Satterfield & Pontikes Construction, Inc. v. Irving Independent School District

123 S.W.3d 63, 2003 WL 22221024
CourtCourt of Appeals of Texas
DecidedJanuary 12, 2004
Docket05-03-00004-CV
StatusPublished
Cited by45 cases

This text of 123 S.W.3d 63 (Satterfield & Pontikes Construction, Inc. v. Irving Independent School District) 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
Satterfield & Pontikes Construction, Inc. v. Irving Independent School District, 123 S.W.3d 63, 2003 WL 22221024 (Tex. Ct. App. 2004).

Opinions

OPINION

Opinion by

Justice FRANCIS.

In this breach of contract case against the Irving Independent School District, we must decide whether the Legislature intended to waive the District’s immunity from suit by enacting section 11.151 of the Texas Education Code. Because the language used in section 11.151 does not clearly and unambiguously indicate waiver, we affirm the trial court’s order dismissing Satterfield & Pontikes Construction Inc.’s claims for want of jurisdiction.

BACKGROUND

The District contracted with Satterfield for the construction of a new middle school. During construction, the project experienced certain delays. Satterfield filed this lawsuit alleging the District failed to pay delay damages and extend completion time for the project in accordance with certain contract provisions.

The District moved to dismiss the lawsuit for want of jurisdiction asserting it was immune from suit. In response, Sat-terfield filed its first amended petition asserting the Legislature had waived the District’s immunity by enacting section 11.151 of the Texas Education Code, which allows the District to “sue and be sued.” The trial court granted the District’s plea to the jurisdiction. Satterfield appeals.

Discussion

Governmental immunity protects governmental entities from lawsuits for damages absent legislative consent. See Fed. Sign v. Tex. S. Univ., 951 S.W.2d 401, 405 (Tex.1997). The doctrine is comprised of two distinct concepts: (1) immunity from suit (barring a lawsuit unless the Legislature expressly gives its consent to suit), and (2) immunity from liability (protection from judgments even if the Legislature has expressly given its consent to the suit). See id. Although a governmental entity waives immunity from liability when it contracts with private citizens, immunity from suit is not waived by merely entering into a contract. See Catalina Dev., Inc. v. County of El Paso, 121 S.W.3d 704, 705 (Tex.2003); Gen. Serv.’s Comm’n v. Little-Tex Insulation Co., 39 S.W.3d 591, 594 (Tex.2001). Instead, express consent is required to show that immunity from a breach of contract suit has been waived. See Travis County v. Pelzel & Assocs. Inc., 77 S.W.3d 246, 248 (Tex.2002). This consent must be expressed by clear and unambiguous language. Tex. Gov’t Code Ann. § 311.034 (Vernon Supp.2003); Pelzel, 77 S.W.3d at 248.

We review de novo the trial court’s ruling on a plea to the jurisdiction based on immunity from suit. See Tex. Natural Res. Conserv. Comm’n v. IT-Davy, 74 S.W.3d 849, 855 (Tex.2002). Where, as here, there was no evidence presented to the trial court on the jurisdictional issue, we look solely to the pleadings to determine whether the trial court’s jurisdiction was properly invoked. See Tarkington Indep. Sch. Dist. v. Aiken, 67 S.W.3d 319, 326 (Tex.App.-Beaumont 2002, no pet.). Satterfield’s pleadings must establish, either by reference to a statute or express legislative permission, the Legislature’s consent to its lawsuit, or immunity from suit will deprive the trial court of subject matter jurisdiction. See Tex. Dep’t of Transp. v. Jones, 8 S.W.3d 636, 638 (Tex.1999). When determining whether [66]*66the Legislature has clearly and unambiguously waived immunity from suit, we generally resolve any ambiguity in favor of retaining immunity. See Wichita Falls State Hosp. v. Taylor, 106 S.W.3d 692, 697 (Tex.2003).

Satterfield pleaded the “sue and be sued” language contained in section 11.151 clearly expresses the Legislature’s intention to waive the District’s immunity from suit in breach of contract actions. We do not agree. The statutory provision we are called upon to construe is located in the education code under a subchapter entitled “Powers and Duties of Board of Trustees of Independent School District.” It provides as follows:

§ 11.151 In General
(a) The trustees of an independent school district constitute a body corporate and in the name of the district may acquire and hold real and personal property, sue and be sued, and receive bequests and donations or other moneys or funds coming legally into their hands.

Tex. Educ.Code Ann. § 11.151(a) (Vernon 1996).

At least one commentator has suggested that because “sue and be sued” language originated in the corporate law context, these provisions can easily be read as a designation to give a particular entity a legal existence in the courts. George C. Kraehe, “There’s Something About Cities”: Understanding Proprietary Functions of Texas Municipalities and Governmental Immunity, 32 Tex. Tech. L.Rev. 1, 35-36 (2000). We agree. In fact, we recently reached a similar conclusion in City of Dallas v. Reata Construction Corp., 83 S.W.3d 392, 399 (Tex.App.-Dallas 2002, pet. filed). In Reata, the subcontractor contended language in the local government code that the City could “plead and be impleaded in any court” and a city charter provision stating the City could “sue and be sued” waived the City’s immunity from its negligence suit. Id. at 398. In rejecting the subcontractor’s claim, we noted that such language merely “speakfs] to the City’s capacity to sue and its capacity to be sued when immunity has been waived.” Id.

We likewise view section 11.151 as acknowledging the District’s capacity to sue and its capacity to be sued once immunity has been waived. A school district has only those powers granted to it by the Legislature. See Barber v. Colorado Indep. Sch. Dist., 901 S.W.2d 447, 453 (Tex.1995). The sue and be sued language merely recognizes the District’s ability to utilize the courts as a legal entity, just as the remainder of section 11.151 authorizes the District to hold property, and receive bequests, donations, and other funds. At a minimum, we conclude section 11.151(a) is ambiguous as to whether it addresses the District’s capability to sue and be sued as an entity or is an expression of the Legislature’s intent to waive the District’s immunity from suit. We are required to construe the statute in a manner that retains the District’s immunity. See Taylor, 106 S.W.3d at 697.

In reaching this conclusion, we reject Satterfield’s assertion that Missouri Pacific Railroad Co. v. Brownsville Navigation District, 453 S.W.2d 812 (Tex.1970) mandates a different result. In Missouri Pacific, the railway sought indemnity from the navigation district for the railway’s liability in a wrongful death suit based on a “written track agreement” prohibiting the district from allowing certain objects to be placed near the track. Id. at 812-13. Although generally acknowledging the district’s immunity from suit, the court construed a “sue and be sued” provision in a 1925 statute creating the district as a gen[67]*67eral consent to suit by the Legislature thereby authorizing the railway’s suit against the navigation district. Id. at 813.

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Bluebook (online)
123 S.W.3d 63, 2003 WL 22221024, Counsel Stack Legal Research, https://law.counselstack.com/opinion/satterfield-pontikes-construction-inc-v-irving-independent-school-texapp-2004.