Hays Street Bridge Restoration Group v. City of San Antonio

570 S.W.3d 697
CourtTexas Supreme Court
DecidedMarch 15, 2019
DocketNO. 17-0423
StatusPublished
Cited by56 cases

This text of 570 S.W.3d 697 (Hays Street Bridge Restoration Group v. City of San Antonio) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hays Street Bridge Restoration Group v. City of San Antonio, 570 S.W.3d 697 (Tex. 2019).

Opinion

Chief Justice Hecht delivered the opinion of the Court.

*699 The primary issue before us is whether the waiver of governmental immunity for certain claims provided by the Local Government Contract Claims Act 1 ("the Act") at the time this case arose 2 applies when the remedy sought is specific performance rather than money damages. We hold that it does and thus reverse the judgment of the court of appeals 3 and remand the case to that court for further proceedings.

I

The Hays Street Bridge is a historic cultural landmark in San Antonio. Built in the 1880s, the wrought-iron truss bridge 4 consists of two spans, a 225-ft Phoenix Whipple span, 5 and a 130-ft Pratt span, 6 resting on columns made by the Pennsylvania Phoenix Iron Company. The Bridge was transported to San Antonio in 1910 to provide passage over railroad tracks that eventually were operated by Union Pacific *700 Railroad and is viewed by many residents as the gateway to the City's historically black neighborhoods east of downtown.

By the early 1980s, the Bridge had become unsafe for vehicles or pedestrians. The City ordered it closed, and Union Pacific Railroad made plans to demolish it. But a group of residents formed the Hays Street Bridge Restoration Group to persuade the City to preserve and restore the Bridge for community use. The Restoration Group envisioned that the land surrounding the Bridge -including a then-privately owned 1.7-acre tract on 803 North Cherry Street, near the northeast end of the Bridge-would be acquired and developed to feature the Bridge as a cultural attraction by affording space for parking, educational facilities, restrooms, a park, and a hike-and-bike trail.

To fund the project, the City obtained a $ 2.89 million federal grant administered by the Texas Department of Transportation. The funding agreement between the City and the Department described the scope of the project as "the rehabilitation and conversion of the abandoned automobile viaduct and iron truss bridge to a pedestrian and biking bridge over the Union Pacific Railroad tracks." The agreement required the City to fund 20% of the project's estimated cost.

In 2002, the City and the Restoration Group executed a Memorandum of Understanding (MOU) "to outline each party's responsibilities" with respect to funding the project. The Restoration Group promised to "[c]ontinue to raise matching funds through grant applications and other private resources" and to "[t]imely transfer" the funds to the City. In exchange, the City promised to "[e]nsure that any funds generated by the Restoration Group ... [would] go directly to the approved City of San Antonio budget ... for the Hays Street Bridge project".

Over the next decade, the Restoration Group raised and transferred to the City more than $ 189,000 in cash and arranged for significant in-kind donations, including the Bridge itself by the Railroad and the *701 Cherry Street property by its private owners. The City finished restoring the Bridge in 2010 but then decided not to use the Cherry Street property for a park. Instead, in 2012, it adopted an ordinance authorizing the sale of the property to Alamo Beer Company for $ 295,000 as part of an economic-incentive package to induce Alamo to construct a microbrewery, restaurant, and event space that would create jobs and generate tax revenue for the City. As part of the package, the City would return the $ 295,000 to Alamo as part of a landscape-improvement grant.

The Restoration Group sued, alleging that a transfer of the Cherry Street property to Alamo would breach the City's promise in the MOU to apply "funds" raised by the Restoration Group "directly" to the City's "budget ... for the Hays Street Bridge project". The City denied that the property was "funds" within the meaning of the MOU. The trial court concluded that "funds" was ambiguous and asked the jury whether the parties intended that it "include[ ] only donations of money"-the jury answered "no"-or "donations of money and in-kind contributions" (emphasis in original)-the jury answered "yes". The jury also found that the Cherry Street property was "subject to the terms of the MOU" and that the City "failed to comply with the MOU with respect to the [property]".

The Restoration Group also sought a declaratory judgment that the City's proposed sale of the Cherry Street property was a transfer of park land requiring voter approval. 7 But the jury failed to find that the City "owned, held or claimed" the Cherry Street property "as a ... park", and the trial court denied declaratory relief. The Restoration Group does not complain of the trial court's judgment.

For its breach of contract claim, the Restoration Group sought only specific performance. In rendering judgment on the verdict, the trial court found that "specific performance [was] appropriate" because "[t]he unique purpose and circumstances of the [MOU could not] be adequately remedied by monetary damages". The court therefore ordered the City to "allocate, apply and use all funds raised by" the Restoration Group, "including" the Cherry Street property, "by applying said funds directly to the approved" City budget "for the Hays Street Bridge project costs."

Following the rendition of judgment in September 2014, the City proceeded with its plan to sell the Cherry Street property to Alamo, which had been on hold during the litigation. The plan approved in a new ordinance retained the return of the sales proceeds to Alamo as a landscape-improvement grant, as proposed two years earlier. The Restoration Group contended that the plan was prohibited by the judgment and moved to have the City held in contempt. Before the motion was heard, the City appealed the judgment, thereby staying its enforcement. 8

The court of appeals concluded that the City was immune from suit, reversed the trial court's judgment, and rendered judgment dismissing the case for lack of jurisdiction. 9 The court held that "the City's functions under the [MOU] are purely governmental," not proprietary, 10 and that the *702 Act does not waive the City's immunity from suit for specific performance of a contract. 11 Because the immunity argument was dispositive, the court did not address other reasons for reversal urged by the City. 12 We granted the Restoration Group's petition for review. 13

II

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Cite This Page — Counsel Stack

Bluebook (online)
570 S.W.3d 697, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hays-street-bridge-restoration-group-v-city-of-san-antonio-tex-2019.