LTTS CHARTER SCHOOL, INC. v. Palasota
362 S.W.3d 202
Tex. App.2012Background
- Palasota filed suit in 2005 alleging Universal Academy breached a listing agreement for sale of its Flower Mound campus and sought a commission based on a 6% / 3% formula payable at closing.
- Universal Academy allegedly sold the Property in August 2004 and refused to honor the listing or pay Palasota’s commission.
- The signing authority of the Listing Agreement was contested; Blackmon signed an affidavit stating she signed the agreement, but Palasota did not show contrary evidence.
- Universal Academy filed a plea to the jurisdiction asserting sovereign/governmental immunity and arguing TTCA and Local Government Code waivers did not apply to Palasota’s contract and tort claims.
- The trial court denied the plea; this Court initially lacked jurisdiction, the Texas Supreme Court reversed and remanded after LTTS decisions, and on remand a majority held open-enrollment charter schools are governmental units and immunities apply.
- On remand, the court ultimately granted the plea to the jurisdiction and dismissed Palasota’s claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does Universal Academy qualify as a governmental unit under TTCA and Local Government Code waivers? | Palasota | Universal Academy | Yes for TTCA open-enrollment charter schools; immunity applies to claims. |
| Is Palasota’s tort claim barred by TTCA immunity for intentional torts like fraud? | Palasota | Universal Academy | TTCA does not waive immunity for intentional torts; fraud claims barred. |
| Does 271.152 waive immunity for Palasota’s breach-of-contract claim? | Palasota | Universal Academy | No; essential-terms missing; waiver inapplicable. |
| Is Palasota’s constructive-trust claim a separate waiver issue? | Palasota | Universal Academy | Constructive trust is an equitable remedy, not a standalone tort; immunity not waived. |
| Is Universal Academy immune from Palasota’s tort and contract claims? | Palasota | Universal Academy | Immunity applicable; claims barred. |
Key Cases Cited
- LTTS Charter Sch., Inc. v. C2 Construction, Inc., 358 S.W.3d 725 (Tex.App.-Dallas 2011) (open-enrollment charter schools are governmental units for TTCA immunity)
- LTTS Charter Sch., Inc. v. C2 Construction, Inc., 344 S.W.3d 378 (Tex. 2011) (supreme court remanded for TTCA/waiver analysis)
- C2 Constr. I, 342 S.W.3d 73 (Tex. 2011) (open-enrollment charter school is a governmental unit under TTCA)
- C2 Constr. II, 358 S.W.3d 742 (Tex.App.-Dallas 2011) (applies 271.152 waiver to open-enrollment charter schools)
- Seureau v. ExxonMobil Corp., 274 S.W.3d 206 (Tex.App.-Houston [14th Dist.] 2008) (fraud is an intentional tort not waived by TTCA)
- Williams v. City of Houston, 353 S.W.3d 136 (Tex. 2011) (price to be paid and essential terms concerns in waiver context)
- Learners Online, Inc. v. Dallas Indep. Sch. Dist., 333 S.W.3d 636 (Tex.App.-Dallas 2009) (contract waiver under Local Government Code 271.152 requires written contract with essential terms)
- S & I Mgmt., Inc. v. Sungju Choi, 331 S.W.3d 849 (Tex.App.-Dallas 2011) (statute of frauds; commissions must be in writing to be enforceable)
- Lathem v. Kruse, 290 S.W.3d 922 (Tex.App.-Dallas 2009) (elements of 271.152 waiver include essential terms and written contract)
- Bass v. Bass, 790 S.W.2d 113 (Tex.App.-Fort Worth 1990) (uncontroverted facts in jurisdictional proof treated as true for appeal)