Satterfield & Pontikes Construction, Inc. v. Texas Southern University, Jim McShan, and Greg Williams

472 S.W.3d 426, 2015 Tex. App. LEXIS 8530, 2015 WL 4760209
Court of Appeals of Texas·Decided August 13, 2015·No. NO. 01-14-00596-CV·Published·Cited by 12 cases

Opinion

*429 OPINION

Evelyn V. Keyes, Justice

Appellant, Satterfield & Pontikes Construction, Inc. (“S & P”), sued appellees, Texas Southern University (“TSU”), Jim McShan, and Greg Williams, for alleged inconsistencies in the administration of a competitive bidding process. The trial court granted TSU’s plea to the jurisdiction and dismissed all of S & P’s claims against TSU, McShan; and Williams. In two issues, S & P argues that the trial court 'erred (1) in granting TSU’s plea to the jurisdiction on immunity grounds and (2) in dismissing its claims against McShan and Williams in their' official capacities.

We affirm;

Background

In January 2014, TSU solicited bids for the construction of a student housing facility by issuing a Request for Competitive Sealed Proposals pursuant to Texas Education Code section 51.783. Five companies, including S & P and Pepper-Lawson Horizon International Group (“Pepper-Lawson”) provided sealed bids. After engaging in post-proposal discussions with Pepper-Lawson, TSU accepted Pepper-Lawson’s bid and executed a construction contract with that firm.

S & P sent a protest letter to TSU complaining of deficiencies in TSU’s administration of the bidding process, and it attempted to obtain documents related to the bidding process from TSU. However, TSU proceeded with construction using Pepper-Lawson as its contractor.

On March 7, 2014, S & P filed suit against TSU, Jim McShan, who is TSU’s Vice President of Finance and CFO, and Greg Williams, who is TSU’s Executive Director of Procurement Services. S & P alleged that TSU, McShan, and Williams, acting in their official capacities, violated various sections of the Government Code and Education Code governing the solicitation and acceptance of competitive bids for construction projects. S ■& P asked the trial court to enter a declaratory judgment declaring that the contract between TSU and Pepper-Lawson was void and to order TSU to award the project to S & P. It also sought a temporary and permanent injunction preventing TSU from proceeding with construction until the project could be properly bid and awarded.

The trial court conducted hearings on S & P’s application for a temporary injunction, but the court did not grant a temporary injunction, and work on the construction project proceeded.'

TSU subsequently filed an amended answer, asserting sovereign immunity as an affirmative defense and alleging that S ⅜ P lacked standing to pursue its claims. No. amended answer was filed for McShan or Williams.. TSU. .then filed a plea to the jurisdiction, asserting that S & P’s claims were barred by sovereign immunity, that S & P lacked standing to bring them, and that S & P failed to state a cause of action. McShan and Williams did not join" TSU’s plea to the jurisdiction.

S & P responded to the' plea to the jurisdiction, arguing that TSU’s sovereign immunity was waived by Education Code sections 51.783(f) and 51.778(a) and that it had standing to pursue its claims.

. The trial court held,, a hearing and granted TSU’s. plea to .the jurisdiction, holding that Education Cod,e sections 51.783(f) and 51.778(a) do not constitute a waiver of-sovereign immunity. The trial court order dismissed all claims against all parties. This, appeal followed.

TSU’s Plea to the Jurisdiction

In its first issue, S & P argues that the trial court erred in granting TSU’s plea to *430 the jurisdiction. In this regard, it makes three arguments. First, S & P argues that TSU “did not meet- its burden to prove that sovereign immunity bars S & P’s claims.” It asserts that TSU, as the defendant, “carries the initial burden to meet the. summary-judgment proof standard for its assertion that the trial court lacks jurisdiction.” Second, S & P argues that TSU never established that governmental immunity applies to this case because S & P is seeking to void a contract between a state entity and a third party, rather than seeking to uphold a contract between itself and a state entity, and it contends that governmental entities are not immune to suits, like its own, that seek to void a contract, because such suits do not seek to control state action. Third, S & P argues that Education Code sections 51.778 and 51.783 waived TSU’s governmental immunity. These arguments, however, are not supported by the law governing the assertion of governmental immunity.

A. Standard of Review

A plea to the jurisdiction challenges the trial court’s subject-matter jurisdiction to hear the case. Bland Indep. Sch. Dist. v. Blue, 34 S.W.3d 547, 554 (Tex.2000). Subject-matter jurisdiction is essential to the authority of a court to decide a case and is never presumed. Tex. Ass’n of Bus. v. Tex. Air Control Bd., 852 S.W.2d 440, 443-44 (Tex.1993). The plaintiff has the burden to allege facts affirmatively demonstrating that the trial court has subject-matter jurisdiction. Id. at 446; see also Weir Bros., Inc. v. Longview Econ. Dev. Corp., 373 S.W.3d 841, 847 (Tex.App.—Dallas 2012, no pet.) (“[The plaintiff] had the burden to plead facts that affirmatively demonstrate a waiver of governmental immunity and that the court has subject matter jurisdiction.”).

We review a trial court’s ruling on a plea to the jurisdiction de novo. See Tex. Dep’t of Parks & Wildlife v. Miranda, 133 S.W.3d 217, 226 (Tex.2004). In reviewing the ruling, an appellate court must determine whether facts have been alleged that affirmatively demonstrate jurisdiction in the trial court. City of Waco v. Lopez, 259 S.W.3d 147, 150 (Tex.2008).

When reviewing a trial court’s ruling on a jurisdictional plea, “we first look to the pleadings to determine if jurisdiction is proper, construing them liberally in favor of the plaintiffs and looking to the pleader’s intent,” and “we consider relevant evidence submitted by the parties when necessary to resolve the jurisdictional issues raised.” City of Waco v. Kirwan, 298 S.W.3d 618, 621-22 (Tex.2009). We do not adjudicate the substance of the case but instead determine whether a court has the power to reach the merits of the claim. Bland Indep. Sch. Dist., 34 S.W.3d at 554; Bd. of Trs. of Galveston Wharves v. O’Rourke, 405 S.W.3d 228, 233 (Tex.App.—Houston [1st Dist.] 2013, no pet.).

If the pleadings affirmatively negate the existence of jurisdiction, the plea may be granted without allowing the plaintiff an opportunity to amend its pleadings. Miranda, 133 S.W.3d at 227.

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Satterfield & Pontikes Construction, Inc. v. Texas Southern University, Jim McShan, and Greg Williams, 472 S.W.3d 426, 2015 Tex. App. LEXIS 8530, 2015 WL 4760209 (Tex. Ct. App. 2015).

472 S.W.3d 426 (Satterfield & Pontikes Construction, Inc. v. Texas Southern University, Jim McShan, and Greg Williams) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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