Harlandale Independent School District v. Jasmine Engineering, Inc.

Court of Appeals of Texas·Decided October 31, 2018·No. 04-18-00388-CV·Published

Opinion

Fourth Court of Appeals San Antonio, Texas MEMORANDUM OPINION

No. 04-18-00388-CV

HARLANDALE INDEPENDENT SCHOOL DISTRICT, Appellant

v.

JASMINE ENGINEERING, INC., Appellee

From the 407th Judicial District Court, Bexar County, Texas Trial Court No. 2018CI02459 Honorable Karen H. Pozza, Judge Presiding

Opinion by: Marialyn Barnard, Justice

Sitting: Sandee Bryan Marion, Chief Justice Marialyn Barnard, Justice Irene Rios, Justice

Delivered and Filed: October 31, 2018

AFFIRMED

In this interlocutory appeal, Harlandale Independent School District challenges the trial

court’s denial of its second plea to the jurisdiction. The District presents three issues asserting the

trial court erred in denying its second plea because: (1) the District is immune from appellee’s

request for a judicial determination of liability for breach of contract; (2) the trial court previously

dismissed the appellee’s claim for declaratory relief; and (3) the appellee’s live pleadings do not

support a claim for declaratory relief. We affirm the trial court’s order. 04-18-00388-CV

BACKGROUND

On February 9, 2018, appellee Jasmine Engineering, Inc. sued the District asserting claims

arising from the District’s termination of a Professional Services Agreement for Consulting

Services (PSA) entered into between the District and Jasmine Engineering on December 6, 2012.

In a letter dated January 24, 2018, the District informed Jasmine Engineering that the PSA was

terminated without cause; however, Jasmine Engineering alleged the PSA required cause to

terminate. In its petition, Jasmine Engineering: (1) asserted the District’s immunity from suit was

waived under section 271.152 of the Texas Local Government Code; (2) alleged a cause of action

for breach of contract; and (3) sought a declaratory judgment. In addition, Jasmine Engineering

sought to recover attorney’s fees under sections 38.001 and 37.009 of the Texas Civil Practice and

Remedies Code and section 271.153 of the Texas Local Government Code.

On April 3, 2018, the District filed its first plea to the jurisdiction acknowledging its

immunity from suit was waived under section 271.152 of the Texas Local Government Code. The

District asserted, however, that its immunity was waived only for relief recoverable under section

271.153 which did not include declaratory relief or attorney’s fees under sections 38.001 and

37.009. Jasmine Engineering filed a response asserting the declaratory relief it sought was

incidental to the contractual relief it sought. After a hearing, the trial court granted the District’s

plea and dismissed Jasmine Engineering’s claim for declaratory relief and its request for attorney’s

fees pursuant to Chapters 37 and 38 of the Texas Civil Practice and Remedies Code. The trial

court also ordered Jasmine Engineering to replead its claim for breach of contract to expressly

comply with sections 271.152 and 271.153 of the Texas Local Government Code.

In response to the court’s order, Jasmine Engineering filed an amended petition. In the

amended petition, Jasmine Engineering alleges only a breach of contract claim and a request for

attorney’s fees under section 271.153 of the Texas Local Government Code. -2- 04-18-00388-CV

On May 18, 2018, Jasmine Engineering filed a motion for partial summary judgment as to

liability, requesting the trial court to conclude as a matter of law that the District breached the PSA

by terminating the PSA without notice and an opportunity to cure and by failing to pay Jasmine

Engineering for all services actually performed and all expenses actually incurred prior to the

termination. In response to Jasmine Engineering’s motion, the District filed a second plea to the

jurisdiction asserting Jasmine Engineering’s motion for partial summary judgment sought the same

type of declaratory relief that the trial court dismissed in granting the District’s first plea. Jasmine

Engineering filed a reply asserting it was not precluded from seeking a partial summary judgment

as to liability under rule 166a of the Texas Rules of Civil Procedure. After a hearing, the trial court

denied the District’s second plea, and the District filed this interlocutory appeal.

STANDARD OF REVIEW

We review a trial court’s ruling on a plea to the jurisdiction de novo. Sampson v. Univ. of

Tex. at Austin, 500 S.W.3d 380, 384 (Tex. 2016). If the plea to the jurisdiction challenges the

pleadings, we liberally construe the pleadings to determine if the plaintiff “has alleged facts that

affirmatively demonstrate the court’s jurisdiction to hear the cause.” Tex. Dep’t of Parks &

Wildlife v. Miranda, 133 S.W.3d 217, 226 (Tex. 2004). If the plea to the jurisdiction challenges

the existence of jurisdictional facts, “we consider relevant evidence submitted by the parties to

determine if a fact issue exists.” Suarez v. City of Tex. City, 465 S.W.3d 623, 632–33 (Tex. 2015).

“If the evidence creates a fact question regarding jurisdiction, the plea must be denied pending

resolution of the fact issue by the fact finder.” Id. at 663.

DISCUSSION

In this case, the District’s second plea does not challenge Jasmine Engineering’s pleadings

asserting the District’s immunity is waived under section 271.152 for Jasmine Engineering’s

breach of contract claim. Nor does the District challenge the existence of jurisdictional facts to -3- 04-18-00388-CV

support the breach of contract claim alleged by Jasmine Engineering. Instead, the District

challenges Jasmine Engineering’s motion seeking a partial summary judgment as to liability.

Assuming, without deciding, the District could properly challenge Jasmine Engineering’s

motion by filing a plea to the jurisdiction, we reject the District’s contention that a motion for

partial summary judgment on liability is an improper procedural vehicle for determining the

District’s liability for the breach of contract claim. Rule 166a(a) expressly recognizes that a

summary judgment “may be rendered on the issue of liability alone although there is a genuine

issue as to [the] amount of damages.” TEX. R. CIV. P. 166a(a); Pinnacle Anesthesia Consultants,

P.A. v. Fisher, 309 S.W.3d 93, 100 (Tex. App.—Dallas 2009, pet. denied) (“A party seeking to

recover upon a claim may move for summary judgment in his favor upon all or any part thereof.”);

see also City of Magnolia 4A Economic Dev. Corp. v. Smedley, 533 S.W.3d 297, 300 (Tex. 2017)

(citing City of Hous. v. Estate of Jones, 388 S.W.3d 663, 665 (Tex. 2002) and noting the trial

court’s order in that case granted “partial summary judgment on the issue of liability, implicitly

denying the City’s plea” asserting immunity from suit); Kirby Lake Dev., Ltd. v. Clear Lake City

Water Auth., 320 S.W.3d 829, 840-43 (Tex.

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