Noe De Los Santos, Joe Avalos, Rudy Rivera, and Ruben Vaiz v. City of Robstown, Robstown Improvement Development Corp., Rodrigo Ramon, and Armando Gonzalez

CourtCourt of Appeals of Texas
DecidedDecember 13, 2012
Docket13-11-00278-CV
StatusPublished

This text of Noe De Los Santos, Joe Avalos, Rudy Rivera, and Ruben Vaiz v. City of Robstown, Robstown Improvement Development Corp., Rodrigo Ramon, and Armando Gonzalez (Noe De Los Santos, Joe Avalos, Rudy Rivera, and Ruben Vaiz v. City of Robstown, Robstown Improvement Development Corp., Rodrigo Ramon, and Armando Gonzalez) 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
Noe De Los Santos, Joe Avalos, Rudy Rivera, and Ruben Vaiz v. City of Robstown, Robstown Improvement Development Corp., Rodrigo Ramon, and Armando Gonzalez, (Tex. Ct. App. 2012).

Opinion

NUMBER 13-11-00278-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS

CORPUS CHRISTI - EDINBURG

NOE DE LOS SANTOS, JOE AVALOS, RUDY RIVERA, AND RUBEN VAIZ, Appellants,

v.

CITY OF ROBSTOWN, ROBSTOWN IMPROVEMENT DEVELOPMENT CORP., RODRIGO RAMON, AND ARMANDO GONZALEZ, Appellees.

On appeal from the County Court at Law No. 4 of Nueces County, Texas.

MEMORANDUM OPINION

Before Chief Justice Valdez and Justices Rodriguez and Garza Memorandum Opinion by Justice Rodriguez Appellants Noe De Los Santos, Joe Avalos, Rudy Rivera, and Ruben Vaiz appeal

the trial court’s order granting a plea to the jurisdiction in favor of appellees City of

Robstown (City), Robstown Improvement Development Corporation (RIDC), Rodrigo Ramon, the City’s mayor, and Armando Gonzalez, the RIDC’s president.1 By two issues

which we reorganize as four, appellants contend that: (1) the City and the RIDC waived

immunity under the Uniform Declaratory Judgment Act (UDJA); (2) the trial court erred in

granting the City’s plea to the jurisdiction on appellants’ claim that the City’s ordinance

was not valid; (3) the trial court erred in granting the plea to the jurisdiction on appellants’

ultra vires claims; and (4) the trial court erred in granting appellees’ plea to the jurisdiction

and dismissing appellants’ claims when their pleadings did not demonstrate incurable

defects. We affirm in part, and reverse and remand in part.

I. BACKGROUND

On September 13, 2010, appellants filed their original petition for declaratory

judgment complaining of an ordinance that appellees planned to adopt for the issuance of

certificates of obligation (certificates). Appellants argued that appellees’ action, which

would authorize the issuance of certificates without voter approval, conflicted with the

Robstown City Charter (City Charter), which provides, in relevant part, “that no bonds of

the [C]ity shall ever be issued without a vote of the people, except refunding bond[s]

which may be issued without a vote.” Appellants requested (1) a declaration that the

City’s issuance of certificates without prior voter approval would be in violation of the City

Charter, and (2) an injunction enjoining the City from issuing certificates without prior

voter approval. Appellants claimed standing without the need to demonstrate a

particularized injury because they were taxpayers, seeking equitable relief for what they

alleged was the illegal expenditure of public funds.

1 It is undisputed that appellants are taxpayers of the City, which is a home rule municipality. 2 The same day appellants filed their original petition, Robstown’s City Council

adopted Ordinance No. 1034, which authorized the issuance of certificates of $5.6 million

dollars for the construction of a new city hall.2 The City claimed that the state legislature

authorized its action in the Certificate of Obligation Act (the Act). See TEX. LOCAL GOV’T

CODE ANN. §§ 271.041-.065 (West 2005 & Supp. 2011). Section 271.044(b) of the Act

provides that certificates may be authorized by an ordinance adopted by the City’s

governing body. See id. § 271.044(b) (West 2005). In addition, section 271.047(a) sets

out that the City may use this subchapter regardless of any provision in its charter to the

contrary. See id. § 271.047(a) (West 2005). The City argued, therefore, that the

issuance of the certificates did not require voter approval. The ordinance provided for

the payment of the certificates and pledged the revenues from annual ad valorem taxes,

levied against all taxable property in the City, sufficient to provide for the payment of the

interest on and principal of the certificates. The ordinance additionally secured the

payment of the certificates “by and payable from a limited pledge of the net revenues of

the [C]ity’s waterworks and sewer system.”

On November 8, 2010, appellees filed a motion to dismiss pursuant to a plea to the

jurisdiction, in which they asserted the following: (1) appellants lack standing because

their original petition was improperly premised on alleged future legislative action—the

City’s planned adoption of an ordinance authorizing the issuance of certificates; (2)

appellants failed to allege a justiciable controversy in their original petition because the

legal basis of their declaratory action is expressly negated by section 271.044(b) of the

Act; (3) appellants assert no allegations against the RIDC, Mayor Ramon, or RIDC

2 Appellants also claim that the City further intends to use the bond proceeds to demolish the present city hall and transform it into a parking lot for the new city hall. 3 President Gonzalez; and (4) appellants’ claims are barred by either sovereign or

legislative immunity. The trial court heard appellees’ motion to dismiss on January 27,

2011.

At the January 27 hearing, the trial court granted appellants leave to file an

amended petition. In their amended petition, appellants again complained of the City’s

“action in authorizing the certificates of obligation” as “a willful violation of an express

prohibition of the City’s charter.” Appellants continued to argue that, as taxpayers, they

had standing because they were challenging illegal expenditure of public funds.

Appellants asserted new allegations, which are summarized as follows:

• The City Council is violating the Act by using bond proceeds to demolish the

present city hall when section 271.0461 of the Act provides that such bond

proceeds may only be used when demolishing dangerous structures;

• The City has failed to comply with the statutory requirements for

reimbursement;

• Any payment of the certificates from sanitary sewer system fees is an illegal

tax; and

• The City cannot bind the RIDC to pay on the certificates for forty years without

the creation of an interest and sinking fund.3

Appellants requested a declaration that the City is not authorized to issue certificates

3 Appellants apparently have a typographical error in their pleadings because they set out that “the City of Robstown cannot bind the development corporation to pay on the certificates of obligation for a period of 40 years with the creation of an interest and sinking fund as required by the Texas Constitution.” (Emphasis added.) We read this allegation to be “with[out] the creation of an interest and sinking fund.” See City of Houston v. Williams, 353 S.W.3d 128, 139-140 (Tex. 2011) (quoting TEX. CONST. art. XI, § 5) (“Our Constitution ordains that ‘no debt shall ever be created by any city, unless at the same time provision be made to assess and collect annually a sufficient sum to pay the interest thereon and create a sinking fund of at least two per cent. thereon.’”).

4 without prior voter approval. Appellants also asked that the declaratory judgment

address their ultra vires claims.

Appellees filed no amended or supplemental motion to dismiss addressing

appellants’ amended petition. Rather, at the hearing when the trial court asked if

appellees’ counsel “want[ed] time to replead or do something?”, he answered,

[W]e’d like to proceed on the matters that were brought forth in the—that are contained—if the [c]ourt is going to grant leave—that are contained in the original petition . . .

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Noe De Los Santos, Joe Avalos, Rudy Rivera, and Ruben Vaiz v. City of Robstown, Robstown Improvement Development Corp., Rodrigo Ramon, and Armando Gonzalez, Counsel Stack Legal Research, https://law.counselstack.com/opinion/noe-de-los-santos-joe-avalos-rudy-rivera-and-ruben-vaiz-v-city-of-texapp-2012.