Wight Realty Interests, Ltd. v. City of Friendswood, Texas

433 S.W.3d 26, 2013 WL 1341216, 2013 Tex. App. LEXIS 4278
CourtCourt of Appeals of Texas
DecidedApril 4, 2013
Docket01-11-01075-CV
StatusPublished
Cited by4 cases

This text of 433 S.W.3d 26 (Wight Realty Interests, Ltd. v. City of Friendswood, Texas) 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
Wight Realty Interests, Ltd. v. City of Friendswood, Texas, 433 S.W.3d 26, 2013 WL 1341216, 2013 Tex. App. LEXIS 4278 (Tex. Ct. App. 2013).

Opinion

OPINION

TERRY JENNINGS, Justice.

Appellant, Wight Realty Interests, Ltd. (“Wight Realty”), challenges the trial court’s orders granting appellee, the City of Friendswood (the “City”), summary judgment and its plea to the jurisdiction in Wight Realty’s suit against the City for breach of contract. In four issues, Wight Realty contends that the trial court erred in granting the City’s summary-judgment motion and its plea to the jurisdiction, denying Wight Realty’s summary-judgment motion, and overruling its evidentia-ry objections to documents that the City relied upon in the summary-judgment proceedings.

We reverse and remand.

Background

This is the second appeal from the underlying proceedings between Wight Realty and the City. See Wight Realty Interests, Ltd. v. City of Friendswood, 333 S.W.3d 792 (Tex.App.-Houston [1st Dist.] 2010, no pet.) (“Wight Realty I”). As explained in more detail in our prior opinion in Wight Realty I, in September 2008, Wight Realty and the City executed an earnest money contract providing that Wight Realty would construct and develop for the City youth recreational sports facilities on a tract of land owned by Wight Realty and two adjoining tracts, which were to be acquired by Wight Realty. Upon completion, the City was to purchase all of the land and facilities. Specifically, in regard to the first tract of land, the City asked Wight Realty to “plan, prepare, build, and construct ... certain recreational facilities according to [certain] plans and costs.... ” In regard to the second tract, the City asked Wight Realty to “construct ... a perimeter fence, grading and drainage improvements.... ” In regard to the third tract, the City asked Wight Realty “to construct ... a perimeter fence, grading and drainage improvements.... ” The contract further provided, in regard to each tract, the City with the option “at any time to terminate” the contract “in whole or in part” subject to the City’s “obligation to pay” Wright Realty “damages pursuant to Section 13” of the contract. Under section 13, the City agreed, in the event of its termination of the contract, to “immediately pay” Wight Realty “all sums incurred by” Wight Realty for “Cost of Improvements” “plus” specific liquidated damages as the “agreed upon opportunity loss value of the termination of the sale .... ”

Although the City terminated the contract in October 2009 prior to the transfer of any land or facilities from Wight Realty to the City, the City refused to pay Wight Realty for the costs it incurred for constructing the recreational facilities. Wight Realty filed suit against the City, asserting claims for breach of contract and estoppel and seeking recovery for its costs of construction and land acquisition and the contractual-termination damages.

In its plea to the jurisdiction, the City asserted that it is immune from suit, argu *29 ing that a statutory provision 1 that waives a city’s immunity from suit for breach-of-contract claims involving the provision of “goods or services” did not apply because its contract with Wight Realty involves real property. In its response, Wight Realty argued that because it had provided the City with acquisition, development, and construction services, the City’s immunity was waived. Wight Realty attached to its response the affidavit of David Wight, Wight Realty’s general partner, who testified that Wight Realty had, pursuant to the contract, acquired the adjoining tracts of land and commenced construction of the facilities. Wight noted that Wight Realty cleared the land, filled existing ponds with soil, dug a detention pond, and graded soccer and baseball fields. And Wight Realty spent $457,910.28 to provide the services and $540,000 to acquire the adjoining tracts of land.

The trial court granted the City’s plea to the jurisdiction, dismissing Wight Realty’s claims, and Wight Realty appealed. In Wight Realty I, this Court, concluding that the contract “plainly” required Wight Realty to provide “services” and contained “the essential terms of the parties’ agreements,” held that the City’s immunity was waived. Id. at 798-99. Accordingly, we remanded the case for further proceedings. Id. at 799.

Following remand, the City filed another summary-judgment motion and plea to the jurisdiction, arguing, in part, that the contract that it drafted and entered into is illegal and void because the City did not have the authority to acquire the pertinent tracts of land for use as a park as they were situated outside of the counties in which the City is located. 2 The City noted that the land to be acquired from Wight Realty is located in Brazoria County, while the City is located in Galveston and Harris Counties.

Wright Realty filed a cross summary-judgment motion, arguing that it is entitled to judgment as a matter of law on its breach-of-contract claim because the City’s contract with it is valid, it has performed the contract by acquiring the adjoining land and commencing construction, and the City has defaulted without making the contractually required payments. The trial court granted the City’s summary-judgment motion and denied Wight Realty’s summary-judgment motion. Subsequently, the trial court granted the City’s plea to the jurisdiction. 3

Standard of Review

To prevail on a summary-judgment motion, a movant has the burden of proving that it is entitled to judgment as a matter of law and there is no genuine issue of material fact. Tex.R. Civ. P. 166a(c); Cathey v. Booth, 900 S.W.2d 339, 341 (Tex.1995). When a defendant moves for summary judgment, it must either (1) disprove at least one essential element of the plaintiffs cause of action or (2) plead and conclusively establish each essential element of its affirmative defense, thereby defeating the plaintiffs cause of action. Cathey, 900 S.W.2d at 341; Yazdchi v. Bank One, Tex., N.A., 177 S.W.3d 399, 404 (Tex.App.-Houston [1st Dist.] 2005, pet. denied). When deciding whether there is a disput *30 ed, material fact issue precluding summary judgment, evidence favorable to the non-movant will be taken as true. Nixon v. Mr. Prop. Mgmt. Co., 690 S.W.2d 546, 548-49 (Tex.1985). Every reasonable inference must be indulged in favor of the non-movant and any doubts must be resolved in its favor. Id. at 549.

We review de novo a trial court’s ruling on a jurisdictional plea. See Kalyanaram v. Univ. of Tex. Sys., 280 S.W.3d 921, 925 (Tex.App.-Dallas 2007, no pet.). When reviewing a trial court’s ruling on a challenge to its jurisdiction, we consider the plaintiffs pleadings and factual assertions, as well as any evidence in the record that is relevant to the jurisdictional issue. City of Elsa v. Gonzalez,

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433 S.W.3d 26, 2013 WL 1341216, 2013 Tex. App. LEXIS 4278, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wight-realty-interests-ltd-v-city-of-friendswood-texas-texapp-2013.