City of Palmview v. Agua Special Utility District

CourtCourt of Appeals of Texas
DecidedMarch 7, 2019
Docket13-18-00416-CV
StatusPublished

This text of City of Palmview v. Agua Special Utility District (City of Palmview v. Agua Special Utility District) 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 Palmview v. Agua Special Utility District, (Tex. Ct. App. 2019).

Opinion

NUMBER 13-18-00416-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS

CORPUS CHRISTI - EDINBURG

CITY OF PALMVIEW, Appellant,

v.

AGUA SPECIAL UTILITY DISTRICT, Appellee.

On appeal from the 389th District Court of Hidalgo County, Texas.

MEMORANDUM OPINION

Before Chief Justice Contreras and Justices Benavides and Hinojosa Memorandum Opinion by Chief Justice Contreras

This is an appeal of a temporary injunction issued in a dispute regarding the

provision of wastewater services in the city of Palmview (the City). The City, appellant

herein, filed suit seeking a declaration and a writ of mandamus compelling appellee, Agua

Special Utility District (Agua SUD), to permit the City to construct wastewater lines and facilities. Agua SUD filed a counterclaim in which it sought a permanent injunction

prohibiting the City from constructing those utilities.

The trial court granted Agua SUD’s request for a temporary order enjoining the

City from taking further action in that regard. The City contends in this appeal by three

issues that (1) the trial court abused its discretion by granting the temporary injunction,

(2) the trial court lacked jurisdiction because of governmental immunity, and (3) the trial

court lacked jurisdiction because exclusive jurisdiction over the dispute was vested in the

Public Utility Commission of Texas. We affirm.

I. BACKGROUND

The City, a home rule municipality located in Hidalgo County, agreed several

decades ago to transfer its Certificates of Convenience and Necessity (CCNs) for water

and wastewater to Agua SUD’s predecessor. See TEX. W ATER CODE ANN. §§ 13.241–

.258 (West, Westlaw through 2017 1st C.S.). In 2015, the City determined that a lift

station and wastewater collection lines were necessary to provide sufficient wastewater

services to prospective businesses in an area of the City near Interstate 2. Because Agua

SUD had the CCN for the geographic area in question, the City negotiated with Agua

SUD in order to obtain approval for the utility project.

In January of 2018, Agua SUD determined that the project would not be necessary

because its own project, financed in part by the Texas Water Development Board, would

provide the necessary services to the area in question and could be completed in early

2019. Furthermore, Agua SUD determined that the lift station and force main1 the City

1“Force mains are pipelines that convey wastewater under pressure from the discharge side of a pump or pneumatic ejector to a discharge point. Pumps or compressors located in a lift station provide the energy for wastewater conveyance in force mains.” Wastewater Tech. Fact Sheet: Sewers, Force Main,

2 sought to construct would be of no use to Agua SUD. Nevertheless, the City applied to

Agua SUD for permission to go ahead with the proposed project, asserting that “time is

of the essence” because the businesses looking to begin operations in the area would

not do so unless and until adequate wastewater collection services were available.

According to the City, Agua SUD has not approved or denied its application. Agua SUD

explained the City submitted an incomplete application and did not supplement it after

being informed of the needed missing items.

The City filed suit in February 2018 seeking to compel Agua SUD to permit it to

complete the project. Agua SUD filed an answer and a counterclaim requesting

temporary and permanent injunctive relief. After a hearing, the trial court granted Agua

SUD’s request for temporary injunction and set a trial date for August 6, 2018. The

temporary injunction order stated that, by initiating construction of wastewater lines and

facilities without a CCN and without approval by Agua SUD’s board of directions, the City

acted in violation of the Texas Water Code and “utterly without lawful authority.” The

order further stated:

the evidence presented by Agua SUD at the hearing on the petition for temporary injunction established that unless the [City] is immediately restrained from taking any further action to construct any lines, facilities or other utility improvements within the geographical area encompassed in the [CCN] held by Agua SUD, Agua SUD will suffer irreparable harm resulting from the violation of the Texas Water Code and the Agua SUD rules and procedures by the lawless actions of the [City], resulting from the unnecessary expense of decommissioning and removal of facilities neither desired nor approved by Agua SUD, and resulting from the waste of taxpayer resources in the construction of the unauthorized improvements.

U.S. ENVTL. PROT. AGENCY (Sept. 2000) available at https://www3.epa.gov/npdes/pubs/force_main_sewers.pdf.

3 The order therefore commanded the City

to desist and refrain from taking any further action to construct any lines, facilities or other utility improvements within the geographical area encompassed in the [CCN] held by Agua [SUD], from the entry of this order until further order of this Court.

This appeal followed. See TEX. CIV. PRAC. & REM. CODE ANN. § 51.014(a)(4) (West,

Westlaw through 2017 1st C.S.) (authorizing immediate appeal from interlocutory order

granting temporary injunction).

II. SUBJECT MATTER JURISDICTION

We address the City’s second and third issues first, by which it argues that the trial

court lacked subject matter jurisdiction to grant the temporary injunction.

A. Standard of Review

To render a binding judgment or order, a court must have subject matter

jurisdiction over the controversy. Spir Star AG v. Kimich, 310 S.W.3d 868, 871 (Tex.

2010). Whether a court has subject matter jurisdiction is a question of law that we review

de novo. Tex. Nat. Res. Conservation Comm’n v. IT-Davy, 74 S.W.3d 849, 855 (Tex.

2002). Because a challenge to the court’s subject matter jurisdiction cannot be waived,

a party may raise it for the first time on appeal. Oncor Elec. Delivery Co. v. Chaparral

Energy, LLC, 546 S.W.3d 133, 138 (Tex. 2018).

B. Governmental Immunity

By its second issue, the City argues that the trial court lacked subject matter

jurisdiction because Agua SUD failed to plead a waiver of the City’s governmental

immunity.

1. Applicable Law

4 Governmental immunity defeats subject matter jurisdiction in suits against

subdivisions of the State, such as the City, unless that immunity has been clearly and

unambiguously waived by the legislature. Harris Cty. v. Sykes, 136 S.W.3d 635, 638

(Tex. 2004). However, a governmental entity’s immunity is subject to certain boundaries.

See Nazari v. State, 561 S.W.3d 495, 501 (Tex. 2018); Reata Const. Corp. v. City of

Dallas, 197 S.W.3d 371, 375 (Tex. 2006) (op. on reh’g). One such boundary is that a

governmental entity simply does not have immunity from suit for claims against it that are

germane to, connected with, and properly defensive to affirmative claims made by the

entity, to the extent that the claims against the entity offset the entity’s own claims. Nazari,

561 S.W.3d at 501; City of Dallas v.

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

Related

Harris County v. Sykes
136 S.W.3d 635 (Texas Supreme Court, 2004)
In Re Newton
146 S.W.3d 648 (Texas Supreme Court, 2004)
Thomas v. Long
207 S.W.3d 334 (Texas Supreme Court, 2006)
In Re Southwestern Bell Telephone Co. Lp
235 S.W.3d 619 (Texas Supreme Court, 2007)
Spir Star AG v. Kimich
310 S.W.3d 868 (Texas Supreme Court, 2010)
Texas Natural Resource Conservation Commission v. IT-Davy
74 S.W.3d 849 (Texas Supreme Court, 2002)
Reata Construction Corp. v. City of Dallas
197 S.W.3d 371 (Texas Supreme Court, 2006)
Horizon/CMS Healthcare Corporation v. Auld
34 S.W.3d 887 (Texas Supreme Court, 2000)
F.F.P. Operating Partners, L.P. v. Duenez
237 S.W.3d 680 (Texas Supreme Court, 2007)
Wright v. Sport Supply Group, Inc.
137 S.W.3d 289 (Court of Appeals of Texas, 2004)
Tara Partners, Ltd. v. City of South Houston
282 S.W.3d 564 (Court of Appeals of Texas, 2009)
Cash America International Inc. v. Bennett
35 S.W.3d 12 (Texas Supreme Court, 2000)
Subaru of America, Inc. v. David McDavid Nissan, Inc.
84 S.W.3d 212 (Texas Supreme Court, 2002)
Butnaru v. Ford Motor Co.
84 S.W.3d 198 (Texas Supreme Court, 2002)
Harbor Perfusion, Inc. v. Floyd
45 S.W.3d 713 (Court of Appeals of Texas, 2001)
City of Sherman v. Public Utility Com'n of Texas
643 S.W.2d 681 (Texas Supreme Court, 1983)
Helena Chemical Co. v. Wilkins
47 S.W.3d 486 (Texas Supreme Court, 2001)
Frey v. DeCordova Bend Estates Owners Ass'n
647 S.W.2d 246 (Texas Supreme Court, 1983)
Jones v. Jefferson County
15 S.W.3d 206 (Court of Appeals of Texas, 2000)
In Re Entergy Corp.
142 S.W.3d 316 (Texas Supreme Court, 2004)

Cite This Page — Counsel Stack

Bluebook (online)
City of Palmview v. Agua Special Utility District, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-palmview-v-agua-special-utility-district-texapp-2019.