City of Dallas v. River Ranch Educational Charities and River Ranch Equestrian, LLC

CourtCourt of Appeals of Texas
DecidedApril 29, 2022
Docket05-21-00724-CV
StatusPublished

This text of City of Dallas v. River Ranch Educational Charities and River Ranch Equestrian, LLC (City of Dallas v. River Ranch Educational Charities and River Ranch Equestrian, LLC) 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
City of Dallas v. River Ranch Educational Charities and River Ranch Equestrian, LLC, (Tex. Ct. App. 2022).

Opinion

Affirmed and Opinion Filed April 29, 2022

In the Court of Appeals Fifth District of Texas at Dallas No. 05-21-00724-CV

CITY OF DALLAS, Appellant V. RIVER RANCH EDUCATIONAL CHARITIES, Appellee

On Appeal from the 14th Judicial District Court Dallas County, Texas Trial Court Cause No. DC-19-04828

MEMORANDUM OPINION Before Justices Pedersen, III, Carlyle, and Garcia Opinion by Justice Carlyle

The City of Dallas appeals the trial court’s denial of its plea to the jurisdiction

filed in response to counterclaims brought against it by River Ranch Educational

Charities (RREC or River Ranch), a Texas non-profit corporation. The City

generally contends the trial court erred by denying its plea because RREC’s

counterclaims are based on the City’s engagement in a governmental function and

do not fall within any waiver of governmental immunity from suit. We affirm the

trial court’s order in this memorandum opinion. See TEX. R. APP. P. 47.4. Background

The City filed this lawsuit against RREC in April 2019 seeking declaratory

and injunctive relief pertaining to the Texas Horse Park (THP). According to the

City’s petition, THP opened in 2014 and is “a component of the City’s Trinity River

Corridor Project, an urban renewal plan undertaken by the City to provide flood

control improvements, recreational amenities, environmental protection, and

economic development opportunities within the Trinity River Corridor.”

The City asserted that in 2012, it entered into a contract with RREC titled

“Development and Operations Agreement with River Ranch for the Texas Horse

Park” (the contract or the agreement), under which “RREC was authorized to

provide equine-related recreational activities at the horse park for Dallas residents

and others.” The City’s petition stated:

14. [THP] is owned by the City. In the Agreement, the City and RREC agreed that RREC would operate and maintain the area designated as Premises B at the Texas Horse Park and would provide equine-related services to the public there. . . . RREC has allegedly occupied Premises B since its operations began under the Agreement. The City did not convey an interest in the real property to RREC in the Agreement, and the Agreement did not provide for the payment of rent by RREC. The initial term of the Agreement was 21 years, with two 5- year renewal period options. 15. The Agreement obligated the City to design and construct the Texas Horse Park. In order to meet this obligation, the City agreed to “contribute no more than $12 million from the 2006 Bond Funds for the development of the Texas Horse Park.”

Starting in 2014, the City sent RREC multiple notices of contract violations,

including unauthorized vegetation and tree removal, improper construction in

–2– floodplain areas, and failure to maintain required insurance coverage. In December

2018, the City notified RREC it was terminating the contract because RREC’s

violations constituted default. RREC refused to vacate THP and continued its

operations. The City’s petition sought to enjoin RREC from occupying Premises B

and requested a declaration regarding the contract’s termination.

RREC filed a general denial answer and asserted counterclaims for breach of

contract, breach of implied duty of cooperation and non-interference, fraud, and

declaratory judgment. RREC’s pleading contended the City “in its management of

the Texas Horse Park was and is performing a proprietary function” and “has no

governmental immunity or in the alternative has waived any such immunity” as to

RREC’s claims.

The City generally denied RREC’s counterclaims and filed a June 2021

verified plea to the jurisdiction asserting governmental immunity. The City

contended:

The Agreement contemplates that RREC will operate its program with oversight from the City and will meet certain requirements for participation. . . . The City entered into the Agreement to obtain a partner to operate Premises B of the Texas Horse Park as a recreational facility within the parameters set out by the City, not to simply lease the land to a private party to carry out its own business in whatever manner it chose. It was done as part of the City’s governmental functions related to parks and zoos and recreational facilities, and therefore, the City is entitled to governmental immunity as to RREC’s claims in this litigation.

–3– The City argued that because it is entitled to governmental immunity and RREC did

not plead a valid waiver of that immunity, RREC’s claims should be dismissed with

prejudice for lack of jurisdiction. The exhibits attached to the plea to the jurisdiction

included the contract1 and a May 22, 2013 Dallas City Council resolution authorizing

THP’s construction.

1 The contract stated, among other things:

THIS AGREEMENT (“Agreement”) for the development, operation, and maintenance of an equestrian center is entered into . . . between [the City] and [River Ranch].

WHEREAS, City is presently undertaking the Trinity River Corridor Project that will provide economic development opportunities along the Trinity River Corridor and . . . a component of the Trinity River Corridor Project is the development of an equestrian center, (the “Texas Horse Park”); and

WHEREAS, the Texas Horse Park will be located on the real property owned by the City and described on Exhibit B . . . ; and

WHEREAS, River Ranch is a Texas non-profit corporation organized and existing under Texas law for the purpose of empowering, enriching, and educating special needs and underprivileged children and adults in the Dallas area through equine-related activities; and

WHEREAS, City will be designing and constructing the Texas Horse Park and the parties desire for River Ranch to provide equine-related recreational activities and services for the citizens of Dallas; and

WHEREAS, River Ranch will operate its program at its own cost and maintain and manage a portion of the Texas Horse Park as discussed in this Agreement;

NOW, THEREFORE, City and River Ranch . . . do hereby agree as follows: .... Section 2.1. Purpose. The purpose of this Agreement is to set forth the terms and conditions upon which City will design and construct the Texas Horse Park and City will allow River Ranch to provide equine related services and operate and maintain Premises B as discussed herein. For purposes of this Agreement, any reference to River Ranch’s operations will include operations and management of not only Premises B but also other locations at the Texas Horse Park where River Ranch will be operating and managing its services (“River Ranch’s Operations”). River Ranch covenants to operate and maintain Premises B as herein provided. City shall not be responsible for any of the costs of such operation and maintenance during the Term of this Agreement. ....

–4– Section 6.2. Uses. River Ranch shall operate and maintain Premises B for the purposes described in this Agreement to be used and enjoyed by the citizens of Dallas and its visitors, including horse-back riding, community outreach programs, educational and enrichment activities, and other related activities providing access to children with special needs. .... Section 8.2. River Ranch’s Management and Operations at the Texas Horse Park. River Ranch shall do all things and take all actions necessary and or appropriate for the operation, maintenance, and management of Premises B and River Ranch’s operations at the Texas Horse Park in accordance with this Agreement. Without limiting the generality of the foregoing, River Ranch shall:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Texas Department of Parks & Wildlife v. Miranda
133 S.W.3d 217 (Texas Supreme Court, 2004)
Texas Natural Resource Conservation Commission v. IT-Davy
74 S.W.3d 849 (Texas Supreme Court, 2002)
County of Cameron v. Brown
80 S.W.3d 549 (Texas Supreme Court, 2002)
Wasson Interests, Ltd. v. City of Jacksonville, Texas
489 S.W.3d 427 (Texas Supreme Court, 2016)
Lewis v. City of Fort Worth
89 S.W.2d 975 (Texas Supreme Court, 1936)
Wasson Interests, Ltd. v. City of Jacksonville, Texas
559 S.W.3d 142 (Texas Supreme Court, 2018)

Cite This Page — Counsel Stack

Bluebook (online)
City of Dallas v. River Ranch Educational Charities and River Ranch Equestrian, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-dallas-v-river-ranch-educational-charities-and-river-ranch-texapp-2022.