Texas Transportation Commission and Ted Houghton, in His Official Capacity as Chair of the Texas Transportation Commission v. City of Jersey Village

478 S.W.3d 869, 2015 Tex. App. LEXIS 10609, 2015 WL 6081972
Court of Appeals of Texas·Decided October 15, 2015·No. NO. 14-14-00823-CV·Published·Cited by 12 cases

Opinions

OPINION

William J. Boyce, Justice

The Texas Department of Transportation is constructing additional lanes along U.S. Highway 290, which requires the relocation of utility lines owned by appellee, the City of Jersey Village. At issue in this interlocutory appeal is whether the Department is obligated to reimburse Jersey Village for the costs of acquiring new easements along which Jersey-Village intends to lay replacement utility lines.

Appellant, the Texas Transportation Commission, governs the Department. See Tex. Transp. Code Ann. § 201.201 (Vernon 2011).1 Appellant Ted Houghton was chair of the Texas Transportation Commission when Jersey Village filed its lawsuit in 2012, and was sued in his official capacity. Appellants filed a plea to the jurisdiction based on sovereign immunity, which the trial court denied. Appellants then filed this interlocutory appeal. We reverse the trial court’s order and render judgment dismissing the case for lack of jurisdiction.

. Background

Appellants, acting through the Texas Department of Transportation, are widening U.S. Highway 290 to include additional lanes. To accommodate the additional lanes, the State must acquire land along the highway and convert it to a- public right-of-way.

The improvement project is divided into segments, and the widening in segment six requires the relocation of three utility lines owned and operated by Jersey Village.2 [873]*873The improvement project likely will require the relocation of two additional utility lines owned by Jersey Village in segment seven.3 According to Jersey Village, the five utility lines currently run parallel to, but outside of, the existing highway right-of-way in easements allegedly owned by Jersey Village.

Texas Transportation . Code section 203.092(a) provides in relevant part that the State shall pay for the relocation of a utility facility if the relocation is required by improvement of any segment of the state highway system and the utility “has a compensable property interest in the land occupied by the facility to be relocated.” Tex. Transp. Code Ann. § 203.092(a)(2) (Vernon Supp.2014). The statute defines the cost of relocation as including “the entire amount paid by the utility properly attributable to the relocation less: (1) any increase in the value of the new facility; (2) the salvage value derived from the old facility; and (3) any other deduction established by regulations for federal cost participation.” Id. § 203.092(d). Because Jersey Village contends that it has a com-pensable property interest in its utility easements, it requested the Department to pay for the relocation of its- utility lines. As part of its request for the Department to pay relocation expenses, Jersey Village sought reimbursement-for the costs to obtain replacement easements in which to place its utility-lines, which costs it contends are properly attributable to the relocation,

Jersey Village and the Department entered into negotiations regarding relocation expenses. However, the Department refused to reimburse Jersey Village for costs associated with obtaining replacement easements. Instead, the Department offered Jersey Village the option of relocating its utility lines into the new right-of-way the Department will acquire along the highway. Unsatisfied with this offer, Jersey Village filed the underlying suit against .the Commission and Houghton in late 2012.4

In its suit against the Commission and Houghton, Jersey Village pled a single cause of action alleging that the Commission improperly denied reimbursement of [874]*874utility relocation costs. Specifically, Jersey Village asserted that it is entitled to reimbursement of costs incurred in securing new, easements in which to place its utility lines. To that end, Jersey Village requested: -(1) a declaration regarding the proper' interpretation of Texas Transportation Code sections 203.092(a)(2) and (d); and (2) a declaratory judgment that Jersey Village’s city-owned utility easements are compensable property interests, and their replacement therefore constitutes a reimbursable cost which the state “shall” pay pursuant to Section 203.092.

Negotiations continued between the parties, and in June 2014 the Department and Jersey Village entered into an agreement under which the Department agreed to reimburse Jersey Village for the costs incurred- in removal and relocation of the water and sewer lines located in segment six. See 43 Tex. Admin Code § 21.22 (2004) (Tex. Dep’t of Transp., Agreements) (providing that if the Texas Department of Transportation requires the relocation of a utility facility as the result of an improvement to a state highway, the utility and the Department “shall negotiate ... in good faith to reach an agreement on the terms of the relocation”). Pursuant to the agreement, the Department agreed to reimburse Jersey Village for 95.45% of eligible costs, consisting of 100% reimbursement for the utility lines located in public easements and 50% reimbursement for the wateri line'that was not located in an easement. However, the agreement specifically excluded reimbursement for' replacement easements.

Still seeking reimbursement for replacement easements, Jersey Village' filed a motion for summary judgment in the trial court on its declaratory-judgment action in July 2014. The Commission and Hough-ton responded with an amended plea to the jurisdiction5 and motion for summary judgment. In their plea to the jurisdiction, the Commission and Houghton asserted that Jersey Village’s claims were barred by sovereign immunity and that no exceptions applied to waive that immunity.

The trial court granted summary judgment in favor of Jersey Village on September 24, 20T4. The trial court’s order stated in part that “[t]he provisions of Texas Transportation Code § 203[.]092 mean that The City of Jersey Village’s city-owned utility easements are compensable property interests, and Jersey Village’s ac-quisitión[s] of replacement utility easements are among the reimbursement costs for which the state ‘shall’ pay, pursuant to Section 203.092 of the Texas Transportation Code.”

The Commission and Houghton filed a motion requesting the court to reconsider its summary judgment order. The trial court denied the motion by order of October 23, 2014. The trial court subsequently signed an order denying the Commission’s and Houghton’s plea to the jurisdiction and motion for summary judgment on December 3, 2014.

The Commission and Houghton timely appealed from the trial court’s three orders, which they assert implicitly and explicitly denied their plea to the jurisdiction. See Tex. Civ. Prac. & Rem. Code Ann. § 51.014(a)(8) (Vernon 2015) (allowing an interlocutory appeal from a trial court order that grants or denies a plea to the jurisdiction by a governmental unit). ' The Commission and Houghton argue on appeal that Jersey Village’s claims are barred by sovereign immunity and, there[875]*875fore, the trial court lacks jurisdiction.

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Texas Transportation Commission and Ted Houghton, in His Official Capacity as Chair of the Texas Transportation Commission v. City of Jersey Village, 478 S.W.3d 869, 2015 Tex. App. LEXIS 10609, 2015 WL 6081972 (Tex. Ct. App. 2015).

478 S.W.3d 869 (Texas Transportation Commission and Ted Houghton, in His Official Capacity as Chair of the Texas Transportation Commission v. City of Jersey Village) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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