Indemnity Insurance Co. v. City of Garland

258 S.W.3d 262, 2008 Tex. App. LEXIS 4582, 2008 WL 2502140
Court of Appeals of Texas·Decided June 24, 2008·No. 05-06-01250-CV·Published·Cited by 7 cases

Opinion

OPINION

Opinion by

Justice LANG-MIERS.

Appellee’s motion for rehearing is denied. We withdraw our opinion of April 4, 2008. This is now the opinion of the Court.

Indemnity Insurance Company appeals the trial court’s order granting the City of Garland’s motion for summary judgment and dismissing Indemnity’s claims against the City. We reverse the judgment and remand this case to the trial court.

Factual and Procedural Background

The underlying event giving rise to Indemnity’s lawsuit was an accident involving a City truck driven by a City employee named John Calvin Morrow that resulted in injuries to a man named Lee Otis Brown. Morrow was driving a City-owned rock-hauler truck to pick up a load of asphalt mix from an asphalt-production plant owned by APAC-Texas, Inc. (APAC). Brown worked in a guard shack at the entrance gate to the plant. To enter the plant, Morrow’s truck had to cross over railroad tracks that run in front of the entrance. Brown was severely injured when a train struck the back of the City’s truck as Morrow crossed over the tracks, swinging the trailer of the truck around and hitting the guard shack. Indemnity, APAC’s workers’ compensation carrier, paid Brown’s workers’ compensation claims.

Indemnity filed a subrogation lawsuit against the City under the Texas Tort Claims Act 1 (TTCA) for the alleged negligence of the City’s employee, Morrow. It also filed an amended petition in which it added Morrow as a defendant because it was “admittedly unaware” that section 101.106 of the TTCA bars claims against a government employee after suit is filed against the governmental unit regarding the same subject matter. After discussions with the City, Indemnity agreed to dismiss its claims against Morrow. Indemnity initially intended to dismiss Morrow without prejudice, until counsel for the City sent an email stating, “Based on the language of the statute, we believe the dismissal should be with prejudice. If you cannot agree to that, I understand and will simply file a motion with the Court asking for the court to dismiss with prejudice.” Indemnity agreed to dismiss its claims against Morrow with prejudice, and the trial court signed an agreed order dismissing Indemnity’s claims against Morrow “with prejudice to their refiling.”

After the court entered the order of dismissal, the City moved for summary judgment seeking dismissal of all claims against it on the ground that “[t]he agreed order of dismissal with prejudice of Indemnity’s claims against the City’s employee bars any recovery against the City.” The trial court granted the City’s motion and ordered that Indemnity “take nothing on its claims” “on the grounds that the agreed order of dismissal with prejudice of Indemnity’s claims against the City’s employee bars any recovery against the City.”

In its sole issue on appeal, Indemnity argues that “[t]he Trial Court erred in granting the City’s ■ Motion for Summary Judgment because the dismissal of the City’s employee with prejudice was not a judgment for purposes of section 101.106(d) of the Texas Tort Claims Act and did not operate as a bar to Indemnity’s claims against the City.”

*265 In response, the City argues that the trial court correctly granted summary judgment for one of three alternative reasons. 2 First, the City argues that the order of dismissal constituted a “judgment against” Morrow that, under section 101.106(d), also forever barred Indemnity’s claims against the City. Second, the City argues that even if the order of dismissal is not a judgment against Morrow that bars Indemnity’s claims against the City under section 101.106(d), it nevertheless operated to bar Indemnity’s claims against the City because of section 101.021(1)(B), which requires that a government employee “would be personally hable to the claimant according to Texas law” in order to impose liability on a governmental unit for personal injury caused by its employee’s negligent use of a motor vehicle on the job. See Tex. Civ. PRAC. & Rem.Code Ann. § 101.021(1)(B) (Vernon 2005). Under this alternative theory, the City argued to the trial court that the claims against the City are barred because, as a result of the dismissal with prejudice, “Morrow cannot have any liability to the claimant.” Third, the City argues that even if the order of dismissal is not a judgment against Morrow that bars Indemnity’s claims against the City under the TTCA, it nevertheless operated to bar Indemnity’s claims against the City under principles of collateral es-toppel. Under this alternative theory, the City argues that the claims against the City are derivative and are barred because claims against Morrow are barred by the order of dismissal with prejudice.

Applicable Law

A. Standard of Review

The function of summary judgment is not to deprive a litigant of its right to a full hearing on the merits of any real issue of fact, but to eliminate patently unmeritorious claims and untenable defenses. Turner v. Church of Jesus Christ of Latter-Day Saints, 18 S.W.3d 877, 885 (Tex.App.Dallas 2000, pet. denied) (citing Gulbenkian v. Penn, 151 Tex. 412, 252 S.W.2d 929, 931 (1952)). Because the propriety of a summary judgment is a question of law, we review the trial court’s decision de novo. Natividad v. Alexsis, Inc., 875 S.W.2d 695, 699 (Tex.1994).

B. Statutory Construction

The core issues in this case require us to construe sections 101.106 and 101.021(1)(B) of the TTCA. Statutory construction is a question of law, which we review de novo. Johnson v. City of Fort Worth, 774 S.W.2d 653, 656 (Tex.1989); Richardson Indep. Sch. Dist. v. GE Capital Corp., 58 S.W.3d 290, 293 (Tex.App.-Dallas 2001, no pet.). In construing a statute, our objective is to determine and give effect to the legislature’s intent. Helena Chem. Co. v. Wilkins, 47 S.W.3d 486, 493 (Tex.2001); Nat’l Liab. & Fire Ins. Co. v. Allen, 15 S.W.3d 525, 527 (Tex.2000). When possible, the legislature’s intent is determined by reading the language used in the particular statute and construing the statute in its entirety. Helena Chem., 47 S.W.3d at 493.

*266 C. Limited Waiver of Governmental Immunity Under the TTCA

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Indemnity Insurance Co. v. City of Garland, 258 S.W.3d 262, 2008 Tex. App. LEXIS 4582, 2008 WL 2502140 (Tex. Ct. App. 2008).

258 S.W.3d 262 (Indemnity Insurance Co. v. City of Garland) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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