Arbor E & T Llc., D/B/A Rescare Workforce Services v. Lower Rio Grande Valley Workforce Development Board Inc. D/B/A Workforce Solutions

476 S.W.3d 25, 2013 WL 8107122, 2013 Tex. App. LEXIS 14674
CourtCourt of Appeals of Texas
DecidedDecember 5, 2013
Docket13-13-00139-CV
StatusPublished
Cited by12 cases

This text of 476 S.W.3d 25 (Arbor E & T Llc., D/B/A Rescare Workforce Services v. Lower Rio Grande Valley Workforce Development Board Inc. D/B/A Workforce Solutions) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arbor E & T Llc., D/B/A Rescare Workforce Services v. Lower Rio Grande Valley Workforce Development Board Inc. D/B/A Workforce Solutions, 476 S.W.3d 25, 2013 WL 8107122, 2013 Tex. App. LEXIS 14674 (Tex. Ct. App. 2013).

Opinion

OPINION

Opinion by

Justice LONGORIA.

In this interlocutory appeal, Arbor E & T, LLC, d/b/a Rescare Workforce Services (“Arbor”) challenges the trial court’s order granting a plea to the jurisdiction by Lower Rio Grande Valley Workforce Development Board, Inc., d/b/a Workforce Solutions, Inc. (“Workforce Solutions”), See Tex. Civ. PRAC. & Rem.Code Ann. § 51.014(a)(8) (West Supp.2012). Arbor contends that the trial court erred for two reasons: (1) Workforce Solutions is not a state agency and is therefore not entitled to ■ sovereign' immunity from suit; and (2) to the extent-Workforce Solutions has immunity from suit, it is merely a local governmental entity and the State of Texas has waived its immunity by statute for breach of contract through Subchapter I of Chapter 271 of the Texas Local Government Code. See Tex. Loc. Gov’t Code Ann. § 271.152 (West 2005). For the reasons set forth below, we conclude that Workforce Solutions (1) is a governmental unit, (2) is not a state agency, (3) has immunity from suit for performance of its governmental functions, (4) is a local governmental entity within the meaning of Chapter 271, and (5) has had its immunity from suit waived by the Texas Legislature for this suit involving a claim for breach, of contract. Accordingly, we reverse the order of the trial court and remand the case for further proceedings consistent with this decision.

I. , BACKGROUND 1

Arbor is a for-profit corporation based out of Louisville, Kentucky with offices across the United States, including an office in Austin, Texas. Workforce Solutions is one of twenty-eight local workforce development boards in Texas. Workforce Solutions is a non-profit corporation that operates in a workforce development area that covers Hidalgo, Starr, and Willacy Counties. Workforce Solutions contracts with third parties to find jobs, education, and training for people who have significant barriers to employment, have lost their jobs, or are just entering the workforce. The primary purpose of Workforce Solutions is to administer its workforce development area by, among other things, contracting with third parties to deliver publicly-funded training and employment services to employers and job seekers in the region.

In August 2008, Arbor contracted with Workforce Solutions to provide youth employment services. In August- 2011, Arbor filed this suit against Workforce Solutions and its individual board members to recover sums allegedly due to Arbor under the contract. The damages alleged in the underlying case arise from Workforce Solutions’s alleged breach of contract involving its failure to pay (1) funds that are due and owing for services provided -under the contract that Workforce Solutions admits are due, (2) funds that Workforce Solutions improperly “disallowed” or refused to pay Arbor in connection with a summer youth *29 program in 2009, and (3) funds in the form of a fíne that was improperly levied against Arbor by Workforce Solutions.

Workforce Solutions filed a plea to the jurisdiction, asserting that it is entitled to sovereign immunity from suit. In response, Arbor argued that Workforce Solutions does not have immunity from suit and that even if it does have immunity, it is merely a “local governmental entity” subject to the waiver of sovereign immunity in Subchapter I of Chapter 271 of the Texas Local Government Code. See Tex. Loo. Gov’t Code Ann. § 271.152. The trial court granted Workforce Solutions’s plea to the jurisdiction, and Arbor filed this interlocutory appeal. See Tex. Civ. Prac. & Rem.Code Ann. § 51.014(a)(8) (permitting an interlocutory appeal of an order that “grants or denies a plea to the jurisdiction by a governmental unit as that term is defined in Section 101.001”). The claims against the individual board members remain pending in the trial court.

II. Motion to Supplement

We heard oral argument in this case on September 26, 2013. The following day, Arbor filed a motion for leave to “re-open and supplement brief’ requesting that it be allowed to supplement the appendix to its brief with an exhibit that is not part of the appellate record. See Tex. R.App. P. 34.1 (“The appellate record consists of the clerk’s record and, if necessary to the appeal, the reporter’s record.”); 38.1(k)(2) (“Appendix in Civil Cases, Optional Contents”); 38.7 (“Amendment or Supplementation”).

The exhibit at issue is an excerpt from the self-evaluation statement by the Texas Workforce Commission (“TWC”), which is now on file with the Texas Sunset Advisory Commission. It consists of two pages of legal analysis from the TWC’s general counsel asserting that local workforce development boards, such as Workforce Solutions,' are “non-governmental entities.” In relevant part, the report states as follows: <

Local Workforce Development Boards (“LWDBs”) are quasi-governmental entities incapable of invoking sovereign immunity. The Texas Legislature has made a conscious decision to treat LWDBs variously in different circumstances as state or local governmental entities or nonprofit human services organizations. In HB 936 (77th R Session), the Legislature, allowed LWDBs to share with local and state governments certain rights where they would benefit financially. They also made boards subject to the disclosure and open government provisions by which both local and state governments must abide.
If LWDBs were either state or local governmental entities, the Legislature would not have taken the approach of treating them as such governmental bodies for certain purposes only. They would have all rights and responsibilities of that level of government instead of only those specifically granted.

The report concludes with the recommendation that the Legislature “change [existing law] to designate Boards as non-governmental entities.”'

In its motion, counsel for Arbor certified that he' had conferred ⅞4⅛ counsel for Workforce Solutions and that Workforce Solutions was opposed to the relief requested in Arbor’s motion. See Tex.R.App. P. 10.1(a)(5). Accordingly, on October 3, 2013, this Court entered an order requesting a response from Workforce Solutions. In our order, we noted that “[a]n appellate court cannot consider documents cited in a brief and attached as appendices if they are not formally included in the record on appeal.” Cantu v. Horany, 195 S.W.3d 867, 870 (Tex.App.-Dallas 2006, no pet.); see *30 also Adams v. Reynolds Tile and Flooring, Inc., 120 S.W.3d 417, 423 (Tex.App.Houston [14th Dist.] 2003, no pet.) (stating that the attachment of documents as appendices to briefs does not constitute formal inclusion in the record on appeal). We also noted that “[m]aterial, outside the record -that is improperly included in or attached to a party’s brief may be stricken.” Siefkas v. Siefkas, 902 S.W.2d 72, 74 (Tex.App.-El Paso 1995, no writ).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
476 S.W.3d 25, 2013 WL 8107122, 2013 Tex. App. LEXIS 14674, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arbor-e-t-llc-dba-rescare-workforce-services-v-lower-rio-grande-texapp-2013.