City of Brownsville, Texas, Tony Martinez, Rose Z. Gowen, Ricardo Longoria Jr., Joel Mungia, Ben Neece and Jessica Tetreau in Their Official Capacities Only v. Brownsville GMS, Ltd. and Michael Bennett

Court of Appeals of Texas·Decided May 6, 2021·No. 13-19-00311-CV·Published

Opinion

NUMBER 13-19-00311-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS CORPUS CHRISTI – EDINBURG

CITY OF BROWNSVILLE, TEXAS, TONY MARTINEZ, ROSE M. Z. GOWEN, RICARDO LONGORIA JR., JOEL MUNGIA, BEN NEECE AND JESSICA TETREAU, IN THEIR OFFICIAL CAPACITIES ONLY, Appellants,

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 Tijerina

Appellants City of Brownsville, Texas, Tony Martinez, Rose M. Z. Gowen, Ricardo Longoria Jr., Jessica Tetreau, Joel Munguia, and Ben Neece, in their Official Capacities1 (collectively the City) appeal an order granting a temporary injunction in favor of appellees Brownsville GMS, Ltd. and its general manager, Michael Bennett (collectively GMS). See TEX. CIV. PRAC. & REM. CODE ANN. § 51.014(a)(4). We reverse and remand.

I. BACKGROUND

GMS provided commercial and industrial waste services to the City for numerous years. In 2011, GMS and the City operated under a five-year license agreement, which expired in late 2016. Following the expiration, the parties extended the agreement on a month-to-month basis.

In early 2017, the City initiated a request for proposal (RFP) for a commercial waste collection license agreement using the Chapter 252 procurement process. See TEX. LOC. GOV’T CODE ANN. §§ 252.001–.063 (delineating the purchasing and contracting authority of municipalities). Three applicants responded. The City’s staff negotiated a new license agreement with GMS, but the City Commission rejected all RFPs, and no contract with any entity was awarded. Thereafter, the City again extended the month-to-month extension with GMS, and GMS continued to provide commercial and industrial waste services to the City.

In August 2017, the City issued a new RFP pursuant to the Chapter 252 process, and the same three applicants responded. On April 16, 2019, the City Commission, again, rejected all proposals, and no contract with any entity was awarded. Instead, the Commission directed its City Manager to negotiate a new license agreement in the best

1 Martinez, Gowen, Longoria, Jr., Tetreau, Munguia, and Neece were all elected members of the Brownsville City Commission during the events giving rise to GMS’s allegations.

interests of the City and to place that proposed agreement on the Commission’s agenda for action by the City Commission in the future.

On May 6, 2019, GMS filed “Plaintiff’s Verified Original Petition and Application for Temporary Restraining Order and Temporary Injunction.” In this pleading, GMS contended that the City committed multiple violations of the competitive procurement process under Chapter 252 and violated the Texas Open Meetings Act (TOMA) under Chapter 551 of the Texas Government Code. See TEX. LOC. GOV’T CODE ANN. §§ 252.001–.063; TEX. GOV’T CODE ANN. §§ 551.001–.146 (codifying TOMA). GMS argued that the City violated the local government code “by failing to apply Chapter 252’s competitive bidding procedures to the award of the commercial and industrial waste collection contract” and “by awarding the contract to [a third entity] and not GMS.” GMS also argued that “the Commission rejected GMS’[s] contract, after it had already awarded the bid, fully negotiated the contract and had GMS execute the contract, as a result of discussion that violated [TOMA].” GMS sought declaratory relief, a temporary restraining order, and a temporary injunction.

That same day, the trial court granted GMS’s application for a temporary restraining order in an ex parte proceeding. The court’s order granting GMS’s application provided, inter alia, that the City was (1) prohibited from taking any action to interfere with or terminate GMS’s existing commercial and industrial waste collection contract with the City; (2) prohibited from taking any action to award or execute the City’s commercial and industrial waste collection contract with any third party; (3) prohibited from performing any contract with any third party for commercial and industrial waste collection; (4) ordered to produce documents and respond to the expedited discovery requests attached as exhibits to GMS’s petition and served by GMS by May 13, 2019; and (5) ordered to appear for

depositions to occur on or before May 17, 2019. The order set GMS’s application for temporary injunction to be heard on May 20, 2019 before the Honorable Robert Pate. Subsequently, that same day, May 6, 2019, the trial court signed an “Order of Recusal and Referral on Judge’s Own Motion” and the Presiding Judge of the Fifth Administrative Judicial Region of Texas assigned Judge Pate to preside over the case.2 On May 9, 2016, the City filed its original answer, a motion to quash, and a motion for a protective order, asserting multiple defenses. The City also filed a plea to the jurisdiction principally asserting the trial court lacked subject-matter jurisdiction over GMS’s declaratory judgment claims because the City was immune, and GMS could not show sufficient jurisdictional facts to support the Chapter 252 and TOMA claims against the City. On May 10, 2019, the City filed a second motion to quash and motion for protective order. On May 13, 2019, the assigned judge signed fiats setting the City’s first and second motions to quash and for the protective order to be heard on May 30, 2019. On May 14, 2019, GMS filed “Plaintiff’s Motion for Expedited Telephonic Status Conference, Motion to Extend Temporary Restraining Order[,] Reschedule Temporary Injunction Hearing[,] and Motion to Reset Hearings on Motion to Quash.” On May 14, 2019, the City filed a motion to dissolve the temporary restraining order and opposition to GMS’s motion to extend the temporary restraining order.

On May 15, 2019, without holding a hearing, the assigned judge issued an “Order Extending Temporary Restraining Order, Resetting Hearing on Temporary Injunction, and Resetting Hearing Date of Defendants’ Motions to Quash and for Protective Orders.” One day later, Tetreau filed her written “Objection to Assigned Judge,” objecting to the

2 The exact sequence of events appears anomalous. However, according to the record, the order

granting the temporary restraining order was signed at 10:30 a.m. and filed at 12:10 p.m. The order of recusal was filed at 11:30 a.m. The order of assignment was filed at 2:06 p.m.

assigned judge, which the assigned judge overruled stating “[t]he Court has previously executed Orders with respect to this case” and “OVERRULES the objection to Assigned Judge.”

On May 24 and May 30, 2019, the trial court held hearings on GMS’s request for injunctive relief and heard testimony from GMS’s witnesses. The City did not call any witnesses to the stand. On June 6, 2019, GMS filed a verified first amended petition and application for temporary injunction and permanent injunction. On June 13, 2019, after further proceedings, the trial court granted a temporary injunction against the City (1) prohibiting it from terminating GMS’s month-to-month existing contract; (2) prohibiting it from executing or performing a contract with any person or entity other than GMS; (3) prohibiting it from conducting an RFP process for commercial and solid waste collection services; and (4) ordering all elected officials, including the City Secretary, to take an online TOMA training course. The order expressly found that the trial court “had statutory authority under both Chapter 252, Section 252.061 of the Texas Local Government Code and [] Section 251.142 of the Open Meetings Act to grant injunctive relief.”

This appeal ensued. See TEX. CIV. PRAC. & REM. CODE ANN. § 51.014(a)(4)

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City of Brownsville, Texas, Tony Martinez, Rose Z. Gowen, Ricardo Longoria Jr., Joel Mungia, Ben Neece and Jessica Tetreau in Their Official Capacities Only v. Brownsville GMS, Ltd. and Michael Bennett, (Tex. Ct. App. 2021).

City of Brownsville, Texas, Tony Martinez, Rose Z. Gowen, Ricardo Longoria Jr., Joel Mungia, Ben Neece and Jessica Tetreau in Their Official Capacities Only v. Brownsville GMS, Ltd. and Michael Bennett (City of Brownsville, Texas, Tony Martinez, Rose Z. Gowen, Ricardo Longoria Jr., Joel Mungia, Ben Neece and Jessica Tetreau in Their Official Capacities Only v. Brownsville GMS, Ltd. and Michael Bennett) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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