Baytown Construction Co. v. City of Port Arthur

792 S.W.2d 554, 1990 WL 101983
CourtCourt of Appeals of Texas
DecidedJune 14, 1990
Docket09-88-245 CV
StatusPublished
Cited by2 cases

This text of 792 S.W.2d 554 (Baytown Construction Co. v. City of Port Arthur) 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
Baytown Construction Co. v. City of Port Arthur, 792 S.W.2d 554, 1990 WL 101983 (Tex. Ct. App. 1990).

Opinion

OPINION

BROOKSHIRE, Justice.

This is an appeal from the judgment in a suit Appellant brought for injunctive and declaratory relief and damages against Ap-pellee City of Port Arthur and several city officials. The suit arose initially from penalties imposed upon Appellant by Appellee City for allegedly failing to perform a contract in conformity with Appellee City’s “Residents Jobs Policy Ordinance.” We reverse and render in part and remand in part.

Appellee City enacted its Ordinance No. 86-27, which facially attempted to require construction contractors dealing with the City of Port Arthur to employ Port Arthur “residents” to perform. 60 percent of the hours worked in each craft required to perform the contracted job. The ordinance initially defined a “resident” as “Any person for whom the principal place where that person normally eats and sleeps and maintains his or her normal personal and household effects is within the City limits of the City of Port Arthur, Texas.” Section 4 of the ordinance required the City’s enforcing agency, the Urban Development-Community Development Department, to definitely arrange recruitment and training of resident employees in conjunction with existing labor unions, and to establish a separate job screening and referral agency to refer city residents to contractors in order to help those contractors comply with the ordinance. The Urban Development Department was empowered to impose sanctions for non-compliance by the contractor but was required to submit its regulatory scheme to the Port Arthur City Council for approval. No procedural guidelines were given to the agency.

*556 Appellant was awarded a contract to construct a landfill for Appellee. In spite of the mandate of Section 4, inter alia, of the ordinance, Appellee City did not create a job screening and referral agency to assist Appellant in locating qualified, experienced Port Arthur residents for employment. Instead, Appellant was referred by Appellees to the Texas Employment Commission, which ultimately supplied Appellant with a statement that no qualified residents were to be found. Appellant then turned to the operating engineers’ union local. The union was the logical one to supply operators — if not in practical terms the only one. The union agreed to make one-half of its referrals to Baytown from among the qualified, resident workers; the other half in order of their appearance on the local’s out-of-work list to be assigned as required of the local by federal labor law. Appellant accepted those qualified workers who were shown to be Port Arthur residents, as forwarded and classified by the local union.

The business manager of the union local testified that Port Arthur residents were notified in advance when openings at the Baytown project were to be announced, giving those residents an advantage in obtaining work there. The union cooperated in good faith.

Appellant then commenced work on the landfill, submitting its weekly payroll to Appellee City. Within a month, a surprise jobsite inspection by the enforcing agency resulted in the contention that some employees who claimed to be residents of Port Arthur were not. Subsequently, the City withheld (without notice, hearing or consultation) the first progress payment from Appellant, precipitating a meeting at which the parties agreed to attempt to resolve the disputes.

It was at this meeting that Appellant was presented with a recently written opinion prepared by the City Attorney which equated “resident” to “domicile”, substantially redefining “resident”. “Resident” was to be broadened and to include “the elements of (1) actual residence and (2) the intent to make it the permanent home.” (Emphasis ours) This second element of “permanent home” was a new, lately added requirement. Apparently, at no time did Appellees make known to Appellant in what manner a determination of a given workman’s address or residence was to be made: whether by driver’s license, local tax rolls, utility bills, or otherwise. But these criteria were not originally in the job ordinance or in the construction contract.

On October 28, 1986 the City Council passed its ordinance number 86-263, the “enforcement resolution.” This much later ordinance set out the procedures the enforcing agency was to follow in monitoring compliance with the jobs ordinance, and undertook to retroactively make determinative prior actions and decisions of Port Arthur’s representatives with respect to Appellant. The enforcement resolution provided for the termination of the contract where the contractor refused on-sight residency inspections, or failed to be in compliance a second time. The enforcement resolution onerously and seriously impaired the construction contract and its obligations.

Foreseeing trouble, Appellant immediately brought its initial suit for an injunction against applying the new, lately adopted enforcement resolution against Appellant, and for declaratory judgment as to the constitutionality of the ordinance. This action was forestalled when the injunction was denied. Later, a partial summary judgment in favor of the City in effect declared the ordinances constitutional and approved the new, more onerous definition of “resident.” This “partial judgment” attempted to change drastically the basic rules and provisions of the agreement.

Ultimately the landfill was completed. It was accepted totally by Appellee City as to the construction. Appellant was sanctioned for failing to abide by the Jobs Policy Ordinance. The sanctions consisted of a one percent penalty ($4,878.59) — the maximum limit — and a three-year ban on bidding for future construction projects for the City. These sanctions were imposed without proper notice or a hearing or any other indicia of due process.

Appellant then amended its suit to enjoin the new sanctions and for damages arising *557 from alleged misrepresentations by Appel-lee City as to tidal flooding at the jobsite. Appellant’s theories of recovery included three separate due process grounds related to the ordinance and the enforcement thereof. The trial court decided that the earlier partial summary judgment precluded consideration of the due process claims. The judgment after a bench trial was in favor of Appellees.

On appeal, Appellant, inter alia, invokes constitutional bars to impairment of contracts, ex post facto laws and retroactive laws. Appellant further argues that any breach on its part was excused by Appel-lees’ failure to implement, inter alia, training and placement programs under the Jobs Ordinance; that the ordinance violates right-to-work laws; that the trial court’s judgment as to the tidal flooding issue was against the weight of the evidence; and that the trial court erred in failing to file findings of fact and conclusions of law.

Appellant asserts that the trial court erred in granting the City’s motion for partial summary judgment. The City’s motion contains two brief paragraphs. The first is to the effect that the City is entitled to judgment as a matter of law with respect to the validity of the contract of June 17, 1986, being the construction contract between the City and Baytown. The City argues that as a matter of law the Residents Jobs Policy Ordinance and Resolution No. 86-263 (the enforcement resolution) of the City Council are

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Cite This Page — Counsel Stack

Bluebook (online)
792 S.W.2d 554, 1990 WL 101983, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baytown-construction-co-v-city-of-port-arthur-texapp-1990.