JBrice Holdings, L.L.C. v. Wilcrest Walk Townhomes Association, Inc.

Harris County · TX · Supreme Court of Texas

Member win · rentals

What happened

JBrice Holdings owned Wilcrest Walk townhomes offered for short vacation stays (under seven days). The HOA obtained a trial-court injunction under a residential-use theory; the court of appeals affirmed on a different ground—independent authority under Property Code § 204.010(a)(6). The Supreme Court of Texas reversed, rendered judgment for the townhome owner, and remanded for attorney's fees (Apr. 22, 2022): neither the covenants nor § 204.010(a)(6) authorized a minimum rental term barring leases under seven days.

What the court (or agency) held

Neither the neighborhood deed covenants nor Property Code section 204.010(a)(6) authorized the HOA to impose a minimum rental term (here, barring leases under seven days). The covenants forbade restraints on leasing unless contained in the governing documents; the documents lacked such a restraint. Section 204.010(a)(6) did not supply freestanding power to invent that restriction. Judgment rendered for the owner; fees remanded.

Why this matters for members

Texas associations need express governing-document authority (or a proper amendment) to impose short-term rental minimums—§ 204.010(a)(6) is not a blank check. Appellate wins on the wrong statutory theory can still be wiped out in the Supreme Court.

What the member did

Litigated that short-term leasing was allowed by the covenants' no-restriction-on-lease language and that section 204.010 did not authorize conflicting rules.

Questions for the board

Questions for a lawyer

Citation

JBrice Holdings, L.L.C. v. Wilcrest Walk Townhomes Association, Inc., No. 20-0857 (Tex. 2022) (2022-04-22). Supreme Court of Texas. Outcome chip: member_win. Flags: remand. Source: https://txcourts.gov/media/1454066/200857.pdf

_General information, not legal advice. Outcomes turn on facts and current law._

Source opinion

General information, not legal advice. Outcomes turn on facts and current law.

Not a law firm. Not legal advice. Confirm this against your documents and your state’s law.