the City of Cleburne v. RT General, LLC

CourtCourt of Appeals of Texas
DecidedDecember 16, 2020
Docket10-20-00037-CV
StatusPublished

This text of the City of Cleburne v. RT General, LLC (the City of Cleburne v. RT General, 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
the City of Cleburne v. RT General, LLC, (Tex. Ct. App. 2020).

Opinion

IN THE TENTH COURT OF APPEALS

No. 10-20-00037-CV

THE CITY OF CLEBURNE, Appellant v.

RT GENERAL, LLC, Appellee

From the 413th District Court Johnson County, Texas Trial Court No. DC-C201900937

MEMORANDUM OPINION

In two issues, appellant, the City of Cleburne, challenges the trial court’s denial of

its plea to the jurisdiction in favor of appellee, RT General, LLC. We affirm.

I. BACKGROUND

Beginning in early 2014, RT General began to occupy an aircraft hangar, Hangar

98, at the City’s Municipal Airport. RT General uses this hangar as a facility for providing

aircraft storage, maintenance, and painting services to the public. Without a written agreement with the City, RT General made over $300,000 in repairs, alterations, and

improvements to Hangar 98.

On October 1, 2016, RT General and the City entered into an Airport Lease

Agreement for the lease of Hangar 98. The term of the lease was for fifteen years,

beginning on October 1, 2016. The lease also provided the following:

In consideration of the improvements made, currently in progress, or to be made by Lessee, the value of which Lessor and Lessee expressly agree, is in excess of three hundred thousand dollars ($300,000), Lessor and Lessee have expressly agreed and do hereby expressly agree that Lessee shall have the right to occupy the Premises rent free for a period of ten (10) years during the Term of this Lease, and thus during the ten (10) year period of this Lease, no rental payments or fees shall be due to Lessor from Lessee.

The lease further provided that during the last five years of the primary term of the lease,

RT General would pay the City $1,331.99 in monthly rent to the City.

All was well until May 24, 2018, when the City sent a letter to RT General notifying

the company that it was in violation of the terms of the lease. Specifically, the City

indicated that RT General needed to mow the grass, clean up the facility, throw some

trash away, and provide the City with proof of insurance and permits from the Texas

Commission on Environmental Quality.

As indicated in an email sent by counsel for RT General, the company quickly

cured the violations outlined in the May 24, 2018 letter from the City. Notably, on May

31, 2018, counsel for the City sent RT General an email confirming “that the listed defaults

The City of Cleburne v. RT General, LLC Page 2 in the May 24, 2018 letter to RT General, LLC have been cured within the allotted time

frame.”

Thereafter, on November 22, 2019, counsel for the City sent RT General a letter

stating that it must vacate the premises no later than December 13, 2019, at 5:00 p.m. In

this eviction letter, the City, for the first time, informed RT General that the October 1,

2016 Airport Lease Agreement “has no legal effect since, among other factors, no

consideration is specified in it and no consideration has been given by RT General for

occupation of the premises.” At the time of the eviction letter, RT General had six to

seven airplanes “in different stages of repair and inspection.” Many of the airplanes were

not “airworthy” and would take a substantial amount of time to become “airworthy.”

In response to the City’s eviction letter, RT General filed an original petition and

application for temporary restraining order, temporary injunction, and permanent

injunction. In its original petition, RT General alleged a breach-of-contract claim for

which specific performance was requested, a claim for anticipatory breach of contract, a

claim for fraud, a declaratory-judgment action, and a takings/inverse condemnation

claim. The City responded by filing an original answer denying the allegations in RT

General’s petition, as well as a plea to the jurisdiction arguing that the City is immune

from suit and that there is no allegation of any waiver of governmental immunity. RT

General filed a supplemental petition and a separate response addressing the

governmental-immunity arguments made by the City in its plea to the jurisdiction.

The City of Cleburne v. RT General, LLC Page 3 The trial court conducted hearings on the City’s plea to the jurisdiction, as well as

RT General’s requests for injunctive relief. At the conclusion of the hearings, the trial

court denied the City’s plea to the jurisdiction and granted RT General’s request for a

temporary injunction.1 This accelerated, interlocutory appeal followed.

II. GOVERNMENTAL IMMUNITY AND RT GENERAL’S CONTRACT CLAIMS

In its first issue, the City contends that the trial court erred by denying the City’s

plea to the jurisdiction based on governmental immunity to a suit for breach of contract.

In particular, the City argues that the operation of a municipal airport is a governmental

function for which the City is immune and that the lease did not state all essential terms

with sufficient specificity to constitute a contract waiving the City’s immunity.

A. Standard of Review

A plea to the jurisdiction seeks dismissal of a case or a cause of action for lack of

subject-matter jurisdiction. See Harris County v. Sykes, 136 S.W.3d 635, 638 (Tex. 2004); see

also Bland Indep. Sch. Dist. v. Blue, 34 S.W.3d 547, 554 (Tex. 2000). Subject-matter

jurisdiction involves a court’s power to hear a case or cause of action. Tellez v. City of

Socorro, 226 S.W.3d 413, 413 (Tex. 2007) (per curiam).

“When a plea to the jurisdiction challenges the pleadings, we determine if the

pleader has alleged facts that affirmatively demonstrate the court’s jurisdiction to hear

the cause.” City of El Paso v. Heinrich, 284 S.W.3d 366, 378 (Tex. 2009) (internal quotations

1 The City does not appear to complain about the trial court’s temporary injunction in this appeal.

The City of Cleburne v. RT General, LLC Page 4 & citations omitted). “Whether a pleader has alleged facts that affirmatively demonstrate

a trial court’s subject matter jurisdiction is a question of law reviewed de novo.” Tex. Dep’t

of Parks & Wildlife v. Miranda, 133 S.W.3d 217, 226 (Tex. 2004) (emphasis in original).

B. Immunity

“Sovereign immunity and its counterpart, governmental immunity, exist to

protect the State and its political subdivisions from lawsuits and liability from money

damages.” Mission Consol. Indep. Sch. Dist. v. Garcia, 253 S.W.3d 653, 655 (Tex. 2008).

Under the common-law doctrine of sovereign immunity, the State cannot be sued

without its consent. City of Houston v. Williams, 353 S.W.3d 128, 134 (Tex. 2011) (citing

Tooke v. City of Mexia, 197 S.W.3d 325, 331 (Tex. 2006)). Like sovereign immunity,

governmental immunity affords similar protection to subdivisions of the State, including

counties, cities, and school districts.

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