Robert C. Pruett v. City of Galena Park

Court of Appeals of Texas·Decided July 12, 2022·No. 01-20-00521-CV·Published

Opinion

Opinion issued July 12, 2022

In The

Court of Appeals

For The

First District of Texas

resigned. He subsequently sought severance pay pursuant to a City ordinance providing for severance benefits to certain long-term employees and pursuant to a purported Severance Agreement between him and the City. The City opposed paying severance benefits. The City filed a petition seeking declaratory judgment construing the ordinance and Severance Agreement, and Pruett alleged counter- claims challenging the City’s construction of the ordinance and agreement and alleging that the City had breached its contract with him. Both parties filed motions for summary judgment, and, after several interlocutory rulings, the trial court rendered judgment granting the City’s motion and denying Pruett’s.

On appeal, Pruett contends that the trial court erred (1) in granting the City’s motion for summary judgment and denying his own motion and (2) in denying his request for attorney’s fees pursuant to Civil Practice and Remedies Code chapters 37 and 38. Because we conclude that the ordinance in question did not, by itself, support Pruett’s claim for severance benefits and the purported agreement between the parties was invalid, we affirm.

Background

Robert C. Pruett served the City of Galena Park as a police officer starting in 1993. He eventually became the Chief of Police in 2000, and he became the City Administrator in 2012. In 2014, mayoral candidate Esmerelda Moya ran on a platform that included efforts to eliminate the position of City Administrator.

Pruett presented summary judgment evidence that Moya targeted him personally during this contentious election and, upon her election to office, attempted to have him removed from office. The governing body of the City—the City Commission1—voted against removing Pruett.

After this attempt to remove him, the City Commission adopted Ordinance 2015-10, which stated that its purpose was to amend the City’s personnel ordinance to provide for severance package agreements and benefits for certain long-term employees. The Ordinance further stated, “It is the intent of this ordinance to provide severance protection to long term senior Department Heads and certain Key Employees of the City[.]” The Ordinance defined key terms, including “Department Head,” which expressly included the City Administrator, and “Key Employee.” The Ordinance also defined “Severance Agreement” as “the agreement between the covered employee and the City entered into pursuant to this ordinance and the terms and conditions of the severance agreement.”

Ordinance 2015-10 then provided for compensation upon termination under certain circumstances:

If the Department Head or Key Employee’s employment is terminated by the City Commission Without Good Cause or by the Department Head or Key Employee With Good Reason during the employment period, the City Commission shall provide to the Employee the

1 The City is a Texas home rule city operating under a city charter that provides for the business of the City to be conducted by the mayor and four Commissioners.

Galena Park charter art. IX, Sec. 1; Galena Park Code § 2-47.

accrued obligations, severance compensation and other benefits set forth in this ordinance and in the severance agreement of the parties.

The Ordinance defined “Good Cause” as including “[w]illful or negligent failure to fulfill and perform the duties required by his job or employment,” and it defined “Voluntary termination for Good Reason” as including “any willful and deliberate action by the City Commission that creates a hostile work environment so as to make continued employment unbearable.” Severance benefits were not available for terminations by the City with Good Cause or “[i]n the event the Department Head or Key Employee voluntarily retires, becomes disabled and is unable to perform his required duties, or dies during his employment.”

The Ordinance set out a method for determining the severance amount, stating that the amount should be a lump-sum payment consisting of “one month’s base wages for every year of service” but that “the total severance pay paid to such employee shall not exceed twenty-four (24) months.” The Ordinance also set out a procedure to “Contest and Appeal” a termination:

G. Contest and Appeal of termination. (1) The Department Head or Key Employee may contest and appeal the decision of the City Commission to terminate his employment for “Good Cause” by requesting that the decision be submitted to an Arbitration Hearing before an independent hearing examiner or arbitrator within ten (10)

days of such employee’s termination. The hearing examiner or arbitrator shall be selected and the hearing shall be held pursuant to the American Arbitration Association Rules and Regulations. (2) The City Commission may also contest and appeal the decision of the Department Head or Key Employee to terminate his employment for “Good Reason” by requesting that the decision be submitted to an

Arbitration Hearing before an independent hearing examiner within 10 days of such employee’s delivery of his written notice to terminate his employment for “Good Reason” to the City Secretary of the City of Galena Park. The hearing examiner or arbitrator shall be selected and hearing shall be held pursuant to the American Arbitration Association Rules and Regulations.

The Ordinance also contained a “Severance Agreement” provision:

I. Severance Agreement[.] After the Department Head or Key Employee accumulates twenty (20) years of employment with the City, the City Commission will provide a formal Severance Agreement in such form as it may deem proper and in accordance with the terms and conditions of this ordinance. Such formal agreement must be agreed to and executed by the Department Head or Key Employee in order for such employee to be entitled to the benefits of severance pay provided in this ordinance.

And the Ordinance contained a severability clause, providing that “any section, paragraph, sentence, clause, or phrase contained in this ordinance” that becomes illegal, null, or void could be severed and the remaining sections “shall not be affected thereby.”

Ordinance 2015-10 was adopted by the then-sitting City Commission, but it was not signed by Mayor Mora. Rather, it was signed by Mayor Pro Tem Maricela Serna.

On March 15, 2016, Pruett filed suit in federal court regarding Moya’s unsuccessful attempt to remove Pruett as City Administrator. He sought relief pursuant to the Age Discrimination in Employment Act and Title VII of the Civil Rights Act of 1964. These claims were ultimately dismissed.

In May 2016, Pruett and the four then-sitting Commissioners—Juan Flores, Maricela Serna, Cruz Hinojosa, Jr., and Danny Simms—signed a “Severance Agreement.” The purported Severance Agreement provided for Pruett to receive severance benefits as provided for in Ordinance 2015-10 if he resigned for good reason, and it contained a mandatory arbitration provision. However, the purported Severance Agreement was not presented to the City Commission as a formally convened body in an open meeting, nor was it voted on or approved by the Mayor. No public notice was given of a meeting to approve or ratify the purported Severance Agreement. The purported Severance Agreement was not signed by the Mayor, the City Secretary, or the City Attorney.

On May 7, 2016, Flores, Serna, Hinojosa, and Sims lost their bids to be re-

elected to the City Commission. In addition to the election of the new Commissioners—Rodney Chersky, Oscar Silva, Eric Broussard, and Barry Ponder—Mayor Moya was re-elected.

Following this election, the City Commission provided the required notice of its next meeting, including an agenda. The agenda stated that the Commission would canvass the election results and swear in the new Commissioners. The agenda also included consideration and voting on proposed Ordinance 2016-01, which would rescind Ordinance 2015-10.

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Robert C. Pruett v. City of Galena Park, (Tex. Ct. App. 2022).

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