Roy Garcia, Jr. v. City of Elsa

CourtCourt of Appeals of Texas
DecidedApril 26, 2012
Docket13-10-00440-CV
StatusPublished

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

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.

2 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).

3 [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.

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