Nearly two years after Fort Worth implemented new rules governing the operation of short-term rentals, a coalition of short-term rental operators against the city will come to a head in December.

The lawsuit, which lists 114 plaintiffs, claims Fort Worth is violating property rights by preventing people from operating short-term rentals.

The two rental operators, which filed a complaint in June 2023and the city requested summary judgments from the court in October, according to court documents. Summary judgment motions ask the court to decide the case without going to trial, arguing that there are no real disputes over the essential facts and that the law favors the plaintiff’s side.

The 236th Judicial District Court will hold a hearing for the case at 1:30 p.m. Dec. 18 at the Tom Vandergriff Civil Courts Building in downtown Fort Worth. The court allotted two hours for the hearing, according to a Nov. 15 notice.

The plaintiffs, which include various Tarrant-based short-term rental operators and members of the Fort Worth Short Term Rental Alliancesued the city after city council members voted unanimously in February 2023 to approve the new regulation on short-term rentals. The lawsuit challenges these regulations, which essentially banned short-term rentals in residential areas and created stricter rules for operating in commercial and mixed-use areas. It also asks the court to prevent the city from enforcing the ordinance and to require the city to pay the plaintiffs’ legal fees.

In July 2023, the city asked the court to dismiss all claims against the city and require the plaintiffs to pay the city’s legal fees. The city hired the law firm Kelly Hart & Hallman, LLP as its legal defense, with a contract for $150,000 at the time.

At their November 19 meeting, city council members voted to triple the funding for this contract for a total of $450,000. The increased funding will be allocated from the city’s Human Resources Department’s risk financing fund.

The funding increase was included in the meeting agenda, where common city items are voted on with little or no discussion. Council members did not comment on the contract increase during the meeting.

The Fort Worth Short Term Rental Alliance said in a statement to the Nov. 18 report that the dollars added to the city’s budget for the lawsuit use “significant taxpayer-funded resources that could be used to drive positive change elsewhere.” .

“The city knew this matter was going to happen, thanks to numerous court rulings in favor of short-term rental owners, but it chose to exercise its power and authority over individual citizens and abuse the “taxpayers’ money to go against its own citizens,” the alliance said.

Rachel Behrndt

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Fort Worth Report

The city contends the additional $300,000 is necessary “to complete these lawsuits,” according to a report. staff report to board members.

“Due to the complex nature of the litigation and the importance to the City and the current workload of the City Attorney’s Office, the City wishes to have the law firm of Kelly Hart & Hallman, LLP represent the City in any dispute related to the short circuit. term rental orders,” the report said.

The city attorney’s office did not respond to request for comment for the report.

In its motion for summary judgment filed Oct. 15, the city says it has the authority to regulate land use “consistently and in a manner that is beneficial – not detrimental – to its residents.” The filing adds that the new regulations were not implemented lightly.

“After more than three years of study and debate, the City Council has concluded that (short-term rentals) corrode the character of residential neighborhoods by undermining the community and camaraderie of these neighborhoods,” the filing states. “But the city also recognized that (short-term rentals) are part of modern tourism, so it sought to adopt regulations balancing the well-being of its residents with the realities of tourism.”

The plaintiffs’ October 15 request for summary judgment states that “the right to acquire and possess property and to have it protected is one of the natural, inherent and inalienable rights of man.” One of the most fundamental expressions of this right, according to the brief, is renting and earning income, for example through short-term rentals.

“However, Texas cities no longer agree, as they have found it politically expedient to assert their control over these natural, inherent, and inalienable rights,” the filing states. “Plaintiffs’ continued right to these venerable property rights in their own property is the subject of this case.”

The Fort Worth Short Term Rental Alliance itself is not a plaintiff in this case, although several of its members are. The alliance said it hopes the court “will reach a decision in favor of property rights, as many courts across the country have already done.”

The city of Dallas also faces litigation over short-term rental regulations approved by the Dallas City Council in June 2023. The regulations would eliminate about 50% of registered short-term rentals in the city, according to The Dallas Morning News. A group of short-term rental operators in Dallas sued the city in October 2023arguing that the regulations are unconstitutional and violate the rights of property owners.

Dallas’ ban was set to take effect in December 2023, but a judge sided with rental operators and granted a temporary injunction that suspended the regulations. A Dallas appeals court panel heard arguments Nov. 13 to decide whether the injunction should be lifted, according to the Morning News.

When Fort Worth council members approved short-term rental regulations in February 2023, Mayor Mattie Parker said short-term rentals are an “evolving issue” in Texas and across the country.

“We’re not done listening,” she said at the time.

Cécilia Lenzen is a government accountability reporter for the Fort Worth Report. Contact her at [email protected] Or @bycecilialenzen.

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This article first appeared on Fort Worth Report and is republished here under a Creative Commons license.