Jones v. City of Hutto

CourtCourt of Appeals for the Fifth Circuit
DecidedOctober 7, 2025
Docket24-50096
StatusPublished

This text of Jones v. City of Hutto (Jones v. City of Hutto) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jones v. City of Hutto, (5th Cir. 2025).

Opinion

Case: 24-50096 Document: 86-1 Page: 1 Date Filed: 10/07/2025

United States Court of Appeals for the Fifth Circuit United States Court of Appeals ____________ Fifth Circuit

FILED No. 24-50096 October 7, 2025 ____________ Lyle W. Cayce Clerk Odis Jones,

Plaintiff—Appellee,

versus

City of Hutto,

Defendant—Appellant. ______________________________

Appeal from the United States District Court for the Western District of Texas USDC No. 1:20-CV-1210 ______________________________

Before Richman, Graves, and Ramirez, Circuit Judges. Priscilla Richman, Circuit Judge: Odis Jones, a black man, ended his tenure as City Manager of Hutto, Texas under a separation agreement that provided him with a severance payment, a non-disparagement provision, and other contractual rights. This parting of ways came as a result a prolonged conflict, primarily with Councilmembers Mike Snyder and Tanner Rose, that bore an alleged racial character. After Jones’s departure, councilmembers allegedly disparaged him, and the City Council ultimately voted to rescind the separation agreement. The City of Hutto argues this was pursuant to a legal opinion by the City Attorney that the agreement was void or voidable. Jones argues it Case: 24-50096 Document: 86-1 Page: 2 Date Filed: 10/07/2025

No. 24-50096

was because of racial animus and that the City’s actions have severely affected his employment prospects. Jones brought a 42 U.S.C. § 1981 claim, alleging a racially motivated impairment of his contract rights and a breach of contract claim under Texas law. The jury found for Jones on both claims, and the district court entered a judgment in favor of Jones. We affirm the district court’s judgment in part, reverse in part, and remand for further proceedings. I A The City of Hutto hired Odis Jones as its first black city manager in 2016. Jones worked closely with the seven elected members of the Hutto City Council. The City, a neighbor of Austin, felt the effects of the larger city’s growth. This caused a rift in local politics between the “pro-growth” and “anti-growth” factions. The “pro-growth” faction wanted to attract development and businesses and the “anti-growth” faction was concerned that development would affect the City’s culture and infrastructure. Jones aligned himself with the “pro-growth” contingent. He led efforts that included improving the City’s water system, restructuring the police department, and bringing a $1.5 billion development project to the City, the largest in its history. Jones was not without opposition, however. In May 2019, two new “anti-growth” councilmembers, Mike Snyder and Tanner Rose, won election after mounting campaigns allegedly aimed at “get[ting] rid of the city manager and his staff.” Snyder’s frustration with Jones initially concerned a perceived lack of transparency and suspicion of improper dealing. Later, two investigations unearthed no impropriety by Jones. Tensions mounted that took on an alleged racial character and Jones reported race-based discrimination by Snyder and Rose to the City Council in August

2 Case: 24-50096 Document: 86-1 Page: 3 Date Filed: 10/07/2025

2019. The situation did not resolve and the parties began to discuss parting ways. In November 2019, the City Council entered into a separation agreement with Jones by a five-vote majority (5-1), noting the split was “without cause.” Rose cast the lone “nay” vote and Snyder was absent and did not vote. In accordance with Jones’s employment agreement, the separation “without cause” provided him with twelve months of salary and health benefits, $412,000 in total. The separation agreement also contained a mutual non-disparagement clause and a mutual waiver of then-existing legal claims. The next day, the City released a statement announcing this news and praising Jones for his tenure as City Manager. Snyder and Rose, however, voiced their dissenting opinions in a “press release” posted to Snyder’s candidacy Facebook page. Jones alleges this began a “campaign” by Snyder and Rose to have the City Council retract the separation agreement. Ultimately, in December 2020, the Council unanimously voted to adopt a resolution that purportedly rescinded the separation agreement pursuant to a legal opinion by the City Attorney that it was defectively executed and thus void. The City argues it focused on the separation agreement’s validity because the City was experiencing a budget shortfall and an audit identified the agreement as a cost. After the City voted to rescind the agreement, the City Attorney sent the resolution and a demand letter to Jones demanding the return of $412,000 received under the separation agreement. A week later, Jones filed this suit in federal court. By trial, the claims had narrowed to a civil rights claim under 42 U.S.C. § 1981 and a state-law breach of contract claim. The parties both moved for summary judgment on the separation agreement’s validity; the court granted Jones’s motion, declaring the contract valid and enforceable. The case then proceeded to trial. At the close of evidence, the City moved for judgment as a matter of law under Rule 50(a), which the court denied. The court submitted Jones’s

3 Case: 24-50096 Document: 86-1 Page: 4 Date Filed: 10/07/2025

§ 1981 and Texas breach of contract claims to the jury. The jury returned a verdict for Jones on both claims, awarding him $8 million for the § 1981 claim and $4.5 million for breach of contract, upon which the court entered final judgment. The City filed a renewed motion for judgment as a matter of law under Rule 50(b) and a motion for new trial or remittitur under Rule 59. 1 The court denied the renewed motion for judgment as a matter of law but suggested remittitur because a statute barred all breach of contract damages except for attorney fees and Jones did not segregate his attorney fees between the claims, risking double recovery. The court suggested that Jones seek attorney fees by post-trial motion. Jones accepted remittitur totaling $5 million and filed a motion for attorney fees. The City now appeals the denial of judgment as a matter of law as to both the § 1981 claim and the breach of contract claim. B We review the district court’s denial of judgment as a matter of law de novo. 2 We apply the same standard as the district court, found in Rule 50(a), directing judgment as a matter of law if “a party has been fully heard on an issue during a jury trial and the court finds that a reasonable jury would not have a legally sufficient evidentiary basis to find for the party on that issue.” 3 Here, we should reverse the district court “only if ‘the facts and inferences point so strongly and overwhelmingly in favor of [Hutto]’” that it was

_____________________ 1 Fed. R. Civ. P. 50(b), 59. 2 Broussard v. State Farm Fire & Cas. Co., 523 F.3d 618, 624 (5th Cir. 2008). 3 Fed. R. Civ. P. 50(a).

4 Case: 24-50096 Document: 86-1 Page: 5 Date Filed: 10/07/2025

unreasonable for the jury to find for Jones. 4 Deference to the trier of fact requires us to “consider all of the evidence, drawing all reasonable inferences and resolving all credibility determinations in the light most favorable to the non-moving party,” Jones. 5 II For Jones’s civil rights claim, there are two statutes in play: 42 U.S.C. §§ 1981

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Jones v. City of Hutto, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jones-v-city-of-hutto-ca5-2025.