City of Willow Park, Texas v. E.S. & C.M., Inc.

424 S.W.3d 702, 2014 WL 468878, 2014 Tex. App. LEXIS 1404
Court of Appeals of Texas·Decided February 6, 2014·No. 02-13-00272-CV·Published·Cited by 10 cases

Opinion

OPINION

TERRIE LIVINGSTON, Chief Justice.

In three issues, appellant City of Willow Park, Texas appeals the trial court’s order overruling its plea to the jurisdiction. 1 We affirm in part and reverse and render in part. 2

Background Facts

In the summer of 2011, appellee E.S. & C.M., Inc., an engineering firm, sued appellant. Appellee alleged that it had entered into a consulting services contract with appellant; 3 that the contract had obligated appellant to pay approximately $1,119,000 to appellee in installments (the first of which approximately $279,773-was allegedly due); and that because of complicating circumstances, appellant had only *705 paid $75,728. 4 Appellee therefore, brought claims for breach of contract and quantum meruit, seeking damages and attorney’s fees. Appellee pled that through entering a contract subject to section 271.152 of the local government code, 5 appellant had waived its immunity from suit.

Appellant answered by generally denying appellee’s claims; pleading several affirmative defenses, including governmental immunity; and asserting a counterclaim. In the counterclaim, appellant alleged that appellee had falsely represented that it would be able to obtain funding on appellant’s behalf for a wastewater project. Appellant sued appellee for promissory es-toppel and negligent misrepresentation.

Almost two years after the filing of ap-pellee’s original petition, appellant filed a plea to the jurisdiction, alleging that it was immune from appellee’s suit. Appellant argued that any waiver of immunity under section 271.152 was inapplicable because in paragraph 12.11 of the parties’ contract, they had expressly agreed that appellant had not waived its immunity. Appellant also contended that a waiver under section 271.152, if any, did not apply to quantum meruit claims. Finally, appellant urged that nothing in the law when the parties signed the contract or the contract itself allowed appellee to recover attorney’s fees even if appellee’s suit as a whole was not barred.

Appellee responded to appellant’s plea to the jurisdiction by contesting appellant’s contention that the contract could preserve immunity that appellant had already waived under section 271.152. Appellee also contended that several provisions of the contract contemplated litigation and therefore reflected a waiver of immunity, that the provision of the contract relied on by appellant did not preclude litigation or reinstate immunity, that allowing appellant to contract around a waiver of immunity would leave appellee without recourse to enforce the agreement, that allowing the contract to override the statute’s immunity waiver would contravene the public policy of allowing'recourse when a governmental entity breaches a contract, and that appellant’s assertion of counterclaims precluded its contention that it enjoyed immunity from appellee’s claims. Appellee also contended that chapter 271 of the civil practice and remedies code supported its claim for attorney’s fees. Appellee did not expressly contest that its claim for quantum meruit was jurisdictionally barred.

After appellant- filed a. letter brief to reply to some of appellee’s contentions and after the trial court held a hearing on the plea to the jurisdiction, the court overruled the plea. 6 Appellant brought this interlocutory appeal.

Breach of Contract

In its first issue, appellant contends that the trial court erred by denying its *706 plea to the jurisdiction with regard to ap-pellee’s breach of contract claim. Specifically, appellant argues that its immunity from a breach of contract claim could not be waived under section 271.152 because the parties agreed that their contract did not waive immunity.

A plea to the jurisdiction is a dilatory plea, the purpose of which is to defeat a cause of action without regard to whether the claims asserted have merit. Bland ISD v. Blue, 34 S.W.3d 547, 554 (Tex.2000); Big Rock Investors Ass’n v. Big Rock Petroleum, Inc., 409 S.W.3d 845, 848 (Tex.App.-Fort Worth 2013, pet. filed). Such a plea may raise the issue of governmental immunity, which generally protects political subdivisions of the State from lawsuits for damages. See Lewisville ISD v. CH Townhomes, Inc., 346 S.W.3d 21, 22 (Tex.App.-Fort Worth 2011, pet. denied).

Immunity involves two issues: whether a governmental entity has consented to suit and whether the entity has accepted liability. Harris Cnty. Hosp. Dist. v. Tomball Reg’l Hosp., 283 S.W.3d 838, 842 (Tex.2009). Immunity from suit is jurisdictional and bars suit unless the State expressly waives immunity or consents to the suit. Id.; Tex. Dep’t of Transp. v. Jones, 8 S.W.3d 636, 638 (Tex.1999). As a city, appellant enjoys governmental immunity from suit unless it has been waived. See Wichita Falls State Hosp. v. Taylor, 106 S.W.3d 692, 694 n. 3 (Tex.2003); Univ. of Tex. at Arlington v. Williams, No. 02-12-00425-CV, 2013 WL 1234878, at *2 (Tex.App.-Fort Worth Mar. 28, 2013, pet. filed) (mem. op.) (“[A] plaintiff asserting a claim against a governmental unit must allege facts that affirmatively demonstrate that the legislature has waived immunity for the claims brought.”).

If a court lacks subject matter jurisdiction in a particular case, then it lacks authority to decide that case. Tex. Ass’n of Bus. v. Tex. Air Control Bd., 852 S.W.2d 440, 443 (Tex.1993). Whether the trial court has subject matter jurisdiction is a question of law that we review de novo. Tex. Dep’t of Parks & Wildlife v. Miranda, 133 S.W.3d 217, 226 (Tex.2004); Tex. Natural Res. Conservation Comm’n v. IT-Davy, 74 S.W.3d 849, 855 (Tex.2002). When reviewing a grant or denial of a plea to the jurisdiction, we consider the plaintiffs pleadings, construed in favor of the plaintiff, and any evidence relevant to the jurisdictional issue without considering the merits of the claim beyond the extent necessary to determine jurisdiction. Big Rock Investors Ass’n, 409 S.W.3d at 848.

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City of Willow Park, Texas v. E.S. & C.M., Inc., 424 S.W.3d 702, 2014 WL 468878, 2014 Tex. App. LEXIS 1404 (Tex. Ct. App. 2014).

424 S.W.3d 702 (City of Willow Park, Texas v. E.S. & C.M., Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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