City of Pearsall v. Robert Tobias
04-15-00302-CV
Tex. App.Nov 30, 2015Background
- Appellant City of Pearsall terminated City Manager Robert M. Tobias, Jr.; Tobias sued seeking declaratory relief and money damages related to his employment agreement.
- The disputed contract contained a residency requirement (Section 10.b.) that City argues is ultra vires and therefore void, and a severability clause (Section 11.d.).
- Tobias sought declaratory relief addressing the contract’s validity and severability; the trial court entered a declaratory judgment awarding money damages and fees.
- The City contends the declaratory judgment effectively awarded a money judgment without adjudicating the pending breach-of-contract claim and that jurisdiction/sovereign-immunity issues were not properly addressed.
- City argues factual disputes about Tobias’s performance (anticipatory breach) remained and that declaratory relief was improperly used as a vehicle to obtain money damages.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Validity of residency provision (ultra vires) and severability | Tobias: illegal provision can be severed so remainder of contract and severance obligation stand | City: residency clause is ultra vires and makes contract void; severability and other defenses available | Trial court granted declaratory relief resolving severability in Tobias’s favor (order awarded money); City disputes basis and seeks reversal |
| Whether declaratory judgment was authorized under Tex. Loc. Gov’t Code §271.152 (waiver of immunity for breach adjudication) | Tobias: §271.152 permits declaratory action against municipality and waived immunity for adjudicating contract rights | City: December 2 order did not adjudicate breach under §271.152; Tobias did not invoke §271.152 at hearings; declaratory judgment duplicated breach claim and thus immunity was not waived | Trial court entered money award by declaratory judgment; City argues that order is not an adjudication under §271.152 and immunity remains for declaratory route used |
| Sovereign immunity and use of declaratory judgment to obtain money damages | Tobias: immunity waived (per his reading of §271.152 and related authorities) | City: IT–Davy and subsequent cases hold that if declaratory relief’s sole purpose is to obtain money, immunity is not waived; subchapter preserves defenses and limits | City contends IT–Davy controls; trial court nonetheless awarded money by declaratory judgment, prompting appeal |
| Whether factual performance issues (Tobias’s readiness/anticipatory breach) precluded declaratory relief | Tobias: contends he was ready, willing, and able to perform; declaratory relief appropriate | City: evidence (mayor’s affidavit) showed Tobias failed to perform, creating factual issues more appropriate for breach adjudication, not declaratory relief | Record shows factual disputes remained; City argues declaratory judgment improperly ignored those performance issues |
Key Cases Cited
- Ben Bolt-Palito Blanco Consol. Indep. Sch. Dist. v. Texas Political Subdivisions Prop./Cas. Joint Self-Ins. Fund, 212 S.W.3d 320 (Tex. 2006) (interpreting §271.152 waiver in insurance/coverage dispute)
- Tex. Natural Res. Conservation Comm'n v. IT–Davy, 74 S.W.3d 849 (Tex. 2002) (if declaratory relief’s sole purpose is to obtain money judgment, immunity not waived)
- City of Houston v. Williams, 216 S.W.3d 827 (Tex. 2007) (courts must determine if declaratory relief is used merely to obtain money damages)
- Zachry Constr. Corp. v. Port of Houston Auth., 449 S.W.3d 98 (Tex. 2014) (subchapter does not waive defensive limitations available to governmental parties)
- Lower Colo. River Auth. v. City of Boerne, 422 S.W.3d 60 (Tex. App.—San Antonio 2013) (declaratory claim duplicative of breach-of-contract claim does not waive immunity)
- Nat’l Public Fin. Guar. Corp. v. Harris Cnty.-Houston Sports Auth., 448 S.W.3d 472 (Tex. App.—Houston [1st Dist.] 2014) (section 271.152 does not waive immunity where no breach claim is alleged; limits on declaratory route)