Christopher L. Gay and Steven L. Carroll v. the City of Wichita Falls, Texas

457 S.W.3d 499, 2014 WL 3939141, 2014 Tex. App. LEXIS 8889
CourtCourt of Appeals of Texas
DecidedAugust 13, 2014
Docket08-13-00028-CV
StatusPublished
Cited by21 cases

This text of 457 S.W.3d 499 (Christopher L. Gay and Steven L. Carroll v. the City of Wichita Falls, Texas) 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
Christopher L. Gay and Steven L. Carroll v. the City of Wichita Falls, Texas, 457 S.W.3d 499, 2014 WL 3939141, 2014 Tex. App. LEXIS 8889 (Tex. Ct. App. 2014).

Opinion

OPINION

ANN CRAWFORD McCLURE, Chief Justice.

Christopher L. Gay and Steven L. Carroll challenge the trial court’s order granting the City of Wichita Falls’ plea to the jurisdiction based on governmental immunity. The underlying controversy arises from the denial of Gay’s and Carroll’s claims for long-term disability benefits under insurance provided to them by their former employer, the City of Wichita Falls. Because we conclude that the City is immune from suit, we affirm the trial court’s order. 1

FACTUAL AND PROCEDURAL BACKGROUND

Prior to their retirement in 2011, Gay and Carroll were police officers for the *503 Wichita Falls Police Department. Before the officers retired, the City of Wichita Falls sought and obtained group long-term disability insurance for its employees through a private insurer, Sun Life Assurance Company of Canada. More specifically, a trust organized by the City, the “City of Wichita Falls Employee Benefits Trust,” obtained the group insurance. The insurance policy, which the City stipulates is contractual in nature, is between the trust and Sun Life. The City is not a party to the contract and the trust is not a party to this action.

Once the trust obtained the insurance, the City paid the monthly premiums for its employees, including Officers Gay and Carroll. The officers’ coverage began on January 1, 2011, shortly before they retired. After their retirement, both officers filed claims seeking disability benefits. Sun Life informed the officers that because their claims were filed less than twelve months after coverage began, they would be subjected to a pre-existing condition review. Ultimately, Sun Life denied their claims. The officers filed suit against the City of Wichita Falls on August 1, 2012, alleging breach of contract, promissory estoppel, negligent misrepresentation and fraud. The pleading does not specifically identify the agreement or agreements that are the subject of these causes of action, other than to allege generally that:

Plaintiffs were promised and informed by City of Wichita Falls employees and/or agents that they both would received [sic] long term disability benefits for life. The Plaintiffs were promised and informed by City of Wichita Falls employees and/or agents that the City will take care of the Plaintiffs.

The City responded with a plea to the jurisdiction asserting governmental immunity. It produced evidence that it does not administer the insurance policy at issue, does not make any decisions concerning coverage, and has no discretion as to how benefits are administered by Sun Life. The City also introduced evidence that neither it nor any of its employees made any decisions regarding the officers’ disability claims, coverage eligibility, or entitlement to benefits. On November 5, 2012, the trial court granted the City’s plea to the jurisdiction and dismissed the suit with prejudice. This appeal follows. We perceive the officers’ brief to present a single issue for review concerning the trial court’s error in granting the plea. We will address it by subparts relating to specific claims alleged.

STANDARD OF REVIEW

Governmental immunity protects municipalities like the City of Wichita Falls from lawsuits for damages and from liability. 2 Ben Bolt-Palito Blanco Consolidated Independent School District v. Tex-as Political Subdivisions Property/Casualty Joint Self-Insurance Fund, 212 S.W.3d 320, 323-24 (Tex.2006). Municipalities have governmental immunity from suit unless the Legislature has expressly waived immunity by statute. City of Houston v. Williams, 353 S.W.3d 128, 134 (Tex.2011). It is the Legislature’s sole province to waive or abrogate governmental immunity. Texas Adjutant General’s Office v. Ngakoue, 408 S.W.3d 350, 353 (Tex.2013), quoting Mission Consol. Independent School Dist. v. Garcia, 253 S.W.3d 653, 660 (Tex.2008) and Texas Nat’l Res. *504 Conservation Comm’n v. IT-Davy, 74 S.W.3d 849, 853 (Tex.2002). There is a “heavy presumption” in favor of immunity. City of Galveston v. State, 217 S.W.3d 466, 469 (Tex.2007).

Governmental immunity from suit defeats a trial court’s subject matter jurisdiction and thus is properly asserted in a plea to the jurisdiction. Texas Dept. of Parks and Wildlife v. Miranda, 133 S.W.3d 217, 225-26 (Tex.2004). To invoke a trial court’s jurisdiction, a plaintiff suing a municipality must allege a valid waiver of governmental immunity and plead sufficient facts demonstrating jurisdiction. Id. at 226. In reviewing a ruling on a plea to the jurisdiction, we do not consider the merits of the cause of action, but examine only the plaintiffs pleadings and any evidence relevant to the jurisdictional inquiry. Id. at 227; County of Cameron v. Brown, 80 S.W.3d 549, 555 (Tex.2002). Pleadings must be construed liberally in the plaintiffs’ favor. Miranda, 133 S.W.3d at 227. The existence of subject matter jurisdiction is a question of law that we review de novo. IT-Davy, 74 S.W.3d at 855. If the suit is barred by governmental immunity, dismissal with prejudice is mandatory. Harris County v. Sykes, 136 S.W.3d 635, 637 (Tex.2004).

BREACH OF CONTRACT AND PROMISSORY ESTOPPEL

The officers contend that the City is not immune from their contract and promissory estoppel claims because it provided insurance to its employees, which the officers contend was a proprietary rather than governmental act. The common law distinction between proprietary and governmental acts (sometimes referred to as the proprietary/governmental “dichotomy”) arose almost 130 years ago. City of Galveston v. Posnainsky, 62 Tex. 118 (1884). Under the dichotomy, governmental immunity exists when a municipality exercises powers “as the agent of the State in furtherance of general law for the interest of the public at large.” Gates v. City of Dallas, 704 S.W.2d 737, 738-39 (Tex.1986). Conversely, when a municipality acts at its own discretion and primarily for the benefit of those within its corporate limits, it performs a proprietary function and has no immunity. Id. In 1987, the Texas Constitution was amended to give the Legislature authority to define governmental and proprietary functions, including the authority to reclassify definitions already existing in the common law. Tex. Const, art. XI, § 13.

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Bluebook (online)
457 S.W.3d 499, 2014 WL 3939141, 2014 Tex. App. LEXIS 8889, Counsel Stack Legal Research, https://law.counselstack.com/opinion/christopher-l-gay-and-steven-l-carroll-v-the-city-of-wichita-falls-texapp-2014.