Marfil v. City of New Braunfels, No. 22-50908 (5th Cir. 2023)

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Plaintiffs appealed the Rule 12(b)(6) dismissal of their complaint, alleging that the City of New Braunfels’s zoning regulation banning short-term rentals of residential properties in certain areas of the city is unconstitutional. The district court ordered dismissal.

The Fifth Circuit vacated and remanded. The court held that Plaintiffs are entitled to engage in discovery in an attempt to surmount the currently high bar for challenging local zoning ordinances under the Constitution.

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Case: 22-50908 Document: 00516789701 Page: 1 Date Filed: 06/16/2023 United States Court of Appeals for the Fifth Circuit United States Court of Appeals Fifth Circuit ____________ FILED June 16, 2023 Lyle W. Cayce Clerk No. 22-50908 ____________ Rafael Marfil; Verge Productions, L.L.C.; Enrico Marfil; Naomi Marfil; Korey A. Rholack; Daniel Olveda; Douglas Wayne Mathes, Plaintiffs—Appellants, versus City of New Braunfels, Texas, Defendant—Appellee. ______________________________ Appeal from the United States District Court for the Western District of Texas USDC No. 6:20-CV-248 ______________________________ Before Jones, Clement, and Haynes, Circuit Judges. 1 Edith H. Jones, Circuit Judge: Plaintiffs here appeal the Rule 12(b)(6) dismissal of their complaint alleging that the City of New Braunfels’s zoning regulation banning shortterm rentals of residential properties in certain areas of the city is unconstitutional. The district court ordered dismissal by approving a few _____________________ 1 court. Judge Haynes dissents. She would affirm for the reasons stated by the district Case: 22-50908 Document: 00516789701 Page: 2 Date Filed: 06/16/2023 No. 22-50908 conclusory paragraphs in a magistrate judge’s recommendation. This court’s relevant case law, however, indicates that some factual development may often occur in these cases, and that summary judgment may often follow. See, e.g., Mahone v. Addicks Util. Dist., 836 F.2d 921, 935–37 (5th Cir. 1988). We make no prediction on the future course of this case, but based on the complaint’s well-pled allegations, plaintiffs are entitled to engage in discovery in an attempt to surmount the currently high bar for challenging local zoning ordinances under the Constitution. VACATED and REMANDED. 2

Primary Holding

The Fifth Circuit vacated and remanded the district court’s judgment dismissing Plaintiffs’ complaint alleging that the City of New Braunfels’s zoning regulation banning short-term rentals of residential properties. The court held that Plaintiffs are entitled to engage in discovery to surmount the currently high bar for challenging local zoning ordinances under the Constitution.

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