City of Dallas v. Dallas Short-Term Rental Alliance, No. 05-23-01309-CV (Tex. App. July 18, 2025)
City of Dallas v. Dallas Short-Term Rental Alliance, No. 05-23-01309-CV (Tex. App. July 18, 2025)
S In The
Court of Appeals
Fifth District of Texas at Dallas
No. 05-23-01309-CV
trial court’s order granting appellees’ application for a temporary injunction and
enjoining the City of Dallas from enforcing two ordinances concerning short-term
rentals within the city limits. On February 24, 2025, the City filed a motion for en
memorandum opinion and vacate our judgment issued the same day. This is now the
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The Hon. Yvonne T. Rodriguez, Senior Justice, Assigned.
opinion of the Court. We affirm the trial court’s order in part and reverse in part in
Background
The City enacted ordinance numbers 32482 and 32473 in 2023 after studying
the proliferation of short-term housing rentals in the Dallas market. Ordinance 32482
banned short-term rentals in areas zoned for “single-family residential” use while
ordinance 32473 regulated the remaining short-term rentals and provided the process
through which owners could acquire the necessary permits to operate a short-term
of these two ordinances and requested injunctive and declaratory relief. After an
evidentiary hearing, the trial court granted appellees’ application for a temporary
injunction and found (1) appellees met their burden to establish they have a probable
right of recovery on their cause of action against the City of Dallas and (2) without
irreparable injuries.
Issues on Appeal
In four issues on appeal, the City contends the trial court abused its discretion
when it (1) granted appellees’ application, (2) concluded appellees satisfied their
extraordinary burden to prove their probable right to relief, (3) concluded appellees
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injury, and (4) granted equitable relief despite the Alliance’s allegedly unclean
hands. More specifically, the City argues the ordinances are not preempted by House
Bill 2127 (which it argues is unconstitutional), the trial court erred when it granted
equitable relief to the Alliance’s members despite it being “likely (if not certain) that
some portion of [its] members have not registered or paid [hotel occupancy tax] on
their [short-term rental] properties,” and the trial court erred when it found appellees
are likely to prevail on their arguments concerning due course of law, equal
subject matter of the litigation pending a trial on the merits. Butnaru v. Ford Motor
Co., 84 S.W.3d 198, 204 (Tex. 2002). We examine each aspect of the trial court’s
injunction for an abuse of discretion. Tex. Educ. Agency v. Hous. Indep. Sch. Dist.,
660 S.W.3d 108, 116 (Tex. 2023). A trial court abuses its discretion when it
misapplies the law to established facts or when the evidence does not reasonably
recovery. City of Dallas v. Brown, 373 S.W.3d 204, 208 (Tex. App.—Dallas 2012,
pet. denied). Under this standard, we defer to the trial court’s factual findings if the
evidence supports them, but we review legal determinations de novo. State v. Loe,
692 S.W.3d 215, 226 (Tex. 2024). We view the evidence in the light most favorable
to the trial court’s order, indulging every reasonable inference in its favor, and defer
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to the trial court’s resolution of conflicting evidence. 31 Holdings I, LLC v. Argonaut
Ins. Co., 640 S.W.3d 915, 922 (Tex. App.—Dallas 2022, no pet.).
specific elements: (1) a cause of action against the defendant; (2) a probable right to
the relief sought; and (3) a probable, imminent, and irreparable injury in the interim.
Butnaru, 84 S.W.3d at 204. The applicant has the burden of production to offer some
evidence on each of these elements. See In re Tex. Nat. Res. Conservation Comm’n,
85 S.W.3d 201, 204 (Tex. 2002) (orig. proceeding). At the hearing for a temporary
writ of injunction, the trial court is not determining the ultimate rights of the parties;
instead, the only question before the trial court is whether applicants demonstrated
their entitlement to preservation of the status quo pending trial on the merits. Walling
v. Metcalfe, 863 S.W.2d 56, 58 (Tex. 1993) (citing Iranian Muslim Org. v. City of
San Antonio, 615 S.W.2d 202, 208 (Tex. 1981)); Keystone Life Ins. Co. v. Mktg.
Mgmt., Inc., 687 S.W.2d 89, 93 (Tex. App.—Dallas 1985, no pet.) (“[T]he only
question before the trial court was whether to maintain the status quo—not to
The City’s brief does not attack appellees’ pleading or proof of a cause of
action against it under the Declaratory Judgment Act. Thus, we focus our analysis
on appellees’ proof of a probable right to the relief sought and a probable, imminent,
and irreparable injury in the interim. See TEX. R. APP. P. 47.4 (“If the issues are
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settled, the court should write a brief memorandum opinion no longer than necessary
to advise the parties of the court’s decision and the basic reasons for it.”).
Findings
In its order granting injunctive relief against the ordinances, the trial court
found (1) appellees introduced evidence the individual appellees had invested
dollars, into the short-term rental industry in Dallas, (2) the City intended to enforce
the zoning ordinance as soon as December 13, 2023, (3) appellees presented
evidence that the City relied on a June 2023 study when it enacted the ordinances at
issue, (4) appellees presented evidence that said study “is not conclusive” and
“overestimates the associated concerns with [short-term rentals] that the City claims
are the basis for its governmental interests,” (5) appellees presented evidence that
the ordinances “do not rationally relate to the claimed governmental interests based
on any available data,” and (6) appellees established that the registration ordinance
rentals]” after the effects of the zoning ordinance are realized. The City does not
challenge any of these findings on appeal. Cf. Badger Tavern LP v. City of Dallas,
no pet.) (mem. op.) (“Findings of fact and conclusions of law embedded in a trial
court’s temporary injunction order may be helpful, but are not binding, in reviewing
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the court’s exercise of its discretion.”) (citing Tom James of Dallas, Inc. v. Cobb,
Analysis
In its second issue, the City argues the trial court erred when it concluded
the City cites Thompson v. City of Palestine, 510 S.W.2d 579 (Tex. 1974), for the
Thompson did not involve a temporary injunction and the supreme court did not
Similarly, the City cites Mayhew v. Town of Sunnyvale for the proposition
that, “To overcome this presumption [of an ordinance’s validity], plaintiffs have the
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Instead, Thompson says:
We have also held that an ‘extraordinary burden’ rests on the party attacking the
ordinance to show that no conclusive or even controversial issuable facts or conditions
exist which would authorize the City Council to exercise the discretion confided to it,
and that if reasonable minds may differ as to whether or not a particular zoning
ordinance has a substantial relationship to the public health, safety, morals or general
welfare, no clear abuse of discretion is shown and the ordinance must stand as a valid
exercise of the city's police power.
510 S.W.2d at 581.
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mere arbitrary or irrational exercise of power.’” See 964 S.W.2d 922, 938 (Tex.
1998). Again, the City is mistaken. Instead, Mayhew (which does not contain the
Id. (cleaned up and emphasis added). Thus, both Thompson and Mayhew are
inapposite.
to present some evidence supporting every element of at least one valid legal theory
that raises a bona fide issue as to their right to ultimate relief. See Young Gi Kim v.
May 11, 2020, no pet.) (mem. op.). A party can prove their probable right of recovery
by alleging the existence of a right and presenting evidence tending to show that the
right is being denied. Bureaucracy Online, Inc. v. Schiller, 145 S.W.3d 826, 829
(Tex. App.—Dallas 2004, no pet.). State law creates and defines property rights. Bd.
Appellees’ pleading alleges they enjoy the right to lease their properties under
Texas law. See Calcasieu Lumber Co. v. Harris, 77 Tex. 18, 13 S.W. 453, 454 (1890)
(“The ownership of land, when the estate is a fee, carries with it the right to use the
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land in any manner not hurtful to others; and the right to lease it to others, and
370 S.W.3d 705, 709 (Tex. 2012) (op. on reh’g) (“Private property rights have been
described ‘as fundamental, natural, inherent, inalienable, not derived from the
v. Muns, 651 S.W.3d 317, 346–47 (Tex. App.—Fort Worth 2021, pet. denied) (“The
(citing Emily M. Speier, Comment, Embracing Airbnb: How Cities Can Champion
Private Property Rights Without Compromising the Health and Welfare of the
provides: “No citizen of this State shall be deprived of life, liberty, property,
of law of the land.” TEX. CONST. art. I, § 19. Appellees have “a vested right to lease
their properties and this right is sufficient to support a viable due-course-of law
Alliance, Sammy Aflalo, Vera Elkins, and Denise Lowry proved their probable right
to relief against the City’s zoning ordinance under their due-course-of-law argument
because they alleged they possessed well-established rights to lease their property
and presented evidence tending to show that the City would deny them those rights
by enforcing the zoning ordinance at issue. See Bureaucracy Online, Inc., 145
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S.W.3d at 829; see also Young Gi Kim, 2020 WL 2315854, at *2 (requiring “some
evidence supporting every element of at least one valid legal theory” to demonstrate
a probable right to recovery). Thus, the trial court did not abuse its discretion when
it concluded these appellees met their burden to establish that they have a probable
right of recovery on a cause of action concerning the zoning ordinance against the
City of Dallas. See Grapevine, 651 S.W.3d at 346; see also TEX. R. APP. P. 47.4; cf.
Brown, 373 S.W.3d at 208 (a trial court abuses its discretion if the evidence does not
right of recovery). Thus, we overrule the City’s second issue concerning the zoning
ordinance with respect to the Dallas Short Term-Rental Alliance, Sammy Aflalo,
efforts concerning the zoning ordinance at least nine times. See Arredondo v. City of
Dallas, 79 S.W.3d 657, 660 n.5 (Tex. App.—Dallas 2002, pet. denied) (examining
recitals in a city resolution); accord Draper v. City of Arlington, 629 S.W.3d 777,
792 (Tex. App.—Fort Worth 2021, pet. denied) (examining recitals in a city
ordinance); Elizabeth Benavides Elite Aviation, Inc. v. City of Laredo, No. 04-19-
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pet.) (mem. op.) (same); cf. Fort Worth Indep. Sch. Dist. v. City of Fort Worth, 22
S.W.3d 831, 837 (Tex. 2000) (examining recitals in an ordinance passed by a school
board).
underlying governmental interest. See Patel v. Tex. Dep’t of Licensing & Regul., 469
S.W.3d 69, 87 (Tex. 2015). Appellees argue the burdens imposed by the City’s
registration ordinance include (1) excessive fees, (2) limits on maximum occupancy,
(3) day limit, (4) parking restrictions, (5) density restrictions, and (6) the homestead
exemption. Here, our analysis focuses on the maximum occupancy limitation. See
produce some evidence supporting every element of at least one valid legal theory);
maximum occupancy in short-term rentals is constitutional, the City relies upon (1)
the Dallas Task Force, and (3) the testimony of Andrea Gilles, the City’s Interim
Director of the Planning and Urban Design Department at the time of the hearing on
appellees’ application for a temporary injunction. The City first argues the response
and appendix constitute a concession that the City has a legitimate governmental
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interest in enforcing a limit of three people to a bedroom in short-term rentals.
Neither document, however, supports the City’s position; the former shows the Task
occupancy levels while the latter includes Task Force recommendations. Neither the
government’s interests that we can attribute to any specific appellee—much less all
Further, the City’s citations to Ms. Gilles’s testimony do not address the three people
Thus, we conclude the trial court did not abuse its discretion when it
concluded appellees have demonstrated a probable right to relief with respect to the
registration ordinance because the City has failed to both (1) attack the trial court’s
findings and (2) point us to evidence showing its legitimate governmental interests
cannot conclude the trial court abused its discretion when it concluded appellees are
likely to prevail on their request for declaratory relief because the registration
term rentals. See Patel, 469 S.W.3d at 87; Tex. Educ. Agency, 660 S.W.3d at 116;
cf. Walling, 863 S.W.2d at 58 (“[T]he only question before the trial court is whether
the applicant is entitled to preservation of the status quo pending trial on the
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merits.”). We overrule the City’s second issue concerning the registration ordinance
with respect to the Dallas Short Term-Rental Alliance, Sammy Aflalo, Vera Elkins,
3. Danielle Lindsey
other such support services to rental properties.” We assume without deciding this
constitutes an occupational property interest. See Tex. Dep't of State Health Servs. v.
Crown Distrib. LLC, 647 S.W.3d 648, 655 (Tex. 2022) (citing Tex. S. Univ. v.
property interest must be “vested.” Id. (citing Honors Acad., Inc. v. Tex. Educ.
Agency, 555 S.W.3d 54, 61 (Tex. 2018)). Interests are not vested when they are
the Legislature’s right to change the law and abolish the interest. Id. Appellees have
not briefed whether the Legislature—or the Dallas City Council—has the right to
change the law or abolish Lindsey’s interest. See TEX. R. APP. P. 38.1(i). Therefore,
we reverse the trial court’s judgment with respect to appellee Danielle Lindsey
because she has failed to show a probable right to relief concerning either ordinance.
B. Irreparable injury
While the City’s brief purports to assign error concerning the trial court’s
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its arguments are restricted to (1) “A regulatory-taking claim necessarily implies that
the purported harm is readily compensable with money damages,” and (2)
claim.” The City cites no authority in support of the former and quotes Patel v. City
of Everman in support of the latter. See 179 S.W.3d 1, 13 (Tex. App.—Tyler 2004,
pet. denied) (“[Where] a party seeks monetary damages, he seeks a legal remedy,
Appellees did not make a regulatory-taking claim and their petition does not
seek monetary damages. Instead, appellees sought injunctive and declaratory relief
2017, pet. denied) (mem. op.) (“It is an appellant’s burden to discuss his or her
assertions of error, and appellate courts have no duty—or even the right—to perform
an independent review of the record and the applicable law to determine whether
there was error. . . . ‘We will not do the job of the advocate.’”) (quoting Happy
Harbor Methodist Home, Inc. v. Cowins, 903 S.W.2d 884, 886 (Tex. App.—Houston
[1st Dist.] 1995, no writ)). We recognize the City extensively briefed the viability of
taking, and that the City apparently perceived appellees’ allegation to constitute a
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Additionally, the record contains both ordinances, both of which state they
“take effect immediately from and after [their] passage and publication in
accordance with the provisions of the Charter of the City of Dallas with enforcement
action being taken no earlier than six months” from and after passage. This evidence
supports the trial court’s finding that without injunctive relief, appellees—other than
vested property rights. See City of Grapevine, 651 S.W.3d at 347 (concluding
homeowners had “a vested right to lease their properties and that this right is
sufficient to support a viable due-course-of law claim.”); cf. State v. Morales, 869
S.W.2d 941, 943–44 (Tex. 1994) (to overcome prohibition against civil challenge to
penal statute, litigant must allege that penal statute is unconstitutional and “threatens
irreparable injury to vested property rights”). Finally, the record contains at least
some evidence supporting the trial court’s effectively unchallenged finding that
appellees would suffer irreparable injury without injunctive relief. Thus, we overrule
In its first issue, the City argues the trial court abused its discretion when it
granted appellees’ request for injunctive relief. Here, the City does not address
whether appellees pled or proved a cause of action against the defendant, a probable
right to the relief sought, or a probable, imminent, or irreparable injury in the interim.
See Butnaru, 84 S.W.3d at 204. Instead, the City argues that its ordinances are not
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pre-empted by House Bill 2127 (which it argues is unconstitutional). The City also
expressly argues that “to determine whether the trial court abused its discretion in
Assuming arguendo that House Bill 2127 does not preempt the City’s
ordinances, the constitutionality thereof is irrelevant to our review of the trial court’s
TEX. R. APP. P. 47.1. Thus, we overrule the City’s first issue on appeal.
In its fourth issue, the City argues the trial court erred when it enjoined the
City from enforcing the two ordinances at issue because (1) at least 40% of existing
short-term rental properties in Dallas have not registered or paid their hotel
occupancy taxes, (2) it is more likely than not that some portion of the Alliance’s
members have not registered or paid their hotel occupancy taxes, and (3) the Alliance
therefore sought equitable relief with unclean hands. However, the City cites no
injunction where an applicant has proven a cause of action against the defendant, a
probable right to the relief sought, and a probable, imminent, and irreparable injury
in the interim. See Butnaru, 84 S.W.3d at 204. Further, the City has failed to show
that the Alliance has a duty to pay such taxes or enforce the payment of such taxes
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amongst its members. Finally, while there is evidence that appellee Elkins was not
current on her hotel occupancy tax payments at one time, there is also evidence she
has paid it “faithfully since learning of her obligation to do so”; there is no other
evidence in the record regarding non-payment of the hotel occupancy tax by any
other appellee. We therefore conclude the City has not shown the trial court abused
Conclusion
The only question before the trial court was whether appellees demonstrated
their entitlement to preservation of the status quo pending trial on the merits. See
pled and proved a cause of action against the City, a probable right to the relief
sought, and a probable, imminent, and irreparable injury in the interim. See Butnaru,
84 S.W.3d at 204. We therefore reverse the trial court’s order with respect to
Danielle Lindsey, overrule the City’s four issues on appeal with respect to the Dallas
Short-Term Rental Alliance, Sammy Aflalo, Vera Elkins, and Denise Lowry, and
/Yvonne T. Rodriguez/
YVONNE T. RODRIGUEZ
JUSTICE
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S
Court of Appeals
Fifth District of Texas at Dallas
JUDGMENT
In accordance with this Court’s opinion of this date, the judgment of the trial
court is AFFIRMED IN PART and REVERSED IN PART.
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