Fort Worth Transp. Auth. v. Rodriguez
547 S.W.3d 830
| Tex. | 2018Background
- Fort Worth Transportation Authority (FWTA) contracts with private operators McDonald Transit Associates, Inc. (MTA) and McDonald Transit, Inc. (MTI) to run its bus system; driver Vaughn employed by a contractor.
- Rodriguez was injured by a bus and sued FWTA, MTA, MTI, the driver (Vaughn), and insurer New Hampshire Insurance.
- Central legal questions: whether Transportation Code §452.056(d) causes contractors to be treated like the authority for liability limits, whether the Texas Tort Claims Act (TTCA) $100,000 per-person cap (Tex. Civ. Prac. & Rem. Code §101.023) applies cumulatively across the authority and contractors, and whether the TTCA election-of-remedies (§101.106) bars suit against the driver.
- Transit defendants interpleaded funds and sought attorneys’ fees; trial court and court of appeals issued conflicting rulings on caps, election-of-remedies, and fees.
- The Supreme Court considered statutory construction of §452.056(d) alongside TTCA provisions and whether contractors’ employees get election-of-remedies protection.
Issues
| Issue | Rodriguez's Argument | Transit Defendants' Argument | Held |
|---|---|---|---|
| Whether independent contractors performing chapter 452 functions are subject to the TTCA $100,000 cap cumulatively (one cap for authority + contractors) | Cap should not aggregate across separate legal entities; each independent contractor (and FWTA) can be liable up to $100,000 | §452.056(d) treats contractors’ liability as limited to what the authority would owe, yielding a single $100,000 cap for the authority and contractors performing the same governmental functions | The court held contractors are liable only to the extent the authority would be; independent contractors performing essential governmental functions are cumulatively subject to a single $100,000 cap |
| Whether §452.056(d) grants or extends sovereign/governmental immunity to contractors | Contractors are not immune; §452.056(d) does not confer immunity so they may face full private liability | §452.056(d) limits contractors’ liability to what the authority would owe but does not grant immunity | The court held §452.056(d) limits liability but does not confer immunity to contractors |
| Whether election-of-remedies (§101.106) bars suit or recovery against contractor employee Vaughn when acting within scope | Plaintiff argued driver (a contractor employee) is not protected by §101.106 because TTCA excludes independent-contractor employees from its definition of "employee" | Transit defendants argued §452.056(d) treats contractors as the government for liability purposes, so their employees are protected by §101.106 | The court held that when a contractor acts as the government under §452.056(d), its employees acting within scope are protected by the TTCA election-of-remedies, barring separate suit against Vaughn |
| Whether Transit Defendants were entitled to attorneys’ fees for their interpleader | Plaintiff argued defendants were not innocent, disinterested stakeholders and did not unconditionally tender funds, so no fees | Transit defendants argued their interpleader and tender justified fees as an innocent stakeholder facing potential double liability | The court held the interpleader was improper: tender was conditioned and defendants were not innocent, disinterested stakeholders; fees denied and interpleaded funds (if any) should be returned |
Key Cases Cited
- Tex. Lottery Comm'n v. First State Bank of DeQueen, 325 S.W.3d 628 (Tex. 2010) (statutory construction: give effect to Legislature's intent and plain text)
- City of Rockwall v. Hughes, 246 S.W.3d 621 (Tex. 2008) (plain meaning controls absent ambiguity)
- Brown & Gay Eng'g, Inc. v. Olivares, 461 S.W.3d 117 (Tex. 2015) (declined to extend immunity to private contractors; discussed limits and purposes of immunity)
- Klein v. Hernandez, 315 S.W.3d 1 (Tex. 2010) (treating private-party resident physician as state employee for TTCA purposes where statutory/contractual scheme warranted it)
- Tooke v. City of Mexia, 197 S.W.3d 325 (Tex. 2006) (distinguishing immunity from liability and suit; TTCA waives aspects of immunity)
- City of Austin v. Cooksey, 570 S.W.2d 386 (Tex. 1978) (TTCA damages cap applies per injured person and limits governmental exposure)