State of Texas v. Frank's Nursery, LLC

CourtCourt of Appeals of Texas
DecidedMay 30, 2024
Docket14-22-00597-CV
StatusPublished

This text of State of Texas v. Frank's Nursery, LLC (State of Texas v. Frank's Nursery, LLC) 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
State of Texas v. Frank's Nursery, LLC, (Tex. Ct. App. 2024).

Opinion

Reversed and Rendered and Memorandum Opinion filed May 30, 2024

In The

Fourteenth Court of Appeals

NO. 14-22-00597-CV

STATE OF TEXAS, Appellant

V. FRANK'S NURSERY, LLC, Appellee

On Appeal from the 458th District Court Fort Bend County, Texas Trial Court Cause No. 21-DCV-281119

MEMORANDUM OPINION

The State of Texas brings this interlocutory appeal from the trial court’s denial of its motion to dismiss for want of jurisdiction. Tex. Civ. Prac. & Rem. Code § 51.014(a)(8). In five issues the State argues that the trial court lacks jurisdiction over Frank’s Nursery, LLC’s claims. We reverse and render. BACKGROUND

The State and Fort Bend County entered into an agreement to make certain improvements along FM 359 and US Highway 90A in Fort Bend County. Pursuant to this agreement, the County was to acquire parcels necessary for the project. Under the agreement, the State was to reimburse the County for ninety percent of all eligible costs. The State retained a third-party company to assist with negotiation, title, and relocation assistance for the properties being acquired.1

Frank’s Nursery owned real property in Fort Bend County that was to be acquired for the expansion of US Highway 90A. In early 2016, the third-party company sent an offer letter to Frank’s Nursery for the real property. The offer letter indicated it was making an offer based on the appraisal done by the County stating “[t]his amount is the total amount of just compensation for all interests in the portion of your property to be acquired.” The offer letter also listed out various items of improvements included in the appraised amount. The offer letter stated that Frank’s Nursery:

[M]ay be entitled to additional payments and services under the State’s Relocation Assistance Program. It is emphasized, however, that any benefits to which you may be entitled under this program will be handled entirely separate from and in addition to this transaction. You will receive a brochure entitled “Relocations Assistance” which will inform you of eligibility requirements, payments and services which are available.

The County filed a statutory condemnation lawsuit to acquire the real property that was later settled by Rule 11 Agreement. The Rule 11 Agreement provided for compensation for the real property and indicated that Frank’s Nursery “is not

1 The State indicates the County retained the third-party, but Frank’s indicates the State retained the third party. For purposes of this opinion, the distinction is not important. However, we note the factual disagreement.

2 hereby waiving and [sic] relocation benefits in addition to the settlement amount stated above.” The agreed judgment rendered by the trial court in the statutory condemnation lawsuit provided similarly: “[Frank’s Nursery] is not hereby waiving relocation benefits in addition to the settlement amount stated above.” The compensation under the Rule 11 Agreement was paid by check to Frank’s Nursery in mid-July 2016. The agreed judgment was rendered by the trial court in August 2016.

In 2021, Frank’s Nursery filed suit against the State alleging breach of contract, a claim for relocation expenses under the Property Code, and seeking declaratory relief.2 Frank’s Nursery’s amended petition alleged that “[t]he parties agreed that relocation would be paid apart from the condemnation settlement.” Frank’s further alleged that it provided “substantial information to support its claim for relocation, but Defendants continued to delay, obfuscate, and avoid responding to the claim.” Frank’s Nursery alleged that the State denied its relocation claim because a deadline had passed and the claim and supporting documentation was submitted too late. Frank’s Nursery alleged that the Rule 11 Agreement, “as well as the correspondence and mutual understanding between the parties subject thereto, established that Frank’s Nursery was entitled to and would be paid additional funds for relocation necessitated by the acquisition.” Frank’s Nursery alleged that the State breached the Rule 11 Agreement “by failing and refusing to compensate [Frank’s Nursery] for relocation.” Frank’s Nursery also asserted that it “did not exhaust the administrative remedies provided by the Relocation Advisory service because Frank’s Nursery was purposely never made aware it needed to apply to the relocation Advisory Service for payment by Defendants.”

2 Frank’s also sued the County and the third-party company, but those claims are not at issue in this appeal.

3 The State filed a motion to dismiss for want of jurisdiction arguing that Frank’s Nursery failed to plead any facts sufficient to demonstrate a waiver of sovereign immunity and requesting that the trial court dismiss the cause of action against it on those grounds. The State also argued that Frank’s Nursery did not demonstrate waiver of immunity for the alleged breach of contract and that Frank’s Nursery failed to exhaust its administrative remedies.

Frank’s Nursery filed a response arguing that “as part of the [Rule 11 Agreement], the [State] recognized the need and obligation to compensate Frank’s Nursery for relocation assistance. The parties agreed that relocation would be paid apart from the condemnation settlement.” Frank’s Nursery further contended that it was a property owner who was permanently displaced from its business under section 21.046(e) of the Property Code. See Tex. Prop. Code § 21.046(e). Frank’s Nursery alleged that while it may have been entitled to relief through the Relocation Advisory Service, because of the State’s actions, Frank’s Nursery’s claim for reimbursement was time barred. Frank’s Nursery argued that sovereign immunity was also waived based on the “underlying condemnation suit” because the claims here are “germane to, connected with, and properly defensive to” the claims the State asserted against Frank’s Nursery in the condemnation lawsuit.

Without conducting a hearing, the trial court denied the State’s motion to dismiss without stating the reasons therein. This interlocutory appeal followed.

STANDARD OF REVIEW

Whether a court has subject matter jurisdiction is a question of law. Tex. Dept. of Parks & Wildlife v. Miranda, 133 S.W.3d 217, 226 (Tex. 2004). We review de novo whether a pleader has alleged facts that affirmatively demonstrate a trial court’s subject matter jurisdiction. Id. “When a plea to the jurisdiction challenges the pleadings, we determine if the pleader has alleged facts that 4 affirmatively demonstrate the court’s jurisdiction to hear the cause.” Id. We construe the pleadings liberally in favor of the plaintiff and look to the pleader’s intent. Id.

“If the plea to the jurisdiction challenges the existence of jurisdictional facts, we consider relevant evidence submitted by the parties when necessary to resolve the jurisdictional issues raised, as the trial court is required to do so.” Id. at 227. If the evidence creates a fact issue regarding the jurisdictional issue, then the trial court cannot grant the plea to the jurisdiction, and the fact issue will be resolved by the fact finder. Id. If after the State asserts and supports with evidence that the trial court lacks subject matter jurisdiction, we simply require the plaintiffs, when the facts underlying the merits and subject matter jurisdiction are intertwined, to show that there is a disputed material fact regarding the jurisdictional issue.” Id. at 228. “We generally analyze jurisdiction separately for each claim.” Trant v.

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State of Texas v. Frank's Nursery, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-of-texas-v-franks-nursery-llc-texapp-2024.