476 S.W.3d 25
Tex. App.2013Background
- Arbor E&T, LLC (Rescare) contracted with Lower Rio Grande Valley Workforce Development Board, Inc. (Workforce Solutions), a local workforce development board, to provide youth employment services and later sued for breach of contract for unpaid amounts and an allegedly improper fine.
- Workforce Solutions filed a plea to the jurisdiction asserting sovereign immunity; the trial court granted the plea and Arbor appealed interlocutorily under Tex. Civ. Prac. & Rem. Code § 51.014(a)(8).
- Workforce Solutions is a nonprofit local workforce development board operating under Chapter 2308, participating in the State’s integrated workforce development system alongside the Texas Workforce Commission (TWC) and the Texas Workforce Investment Council.
- Arbor sought to supplement the record with a TWC self-evaluation excerpt arguing LWDBs are non-governmental; the court admitted it for jurisdictional purposes.
- The court addressed (1) whether Workforce Solutions is a "governmental unit" enabling interlocutory appeal, (2) whether it is a state agency, (3) whether it has immunity from suit, and (4) whether immunity was waived under Tex. Loc. Gov’t Code § 271.152 for breach of contract.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Workforce Solutions is a "governmental unit" under the TTCA, permitting interlocutory appeal | Arbor: LWDBs are not governmental units; TWC evaluation shows they are non‑governmental | Workforce Solutions: LWDBs are governmental units and can invoke immunity | Held: Workforce Solutions is a governmental unit under TTCA (§ 101.001(3)) — appellate jurisdiction exists |
| Whether Workforce Solutions is a state agency | Arbor: Not a state agency; lacks statutory designation | Workforce Solutions: Quasi‑governmental; effectively part of State system and entitled to immunity | Held: Not a state agency — statute does not label LWDBs as state agencies and they lack statewide jurisdiction |
| Whether Workforce Solutions has sovereign immunity from suit for governmental functions | Arbor: No immunity (or only local entity immunity) | Workforce Solutions: Has immunity as a governmental unit performing governmental functions | Held: Workforce Solutions has common‑law sovereign immunity as a governmental unit for governmental functions |
| Whether immunity is waived under Tex. Loc. Gov’t Code § 271.152 for breach of contract | Arbor: Waiver applies because Workforce Solutions is a "local governmental entity" that entered a written contract | Workforce Solutions: Not a qualifying local governmental entity or is a unit of state government exempt from waiver | Held: Waiver applies — Workforce Solutions is a local governmental entity authorized to contract and entered a contract subject to Subchapter I; immunity waived for this breach‑of‑contract suit |
Key Cases Cited
- Bland Indep. Sch. Dist. v. Blue, 34 S.W.3d 547 (Texas 2000) (standard for reviewing plea to the jurisdiction)
- Mayhew v. Town of Sunnyvale, 964 S.W.2d 922 (Tex. 1998) (de novo review of jurisdictional facts)
- County of Cameron v. Brown, 80 S.W.3d 549 (Tex. 2002) (consider only jurisdictional evidence, not merits)
- Klein v. Hernandez, 315 S.W.3d 1 (Tex. 2010) (Legislature can designate private entity a state agency by statute)
- City of Galveston v. State, 217 S.W.3d 466 (Tex. 2006) (immunity is common‑law in origin; Legislature may waive)
- Ben Bolt–Palito Blanco Consol. Indep. Sch. Dist. v. Tex. Political Subdivisions Prop./Cas. Joint Self‑Ins. Fund, 212 S.W.3d 320 (Tex. 2006) (scope of waiver in §271.152 and intent to loosen immunity for local entities)
- City of Houston v. Williams, 353 S.W.3d 128 (Tex. 2011) (three elements for §271.152 waiver to apply)
- Alamo Workforce Development, Inc. v. Vann, 21 S.W.3d 428 (Tex. App.—San Antonio 2000) (local workforce boards act as arms of the State for certain purposes)
- Abilene Housing Auth. v. Gene Duke Builders, Inc., 226 S.W.3d 415 (Tex. 2007) (definition of "unit of state government")