. Higgins to suffer emotional harm. See Mathis, 316 S.W.3d at 801;

Cain, 969 S.W.2d at 470. The Higginses thus produced evidence raising a genuine issue

of material fact regarding whether CCWC caused an injury to the Higginses. See Mathis,

316 S.W.3d at 801; Cain, 969 S.W.2d at 470.

       Having concluded that the Higginses produced evidence raising a genuine issue

of material fact as to each of the elements of their nonderivative claims that were

challenged by CCWC in the no-evidence portion of CCWC’s motion for summary

judgment, we hold that the trial court erred in granting the no-evidence portion of

CCWC’s motion for summary judgment. See TEX. R. CIV. P. 166a(i).

TRADITIONAL SUMMARY JUDGMENT

       Having held that the trial court erred in granting the no-evidence portion of

CCWC’s motion for summary judgment, we must consider the traditional portion of the

motion. See First United Pentecostal Church of Beaumont, 514 S.W.3d at 219–20.

       In reviewing a traditional motion for summary judgment, we must consider

whether reasonable and fair-minded jurors could differ in their conclusions in light of all

the evidence presented. See Goodyear Tire & Rubber Co. v. Mayes, 236 S.W.3d 754, 755 (Tex.

2007) (per curiam). The movant carries the burden of establishing that no material fact

issue exists and that it is entitled to judgment as a matter of law. TEX. R. CIV. P. 166a(c);

see M.D. Anderson Hosp. & Tumor Inst. v. Willrich, 28 S.W.3d 22, 23 (Tex. 2000) (per curiam).

The nonmovant has no burden to respond to a summary-judgment motion unless the

movant conclusively establishes its cause of action or defense. Willrich, 28 S.W.3d at 23.

However, once the movant produces sufficient evidence conclusively establishing its

Higgins v. Crowell                                                                    Page 26
right to summary judgment, the burden shifts to the nonmovant to present evidence

sufficient to raise a fact issue. Centeq Realty, Inc. v. Siegler, 899 S.W.2d 195, 197 (Tex. 1995).

In reviewing a traditional summary judgment, we must consider all the evidence in the

light most favorable to the nonmovant, indulging every reasonable inference in favor of

the nonmovant and resolving any doubts against the motion. See Mayes, 236 S.W.3d at

756.

       In the traditional portion of its motion for summary judgment, CCWC asserted

that the pleadings and evidence conclusively establish that CCWC and the Crowells did

not substantially interfere with the Higginses’ use of their property because the

Higginses’ rights to use and enjoy Camp Creek Lake were those of only a contractual

licensee. CCWC then produced evidence to support its contention that the Higginses’

rights to use and enjoy Camp Creek Lake were those of only a contractual licensee. But,

as explained above, an occupancy interest in the land is sufficient to vest a person with

the right to assert a claim for private nuisance if the person occupied the land with intent

to control it. Triolo, 293 S.W.3d at 791; see New, 1999 WL 675448, at *2–3. Accordingly,

establishing that the Higginses’s rights were those of contractual licensees is not enough

to establish that CCWC is entitled to judgment as a matter of law. Furthermore, for the

reasons explained above, we believe that there is a genuine issue of material fact

regarding whether the Higginses had a sufficient occupancy interest in that portion of

Camp Creek Lake that their existing boathouse occupies.

Higgins v. Crowell                                                                        Page 27
       We therefore hold that the trial court erred in granting the traditional portion of

CCWC’s motion for summary judgment. See TEX. R. CIV. P. 166a(c). We thus sustain the

Higginses’ third issue.

   CCWC’s Motion to Dismiss Under Business Organizations Code Section 21.558

       In their fourth issue, the Higginses contend that the trial court erred in dismissing

their derivative claims against CCWC under Chapter 21 of the Business Organizations

Code because of the complete lack of evidence supporting CCWC’s motion.

       Section 21.558 of the Business Organizations Code provides:

       (a)   A court, sitting in equity as the finder of fact, shall dismiss a derivative
             proceeding on a motion by the corporation if the person or group of
             persons described by Section 21.554 determines in good faith, after
             conducting a reasonable inquiry and based on factors the person or
             group considers appropriate under the circumstances, that
             continuation of the derivative proceeding is not in the best interests of
             the corporation.

       (b)   In determining whether the requirements of Subsection (a) have been
             met, the burden of proof shall be on:

             (1)     the plaintiff shareholder if:

                     (A) the majority of the board of directors consists of
                         independent and disinterested directors at the time the
                         determination is made;

                     (B) the determination is made by a panel of one or more
                         independent and disinterested persons appointed under
                         Section 21.554(a)(3); or

                     (C) the corporation presents prima facie evidence that
                         demonstrates that the applicable person or persons making
                         the determination under Section 21.554(a) are independent
                         and disinterested; or

             (2)     the corporation in any other circumstance.

Higgins v. Crowell                                                                          Page 28
TEX. BUS. ORGS. CODE ANN. § 21.558.

       Here, CCWC filed an unsworn motion to dismiss under section 21.558, asserting

that the independent and disinterested directors of CCWC’s Board of Directors

conducted a reasonable inquiry and concluded that the continuation of the derivative

proceeding was not in the best interest of CCWC. In support of its motion, CCWC filed

an unsworn “Notice of Determination by Board of Directors,” signed only by CCWC’s

counsel. The Notice states that CCWC’s Board of Directors, all of whom are independent

and disinterested, completed its independent investigation of the claims asserted in the

derivative proceeding, as authorized by section 21.554(a) of the Business Organizations

Code. The Notice then explains that the scope of the investigation included:

       1.    Manual review of all of the documents related to the application and
             approval of the Crowell boat dock.

       2.    Manual review of the general procedures related to the application of
             any boat dock on Camp Creek Lake.

       3.    Review of the minutes of meetings related to the approval of the
             Crowell boat dock.

       4.    Review of the First Amended Pleading filed by Higgins asserting
             claims that the Board had not followed its procedures and had
             improperly approved the Crowell boat dock.

The Notice then provides that upon completion of its investigation, CCWC’s Board of

Directors determined that the factual allegations failed to support that the Board acted

improperly in any manner related to the approval of the design, building, or location of

the Crowell boat dock. The Notice states that CCWC’s Board of Directors therefore

recommended, based on its unanimous vote, that action not be pursued against the

Higgins v. Crowell                                                                   Page 29
directors and that the claims be dismissed as not being in the best interest of CCWC or

its shareholders.

       The Higginses argue that CCWC’s “Notice of Determination by Board of

Directors” is merely a pleading, not evidence, and that the trial court cannot dismiss a

derivative proceeding under section 21.558 without any evidence. CCWC responds that

because the trial court is sitting as a court of equity, the rules of evidence need not be

strictly adhered to and that the trial court could make its determination based on the

pleadings and the “Notice of Determination by Board of Directors.”

       Our task in interpreting statutes is to ascertain and to effectuate the Legislature’s

intent. In re Canales, 52 S.W.3d 698, 702 (Tex. 2001) (orig. proceeding). We begin with the

statute’s plain language because we assume that the Legislature tried to say what it

meant. Fitzgerald v. Advanced Spine Fixation Sys., Inc., 996 S.W.2d 864, 865–66 (Tex. 1999).

In ascertaining legislative intent, we do not confine our review to isolated statutory

words, phrases, or clauses, but we instead examine the entire act. Meritor Auto., Inc. v.

Ruan Leasing Co., 44 S.W.3d 86, 90 (Tex. 2001).

       Section 21.558 begins: “A court, sitting in equity as the finder of fact . . . .” TEX. BUS.

ORGS. CODE ANN. § 21.558 (emphasis added).                  Section 21.556 of the Business

Organizations Code further discusses discovery “[i]f a corporation proposes to dismiss a

derivative proceeding under Section 21.558.” Id. § 21.556. Based on the language of the

statutes, we conclude that the Legislature did not intend for the trial court to dismiss a

derivative proceeding under section 21.558 without evidence. Accordingly, we hold that

Higgins v. Crowell                                                                        Page 30
the trial court erred in dismissing the Higginses’ derivative claims against CCWC under

Chapter 21 of the Business Organizations Code. We sustain the Higginses’ fourth issue.

                                      Conclusion

       Having sustained each of the Higginses’ issues, we reverse the trial court’s

judgment and remand this case to the trial court for further proceedings consistent with

this opinion.

                                               MATT JOHNSON
                                               Justice

Before Chief Justice Gray,
       Justice Johnson, and
       Justice Smith
Reversed and remanded
Opinion delivered and filed March 15, 2023
[CV06]

Higgins v. Crowell                                                               Page 31