Lady Justice
HOUSTON - The First Court of Appeals has reversed a ruling invalidating the city of Dickinson’s vacation rental ordinance.
The challenge was brought by Crystal Cruise Investments, which rents out various short-term rental properties, including one in Dickinson. Crystal Cruise does business as Nautical Navy. Harrison Yat, a managing member of the company, is also a party to the litigation.
According to the First Court’s Feb. 26 opinion, Crystal Cruise started renting out the property without first securing the specific use permit required by the city’s zoning ordinance regulating vacation rentals.
After Dickinson notified Crystal Cruise that its operation of the property violated the vacation rental ordinance, the company filed suit against the city and its mayor, Sean Skipworth, challenging the constitutionality of the ordinance.
The trial court ruled in favor of Crystal Cruise, holding that the vacation rental ordinance violated the company’s rights to due course of law and equal protection guaranteed by the Texas Constitution.
On appeal, Dickinson argued that the trial court erred in invalidating its vacation rental ordinance and in failing to award the city statutory damages for violation of the ordinance.
The city also challenged the trial court’s denial of its counterclaim against Crystal Cruise.
The First Court reversed the trial court’s judgment and rendered judgment denying Crystal Cruise’s due course of law, equal protection, and ultra vires claims. The court also remanded the city’s counterclaim for further proceedings consistent with its opinion.
“Crystal Cruise failed to bear its burden to show that the vacation rental ordinance violates its constitutional rights to due course of law and equal protection, so there is no basis for concluding that Dickinson acted outside its authority in enacting it or that Mayor Skipworth acted ultra vires in enforcing it,” the opinion states.
The city is represented by the Olson & Olson law firm in Houston.
Crystal Cruise is represented by Austin attorney J. Patrick Sutton.
Appeals case No. 01-24-00684-CV
