Killam Ranch Properties, Ltd. v. Webb County, Texas

Procedural entryThis page is a short order in Killam Ranch Properties, Ltd. v. Webb County, Texas. Read the opinion of the Court — 376 S.W.3d 146
Court of Appeals of Texas·Decided May 11, 2011·No. 04-10-00324-CV·Published

Opinion

OPINION

No. 04-10-00324-CV

KILLAM RANCH PROPERTIES, LTD.,

Appellant

v.

WEBB COUNTY, Texas,

Appellee

From the 341st Judicial District Court, Webb County, Texas

Trial Court No. 2007-CVQ-001680-D3

Honorable Michael P. Peden, Judge Presiding[1]

Opinion by:   Steven C. Hilbig, Justice

Sitting:                     Catherine Stone, Chief Justice

                     Phylis J. Speedlin, Justice

                     Steven C. Hilbig, Justice

Delivered and Filed:  May 11, 2011

AFFIRMED IN PART AND REVERSED AND REMANDED IN PART

           This appeal arises from Killam Ranch Properties, Ltd.’s (“Killam”) claim that Webb County violated the Texas Local Government Code and the Texas Open Meetings Act when it sold county-owned acreage and easements to Khaledi Properties, Ltd. (“Khaledi”). Killam filed suit against Webb County seeking a declaration the sale was void because of the statutory violations. Killam also filed a lis pendens. Both parties filed motions for summary judgment. The trial court granted Webb County’s motions and denied Killam’s motions. Killam appeals the denial of its motions and the granting of Webb County’s motions. We affirm in part and reverse and remand in part.

BACKGROUND

Factual background

           Webb County owns a 294.24-acre parcel of property commonly known as the Webb County Detention Center, which it acquired from the United States in 1980. The federal government also conveyed easements over land owned by Killam. The easements provide access to the property.

           On November 14, 2005, the Webb County Commissioners Court passed a resolution to solicit bids to sell the property. The meeting minutes state there was discussion and possible action to direct the Webb County purchasing agent to solicit requests for proposals for the possible sale of the Webb County Detention Center. The minutes recite that “Judge Bruni motioned to approve item as submitted with $10 million minimum bid. Garza seconded the motion,” and the motion passed 4-1. Almost two years later and after this lawsuit was filed, the commissioners issued an order that corrected the original minutes and eliminated the $10 million minimum bid language.

           Eloy Ramirez, the Webb County purchasing agent, testified in his deposition regarding the sale of the property and the bidding process. He testified Webb County used the procedure identified in the “local government code” as its standard procedure for the sale of real estate. Ramirez described the sealed bid process in Webb County as “bids are submitted in sealed envelopes and they’re opened and read to the public.” Although not ordered to do so by the Commissioners Court, Ramirez included in the public bid notice that the property was being sold pursuant to section 263.007 of the Texas Local Government Code.[2] Ramirez testified he determined on his own, based on his background and experience as purchasing agent for Webb County, to use section 263.007 to sell the property. The notices identified the property as 294.24 acres, and stated it was being sold through sealed bid procedure pursuant to section 263.007. The notices made no reference to any easements.

           Three entities eventually submitted sealed bids—Khaledi, Killam, and Har Properties Ltd., an entity associated with Khaledi. Khaledi’s bid was subject to conditions, including the sale of the county-owned easements over Killam’s property. Ramirez recommended the commissioners accept Khaledi’s bid. On January 9, 2006, the commissioners considered the bids and voted to accept Khaledi’s bid. The commissioners met in executive session four times, between January 2006 and October 2006, to discuss the sale of the property to Khaledi.

Procedural background

           Killam filed a declaratory judgment action against Webb County seeking a declaration the sale of the property was void because the County did not comply with the bidding requirements in section 263.007, or alternatively, the County failed to comply with section 272.001 of the Local Government Code.[3] Killam also asserted that by convening closed meetings to continue negotiations of the sale of the property after the County voted to accept Khaledi’s bid, the County violated the Texas Open Meetings Act, and the resulting sale was void.

           Killam filed a traditional motion for partial summary judgment on the ground the commissioners authorized the sale of only the acreage and not the easements. This motion was denied. Killam filed a second traditional motion for summary judgment on its claim the sale was void because Webb County did not comply with sections 263.007 or 272.001 and it violated the Texas Open Meetings Act. This motion was also denied.

           Webb County filed a traditional motion for summary judgment on the grounds that it substantially complied with section 263.007 or alternatively, met the requirements of section 272.001. Webb County also filed a no evidence motion for summary judgment, asserting Killam had provided no evidence the County violated the open meetings act and no evidence Webb County conducted closed meetings “to negotiate the Real Estate Sales Contract with Khaledi.” The trial court granted both Webb County’s motions for summary judgment. Webb County filed a motion for attorneys fees, and Khaledi filed a motion to cancel the lis pendens. The trial court granted both motions at the hearing on the motions. The award of attorney’s fees was included in the judgment; however, the order canceling the lis pendens was not signed by the trial court until after the court lost plenary power.

DISCUSSION

TEXAS LOCAL GOVERNMENT CODE

Killam’s claims

           Killam contends Webb County was required to sell the 294.24 acres pursuant to section 263.007 because the public notice stated the sale was pursuant to that statute. Killam claims Webb County did not comply with section 263.007 because:

1. Webb County failed to “adopt a procedure” for the sealed–bid sale as required by section 263.007;

2. the public notices of the sale were inadequate because neither the public notice nor the bid specifications disclosed that the sale encompassed the easements;

3.

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