City of Midland v. M.T.D. Environmental, L.L.P.

429 S.W.3d 800, 2014 WL 1584508, 2014 Tex. App. LEXIS 4198
CourtCourt of Appeals of Texas
DecidedApril 17, 2014
Docket11-13-00117-CV
StatusPublished
Cited by3 cases

This text of 429 S.W.3d 800 (City of Midland v. M.T.D. Environmental, L.L.P.) 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 Midland v. M.T.D. Environmental, L.L.P., 429 S.W.3d 800, 2014 WL 1584508, 2014 Tex. App. LEXIS 4198 (Tex. Ct. App. 2014).

Opinion

OPINION

JIM R. WRIGHT, Chief Justice.

M.T.D. Environmental, L.L.P. sued the City of Midland for breach of a written contract. The City filed a motion for summary judgment, and the trial court granted it. M.T.D. appealed that ruling to this court. Because we held that contractual waivers upon which the trial court relied were void, we reversed and remanded the case to the trial court. Basically, we invited the parties to further develop the issue of governmental immunity in the trial court. 1 On remand, the trial court denied a plea to the jurisdiction that the City had filed. This interlocutory appeal followed, and the issue of governmental immunity is squarely before us. We reverse and render in part and affirm in part, and we remand the case to the trial court for further proceedings consistent with this opinion.

On May 9, 2007, the City and M.T.D. entered into a one-year contract whereby M.T.D. agreed to grind yard waste (tree limbs and other yard waste) into mulch. Some grinding took place at the City’s landfill, and the mulch was stored there. Some grinding occurred off premises, and M.T.D. was to haul that mulch to the City landfill. The City agreed to pay M.T.D. by the ton for those services. During the course of the year, a dispute arose as to the amount that M.T.D. billed the City. The City paid two of three invoices that M.T.D. sent but refused to pay the last one based upon the belief of City personnel that M.T.D., in the three invoices, had overcharged the City by a substantial amount. M.T.D. ultimately sued the City for $100,609.25, the amount of the last invoice, as well as for interest and attorney’s fees under the Prompt Payment Act. 2

In the City’s plea to the jurisdiction, it challenged the trial court’s subject-matter jurisdiction over M.T.D.’s attorney’s fee and interest claims under the Prompt Payment Act; the City based that challenge on a claim of governmental immunity from suit and from liability. As we have noted, the trial court disagreed, and it denied the plea to the jurisdiction.

A plea to the jurisdiction is a proper vehicle by which to challenge a trial court’s subject-matter jurisdiction. Tex. Natural Res. Conservation Comm’n v. IT-Davy, 74 S.W.3d 849, 855 (Tex.2002). A claim of governmental immunity is a challenge to a trial court’s subject-matter jurisdiction. 3 This court has jurisdiction to *803 review a district court’s interlocutory order denying or granting a plea to the jurisdiction filed by a governmental unit. See Tex. Civ. Prac. & Rem. Code Ann. § 51.014(a)(8) (West Supp. 2013).

In a claim against a governmental entity, the claimant has the burden to affirmatively establish that the trial court has subject-matter jurisdiction over the claim. McMahon Contracting, L.P. v. City of Carrollton, 277 S.W.3d 458, 464 (Tex.App.-Dallas 2009, pet. denied). Because the existence of a trial court’s subject-matter jurisdiction is a question of law, our review of a challenge to it is de novo. State v. Holland, 221 S.W.3d 639, 642 (Tex.2007). When we review a trial court’s ruling on a challenge to subject-matter jurisdiction, we consider only the pleadings and evidence relevant to the question of that jurisdiction; we do not consider the merits of the claim. Tex. Dep’t of Parks & Wildlife v. Miranda, 133 S.W.3d 217, 226 (Tex.2004). If evidence relevant to jurisdiction negates the existence of jurisdiction, then the trial court must grant the plea to the jurisdiction. Holland, 221 S.W.3d at 643. We will proceed to determine whether, then, M.T.D. has met its burden in the face of the City’s claim of governmental immunity.

There are two components to governmental immunity: immunity from suit and immunity from liability. Tooke v. City of Mexia, 197 S.W.3d 325, 332 (Tex.2006). Immunity from suit deprives a court of subject-matter jurisdiction. Cnty. of Cameron v. Brown, 80 S.W.3d 549, 555 (Tex.2002). Governmental immunity from suit is a bar to a suit against a governmental entity altogether, unless the State has consented to it. Tooke, 197 S.W.3d at 332. On the other hand, governmental immunity from liability bars enforcement of a judgment against a governmental entity. Id. A governmental entity waives immunity from liability when it enters into a contract and binds itself to the terms of the contract. Id. But even though a governmental entity might acknowledge liability or waive immunity from liability by entering into a contract, immunity from suit is not waived until the legislature consents to it. Ben Bolt-Palito Blanco Consol. Indep. Sch. Dist. v. Tex. Political Subdivisions Prop./Cas. Joint Self-Ins. Fund, 212 S.W.3d 320, 324 (Tex.2006). In its sole issue on appeal, the City contends that it is immune from suit as well as immune from liability under the Prompt Payment Act.

Waiver of immunity is a matter for the legislature. Tooke, 197 S.W.3d at 332. Because legislative control over waiver of immunity is not to be lightly disturbed, any waiver must be clear and unambiguous. See Tex. Gov’t Code Ann. § 311.034 (West 2013) (waiver must be by clear and unambiguous language); Ben Bolt, 212 S.W.3d at 324.

In its live pleading, M.T.D. alleged that it was “entitled to recover its reasonable attorney fees incurred in collection of this invoice payment and interest due under Section 2251.043, Texas Government Code [the Prompt Payment Act].” It also alleged a claim under Chapter 271 of the Texas Local Government Code. 4 The legislature has waived immunity, and the trial court has jurisdiction over the breach of contract claims. See Tex. Loc. Gov’t Code Ann. § 271.152 (West 2005). The City *804 counters that, although the Prompt Payment Act might contain a waiver of immunity from liability, there is no provision in the Act whereby the State waived governmental immunity from suit. It is M.T.D.’s position that, “[o]nce it is determined that governmental immunity has been waived by the City under § 271.152, the issue becomes whether M.T.D. has the right to collect attorneys fees and interest as provided in the Prompt Payment Act once the dispute is resolved.”

Section 271.152 of the Texas Local Government Code provides:

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Bluebook (online)
429 S.W.3d 800, 2014 WL 1584508, 2014 Tex. App. LEXIS 4198, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-midland-v-mtd-environmental-llp-texapp-2014.