Ltts Charter School, Inc. D/B/A Universal Academy v. C2 Construction, Inc.

Texas Supreme Court·Decided June 17, 2011·No. 09-0794·Published

Opinion

IN THE SUPREME COURT OF TEXAS

════════════

No. 09-0794

════════════

LTTS Charter School, Inc. d/b/a Universal Academy, Petitioner,

v.

C2 Construction, Inc., Respondent

════════════════════════════════════════════════════

On Petition for Review from the

Court of Appeals for the Fifth District of Texas

════════════════════════════════════════════════════

Argued December 7, 2010

            Justice Guzman, joined by Chief Justice Jefferson and Justice Medina, dissenting.

            A party’s ability to take an interlocutory appeal is a limited exception to the general rule that only final orders are appealable. As applicable here, the contours of that exception are found in sections 51.014(a)(8) and 101.001(3) of the Civil Practice and Remedies Code. Despite these limits, the Court embarks on a perilous expedition through the Education Code in an attempt to locate some indicia that the Legislature intended to allow privately run, open-enrollment charter schools to take this circumscribed form of appeal. In so doing, the Court ventures beyond the narrow procedural question presented in this case: whether a privately run, open-enrollment charter school is a “governmental unit” as defined by section 101.001(3) of the Civil Practice and Remedies Code. If it is, then an interlocutory appeal is proper from denial of a plea to the jurisdiction by the school, as authorized by section 51.014(a)(8). But, because it is not, I would affirm the court of appeals. Privately run, open-enrollment charter schools do not meet the Legislature’s definition as set out in section 101.001(3), and therefore no interlocutory appeal may be taken from an order granting or denying a plea to the jurisdiction by such a school.

            Moreover, not only does the Court allow for an interlocutory appeal that is contrary to the expressed intent of the Legislature, the Court has also effectively answered an important substantive question that is not before us: what type of immunity does a privately run, open-enrollment charter school possess? Specifically, do such schools: (1) possess governmental immunity from suit, (2) merely have immunity from liability, or (3) lack immunity entirely? The Court’s reasoning, while masquerading as an answer to the narrow procedural issue before us, portends to address the merits of this immunity question. By doing so, the Court provides courts below with a signal that such schools possess immunity from suit. As a result, a private, nonprofit corporation can take on the mantle of governmental immunity, leaving other litigants wrongfully deprived of their day in court and without an opportunity to have this issue addressed through the rigors of our adversarial system. Accordingly, I must respectfully dissent.

I. Interlocutory Appeal Under Section 51.014(a)(8)

            LTTS Charter School, Inc. (LTTS), is a private, nonprofit corporation, operating an open-enrollment charter school. LTTS does so under authority of a charter issued by the State Board of Education, pursuant to the charter school regime established by Chapter 12 of the Education Code. It is being sued by C2 Construction for breach of contract relating to the construction of new facilities. LTTS filed a plea to the jurisdiction, asserting governmental immunity. The trial court denied that plea, and when LTTS attempted an interlocutory appeal, the court of appeals dismissed its appeal for lack of jurisdiction, holding that LTTS is not a governmental unit under section 101.001(3). 288 S.W.3d 31, 38.

            Civil Practice and Remedies Code section 51.014(a)(8) allows immediate appeal of an order denying or granting a plea to the jurisdiction by a governmental unit and, in doing so, incorporates by reference section 101.001(3)’s definition of what constitutes a governmental unit. Tex. Civ. Prac. & Rem. Code § 51.014(a)(8). In construing section 51.014, it is “the Legislature’s intent that section 51.014 be strictly construed as a narrow exception to the general rule that only final judgments and orders are appealable.” Bally Total Fitness Corp. v. Jackson, 53 S.W.3d 352, 355 (Tex. 2001) (quotation marks omitted). LTTS asserts that it is a “governmental unit” for purposes of section 51.014(a)(8) under two provisions found in section 101.001(3). Specifically, LTTS argues that it is a governmental unit both as a “school district” under section 101.001(3)(B), and also as “any other institution, agency, or organ of government” as provided by section 101.001(3)(D).1         
II. Privately Run, Open-Enrollment Charter Schools Are Not Governmental Units

            A. “Any Other Institution, Agency, or Organ of Government” Under Section 101.001(3)(D) and “School District” Under Section 101.001(3)(B)

            The Court holds that LTTS is a governmental unit under section 101.001(3)(D), concluding it qualifies as “any other institution, agency, or organ of government the status and authority of which are derived from the Constitution of Texas or from laws passed by the legislature under the constitution.” Tex. Civ. Prac. & Rem. Code § 101.001(3)(D). The first part of that definition, “any other institution, agency, or organ of government,” appears quite broad. But that apparent breadth is circumscribed by the language that follows: “status and authority of which are derived from the Constitution of Texas or from laws passed by the legislature under the constitution.” The linchpin of section 101.001(3)(D) is the word “derive.” “Derive” means “to receive or obtain from a source or origin.” Random House Dictionary of the English Language 536 (2d ed. 1987).

Free access — add to your briefcase to read the full text and ask questions with AI

Ltts Charter School, Inc. D/B/A Universal Academy v. C2 Construction, Inc., (Tex. 2011).

Ltts Charter School, Inc. D/B/A Universal Academy v. C2 Construction, Inc. (Ltts Charter School, Inc. D/B/A Universal Academy v. C2 Construction, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Texas Department of Parks & Wildlife v. Miranda
133 S.W.3d 217 (Texas Supreme Court, 2004)
City of Galveston v. State
217 S.W.3d 466 (Texas Supreme Court, 2007)
20801, INC. v. Parker
249 S.W.3d 392 (Texas Supreme Court, 2008)
HCBeck, Ltd. v. Rice
284 S.W.3d 349 (Texas Supreme Court, 2009)
Entergy Gulf States, Inc. v. Summers
282 S.W.3d 433 (Texas Supreme Court, 2009)
Franka v. Velasquez
332 S.W.3d 367 (Texas Supreme Court, 2011)
Reata Construction Corp. v. City of Dallas
197 S.W.3d 371 (Texas Supreme Court, 2006)
Tooke v. City of Mexia
197 S.W.3d 325 (Texas Supreme Court, 2006)
Hopkins v. Spring Independent School Dist.
736 S.W.2d 617 (Texas Supreme Court, 1987)
Guaranty Petroleum Corp. v. Armstrong
609 S.W.2d 529 (Texas Supreme Court, 1980)
LTTS Charter School, Inc. v. C2 Construction, Inc.
288 S.W.3d 31 (Court of Appeals of Texas, 2009)
Bally Total Fitness Corp. v. Jackson
53 S.W.3d 352 (Texas Supreme Court, 2001)