Cesar De Leon v. Brownsville GMS, Ltd. and Michael Bennett

CourtCourt of Appeals of Texas
DecidedMay 6, 2021
Docket13-19-00393-CV
StatusPublished

This text of Cesar De Leon v. Brownsville GMS, Ltd. and Michael Bennett (Cesar De Leon v. Brownsville GMS, Ltd. and Michael Bennett) 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
Cesar De Leon v. Brownsville GMS, Ltd. and Michael Bennett, (Tex. Ct. App. 2021).

Opinion

NUMBER 13-19-00393-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS

CORPUS CHRISTI – EDINBURG

CESAR DE LEON, Appellant,

v.

BROWNSVILLE GMS, LTD. AND MICHAEL BENNETT, Appellees.

On appeal from the 445th District Court of Cameron County, Texas.

MEMORANDUM OPINION Before Justices Benavides, Hinojosa, and Tijerina Memorandum Opinion by Justice Benavides

Appellant Cesar De Leon, a former City Commissioner for the City of Brownsville

(City), appeals an order denying his motion to dismiss the claims made against him in his

individual capacity based on the election of remedies provision of the Texas Tort Claims

Act (TTCA). See TEX. CIV. PRAC. & REM. CODE ANN. § 101.106. In the underlying lawsuit, appellees, Brownsville GMS, Ltd. (GMS) and Michael Bennett, the general manager of

GMS (the GMS parties), sued the City and various officials for alleged violations of the

Texas Open Meetings Act and the competitive bidding procedures required by Chapter

252 of the Texas Local Government Code. See TEX. GOV’T CODE ANN. §§ 551.001–.146

(codifying the Texas Open Meetings Act); TEX. LOC. GOV’T CODE ANN. §§ 252.001–.063

(delineating the purchasing and contracting authority of municipalities). The GMS parties

sued De Leon in his individual capacity for tortious interference with GMS’s prospective

business relations and alleged that he acted with malice. Concluding that the GMS

parties’ claims against De Leon are barred by the TTCA, we reverse and render.1

I. BACKGROUND

GMS and Bennett filed suit against the City, the Honorable Tony Martinez in his

official capacity as Mayor of Brownsville and member of the Brownsville City Commission,

Rose M. Z. Gowen, Ricardo Longoria Jr., Joel Munguia, Jessica Tetreau, and Ben Neece

(collectively with Martinez, Gowen, Longoria, Munguia, Tetreau and Neece, the “City

Commissioners”) in their official capacities as members of the Brownsville City

Commission, and De Leon in his individual capacity. Through their “Verified First

Amended Petition and Application for Temporary Injunction and Permanent Injunction,”

GMS and Bennett alleged that GMS had provided commercial and industrial waste

collection to the City for more than thirty years and during that period, the City had utilized

1 After De Leon filed his notice of appeal, the City of Brownsville, Tony Martinez, Rose M.Z. Gowen,

Ricardo Longoria, Jr., Jessica Tetreau, Joel Mungia, and Ben Neece filed an interlocutory appeal from the trial court’s alleged denial of the City’s plea to the jurisdiction. To avoid confusion, the Court severed the City of Brownsville and the commission members’ appeal from DeLeon’s appeal and assigned the City of Brownsville’s appeal to our appellate cause number 13-19-00467-CV. This Court subsequently dismissed that appeal. See City of Brownsville v. Brownsville GMS, Ltd., No. 13-19-00467-CV, 2019 WL 4741730, at *1 (Tex. App.—Corpus Christi–Edinburg Sept. 27, 2019, no pet.) (mem. op.).

2 a competitive bidding process. In 2016, the City “again awarded its contract” to GMS;

however, during the negotiation process the City made GMS’s confidential proposal

information publicly available to its competition. GMS and Bennett stated that De Leon

“began a negative lobbying campaign against GMS,” “complained that GMS had not

donated money to [De Leon’s] campaign,” and made false statements regarding GMS.

The GMS parties alleged that De Leon worked with Redfish, a competitor, to derail GMS’s

negotiations with the City. They asserted that the City ultimately engaged in two different

bidding processes, rejected GMS’s contract, and selected one of GMS’s competitors to

handle the City’s industrial and commercial waste. They asserted that the defendants’

actions violated the Texas Local Government Code and the Open Records Act. The GMS

parties sought declaratory relief and temporary and permanent injunctive relief.

As relevant to this case, GMS and Bennett sued De Leon in his individual capacity

for tortious interference with prospective business relations. Their verified first amended

petition states, in relevant part:

81. GMS was prepared to enter into a contract with Brownsville for commercial and industrial waste collection services. GMS had fully negotiated the contract with Brownsville staff and had executed the contract. All that remained was for the City Commission to approve the execution of the contract by Brownsville.

82. Defendant De León knew of GMS’s prospective contract with Brownsville and intentionally interfered with it, including by causing the City Commission to reject GMS’s executed contract which was presented to it by Brownsville and all bids from the first RFP process, as well as by causing the City Commission to award the contract to Republic Services.

83. Defendant De León’s actions in interfering with GMS’s prospective contract were independently tortious and in violation of multiple statutes, regardless of the effect those actions had on GMS’s prospective contract.

3 84. GMS could not know, nor by the exercise of reasonable diligence could have known of the facts giving rise to this claim until De León’s statements describing how he stopped GMS because GMS had not contributed to his campaign or otherwise given him money were made public in late September 2017.

85. Defendant De León’s actions proximately caused injury to GMS, which resulted in lost profits from the prospective commercial and industrial waste collection contract with Brownsville.

86. GMS seeks actual damages within the jurisdictional limits of this Court.

87. In addition, Defendant De Leon acted with malice in intentionally interfering with GMS’s prospective contract and causing injury to GMS, which entitles GMS to exemplary damages. See TEX. CIV. PRAC. & REM. CODE [ANN.] § 41.002.

Thereafter, De Leon filed a motion to dismiss the claims brought against him in his

individual capacity. He asserted that GMS and Bennett filed claims against him “for

actions allegedly taken in the general scope of his duties as a City Commissioner,” and

that the election of remedies provisions of the TTCA provides for dismissal of the tort

claims against him because the suit was based on “actions taken within the general scope

of his duties regarding the same subject matter.” He therefore alleged that the suit against

him should be dismissed under § 101.106(f). See TEX. CIV. PRAC. & REM. CODE ANN. §

101.106(f) (providing for dismissal of a suit against an employee of a governmental unit

based on conduct within the general scope of that employee's employment if it could have

been brought under this chapter against the governmental unit). De Leon supported his

motion to dismiss with (1) an excerpt from the city charter describing the duties of and

compensation for a city commissioner, and (2) an excerpt from De Leon’s deposition in

which he testified that he was paid $8.00 for each commission meeting that he attended,

4 however, rather than accepting the salary, he directed the deputy city manager to donate

that money to an organization of the manager’s choice.2

GMS and Bennett filed a response in opposition to De Leon’s motion to dismiss

arguing that (1) dismissal would not serve the purpose of the TTCA’s election of remedies

provision; (2) the claims against De Leon fell outside the scope of his employment; and

(3) suit against De Leon in his individual capacity “is the only avenue to recover for his

tortious interference.”

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