City of Houston, Annise D. Parker, Kelly Dowe, Ronald C.Green, Brenda Stardig, Jerry Davis, Ellen Cohen, Dwight Boykins, Dave Martin, Richard Nguyen, Oliver Pennington, Ed Gonzalez, Robert Gallegos, Mike Laster, Larry Green, Stephen Costello v. Houston Municipal Employee Pension System

513 S.W.3d 114, 2016 WL 6886881, 2016 Tex. App. LEXIS 12460
CourtCourt of Appeals of Texas
DecidedNovember 22, 2016
DocketNO. 14-15-00865-CV
StatusPublished
Cited by4 cases

This text of 513 S.W.3d 114 (City of Houston, Annise D. Parker, Kelly Dowe, Ronald C.Green, Brenda Stardig, Jerry Davis, Ellen Cohen, Dwight Boykins, Dave Martin, Richard Nguyen, Oliver Pennington, Ed Gonzalez, Robert Gallegos, Mike Laster, Larry Green, Stephen Costello v. Houston Municipal Employee Pension System) 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 Houston, Annise D. Parker, Kelly Dowe, Ronald C.Green, Brenda Stardig, Jerry Davis, Ellen Cohen, Dwight Boykins, Dave Martin, Richard Nguyen, Oliver Pennington, Ed Gonzalez, Robert Gallegos, Mike Laster, Larry Green, Stephen Costello v. Houston Municipal Employee Pension System, 513 S.W.3d 114, 2016 WL 6886881, 2016 Tex. App. LEXIS 12460 (Tex. Ct. App. 2016).

Opinion

OPINION

Marc W. Brown, Justice

Appellee Houston Municipal Employees Pension System (“HMEPS”) brought a verified petition against appellants City of Houston (the “City”), Annise D. Parker, Kelly Dowe, Ronald C. Green, Brenda Stardig, Jerry Davis, Ellen Cohen, Dwight Boykins, Dave Martin, Richard Nguyen, Oliver Pennington, Ed Gonzalez, Robert Gallegos, Mike Laster, Larry Green, Stephen Costello, David Robinson, Michael Kubosh, C.O. “Brad” Bradford, and Jack *119 Christie (collectively, the “City appellants” 1 ) for writs of mandamus compelling the City appellants (1) to provide requested employee information, as required by article 6243h, “Municipal Pension System in cities of 1,500,000 or more,” and the Texas Public Information Act (“TPIA”); and (2) to allocate funding in the City budgets to cover HMEPS members and to make pickup payments on their behalf, as required by article 624Sh. See Tex. Rev. Civ. Stat. Ann. Art. 6243h (West 2010); Tex. Gov’t Code Ann. §§ 552.221, 552.321 (West 2012). The City appellants filed a plea to the jurisdiction, which the trial court denied. The City appellants appealed.

Because we determine that the trial court erred in denying the City appellants’ plea to the jurisdiction regarding the City’s alleged failures to comply with article 6243h, we reverse and render judgment on those claims. With regard to HMEPS’s mandamus claims against the City officials regarding their alleged failures to fund pension contributions, we reverse and remand with instructions for the trial court to provide HMEPS a reasonable opportunity to properly plead ultra vires claims. We affirm the trial court’s denial of the City appellants’ plea to the jurisdiction regarding the City officials’ alleged failures to comply with the information disclosure requirements of article 6243h. With regard to alleged failures to comply with the TPIA, we affirm the trial court’s denial of the City appellants’ plea to the jurisdiction as to the City, and we reverse the denial of the City appellants’ plea and render judgment as to such claims against defendants other than the City or its officer for public information.

I. Factual and Procedural Background

In 2011, the City announced plans to remove employees from its Convention and Entertainment Facilities Department, which historically had operated and maintained municipal convention and entertainment facilities, and to outsource these services and employees to local government corporation Houston First Corporation (“HFC”). In response, HMEPS’s board of trustees adopted a resolution that the definition of “employee” in article 6243h includes full-time employees of local government corporations controlled by the City, upon a determination by the board’s External Affairs Committee.

The City then formed nonprofit corporation Houston First Foundation (“HFF”) and indicated that HFF would employ all the City employees who were to have joined HFC. The HMEPS board adopted another resolution reiterating its construction of “employee” and announcing that employees of any entity controlled directly or indirectly by the City are considered employees for purposes of membership in the pension system unless the External Affairs Committee expressly determines otherwise.

Then the City formed another nonprofit corporation called Convention and Cultural Services, Inc. (“CCSI”), to operate in conjunction with HFC whereby CCSI would employ and lease the workforce to its only client HFC. The External Affairs Committee issued a resolution that these leased workers would remain as members of the pension plan as part, of a control group.

The City transferred its convention and entertainment services and employees to HFC and CCSI accordingly. Certain indi *120 viduals who began working for CCSI but otherwise were eligible to retire sought retirement benefits from HMEPS. Other individuals working for CCSI sought to defer retirement status and to stop having contributions to HMEPS deducted from their salaries. After the External Affairs Committee concluded that these individuals all remained employees and members of the pension system, such individuals (the “Klumb plaintiffs”) filed suit against HMEPS and its board (the “HMEPS defendants”), alleging ultra vires and breach-of-contract claims. 2 The City joined this suit as to the ultra vires claims.

The HMEPS defendants filed a plea to the jurisdiction, arguing that article 6243h precludes judicial review of the HMEPS board’s “final and binding” decisions interpreting the statute and determining eligibility for membership and benefits, and that sovereign immunity bars the breach-of-contract claims because violation of a meet-and-confer agreement (“MCA”) cannot serve as an ultra vires claim. The trial court granted the HMEPS defendants’ plea and dismissed the Klumb plaintiffs’ and the City’s claims, and the First Court of Appeals affirmed that decision. Klumb v. Houston Mun. Employees Pension Sys., 405 S.W.3d 204, 228 (Tex. App.-Houston [1st Dist.] 2013), aff'd, 458 S.W.3d 1 (Tex. 2015).

On review, the Texas Supreme Court affirmed. The Klumb Court concluded that as a matter of law the HMEPS board did not act ultra vires in issuing its resolutions construing the term “employee” and instead acted within its unreviewable, discretionary authority to interpret the statute under article 6243h. See Tex. Rev. Civ. Stat. Ann. Art. 6243h, § 2(x), 3 (y) 4 ; Klumb, 458 S.W.3d at 10-11 (“The breadth of the pension board’s authority under Article 6243h is inescapable. ... Courts may not review the board’s actions absent a manifest conflict with express statutory terms.”).

Next, the Klumb Court determined that there were no viable ultra vires claims in connection with the HMEPS board’s delegation of decision-making authority to the External Affairs Committee allegedly in violation of a July 2011 MCA between HMEPS and the City. 458 S.W.3d at 12. The Klumb Court noted that article 6243h expressly permits such delegation. See *121 Tex. Rev. Civ. Stat. Ann. Art. 6243h, § 3(k) 5 ; Klumb, 458 S.W.3d at 12. The Klumb plaintiffs and the City argued that the July 2011 MCA amended the statute and divested the board of its delegation power, and therefore because the resolution violated the terms of the MCA, it was ultra vires. Klumb, 458 S.W.3d at 12. The Klumb Court rejected this argument. Id. In doing so, the Court explained, regardless of whether the parties deem the contract to amend the statute, noncompliance with a contract such as the MCA does not give rise to an ultra vires

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513 S.W.3d 114, 2016 WL 6886881, 2016 Tex. App. LEXIS 12460, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-houston-annise-d-parker-kelly-dowe-ronald-cgreen-brenda-texapp-2016.