City of Houston v. U.S. Filter Wastewater Group, Inc.

190 S.W.3d 242, 2006 Tex. App. LEXIS 106, 2006 WL 23325
Court of Appeals of Texas·Decided January 5, 2006·No. 01-05-00433-CV·Published·Cited by 26 cases

Opinion

OPINION

SHERRY RADACK, Chief Justice.

The City of Houston brings this interlocutory appeal from the trial court’s denial of the City’s plea to the jurisdiction, 1 which it filed in response to U.S. Filter Wastewa-ter Group, Inc.’s Rule 202 presuit discovery petition. We affirm.

BACKGROUND

The City released a competitive bid proposal related to the procurement of goods and services for odor control for use in conjunction with its wastewater treatment operations. In December 2004, the City awarded the bid to Mtivia Corporation [“Mtivia”].

U.S. Filter Wastewater Group, Inc. [“U.S. Filter”], which previously demonstrated its patented odor treatment process to the City, contends that the bid process was improper because the City structured the bid as a request for the purchase of the chemicals contained in, but not covered by, U.S. Filter’s patented process. U.S. Filter seeks to investigate whether the City and Mtivia, the high bidder, are using the chemicals the City obtained through the bid process in such a manner as to violate U.S. Filter’s patented odor control process.

Pursuant to Rule 202 of the Texas Rules of Civil Procedure, U.S. Filter filed a peti *244 tion in the trial court to take the presuit depositions of two employees of the City of Houston. U.S. Filter “seeks by [its] petition to investigate a potential claim or suit against the City of Houston and Altivia for the violation of proper competitive bidding procedures under applicable State and Municipal law, potential theft of trade secrets and/or misappropriation, and/or for the ongoing violation of its intellectual property rights.” U.S. Filter’s Rule 202 petition also alleged that “[a]n important factual element regarding such potential claims concerns the matter in which the City of Houston is using the commodity chemical procured from Altivia Corporation.- [U.S. Filter] believes and therefore avers that the deponents Messrs. Mehta and Manno, are the individuals most knowledgeable concerning such facts.”

The City filed special exceptions, which the trial court granted. However, the trial court conditioned the grant of the City’s special exceptions on the City responding, by affidavit, to U.S. Filter’s questions about how the chemicals obtained through the bidding process were being used.

The City did not respond to U.S. Filter’s written questions, and, instead, filed a plea to the jurisdiction. After an oral hearing at which no evidence was adduced, the trial court denied the City’s plea to the jurisdiction and ordered the City to present its employees — Yogesh Mehta and Sal Manno — for deposition. This interlocutory appeal followed.

DENIAL OF PLEA TO THE JURISDICTION

In two issues on appeal, the City contends that the trial court erred by denying its plea to the jurisdiction because (1) U.S. Filter failed to state a potential state law claim against the City which could confer jurisdiction on the trial court to order pre-suit depositions and (2) U.S. Filter’s sole potential federal claim — patent infringement — cannot be brought in state court.

Standard of Review

A plea to the jurisdiction is a dilatory plea by which a party challenges a court’s authority to determine the subject matter of the action. Bland ISD v. Blue, 34 S.W.3d 547, 554 (Tex.2000). The purpose of a dilatory plea is not to force the plaintiffs to preview their case on the merits but to establish a reason why the merits should never be reached. Id. Because the question of subject matter jurisdiction is a legal question, we review the trial court’s ruling on a plea to the jurisdiction under a de novo standard of review. Mayhew v. Town of Sunnyvale, 964 S.W.2d 922, 928 (Tex.1998).

The party suing the governmental entity bears the burden of affirmatively showing that the trial court has jurisdiction. Tex. Dep’t of Criminal Justice v. Miller, 51 S.W.3d 583, 587 (Tex.2001). To determine whether U.S. Filter has affirmatively demonstrated the trial court’s jurisdiction to hear the case, we consider the facts alleged in the petition and any evidence pertinent to the jurisdictional inquiry. Tex. Natural Res. Conservation Comm’n v. White, 46 S.W.3d 864, 868 (Tex.2001); Bland ISD, 34 S.W.3d at 555. We examine the claims in the pleadings, taking as true the facts pleaded, and determine whether those facts support jurisdiction in the trial court. Baston v. City of Port Isabel, 49 S.W.3d 425, 427-28 (Tex.App.Corpus Christi 2001, pet. denied).

We must construe the pleadings in the plaintiffs favor and look to the pleader’s intent. County of Cameron v. Brown, 80 S.W.3d 549, 555 (Tex.2002); Peek v. Equip. Serv. Co., 779 S.W.2d 802, 804 (Tex.1989). A plaintiff bears the burden to allege facts affirmatively demonstrating the trial court’s jurisdiction to hear a case. Tex. Ass’n of Bus. v. Tex. Air Control Bd., 852 S.W.2d 440, 446 (Tex. *245 1993). If a plaintiff pleads facts that affirmatively demonstrate an absence of jurisdiction, and the defect is incurable, then the cause is properly dismissed. Id. If the plaintiffs pleadings are insufficient to demonstrate the court’s jurisdiction, but do not affirmatively show incurable defects in jurisdiction, the proper remedy is to allow the plaintiff an opportunity to amend before dismissal. Brown, 80 S.W.3d at 555; Peek, 779 S.W.2d at 805.

Law and Analysis

Rule 202 of the Texas Rules of Civil Procedure provides as follows:

A person may petition the court for an order authorizing the taking of a deposition on oral examination or written questions either:
(a) to perpetuate or obtain the person’s own testimony or that of any other person for use in an anticipated suit; or
(b) to investigate a potential claim or suit.

Tex.R. Civ. P. 202.1.

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City of Houston v. U.S. Filter Wastewater Group, Inc., 190 S.W.3d 242, 2006 Tex. App. LEXIS 106, 2006 WL 23325 (Tex. Ct. App. 2006).

190 S.W.3d 242 (City of Houston v. U.S. Filter Wastewater Group, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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