City of El Paso, Mayor Oscar Leeser, City Representatives Emma Acosta, Carl L. Robinson, Michiel R. Noe, Courtney C. Niland, Ann Morgan Lilly, Larry Romero, Claudia Ordaz and Lily Limon v. Waterblasting Technologies, Inc. and Thomas G. Wicker, Jr.

491 S.W.3d 890, 2016 WL 1465691, 2016 Tex. App. LEXIS 3811
Court of Appeals of Texas·Decided April 13, 2016·No. 08-15-00130-CV·Published·Cited by 24 cases

Opinion

OPINION

STEVEN L. HUGHES, Justice

Plaintiffs Waterblasting Technologies, Inc. and Thomas G. Wicker, Jr. sued the City of El Paso, the,Mayor,'.and the City Council (collectively, the “City”), seeking a declaration that a bid contract the City awarded was void,, as well as an injunction preventing performance of the contract. The City filed a plea to the jurisdiction requesting dismissal based in part on governmental immunity and lack of standing. The trial court denied the plea, and this interlocutory appeal followed. We conclude the trial court lacked subject-matter jurisdiction over Plaintiffs’ claims for a variety of reasons. Accordingly, we reverse the trial court’s order denying the plea to the jurisdiction and dismiss. Plaintiffs’ claims against the City, the Mayor, and City Council.

BACKGROUND

In December 2013, the City solicited bids to purchase a “water blasting unit” to remove paint and rubber deposits from the runways at the El Paso International Airport. The solicitation was for a contract requiring the expenditure of more than $50,000 from a municipal fund and was governed by the competitive sealed bidding requirements imposed by Chapter 252 of the Texas Local Government Code. Tex. Log Gov’t. Code Ann. § 252.021(a)(1) (West Supp.2015).

The solicitation was advertised in the El Paso Times and informed those wishing to participate to submit sealed bids by January 8, 2014. In response, bids were submitted by Waterblasting Technologies, Inc. (WTI) and also by' another company, Team Eagíe, Inc,, which proposed to sell the City a water blasting unit manufactured by Nil-fisk-Advance Technologies, Inc. The bids were opened on January 8, 2014, and on February 25, the City awarded the contract to Team Eagle.

Plaintiffs sued the City, Team Eagle, and Nilfisk on July 2, 2014, claiming the award violated Chapter 252 of the Texas Local Government Code. In addition to *894 seeking declaratory relief that the contract was void, the petition sought an injunction prohibiting the City from paying Team Eagle. 1

Plaintiffs thereafter amended their petition twice. In their Second Amended Petition, Plaintiffs reiterated they were entitled to a declaratory judgment that the award to Team Eagle was void, 2 and more specifically alleged they were entitled either to an injunction under Section 252.61 of the Local Government Code preventing the City from paying any funds to Team Eagle, or if the funds had already been paid, to an order that Team Eagle refund all amounts paid to the City. Plaintiffs further asserted they had notified the City on May 8, 2014 (almost three months after the award was made) that the award to Team Eagle was void, but that the City had “refused to void the award.” Plaintiffs 'alleged the City was not entitled to governmental immunity because immunity had been waived by Section 252.061 of the Local Government Code and because the City had been involved in a procurement process, which they contended was a proprietary function. Plaintiffs alleged the City Council representatives were not entitled to immunity because they had committed an “ultra vires” act in voting to award the contract.

In response, the City included a plea to the jurisdiction in its answer and asserted among other things that Chapter 252 did not waive its governmental immunity, that it was entitled to governmental immunity because it had been performing a governmental function when it awarded the contract, and that, ■ even if immunity was waived, Plaintiffs lacked standing to bring a claim under that provision., The City also contended the Mayor and the City Council had not waived their immunity by committing an ultra vires act.

After hearing, the trial court denied the City’s plea to the jurisdiction, and this interlocutory appeal followed. See Tex. Civ. Prac. & Rem. Code Ann. § 51.014(a)(8) (West Supp.2015).

PLEA TO THE JURISDICTION AND STANDARD OF REVIEW

A plea to the jurisdiction based on governmental immunity challenges a trial court’s subject-matter jurisdiction. County of El Paso v. Navar, 2015 WL 4711191, at *3 (Tex.App.-El Paso Aug. 7, 2015, no pet.) (citing Tex. Dep't of Parks & Wildlife v. Miranda, 133 S.W.3d 217, 225-26 (Tex.2004)), The purpose of a plea to the jurisdiction is “to defeat a cause of action without regard to whether the claims asserted have merit.” Bland Indep. Sch. Dist. v. Blue, 34 S.W.3d 547, 554 (Tex.2000); see County of Cameron v. Brown, 80 S.W.3d 549, 555 (Tex.2002) (the purpose of a plea to the jurisdiction is to establish a reason *895 why- the merits ■ of the plaintiffs claims should never be reached).

In a plea to the jurisdiction, a defendant may challenge the sufficiency of the plaintiffs pleadings to establish jurisdiction. Miranda, 133 S.W.3d at 226. The plaintiff has the burden to plead facts that affirmatively demonstrate the trial court’s jurisdiction. Id. at 228; Texas Ass’n of Bus. v. Texas Air Control Bd., 852 S.W.2d 440, 446 (Tex.1993); Samaniego v. Keller, 319 S.W.3d 825, 828 (Tex.App.-El Paso 2010, no pet.). When a plea to the jurisdiction challenges the pleadings, the trial court must construe the pleadings liberally in favor of the plaintiff — accepting the plaintiffs’ allegations as true — and look to the plaintiffs’ intent in their pleadings. Miranda, 133 S.W.3d at 226-27; Tex. Dep’t of Transp. v. Ramirez, 74 S.W.3d 864, 867 (Tex.2002).

Whether the plaintiff has satisfied its burden to affirmatively demonstrate a trial court’s subject-matter jurisdiction is a question of law,. which an appellate court reviews de novo. Miranda, 133 S.W.3d at 226. If the' pleadings do not allege facts sufficient to affirmatively demonstrate jurisdiction, but the pleading defects are curable by amendment, the issue is one of pleading sufficiency, and the plaintiff should be afforded an opportunity to amend. Id, at 226-27. However, if the pleadings affirmatively negate jurisdiction, then a plea to the jurisdiction may be granted without allowing the plaintiff an opportunity to amend. Id. at 227.

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City of El Paso, Mayor Oscar Leeser, City Representatives Emma Acosta, Carl L. Robinson, Michiel R. Noe, Courtney C. Niland, Ann Morgan Lilly, Larry Romero, Claudia Ordaz and Lily Limon v. Waterblasting Technologies, Inc. and Thomas G. Wicker, Jr., 491 S.W.3d 890, 2016 WL 1465691, 2016 Tex. App. LEXIS 3811 (Tex. Ct. App. 2016).

491 S.W.3d 890 (City of El Paso, Mayor Oscar Leeser, City Representatives Emma Acosta, Carl L. Robinson, Michiel R. Noe, Courtney C. Niland, Ann Morgan Lilly, Larry Romero, Claudia Ordaz and Lily Limon v. Waterblasting Technologies, Inc. and Thomas G. Wicker, Jr.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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