Edinburg Housing Authority, Dr. Martin Castillo, Gabriel Salinas, Simon Garza, Marissa Chavana, and Juan Guzman v. Rodolfo Ramirez

Court of Appeals of Texas·Decided February 25, 2021·No. 13-19-00269-CV·Published

Opinion

NUMBER 13-19-00269-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS CORPUS CHRISTI – EDINBURG

EDINBURG HOUSING AUTHORITY, DR. MARTIN CASTILLO, GABRIEL SALINAS, SIMON GARZA, MARISSA CHAVANA, AND JUAN GUZMAN, Appellants,

v.

RODOLFO RAMIREZ, Appellee.

On appeal from the 92nd District Court of Hidalgo County, Texas.

MEMORANDUM OPINION

Before Chief Justice Contreras and Justices Hinojosa and Silva Memorandum Opinion by Justice Hinojosa In this interlocutory appeal, Appellants, the Edinburg Housing Authority (the

Housing Authority) and Dr. Martin Castillo, Gabriel Salinas, Simon Garza, Marissa

Chavana, and Juan Guzman (the Commissioners) contend the trial court erred when it failed to grant their Rule 91a motion to dismiss appellee Rodolfo Ramirez’s claims against them. By two issues, appellants contend the trial court should have dismissed Ramirez’s due process of law, equal protection, and breach of contract claims against them in their (1) official capacities and (2) individual capacities. We reverse and remand.

I. BACKGROUND

Ramirez signed a three-year employment contract with the Housing Authority to be its Executive Director on June 12, 2015. On May 26, 2017, the Housing Authority’s Commissioners voted to extend Ramirez’s original contract for another three years, extending his term until April 1, 2021. On December 17, 2018, however, after deliberating in an executive session, the Commissioners voted to terminate Ramirez at a board meeting.

Ramirez sued the Housing Authority and its Commissioners, claiming he was fired without explanation or cause. He asserted the following causes of action in his petition: (1) breach of contract, (2) violations of the Texas Constitution’s due course of law provision and (3) equal rights protections, and (4) a declaratory judgment. The Housing Authority and its Commissioners responded with a general answer asserting that they had immunity as a governmental unit. In addition, the Commissioners asserted that they were not liable in the capacity in which they had been sued. The Commissioners subsequently filed special exceptions to determine if Ramirez was suing them in their official capacities, their individual capacities, or both. Ramirez filed a response to the special exceptions, indicating he was planning to withdraw his claim for declaratory

judgment but reaffirming his intent to sue the Commissioners in both capacities.

Appellants then jointly filed a Rule 91a motion to dismiss on May 2, 2019, that reiterated their claims of immunity and challenged the trial court’s subject matter jurisdiction. Ramirez filed a response to the motion to dismiss on May 28, 2019. He also filed an amended petition on May 31, 2019, formally withdrawing his declaratory judgment action but otherwise maintaining his two constitutional claims and the claim for breach of contract against appellants. After a hearing on June 4, 2019 on appellants’ Rule 91a motion to dismiss, the trial court denied the motion on June 7, 2019. 1 This interlocutory appeal followed. See TEX. CIV. PRAC. & REM. CODE ANN. § 51.014(a)(8).

II. APPELLATE JURISDICTION This court has jurisdiction over this interlocutory order under § 51.014(a)(8) of the civil practices and remedies code. See id. This statute provides that “a person may appeal from an interlocutory order of a district . . . denies a plea to the jurisdiction by a governmental unit.” Id. Governmental immunity deprives a trial court of jurisdiction over lawsuits in which the State's political subdivisions have been sued. Mission Consol. Indep. Sch. Dist. v. Garcia, 372 S.W.3d 629, 636 (Tex. 2012). Because the Housing Authority is considered a unit of government under the local government code, it is entitled to governmental immunity. See TEX. LOC. GOV’T CODE ANN. § 392.006 (“[A] housing authority is a unit of government and the functions of a housing authority are essential governmental functions and not proprietary functions.”); Garcia, 372 S.W.3d at 636. In the same vein, the Texas Supreme Court has recognized that “[a] person sued in an

1 The appellate record does not include a reporter’s record from this hearing.

official capacity should be able to appeal the denial of a jurisdictional plea in the same way as his employing governmental unit because both defendants’ interest in pleading sovereign immunity are identical.” Tex. A&M Univ. Sys. v. Koseoglu, 233 S.W.3d 835, 845 (Tex. 2007).

As it relates to this case, appellate courts have also held that a governmental unit may appeal the denial of a Rule 91a motion that challenges the trial court’s subject matter jurisdiction under § 51.014(a)(8). See Reaves v. City of Corpus Christi, 518 S.W.3d 594, 603-07 (Tex. App.—Corpus Christi–Edinburg 2017, no pet.); see, e.g., City of Austin v. Liberty Mut. Ins., 431 S.W.3d 817, 823 (Tex. App.—Austin 2014, no pet.) (concluding that the appellate court had jurisdiction in interlocutory appeal from denial of a Rule91a motion because “the Rule 91a motion was used to challenge the trial court’s subject-matter jurisdiction and therefore effectively constitutes a plea to the jurisdiction.”).

The Commissioners suggest, however, that they cannot rely on § 51.014(a)(8) to pursue an interlocutory appeal of the trial court’s refusal to dismiss the claims brought against them in their individual capacities. That is because the individuals themselves are not governmental units. See TEX. CIV. PRAC. & REM. CODE ANN. § 51.014(a)(8). Citing Ware v. Miller, the Commissioners note that while the denial of the plea to the jurisdiction they asserted in their official capacities is a proper issue for this court to consider on interlocutory appeal, the denial of the challenges asserted by them in their individual capacities “is not something we may review in this interlocutory appeal.” 82 S.W.3d 795, 800 (Tex. App.—Amarillo 2002, pet. denied). Accordingly, the Commissioners have requested mandamus relief from the order denying the Rule 91a motion insofar as that

order relates to the claims directed at them individually. See CMH Homes v. Perez, 340 S.W.3d 444, 453–54 (Tex. 2011); Jones v. Brelsford, 390 S.W.3d 486, 497 n.7 (Tex. App.—Houston [1st Dist.] 2012, no pet.) (“[I]n an appropriate case, we may treat an appeal as a petition for writ of mandamus, and an appellant who specifically requests that her appeal be treated as a mandamus petition invokes this Court's original jurisdiction.”).

We conclude, however, that we do have interlocutory appellate jurisdiction over the Commissioners’ individual claims and that we need not resort to a mandamus review. See TEX. CIV. PRAC. & REM. CODE ANN. § 51.014(a)(5). Section 51.014(a)(5) of the civil practice and remedies code allows interlocutory appeal for the denial of a “motion for summary judgment that is based on an assertion of immunity by an individual who is an officer or employee of the state or a political subdivision of the state.” See id. And even though this appeal arises from a Rule 91a motion and not a summary judgment motion, under the Reaves line of authority, we have appellate jurisdiction over claims asserted in a Rule 91a motion that challenge the trial court’s subject matter jurisdiction. See Reaves, 518 S.W.3d at 603-07); City of Austin, 431 S.W.3d at 823. Having resolved the question of jurisdiction, we proceed to the remainder of our opinion.

III. STANDARD OF REVIEW & APPLICABLE LAW Texas Rule of Civil Procedure 91a provides a mechanism for dismissal of baseless claims. The rule provides as follows:

[A] party may move to dismiss a cause of action on the grounds that it has no basis in law or fact. A cause of action has no basis in the law if the allegations, taken as true, together with inferences reasonably drawn from them do not entitle the claimant to the relief sought. A cause of action has no basis in fact if no reasonable person could believe the facts pleaded.

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