Ken Schawe and 304 Construction, LLC v. Caldwell County and Danie Blake

CourtCourt of Appeals of Texas
DecidedJuly 30, 2024
Docket14-23-00243-CV
StatusPublished

This text of Ken Schawe and 304 Construction, LLC v. Caldwell County and Danie Blake (Ken Schawe and 304 Construction, LLC v. Caldwell County and Danie Blake) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ken Schawe and 304 Construction, LLC v. Caldwell County and Danie Blake, (Tex. Ct. App. 2024).

Opinion

Affirmed and Memorandum Opinion filed July 30, 2024.

In The

Fourteenth Court of Appeals

NO. 14-23-00243-CV

KEN SCHAWE AND 304 CONSTRUCTION, LLC, Appellants V. CALDWELL COUNTY AND DANIE BLAKE, Appellees

On Appeal from the 421st District Court Caldwell County, Texas Trial Court Cause No. 21-0-272

MEMORANDUM OPINION

When 304 Construction, LLC was not awarded a Caldwell County infrastructure construction project, 304 and Ken Schawe (together, “Appellants”) sued Caldwell County and its purchasing agent Danie Blake (together, the “County Appellees”). The County Appellees filed a plea to the jurisdiction, which the trial court granted. For the reasons below, we affirm. BACKGROUND

The County Purchasing Act sets forth the competitive bidding process that counties must follow to select a contractor for county projects costing in excess of $50,000. See Tex. Loc. Gov’t Code Ann. §§ 262.021-262.037. As relevant here, the process culminates in a decision by the County Commissioners Court to either “award the contract to the responsible bidder who submits the lowest and best bid” or “reject all bids and publish a new notice.” Id. § 262.027(a). The “lowest and best bid” is defined as the bid that “provide[s] the best value considering associated direct and indirect costs, including transport, maintenance, reliability, life cycle, warranties, and customer service after a sale.” Id. § 262.022(5-a).

As Caldwell County’s purchasing agent, Blake was responsible for managing the competitive bidding process for county projects. See id. § 262.011 (delineating the duties of a purchasing agent). In early 2020, Blake solicited bids to complete a four-part General Land Office road construction project; six bids were submitted in response to the solicitation.

The two lowest bids were $680,855.50 submitted by 304 and $737,046.41 submitted by WJC Constructor Services. As well as their bid price, the companies’ bid packets included information detailing their number of years in the construction business, current and completed contracts, total staff, available equipment, and available credit. The bid packets were reviewed by Blake, engineers with Doucet & Associates, and grant management consultants with Langford Management, all of whom recommended that WJC be selected for the road construction project even though it was not the project’s lowest bidder.

In this situation, the Caldwell County Purchasing Policies and Procedures Manual requires that “clear justification for not selecting the lowest bidder [] be documented to the Commissioner’s Court” that delineates “the rationale for 2 awarding to a bidder other than the lowest bidder.” In accordance with this policy, Blake prepared the following statement in advance of the March 23, 2021 Caldwell County Commissioners Court meeting:

Discussion Items: The County Purchasing Department is requesting approval for the award opportunity to be given to WJC Constructors Services for the GLO Harvey CDBG Infrastructure Project RFB 20-065-020-C066. All provided bids were reviewed by the county purchasing department, the county’s contracted engineers, and contracted project management consultants taking into consideration the number of years in business, input from past and current project references, and cash flow consideration through credit limits reported on the bidder qualification forms. Based on that review and those considerations, WJC Constructor Service will be recommended for the contract award. The lowest bidder (304 Construction) is not recommended due to inadequate credit limit amount ($100,000), concerns about equipment availability with multiple project sites and other ongoing projects, as well as limited years in business (4 years). Caldwell County Purchasing Department notified 304 Construction of the proposed award on 03/16/21 and that they had the opportunity to appear before the Commissioners Court on March 23, 2021, at 9:00 a.m. pursuant to Texas Local Government Code 262.027 to present previously unconsidered evidence concerning the lower bid, which may include evidence of the bidder’s responsibility. Notable Budget Items: $737,046.41 Recommendation to Commissioner’s Court: County Purchasing Department respectfully recommends the following: Approval of award opportunity be given to WJC Constructor Services for RFB 20-065-020-C066 GLO Harvey CDBG Infrastructure Project. Blake’s statement incorporates Local Government Code section 262.027, which provides that a county contract may not be awarded to a bidder who is not the 3 lowest dollar bidder unless, before the award, each lower bidder is given (1) notice of the proposed award, and (2) an opportunity to appear before the Commissioners Court and present previously unconsidered evidence. See id. § 262.027(c). In accordance with this section, Adam Meuth from 304 attended the March 23, 2021 Commissioners Court meeting to present additional evidence relevant to 304’s bid. At the conclusion of the meeting, the Commissioners Court awarded the construction project to WJC.

A second Commissioners Court meeting was held approximately three weeks later, at which an attorney representing 304 appeared and provided additional evidence regarding 304’s bid. The Commissioners Court declined to revisit its previous determination awarding the contract to WJC.

One month later, Appellants sued the County Appellees and alleged that “the bidding process has resulted in the erroneous award to WJC Constructors which was not the lowest and best bid.” Appellants sought a declaratory judgment and an injunction to (1) cancel the contract awarded to WJC and restart the bidding process, and (2) enjoin Blake from any further involvement in the bidding process.

The County Appellees filed a plea to the jurisdiction and, in a signed order, the trial court afforded Appellants “an opportunity to conduct discovery regarding the decision to deny 304 Construction, LLC’s bid.” Appellants subsequently filed a motion for summary judgment and attached evidence, which the trial court agreed to “treat as a Response to [the County Appellees’] Plea to the Jurisdiction.” After reviewing the parties’ arguments and evidence, the trial court signed an order granting the County Appellees’ plea to the jurisdiction and dismissing Appellants’ claims with prejudice. Appellants timely appealed and their case was transferred

4 to this court by Supreme Court of Texas Transfer Order. 1

ANALYSIS

Asserting the trial court erred in granting the County Appellees’ plea to the jurisdiction, Appellants contend the trial court properly may exercise jurisdiction under (1) the County Purchasing Act (see Tex. Loc. Gov’t Code Ann. § 262.033), and (2) the ultra vires doctrine. We consider these jurisdictional bases below, beginning with the applicable standard of review.

I. Standard of Review

Sovereign immunity protects the State of Texas and its agencies from suit and liability, whereas governmental immunity provides similar protections to the State’s political subdivisions, including its counties, cities, and school districts. Chambers-Liberty Cntys. Navigation Dist. v. State, 575 S.W.3d 339, 344 (Tex. 2019). An assertion of governmental immunity implicates the trial court’s subject matter jurisdiction and, therefore, may be asserted in a plea to the jurisdiction. Harris Cnty. v. Sykes, 136 S.W.3d 635, 638 (Tex. 2004); City of Austin v. Findley, No. 03-21-00015-CV, 2022 WL 1177605, at *2 (Tex. App.—Austin Apr. 21, 2022, no pet.) (mem. op.). We review a trial court’s ruling on a plea to the jurisdiction de novo. Tarrant Reg’l Water Dist. v.

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Bluebook (online)
Ken Schawe and 304 Construction, LLC v. Caldwell County and Danie Blake, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ken-schawe-and-304-construction-llc-v-caldwell-county-and-danie-blake-texapp-2024.