Texas Municipal League Joint Self-Insurance Fund, and Texas Municipal League Intergovernmental Risk Pool v. Housing Authority of City of Alice
04-15-00069-CV
| Tex. App. | Apr 16, 2015Background
- The Texas Municipal League Joint Self-Insurance Fund ("Risk Pool") is an interlocal self-insurance governmental entity formed under state statutes; the Housing Authority of the City of Alice ("Authority") is a member under an Interlocal Agreement that incorporates a Property Coverage Document governing claims and appraisal procedures.
- After a May 27, 2014 storm, the Risk Pool inspected Authority property, paid $429,143.72 (ACV less deductible), and the Authority later submitted an untimely sworn proof of loss claiming at least $3.5 million and demanded appraisal.
- The Authority filed suit styled "Application for the Appointment of an Umpire" seeking specific performance (appointment of an appraisal umpire) under the Property Coverage Document; it did not sue for breach of contract or damages.
- The Risk Pool filed a plea to the jurisdiction (asserting governmental immunity) and a plea in abatement (asserting failure to exhaust/comply with pre-suit contractual objection procedures and other conditions precedent); it also filed a verified answer denying compliance with conditions precedent.
- The trial court held a hearing, admitted live testimony and exhibits over Risk Pool objections, and signed an "Order Selecting Umpire" denying the pleas and appointing an umpire; Risk Pool appealed, arguing lack of jurisdiction, erroneous denial of abatement, and procedural error in granting pretrial relief without summary-judgment procedure.
Issues
| Issue | Plaintiff's Argument (Authority) | Defendant's Argument (Risk Pool) | Held (trial court order at issue) |
|---|---|---|---|
| Whether the trial court had jurisdiction over Authority's suit for specific performance (appointment of umpire) against a governmental Risk Pool | The appraisal clause in the Property Coverage Document entitles Authority to court-ordered appointment of an umpire | Governmental immunity bars suit absent clear statutory waiver; Authority did not plead any waiver and seeks equitable relief only | Trial court denied plea to jurisdiction and ordered appointment of umpire (this appeal challenges that ruling) |
| Whether the suit should be abated for failure to follow contract's pre-suit objection/board review procedure | Not clearly argued in pleadings at trial (Authority proceeded to hearing) | Interlocal Agreement requires member to present objections to Board as condition precedent; suit must be abated until process exhausted | Trial court denied plea in abatement (this appeal challenges that ruling) |
| Whether the trial court could grant ultimate relief at a pretrial hearing without compliance with Texas Rule of Civil Procedure 166a summary-judgment procedures | Authority proceeded by hearing and offered live testimony/exhibits to obtain appointment | Rule 166a requires written motion, 21-day notice, sworn summary evidence, and bars oral testimony; Authority did none of these; Risk Pool was entitled to summary-judgment protections | Trial court granted relief without following Rule 166a; Risk Pool contends this was procedural error and abuse of discretion |
| Whether the Local Government Contract Claims Act (Chapter 271) waived immunity to allow this suit for appointment of umpire | Authority (at hearing) argued §271.154/Act renders contractual adjudication procedures enforceable and somehow supports jurisdiction | Act waives immunity only for breach-of-contract adjudication within §271.152–.153 remedies; it does not waive immunity for equitable specific-performance/appraisal appointment claims and does not supply a clear, unambiguous waiver here | Trial court applied no statutory waiver in writing; Risk Pool argues Act does not waive immunity for this relief (this is central to the appeal) |
Key Cases Cited
- Tex. Dep't of Parks & Wildlife v. Miranda, 133 S.W.3d 217 (Tex. 2004) (standards for plea to the jurisdiction and consideration of evidence)
- Reata Constr. Corp. v. City of Dallas, 197 S.W.3d 371 (Tex. 2006) (governmental immunity principles and required clarity for waiver)
- Tooke v. City of Mexia, 197 S.W.3d 325 (Tex. 2006) (limits on waivers of immunity under Local Government Contract Claims Act)
- County of Cameron v. Brown, 80 S.W.3d 549 (Tex. 2002) (procedures when pleadings fail to affirmatively demonstrate jurisdiction)
- Nixon v. Mr. Prop. Mgmt., 690 S.W.2d 546 (Tex. 1985) (summary judgment burdens and presumptions for nonmovant)
- Tex. Ass'n of Bus. v. Tex. Air Control Bd., 852 S.W.2d 440 (Tex. 1993) (plaintiff's burden to plead jurisdictional facts when suing governmental entities)