480 S.W.3d 545
Tex. App.2015Background
- TPProperty LLC acquired the Hotel after a foreclosure from French Quarter following a defaulted loan; City of Conroe entered into a Tax Abatement Agreement and a Tourism Promotion Services Agreement with French Quarter to renovate and promote the Hotel; TPProperty sued City and MCAD for breaches of the Abatement and HOT agreements, declaratory relief, and related relief; City answered and counterclaimed for taxes, penalties, and fees; TPProperty sought to enjoin hotel tax collection and to compel performance while City moved for plea to the jurisdiction; trial court denied the plea and City appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Waiver of immunity under Chapter 271.152 | TPProperty argues 271.152 waives immunity for contracts providing goods/services to City | City argues the Abatement and HOT agreements do not provide services to City | Abatementno; HOTno; immunity not waived under 271.152 on these contracts |
| Waiver by City counterclaims (Reata standard) | TPProperty contends counterclaims germane to TPProperty’s breach claims waive immunity | City asserts offsetting claims justify limited jurisdiction | Immunity waived to extent TPProperty contract claims offset City counterclaims |
| Exhaustion of administrative remedies for tax exemptions | Exhaustion not required due to contract dispute | Tax Code requires exhaustion for exemption disputes | Exception to exhaustion applies; trial court did not err in denying plea as to exhaustion issues |
| Declaratory judgment claims under DJA | Declarations relate to rights under Abatement/HOT and are within jurisdiction | DJA does not enlarge jurisdiction and seeks to avoid immunity | DJA claims denied to extent they seek non-jurisdictional relief; remaining declarations within limited jurisdiction |
Key Cases Cited
- Miranda v. Tex. Dep’t of Parks & Wildlife, 133 S.W.3d 217 (Tex. 2004) (subject-matter jurisdiction and de novo review of pleas to the jurisdiction)
- Bland Indep. Sch. Dist. v. Blue, 34 S.W.3d 547 (Tex. 2000) (limits on jurisdiction; liberal construction in jurisdictional pleadings)
- Tooke v. City of Mexia, 197 S.W.3d 325 (Tex. 2006) (dichotomy analysis for immunity with contract claims (whether applicable))