Roy Garcia, Jr. v. City of Elsa

Court of Appeals of Texas·Decided April 26, 2012·No. 13-10-00440-CV·Published

Opinion

NUMBER 13-10-00440-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS

CORPUS CHRISTI—EDINBURG

ROY GARCIA JR., Appellant, v.

CITY OF ELSA, Appellee.

On appeal from the 398th District Court of Hidalgo County, Texas.

MEMORANDUM OPINION

Before Justices Garza, Vela, and Perkes Memorandum Opinion by Justice Perkes

Appellant, Roy Garcia Jr. appeals the trial court’s order granting summary judgment in favor of appellee, City of Elsa (“City”), on the City’s declaratory judgment action to invalidate the City’s sale of real property to Garcia and underlying loan transaction. By five issues, Garcia argues that: (1) the City failed to state valid grounds for summary judgment where its motion expressly relies only on “Rule 166b, 166i Texas

Rules of Civil Procedure,” see generally TEX. R. CIV. P. 166a; (2) the City was not entitled to summary judgment under Texas Local Government Code section 272.001 because it failed to identify a specific statutory violation and failed to present evidence regarding any alleged violation, see TEX. LOC. GOV’T CODE ANN. § 272.001 (West Supp. 2011) (requiring public notice regarding the sale or exchange of land by a political subdivision); (3) the City failed to assert or prove noncompliance with Texas Local Government Code section 253.008, see id. § 253.008 (West 2005) (establishing requirements for the sale of real property by a municipality by public auction); (4) the City was not entitled to summary judgment under the Texas Constitution because it did not acknowledge or address the “public purpose” test for analyzing whether a transaction is improper and there was evidence the transaction met that test, see TEX. CONST., art. XI, § 3 (prohibiting a municipal corporation from becoming “a subscriber to the capital of any private corporation or association,” making “any appropriation or donation to the same, or in anywise [lending] its credit”); and (5) the City was not entitled to summary judgment on “public policy” grounds when there was no evidence of violation of any state statute or public policy grounds.1 We reverse and remand.

I. BACKGROUND

The City filed a three-page petition for declaratory judgment which alleged that the City entered into an agreement to transfer real property to Garcia pursuant to City of Elsa Resolution No. 01-07; that it extended credit to Garcia pursuant to a promissory note which was contrary to the laws of the State of Texas; and that Garcia defaulted on the promissory note. The City’s pleading did not give any other background facts, did

1 At oral argument, Garcia waived and abandoned his fourth issue, that any statutory violation was cured by the validation statute. As such, we will not address Garcia’s fourth issue.

not provide any specific statutory or other legal basis for invalidating the transaction, and did not further identify either the real property or the loan agreement. The City’s pleading for declaratory relief asked that the trial court declare the contract between the parties to be invalid. The relevant paragraph of the petition states, in its entirety:

City incorporates the factual allegations as set forth above. In accordance with the Texas Civil Practice & Remedies Code § 31.001 et. seq., City requests that this Court declare the rights, duties, obligations of the parties involved in the real estate transaction between City and Defendant [Garcia], specifically the agreement attached as Exhibit A.

No “Exhibit A” or any other document was attached to the City’s petition. In response, Garcia filed a general denial.

The City moved for summary judgment on grounds that the contract between the City and Garcia is void because it is an illegal contract and is against public policy. Specifically, the City alleged that the contract was illegal because, inter alia, it sold its property to Garcia without complying with the public auction and sealed bid requirements of Texas Local Government Code section 253.0082 and without meeting the notice and publication requirements of Texas Local Government Code section 272.001.3 See TEX. LOC. GOV’T CODE ANN. §§ 253.008, 272.001. The City also alleged in its motion that the agreement is unconstitutional under article XI, sections 3, 5, and 7 of the Texas Constitution, and quoted section 3. See TEX. CONST. art. XI, §§ 3, 5, 7. In this regard, the City’s argument, in its entirety, is as follows:

2 Texas Local Government Code section 253.008 provides: “The government body of a municipality may sell real property owned by the municipality by public auction or by sealed bid under Section 272.001.” TEX. LOC. GOV’T CODE ANN. § 253.008 (West 2005).

3 Texas Local Government Code section 272.001 provides that before land owned by a political subdivision of the state may be sold, notice to the general public of the offer of the land for sale or exchange must be published in a newspaper of general circulation on two separate dates, and the sale may not occur until after the 14th day after the date of the second publication. See id.. § 272.001 (West Supp. 2011).

[Garcia] is not obligated to pay anything, including interest, for five years, and nothing was done by [the] City to make sure that [Garcia] did not transfer the property of [sic] do the economic development that [Garcia]

had to do. The purported agreement at issue is illegal as far as Texas Constitution, Texas Statute, City Charter, and against public policy.

Plaintiff[4] cannot present any evidence at trial [that] legalized the agreement. Further, the purported agreement is illegal or against public policy as it defeats the purpose of the City of Elsa coffers which is to benefit all citizens of the City, not a specific individual. Therefore, the purported agreement is illegal and against public policy and should be declared void by this Honorable Court.

No affidavit, deposition or other testimonial evidence is attached to the City’s motion for summary judgment which would support the background facts included in its motion. A copy of a document entitled “Resolution No. 01-07” is attached as exhibit A, and a copy of a document entitled “Promissory Note” is attached as exhibit B. The City did not authenticate either document, or support them by affidavit, and the City did not provide any evidentiary support for any fact alleged in its motion for summary judgment. Exhibit A to the motion for summary judgment is a resolution passed by the City authorizing the conveyance of the described property. Exhibit B is a promissory note between the City, as lender, and Garcia, as borrower. The property referenced in the resolution is the same property that is identified as the security for payment of the promissory note.

Garcia filed a response to the City’s motion for summary judgment. In his response, Garcia discussed the background facts surrounding the transaction and generally rebutted the City’s arguments. In support of his response, he submitted nine exhibits which were authenticated by affidavit.5 However, Garcia did not include any evidence which would support the facts alleged in his response.

4 The City is the “plaintiff” in this lawsuit; thus, the reference must be to Garcia, as defendant.

5 The exhibits include: “Resolution No. 01-07” dated February 20, 2001; “Promissory Note” dated March 2, 2001; “Warranty Deed with Vendor’s Lien” dated March 2, 2001; “Warranty Deed with Vendor’s

The trial court granted the City’s motion for summary judgment. It ordered that “the promissory note between the City of Elsa and Roy Garcia attached as Exhibit A to this Order is void and that the title to the property therein described revert back to the City of Elsa.” The trial court further ordered that “the City of Elsa reimburse Roy Garcia the sum of $2,866.98 for payments he made to the City under the void promissory note.” This appeal ensued.

II. STANDARD OF REVIEW

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

Roy Garcia, Jr. v. City of Elsa, (Tex. Ct. App. 2012).

Roy Garcia, Jr. v. City of Elsa (Roy Garcia, Jr. v. City of Elsa) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Maryland Casualty Co. v. Pacific Coal & Oil Co.
312 U.S. 270 (Supreme Court, 1941)
Ford Motor Co. v. Ridgway
135 S.W.3d 598 (Texas Supreme Court, 2004)
Texas Department of Parks & Wildlife v. Miranda
133 S.W.3d 217 (Texas Supreme Court, 2004)
Binur v. Jacobo
135 S.W.3d 646 (Texas Supreme Court, 2004)
Schneider National Carriers, Inc. v. Bates
147 S.W.3d 264 (Texas Supreme Court, 2004)
Creditwatch, Inc. v. Jackson
157 S.W.3d 814 (Texas Supreme Court, 2005)
Valence Operating Co. v. Dorsett
164 S.W.3d 656 (Texas Supreme Court, 2005)
Diversicare General Partner, Inc. v. Rubio
185 S.W.3d 842 (Texas Supreme Court, 2005)
MacK Trucks, Inc. v. Tamez
206 S.W.3d 572 (Texas Supreme Court, 2006)
Hamilton v. Wilson
249 S.W.3d 425 (Texas Supreme Court, 2008)
The City of El Paso v. Lilli M. Heinrich
284 S.W.3d 366 (Texas Supreme Court, 2009)
Timpte Industries, Inc. v. Gish
286 S.W.3d 306 (Texas Supreme Court, 2009)
Texas a & M University-Kingsville v. Yarbrough
347 S.W.3d 289 (Texas Supreme Court, 2011)
Armstrong v. Hixon
206 S.W.3d 175 (Court of Appeals of Texas, 2006)
Hawkins v. El Paso First Health Plans, Inc.
214 S.W.3d 709 (Court of Appeals of Texas, 2007)
Plano Surgery Center v. New You Weight Management Center
265 S.W.3d 496 (Court of Appeals of Texas, 2008)
Waite v. Woodard, Hall & Primm, P.C.
137 S.W.3d 277 (Court of Appeals of Texas, 2004)
Rodgers v. Weatherspoon
141 S.W.3d 342 (Court of Appeals of Texas, 2004)
Ortega-Carter v. American International Adjustment Co.
834 S.W.2d 439 (Court of Appeals of Texas, 1992)