Lower Colorado River Authority v. City of Boerne, Texas
422 S.W.3d 60
| Tex. App. | 2014Background
- LCRA entered Wholesale Power Agreements with Boerne in 1974 for Boerne to buy all electric power from LCRA with a 25-year term and automatic renewal unless terminated.
- A Uniform Rate Clause required LCRA to offer lower rates to Boerne if Boerne’s rate was lower for similarly situated customers.
- An 1987 amendment extended the WPA to 2016, with a termination notice deadline of June 25, 2011.
- In 2011, LCRA renegotiated many WPAs to 2041; Boerne chose not to renegotiate and allowed its WPA to expire in 2016.
- On June 28, 2012 Boerne claimed a material breach of the Uniform Rate Clause and gave 30 days to cure; on August 13, 2012 Boerne notified it would terminate the WPA on September 13, 2012 if uncured.
- LCRA sued for declaratory judgment, breach of contract, and damages; Boerne moved for a plea to the jurisdiction, which the trial court granted as to the declaratory judgment claim and denied as to the breach claim; this appeal followed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether immunity bars LCRA’s declaratory judgment claim | LCRA contends proprietary functions negate immunity | Boerne argues immunity may apply unless waived by statute | Immunity not waived for declaratory judgment claim; Wheelabrator governs; declaratory claim dismissed |
| Whether Section 271.152 waives immunity for declaratory judgments | LCRA argues the waiver covers declaratory judgments | Boerne argues waiver only for adjudicating breach of contract | Waiver does not expressly include declaratory judgments; court preserves breach claim and dismisses declaratory claim |
| Whether LCRA’s declaratory claim is duplicative of its breach claim and thus jurisdictional | Declaratory judgment clarifies rights; not duplicative | Declaratory relief is not appropriate where a breach claim exists | Declaratory claim duplicative of breach claim; jurisdiction limited to breach; declaratory denied |
Key Cases Cited
- Gates v. City of Dallas, 704 S.W.2d 737 (Tex. 1986) (proprietary vs governmental functions; municipal immunity context)
- Wheelabrator Air Pollution Control, Inc., 381 S.W.3d 597 (Tex. App.—San Antonio 2012) (limits of immunity waivers under 271.152; ongoing authority)
- Tooke v. City of Mexia, 197 S.W.3d 325 (Tex. 2006) (immunity as default; limits of contractual waivers under Chapter 271)
- City of Houston v. Williams, 353 S.W.3d 128 (Tex. 2011) (gen. discussion of governmental immunity for subdivisions)
- Tex. Parks & Wildlife v. Miranda, 133 S.W.3d 217 (Tex. 2004) (standard for reviewing immunity in jurisdictional pleas)
- Ben Bolt-Palito Blanco Consol. Indep. Sch. Dist. v. Tex. Political Subdivis. Prop./Cas. Joint Self-Ins. Fund, 212 S.W.3d 320 (Tex. 2006) (immunity from suit vs liability; statutory waivers context)