Dep’t of Transp. v. A.P.I. Pipe & Supply, LLC

This case involved an inverse-condemnation dispute over ten acres. At issue was who had title to the parcel: the Texas Department of Transportation (TxDOT), the City of Edinburg (City), or API Pipe Supply and Paisano Service Company (collectively, API). In 2003, the trial court awarded the City a “fee title” to the property subject to a drainage easement granted to TxDOT. In 2004, the trial court entered a judgment purporting to render the 2003 judgment null and void. API claimed the judgment gave API fee-simple ownership, subject to a drainage easement granted to the City, and, via subsequent conveyance, to TxDOT. In 2005, TxDOT began its drainage project. API, relying on the 2004 judgment, brought a takings claim for the value of the removed soil. The trial court held in favor of API, and the court of appeals affirmed. The Supreme Court reversed and dismissed the suit, holding (1) the 2004 judgment was void and therefore could not supersede the valid 2003 judgment; (2) API was statutorily ineligible for “innocent purchaser” status, and equitable estoppel was inapplicable against the government in this case; and (3) because API held no interest in the land, API’s takings claim failed.

Dep’t of Transp. v. A.P.I. Pipe & Supply, LLC