Channelview Independent School District v. A.R.C.I., Ltd.

199 S.W.3d 556, 2006 Tex. App. LEXIS 6928, 2006 WL 2192574
CourtCourt of Appeals of Texas
DecidedAugust 3, 2006
Docket01-04-00556-CV
StatusPublished
Cited by12 cases

This text of 199 S.W.3d 556 (Channelview Independent School District v. A.R.C.I., Ltd.) 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
Channelview Independent School District v. A.R.C.I., Ltd., 199 S.W.3d 556, 2006 Tex. App. LEXIS 6928, 2006 WL 2192574 (Tex. Ct. App. 2006).

Opinion

OPINION

JANE BLAND, Justice.

Appellee, A.R.C.I., Ltd. (“ARCI”), sued appellant, the Channelview Independent School District (“Channelview”), for breach of contract. Channelview filed a plea to the jurisdiction, contending that it is immune from this suit. ARCI responded that section 11.151(a) of the Texas Education Code waives Channelview’s immunity from suit by authorizing it to “sue and be sued.” Tex. Educ.Code Ann. § 11.151(a) (Vernon 2006). The trial court *558 denied the plea, from which Channelview appeals. 1

Following the Texas Supreme Court’s holding in Tooke v. City of Mexia—and the court’s application of it to section 11.151(a) in a companion case — we hold that the “sue and be sued” language in the statute does not waive Channelview’s immunity from suit. Tooke v. City of Mexia, 197 S.W.3d 825 (Tex.2006); Satterfield & Pontikes Constr., Inc. v. Irving Indep. Sch. Dist., 197 S.W.3d 390 (Tex.2006) (per curiam). We therefore reverse the trial court’s denial of Channelview’s plea to the jurisdiction and remand the cause for further proceedings.

Background

Channelview hired ARCI to repair the roof on the McMullan Primary School. ARCI’s petition alleges that it sold and delivered the goods and services under the contract, and that Channelview owes ARCI $82,904.10 for work done and materials supplied under the contract, plus interest and attorney’s fees. Channelview disputes the reasonableness of the costs ARCI incurred in performing additional work beyond the scope of the original contract. During the hearing on Channel-view’s plea, ARCI submitted the construction contract as evidence.

Standard and Scope of Review

Subject-matter jurisdiction is essential for a court to have the authority to resolve a case, and trial courts lack such jurisdiction over a governmental unit that is immune from suit. Tex. Ass'n of Bus. v. Tex. Air Control Bd., 852 S.W.2d 440, 443 (Tex.1993). The plaintiff has the burden to plead facts affirmatively showing that the trial court has subject-matter jurisdiction. Id. at 446. A party may challenge a court’s subject-matter jurisdiction by filing a plea to the jurisdiction. See Tex. Dep’t of Transp. v. Jones, 8 S.W.3d 636, 638-39 (Tex.1999). As a question of law, we review the trial court’s ruling on such a plea de novo. Mayhew v. Town of Sunnyvale, 964 S.W.2d 922, 928 (Tex.1998). In conducting this de novo review, we do not examine the underlying merit of the plaintiffs case, but consider only the plaintiffs pleadings and the evidence pertinent to the jurisdictional inquiry. County of Cameron v. Brown, 80 S.W.3d 549, 555 (Tex. 2002). We construe the pleadings liberally in favor of conferring jurisdiction. Tex. Dep’t of Transp. v. Ramirez, 74 S.W.3d 864, 867 (Tex.2002); Tex. Ass’n of Bus., 852 S.W.2d at 446.

Governmental Immunity

Sovereign immunity refers to the State’s immunity from suit and liability. Wichita Falls State Hosp. v. Taylor, 106 S.W.3d 692, 694 n. 3 (Tex.2003). It protects the State and its divisions. Id. Governmental immunity protects political subdivisions of the State, including counties, cities, and school districts. Id. Governmental immunity encompasses two principles: (1) immunity from suit (barring a lawsuit unless the Legislature expressly gives its consent to suit), and (2) immunity from liability (protection from judgments even if the Legislature expressly has given its consent to the suit). Travis County v. Pelzel & Assocs., Inc., 77 S.W.3d 246, 248 (Tex.2002). Channelview contends that it is immune from suit, and concedes that immunity from liability is not an issue in this case.

*559 “Sue and Be Sued”

The Texas Education Code provides as follows:

(a) The trustees of an independent school district constitute a body corporate and in the name of the district may acquire and hold real and personal property, sue and be sued, and receive bequests and donations or other moneys or funds coming legally into their hands.

Tex. Educ.Code Ann. § 11.151(a) (emphasis added). In Tooke, a contractor who provided curbside collection of brush and leaves sued the City of Mexia for breach of contract. 197 S.W.3d at 328-331. The trial court rendered judgment on a verdict for the contractor. Id. at 329. The court of appeals reversed, holding that the City was immune from suit. Id. at 329. The appeals court held that the City’s governmental immunity was not waived by section 51.075 of the Local Government Code, which provides that a home-rule municipality “ ‘may plead and be impleaded in any court.’ ” Id. (quoting Tex. Loc. Gov’t Code § 51.075). The Texas Supreme Court agreed, holding that “plead and be im-pleaded” and “sue and be sued,” when used in an organic statute, do not alone waive governmental immunity. Id. at 342. The court expressly overruled Missouri Pacific Railroad Co. v. Brownsville Navigation District, 453 S.W.2d 812 (Tex.1970), noting that the phrase “sue and be sued” means “different things in different statutes” and had been variously interpreted by courts, thus concluding that it “cannot be said to be clear and unambiguous[,]” as a legislative waiver of immunity must be. Id.

In an appendix to its opinion, the court listed statutes that employ such language, including the instant statute, section 11.151(a) of the Education Code. Id. at 328 n. 1 app. at 347. The court also applied its holding in Tooke to section 11.151(a) in a companion case. Satterfield, 197 S.W.3d at 391. We follow Tooke and Satterfield and hold that the “sue and be sued” language in Education Code section 11.151(a) does not waive Channelview’s immunity from suit. See id.

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199 S.W.3d 556, 2006 Tex. App. LEXIS 6928, 2006 WL 2192574, Counsel Stack Legal Research, https://law.counselstack.com/opinion/channelview-independent-school-district-v-arci-ltd-texapp-2006.