the Boeing Company v. Greg Abbott, Attorney General of Texas, and the Greater Kelly Development Authority N/K/A the Port Authority of San Antonio

412 S.W.3d 1, 2012 WL 753170, 2012 Tex. App. LEXIS 1925
CourtCourt of Appeals of Texas
DecidedMarch 9, 2012
Docket03-10-00411-CV
StatusPublished
Cited by9 cases

This text of 412 S.W.3d 1 (the Boeing Company v. Greg Abbott, Attorney General of Texas, and the Greater Kelly Development Authority N/K/A the Port Authority of San Antonio) 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.

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the Boeing Company v. Greg Abbott, Attorney General of Texas, and the Greater Kelly Development Authority N/K/A the Port Authority of San Antonio, 412 S.W.3d 1, 2012 WL 753170, 2012 Tex. App. LEXIS 1925 (Tex. Ct. App. 2012).

Opinions

OPINION

DIANE M. HENSON, Justice.

Boeing Company appeals from the district court’s final judgment denying Boe-mg’s request for declaratory and injunctive relief under the Texas Public Information Act (PIA). See Tex. Gov’t Code Ann. §§ 552.001-.353 (West 2004 & Supp. 2010). Boeing brought suit seeking to prevent disclosure of portions of a real property lease agreement between Boeing and The Greater' Kelly Development Authority n/k/a The Port Authority of San Antonio (“.the Port”). The- final judgment denies Boeing its requested relief and orders that the information at issue be made available to the requestor. We affirm the district court’s judgment.

BACKGROUND

Boeing is a major aerospace company, providing goods and services to both the private and public sectors.1 In 1995, Boeing’s lease with American Airlines in Tulsa, Oklahoma, was ending, and Boeing had begun a nationwide search for suitable, substitute property to lease. Eventually, Boeing entered into lease negotiations with the Port regarding property at the former Kelly Air Force Base in San Antonio, Texas (“Kelly”).

According to Boeing, these lease negotiations continued for more than two years and involved more than twelve Boeing employees. In addition, Boeing hired outside consultants to develop a “competitive range” model with respect to any proposed lease terms. Through negotiations, Boeing sought to obtain lease terms within this competitive range in order to assure its ability to compete for future government contracts from the Kelly location.

According to the Port, in order to induce Boeing to relocate to San Antonio, the City of San Antonio secured a $32.5 million loan from the U.S. Department of Housing and [6]*6Urban Development to pay for property improvements, at Kelly. In turn, the City of San Antonio loaned the Port $82.5 million to complete the improvements. In 1998, Boeing and the Port executed a lease for approximately 1.3 million square feet at Kelly for an initial term of twenty years (“the Lease”). The Port claims that Boeing’s payments under the Lease help the Port repay the loan to the City of San Antonio.

At Kelly, Boeing’s work has consisted primarily of aircraft maintenance and modification for the United States Air Force. Among the aircraft serviced by Boeing at Kelly are the C-17 Globemaster, the C-130 Hercules cargo aircraft, and the KC-135 Stratotanker. Under contracts with the Air Force, Boeing is responsible for upgrading and maintaining these aircraft as necessary. For example, Boeing services K-135s, Eisenhower-era tankers which provide in-flight refueling, by doing complete upgrades and periodic inspections to determine if the airplanes are safe to continue in operation. Similarly, Boeing upgrades C-17s, an aircraft used in both military and humanitarian missions, by making their configurations more uniform and thus easier to fly and maintain. Boeing also installs defensive countermeasures on the C-17s, allowing the aircraft to thwart missile attacks when supplying forces in hostile areas. Finally, Boeing is responsible for modernizing the avionics of over two hundred C-130s, a four engine turbo-prop cargo plane that has been in continuous use for more than fifty years.

In 2005, Robert Silvas made a request under the PIA for, among other things, the Lease between Boeing and the Port.2 Boeing notified the Attorney General of Texas of its objections to the release of certain Lease terms, primarily related to amounts paid by Boeing under the Lease, including rental rates, share of common maintenance costs, insurance-coverage requirements, liquidated-damages provisions, and lease incentives (“the Lease information”). See Tex. Gov’t Code Ann. § 522.305(b) (West 2004) (providing that person whose privacy or property interests are implicated by request may submit reasons for withholding information to attorney general). Upon considering Boeing’s objections, the attorney general issued a letter ruling determining that the Lease information was not excepted from disclosure under the PIA.3

Boeing then filed suit against the attorney general and the Port, challenging the attorney general’s ruling.4 In this suit, Boeing sought a declaration that the Lease information is not subject to disclosure because the information falls within one or more exceptions to disclosure under the PIA. Boeing also sought an injunction to prevent the Port from disclosing the infor-

[7]*7mation on this basis. See id. § 552.3215 (West 2004) (providing that person who claims to be victim of PIA violation may bring suit for declaratory judgment or in-junctive relief). After a bench trial on the merits, the court denied Boeing any relief and ordered that the Port make the information available to Silvas. The court then issued findings of fact and conclusions of law. In relevant part, the court found that (1) the Lease is a contract relating to the receipt or expenditure of public or other funds of a government body, (2) the Lease information is not a trade secret, and (8) the Lease was negotiated between Boeing and the Port and is fully executed, is not the result of competitive bidding, and is not subject to any competitive-bid process. The court issued the following relevant conclusions of law:

1. This is a suit by [Boeing] seeking to withhold information from a request- or, pursuant to the Texas Public Information Act (PIA), Tex. Gov’t Code § 552.325 (West 2004).
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5. Common law trade secrets does [sic] not protect the information at issue from disclosure.
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9. Tex. Gov’t Code § 552.104 does not except the information at issue from disclosure.
10. [Boeing] lacks standing to assert section 552.104 as a basis for withholding the information at issue.
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14. The information at issue must be disclosed under Tex. Gov’t Code § 552.022(a)(3); no other law, including common law trade secrets, expressly makes the information confidential.

On appeal, Boeing asserts that the trial court erred in ordering disclosure of the Lease information. Specifically, Boeing asserts in three issues that (1) the Lease information is a trade secret, and therefore protected from disclosure under section 552.022 as “expressly confidential under other law,” (2) Boeing has standing to invoke section 522.104 of the PIA, arid (3) the Lease information would give advantage to a competitor or bidder and therefore is protected from disclosure under section 522.104 of the PIA.

STANDARD OF REVIEW

In an appeal of a bench trial, findings of fact issued by the trial court have the same force and effect as a jury verdict. Anderson v. City of Seven Points, 806 S.W.2d 791, 794 (Tex.1991). Unchallenged findings of fact are binding on an appellate court unless the contrary is established as a matter of law or there is no evidence, to support the finding. See McGalliard v. Kuhlmann, 722 S.W.2d 694, 696-97 (Tex.1986). As the fact finder, the trial court is the sole judge of the credibility of the witnesses and the weight to be given their testimony. Id.

We review a trial court’s conclusions of law de novo. BMC Software Belgium, N.V. v. Marchand,

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