Silva, Ottig & Silva, LLC. v. Donna Economic Development Corporation 4A, Development Corporation of Donna 4B, and Donna International Bridge Corporation

CourtCourt of Appeals of Texas
DecidedNovember 17, 2022
Docket13-20-00499-CV
StatusPublished

This text of Silva, Ottig & Silva, LLC. v. Donna Economic Development Corporation 4A, Development Corporation of Donna 4B, and Donna International Bridge Corporation (Silva, Ottig & Silva, LLC. v. Donna Economic Development Corporation 4A, Development Corporation of Donna 4B, and Donna International Bridge Corporation) 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
Silva, Ottig & Silva, LLC. v. Donna Economic Development Corporation 4A, Development Corporation of Donna 4B, and Donna International Bridge Corporation, (Tex. Ct. App. 2022).

Opinion

NUMBER 13-20-00499-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS

CORPUS CHRISTI – EDINBURG

SILVA, OTTING & SILVA, LLC, Appellant,

v.

DONNA ECONOMIC DEVELOPMENT CORPORATION 4A, DEVELOPMENT CORPORATION OF DONNA 4B, AND DONNA INTERNATIONAL BRIDGE CORPORATION, Appellees.

On appeal from the 464th District Court of Hidalgo County, Texas.

MEMORANDUM OPINION

Before Justices Longoria, Hinojosa, and Silva Memorandum Opinion by Justice Hinojosa Appellant Silva, Otting & Silva, LLC (SOS) sued the City of Donna (the City) 1 and

appellees Donna Economic Development Corporation 4A (DEDC), Development

Corporation of Donna 4B (DCD), and Donna International Bridge Corporation (DIBC) for

breach of contract. The trial court granted appellees’ no-evidence summary judgment

motion as well as DIBC’s traditional motion for summary judgment. It then severed SOS’s

claims against appellees and entered a final judgment in the severed cause. In three

issues, which we reorder, SOS argues that the trial court erred in: (1) severing its cause

of action against appellees; (2) denying its motion for continuance; and (3) granting

appellees’ motion for summary judgment. We affirm.

I. BACKGROUND

A. SOS’s Petition

SOS sued appellees and the City for breach of contract. SOS alleged that it

entered into several business consulting agreements with the City and appellees “for the

approval[,] financing, construct[ing,] installation[,] and rehabilitation of water and sewer

facilities” as well as “the financing and development of the Donna-Rio Bravo International

Bridge Project” (Bridge Project). With respect to the Bridge Project, SOS claimed it

entered into an agreement on May 29, 2002, which was extended multiple times up to

February 17, 2016. SOS alleged it obtained a grant for the City in the amount of

$9,000,000, for which it invoiced the City $750,000. SOS further alleged that it

implemented a financial plan for the City to obtain the refinancing of bonds in the amount

of $27,900,000, for which it invoiced the City $1,600,000.

1 The City is not a party to this appeal. 2 With respect to the improvements to water and sewer facilities, SOS claimed it

originally entered into an agreement on August 12, 2002. SOS stated that it obtained

$20,000,000 in grants, for which it invoiced the City $1,005,969.76.

SOS alleged that it entered into an amended payment agreement on March 29,

2017, that provided payment schedules for the balances owed to SOS under the prior

agreements. According to SOS, the City made payments under this agreement until June

2018, at which time the City terminated the agreement.

In an attached letter dated August 13, 2018, from City Manager Carlos Yerena to

SOS, the City stated it was terminating the “International Bridge Consultant Engagement,”

and that it would make no more payments to SOS “as the [C]ity cannot recognize the

purported agreements[.]”

B. Dismissal Motions & Motions for Summary Judgment

Appellees answered suit. 2 They later filed a no-evidence motion for summary

judgment, challenging each element of SOS’s breach of contract action. DIBC separately

moved for traditional summary judgment on its statute of limitations defense. DIBC

attached a January 28, 2008 Business Consultant Agreement Amendment between DIBC

and SOS, which was purportedly the only contract to which DIBC was a signatory. DIBC

argued that the latest SOS’s action accrued was on October 31, 2009, when its

agreement with SOS expired by its own terms. Accordingly, DIBC argued that SOS was

required to bring suit no later than October 30, 2013, when the limitations period expired.

2 The City also answered suit and brought a counterclaim for declaratory relief. It then filed a motion to dismiss for lack of jurisdiction arguing that the agreements were void based on the Texas Constitution’s prohibition against unfunded debts. See TEX. CONST. art. XI, §§ 5, 7. 3 See TEX. CIV. PRAC. & REM. CODE ANN. § 16.051; Trelltex, Inc. v. Intecx, L.L.C., 494

S.W.3d 781, 786 (Tex. App.—Houston [14th Dist.] 2016, no pet.) (“The statute of

limitations for breach-of-contract actions is four years from the date of accrual.”).

SOS filed a combined response to the motions, which included a motion for

continuance. SOS attached the following exhibits: (1) an undated and unexecuted

contract labeled “draft” between SOS, the City, and appellees; (2) the affidavit of SOS’s

principal owner Ernesto Silva; (3) the August 13, 2018 termination notice to SOS from the

City; and (4) the affidavit of SOS’s counsel in support of the motion for continuance.

SOS alleged that it reached an agreement with the City and appellees on March

29, 2017, as evidenced by the draft agreement, that obligated appellees to “pay sums

due and owing [SOS] based on a payment plan.” SOS maintained that it completed the

services entitling it to payment and that appellees breached the contract by notifying SOS

“they were no longer going to pay the sums due under the contract.” In response to DIBC’s

traditional summary judgment motion, SOS argued that it timely filed suit because DIBC

breached the March 29, 2017 contract on August 13, 2018. SOS alternatively requested

that the trial court continue the submission date, arguing that it needed “additional time to

obtain minutes of meetings and audits of” the City and appellees. SOS maintained that

the evidence was material to showing the existence of a contract with appellees.

Subsequently, on the parties’ agreed motion, the trial court extended the

submission deadline from March 30, 2020, to April 6, 2020, because appellees did not

receive service of SOS’s summary judgment response.

4 Appellees filed a reply to SOS’s response, arguing SOS failed to establish the

essential elements of its breach of contract claim. Appellees noted that the unsigned draft

agreement contained no signature block for appellees, was not executed, and was not

supported by consideration. Appellees further argued that Silva’s affidavit, which

discussed his dealings with the City, contained no allegation “of any action by any

[appellees] that would support the existence of a valid, enforceable agreement with

[SOS].” Appellees also maintained that the agreement violated the statute of frauds

because it could not be performed within one year. See TEX. BUS. & COMM. CODE ANN.

§ 26.01(b)(6). Finally, appellees argued that SOS presented no evidence that appellees,

as opposed to the City, breached the contract. DIBC, in particular, argued that SOS failed

to present any evidence creating a fact issue as to the application of its limitations

defense.

Appellees opposed SOS’s motion for continuance. They noted that SOS knew of

appellees’ defenses to suit no later than October 2019, when they served their response

to SOS’s request for disclosures. Yet, SOS did not serve further discovery until March 4,

2020, after appellees filed their motion for summary judgment, which appellees believed

evidenced a lack of diligence in obtaining discovery.

The trial court signed an order granting appellees’ motions for summary judgment. 3

It did not explicitly rule on SOS’s motion for continuance. The trial court noted that SOS’s

claims against the City remained on the docket for a May 26, 2020 trial setting. Over

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Silva, Ottig & Silva, LLC. v. Donna Economic Development Corporation 4A, Development Corporation of Donna 4B, and Donna International Bridge Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/silva-ottig-silva-llc-v-donna-economic-development-corporation-4a-texapp-2022.