Tooke v. City of Mexia

197 S.W.3d 325, 49 Tex. Sup. Ct. J. 819, 2006 Tex. LEXIS 654, 2006 WL 1792223
CourtTexas Supreme Court
DecidedJune 30, 2006
Docket03-0878
StatusPublished
Cited by902 cases

This text of 197 S.W.3d 325 (Tooke v. City of Mexia) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tooke v. City of Mexia, 197 S.W.3d 325, 49 Tex. Sup. Ct. J. 819, 2006 Tex. LEXIS 654, 2006 WL 1792223 (Tex. 2006).

Opinion

Justice HECHT

delivered the opinion of the Court,

in which Chief Justice JEFFERSON, Justice WAINWRIGHT, Justice BRISTER, Justice MEDINA, and Justice GREEN joined.

Scores of Texas statutes provide, variously, that individuals and entities, public and private, may “sue and (or) be sued”, “(im)plead and (or) be impleaded”, “be impleaded”, “prosecute and defend”, “defend or be defended”, “answer and be answered”, “complain and (or) defend”, or some combination of these phrases, in court. 1 The phrases are also used in municipal charters and ordinances and in corporate articles and bylaws. Read in context, they sometimes waive governmental immunity from suit, sometimes do not, and sometimes have nothing whatever to do with immunity, referring instead to the capacity to sue and be sued or the manner in which suit can be had (for example, by service on specified persons). Because im *329 munity is waived only by clear and unambiguous language, 2 and because the import of these phrases cannot be ascertained apart from the context in which they occur, we hold that they do not, in and of themselves, waive immunity from suit.

This case involves a suit against a city for breach of contract. The trial court rendered judgment on a verdict for the plaintiffs, but the court of appeals reversed, 3 holding that the contract covered a governmental function of the city over which it was immune from suit, and that immunity was not waived by section 51.075 of the Local Government Code, which provides simply that a home-rule municipality 4 “may plead and be impleaded in any court.” 5 We agree with the court of appeals.

While this case has been pending, the Legislature has enacted a limited waiver of the immunity municipalities and certain other governmental entities have from suit for breach of contract. 6 Although the waiver is partially retroactive and would therefore reach the claim in this case, 7 the consequential damages awarded the plaintiffs are not allowed by the statute. Accordingly, we conclude that recovery in this case is barred and therefore affirm the judgment of the court of appeals.

I

After competitive bids, the City of Me-xia, a home-rule city, awarded a contract to J.E. Tooke & Sons, a sole proprietorship owned by Judy Tooke and her husband, Everett, to furnish the labor and equipment for collecting brush and leaves curbside within the city. The contract stated that its term was “for a three year *330 period beginning November 1, 1996”, but also provided that it was “automatically renewable at the end of the first year and on the anniversary of each year thereafter, unless either party furnishes written notice to the other party at least sixty (60) days prior to said annual anniversary.” For about 14 months, the Tookes performed under the contract, and the City paid all them invoices, but in December 1997, after the contract’s first anniversary, the City’s director of public works advised the Tookes that the City’s budget for their services had been exhausted. The Tookes did no more work, and the following March, the city manager notified them by letter that the City was “discontinuing” the contract for lack of funding.

The Tookes sued the City for breach of contract, asserting that they had relied on a three-year term in purchasing equipment. They claimed unspecified damages but requested jury findings only on lost profits and attorney fees, which the jury found to be $8,659 and $7,500, respectively. They did not claim that the City had failed to pay for the work they had done. The trial court rejected the City’s contention that it was immune from suit and rendered judgment on the verdict plus prejudgment interest. The City appealed.

To counter the City’s assertion of immunity, the Tookes argued that immunity had been waived three ways. First, they argued that section 51.075 waives immunity by providing that home-rule municipalities “may plead and be impleaded in any court.” 8 The court of appeals, noting the disagreement among its sister courts on the subject, 9 looked to the four “aids to help guide ... analysis in determining whether the Legislature has clearly and unambiguously waived sovereign immunity” set out in our opinion in Wichita Falls State Hospital v. Taylor:

First, a statute that waives the State’s immunity must do so beyond doubt, even though we do not insist that the statute be a model of “perfect clarity.” ... For example, we have found waiver when the provision in question would be meaningless unless immunity were waived....
Second, when construing a statute that purportedly waives sovereign immunity, we generally resolve ambiguities by retaining immunity....
Third, if the Legislature requires that the State be joined in a lawsuit for which immunity would otherwise attach, the Legislature has intentionally waived the State’s sovereign immunity....
Finally, we are cognizant that, when waiving immunity by explicit language, the Legislature often enacts simultaneous measures to insulate public resources from the reach of judgment creditors.... Therefore, when deciding whether the Legislature intended to waive sovereign immunity and permit monetary damages against the State, one factor to consider is whether the statute also provides an objective limitation on the State’s potential liability.... 10

Applying these factors to the City’s claim of governmental immunity, 11 the court of *331 appeals concluded that section 51.075 is “ambiguous at best”. 12 The court reasoned that because the phrase “plead and be impleaded” often appears in statutes in conjunction with “sue and be sued,” and because “sue and be sued” waives immunity from suit, according to this Court’s holding in Missouri Pacific Railroad Co. v. Brownsville Navigation District, 13 “plead and be impleaded” must be presumed to have a different meaning if every word of such statutes is to be given effect. 14 The latter phrase, the court said, “can be reasonably construed as authorization for municipalities to file pleadings and be named in adverse pleadings in lawsuits in which immunity from suit has already been waived.” 15 Further, the court observed, section 51.075 “does not require the joinder of a home-rule municipality in a suit for which immunity would otherwise attach”,

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Cite This Page — Counsel Stack

Bluebook (online)
197 S.W.3d 325, 49 Tex. Sup. Ct. J. 819, 2006 Tex. LEXIS 654, 2006 WL 1792223, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tooke-v-city-of-mexia-tex-2006.