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The City of Houston v. Steve Williams
353 S.W.3d 128
Tex.
2011
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Background

  • The City of Houston sought to dismiss a suit by 540 former firefighters alleging underpayment of lump-sum termination benefits.
  • The case arises on remand after statute changes; Local Government Code §271.152 waives immunity for breach-of-contract claims if a qualifying contract exists.
  • Firefighters contend three writings—Ordinances, Chapter 143 civil-service provisions, and MCAs/CBA—constitute qualifying contracts; City contends only some do.
  • Court previously held Ordinances and MCAs/CBA potentially qualify; Chapter 143 alone does not establish a contract.
  • Court holds Ordinances and MCAs/CBA comprise contracts; Chapter 143 alone does not; remands for merits consistent with this opinion; §271.152 retroactive waiver applies to these contracts.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether Ordinances constitute a contract under §271.151(2). Ordinances collectively form a unilateral employment contract. Ordinances do not form a contract or are not properly executed. Ordinances constitute a unilateral contract under §271.151(2).
Whether MCAs and CBA qualify as contracts and confer standing. MCAs and CBA were intended to benefit Firefighters; Firefighters have standing as third-party beneficiaries. Standing issues negate enforceability. MCAs and CBA qualify; Firefighters have standing as third-party beneficiaries to enforce them.
Whether Chapter 143 alone constitutes a contract for §271.152 purposes. Chapter 143, adopted by City, is a contract offered to Firefighters. Chapter 143 is not a contract communicated by the City. Chapter 143 alone does not constitute a stand-alone contract subject to §271.152.
Relation between §271.152 and §180.006 retroactive vs prospective waivers. §271.152 retroactively waives immunity for contract claims. §180.006 retroactively waives only back-pay claims; §271.152 would be useless if both applied. §271.152 provides retroactive waiver and is not rendered useless by §180.006.

Key Cases Cited

  • Tooke v. City of Mexia, 197 S.W.3d 325 (Tex. 2006) (addressing scope of immunity and waivers)
  • City of Houston v. Williams (Williams I), 216 S.W.3d 827 (Tex. 2007) (sovereign immunity and contract-based claims; remedy is money damages)
  • Overton v. City of Houston, 564 S.W.2d 400 (Tex. Civ. App.—Houston 1st Dist. 1978) (ordinances alone cannot form a contract (in some contexts))
  • Byrd v. City of Dallas, 6 S.W.2d 738 (Tex. 1928) (pension plans/contractual integration with ordinances)
  • Kirby Lake Dev. Ltd. v. Clear Lake City Water Auth., 320 S.W.3d 829 (Tex. 2010) (essential terms in contracts; multiple writings may form a contract)
  • Fort Worth Indep. Sch. Dist. v. City of Fort Worth, 22 S.W.3d 831 (Tex. 2000) (reading multiple documents together to ascertain contract intent)
  • Vanegas v. Am. Energy Servs., 302 S.W.3d 299 (Tex. 2009) (unilateral contracts; performance creates enforceable contract)
  • Wilson v. Andrews, 10 S.W.3d 663 (Tex. 1999) (Civil Service Act incorporated into employment contract; contract terms read into agreement)
  • McNeill v. City of Waco, 33 S.W.2d 322 (Tex. 1895) (municipal obligations payable from current revenues; historical contract concepts)
Read the full case

Case Details

Case Name: The City of Houston v. Steve Williams
Court Name: Texas Supreme Court
Date Published: Mar 18, 2011
Citation: 353 S.W.3d 128
Docket Number: 09-0770
Court Abbreviation: Tex.