Lead Opinion
delivered the opinion of the Court,
The issue in this insurance coverage dispute is whether a self-insurance fund composed of local political subdivisions enjoys governmental immunity against a fund member school district’s coverage claim. In the suit underlying this appeal, fund member Ben Bolt-Palito Blanco Consolidated Independent School District (“Ben Bolt”) sued the Texas Political Subdivisions Property/Casualty Joint Self-Insurance Fund (the “Fund”) after the Fund denied a claim for benefits under its policy. The Fund asserted immunity in a plea to the jurisdiction, which the trial court denied. A divided court of appeals reversed, concluding that the Fund is immune from suit.
I: Background
The Texas Interlocal Cooperation Act (the “Act”) allows political subdivisions to contract with one another to more efficiently share resources and responsibilities. Tex. Gov’t Code §§ 791.001-.033 (“The purpose of this chapter is to increase the efficiency and effectiveness of local governments by authorizing them to contract, to the greatest possible extent, with one another and with agencies of the state.”). Id. § 791.001. Under the Act, a local government may contract with another local government to perform authorized governmental functions and services. Id. § 791.011 Local governments under the Act include municipalities, special districts, counties, and other political subdivisions, as well as combinations of such entities. Id. § 791.003(4).
Ninety-two local governmental entities formed the Fund involved in this dispute by entering into an Interlocal Cooperation Agreement to pool funds to provide casualty insurance to participants. The Fund provides a self-insurance risk pool and claim administration for its members. Participants in the Fund include eight counties, six municipalities, forty-three independent school districts, and various special districts and other political subdivisions.
Ben Bolt, a small school district in Jim Wells County, purchased an insurance policy from the Fund for a coverage period between April 2002 and 2003. In Decem
In its petition to this Court, Ben Bolt contends the Fund is not a governmental entity entitled to immunity. Alternatively, Ben Bolt claims that any immunity the Fund may possess derives from its member political subdivisions and cannot be asserted against its source. And even if the Fund may assert immunity against its members, Ben Bolt argues, that immunity has been waived in a number of ways: first, recently enacted section 271.152 of the Local Government Code is a clear expression of legislative intent to waive governmental immunity from suit on contract claims, Tex. Loc. Gov’t Code § 271.152; second, the Act contains an implied waiver of immunity from suit for governmental units that contract under its authority, Tex. Gov’t Code §§ 791.001-.033; and third, even absent a statutory waiver, the Fund waived its immunity from suit by accepting payment of Ben Bolt’s premiums and inducing reliance. Finally, Ben Bolt argues that the Legislature waived governmental immunity for actions brought under the Uniform Declaratory Judgments Act (“UDJA”).
The Fund counters that it is a governmental entity existing under the Legislature’s authority and thus enjoys immunity in its own right irrespective of its members. Moreover, the Fund argues that Chapter 271 is not a clear and unambiguous waiver of immunity because it is unclear whether that waiver applies to the Fund’s insurance agreement with its members, some of which are excluded from the waiver. The Fund also contends there is no implied waiver or waiver by conduct, and that the UDJA does not prevent the Fund from asserting immunity here. We granted Ben Bolt’s petition for review to determine the nature and extent of the Fund’s alleged immunity from suit.
II. Discussion
A. Standard of Review
Governmental immunity from suit defeats a trial court’s jurisdiction. Tex. Dep’t of Transp. v. Jones,
B. Sovereign and Governmental Immunity
Sovereign immunity protects the State, its agencies, and its officials from lawsuits for damages.
The State’s sovereign immunity extends to various divisions of state government, including agencies, boards, hospitals, and universities. Tooke,
It is clear that the Fund in this case is composed of members which, like Ben Bolt, are themselves governmental units entitled to immunity. However, the Fund asserts discrete governmental-unit status in its own right separate and apart from its members. If it is true, as the Fund contends, that the Fund itself enjoys immunity from suit, then the extent to which the Fund might derive immunity from its members is immaterial. Accordingly, we begin by examining the nature of the Fund.
C. The Fund
Chapter 2259 of the Texas Government Code authorizes “governmental unit[s],” which include “local government[s],” to self insure. Tex. Gov’t Code §§ 2259.031-.034; 2259.001. The issuance of public securities or use of money for the purpose of funding self insurance “is a public purpose of the governmental unit.” Id. § 2259.032. Chapter 2259 specifically provides that a governmental unit’s establishment and maintenance of a self-insurance program “is not a waiver of immunity.” Id. § 2259.002. Types of local governments able to self-insure under Chapter 2259 include a “municipality or other political subdivision of this state or a combination of political subdivisions, including a combination created under Chapter 791.” Id. § 2259.001(2).
Chapter 791 of the Government Code, known as the Interlocal Cooperation Act, allows local governments to contract with each other to collectively perform certain governmental functions. Id. § 791.011(a). The Act defines the term “local government” to mean a “county, municipality, special district, ... or other political subdivision of this state or another state” or a combination of two or more political subdivisions. Id. § 791.003(4)(A), (E). Because the term “local government” includes a combination of political subdivisions, the
We have said that where the governing statutory authority demonstrates legislative intent to grant an entity the “nature, purposes, and powers” of an “arm of the State government,” that entity is a government unit unto itself. See Harris County Flood Control Dist. v. Mann,
Similarly, Chapter 2259 and the Interlocal Cooperation Act imbue self-insurance pools with nature, purposes, and powers reflecting the Legislature’s intent that the Fund exist as a discrete governmental unit. An interlocal contract may provide a governmental function that each contracting party is authorized to individually perform. Tex. Gov’t Code § 791.011(c)(2). The Legislature has expressly authorized combinations of political subdivisions formed under the Act “to perform governmental functions and services.” Tex. Gov’t Code §§ 791.003(4)(E), 791.011(a). The Act defines “governmental functions and services” to include any “governmental functions in which the contracting parties are mutually interested.” Id. § 791.003(3)(N). Local governments clearly have an interest in guarding against risk, and the Legislature has explicitly authorized combinations of political subdivisions created under the Interlocal Cooperation Act to provide self-insurance. Tex. Gov’t Code §§ 2259.001(l)-(2), 2259.031. The Legislature has also authorized these combinations to issue public securities and use available money to finance a self-insurance pool, which is defined as a “public purpose” of the governmental unit. Id. §§ 2259.001(l)-(2), 2259.031(b)(1), 2259.032. In sum, the Legislature has determined self-insurance to be a function of local governments, and we see no reason why legislatively approved pooling of resources to perform this function would diminish its governmental character. See Op. Tex. Att’y Gen. No. MW-347 at 2 (1981) (stating “[s]elf-insurance is
Many of our courts of appeals have considered self-insurance pools, though composed of political subdivisions, to be distinct governmental entities apart from their membership. See, e.g., Campbell v. Tex. Employers’ Ins. Ass’n,
We conclude that the Fund’s “nature, purposes and powers” demonstrate legislative intent that it exist as a distinct governmental entity entitled to assert immunity in its own right for the performance of a governmental function. With regard to that function, the Fund enjoys the same governmental immunity as other political subdivisions. Having concluded that the Fund enjoys immunity in its own right, we need not decide whether the Fund’s immunity is also derivative of its members.
D. Waiver of Immunity
With the Fund’s governmental immunity shield, Ben Bolt’s claims are barred absent a waiver of that immunity. It is the province of the Legislature to consent to a suit against a governmental entity. IT-Davy,
Ben Bolt argues that Section 271.152 of the Local Government Code provides a clear and unambiguous waiver of the Fund’s immunity from suit for breach of its insurance agreement with Ben Bolt. That section provides:
A local governmental entity that is authorized by statute or the constitution to enter into a contract and that enters into a contract subject to this subchapter waives sovereign immunity to suit for the purpose of adjudicating a claim for breach of the contract, subject to the terms and conditions of this subchapter.
Tex. Loo. Gov’t Code § 271.152.
First, the Fund points out that Section 271.151(2) defines a “[c]ontract subject to this subchapter [subchapter I of chapter 271]” as “a written contract stating the essential terms of the agreement for providing goods or services to the local governmental entity that is properly executed on behalf of the local governmental entity.” Id. § 271.151(2) (emphasis added). The Fund argues that its insurance contract with Ben Bolt is not a “[c]ontract subject to this subchapter” because, under the policy, no goods or services are provided to the Fund; rather, the Fund provides insurance to its contracting members in exchange for payments. Consequently, the Fund contends, the insurance agreement is not subject to the statutory waiver.
It is true that Ben Bolt is a consumer of insurance that the Fund offers. But the relationship between the Fund and its members differs from the ordinary consumer/seller relationship. As the Fund has acknowledged, its members elect a governing board, and a board subcommittee resolves claims disputes. To that extent, at least, the Fund’s members provide services to the Fund. Moreover, the statute’s legislative history indicates that, by enacting section 271.152, the Legislature intended to loosen the immunity bar so “that all local governmental entities that have been given or are given the statutory authority to enter into contracts shall not be immune from suits arising from those contracts.” House Comm. On Civil Practices, Bill Analysis, Tex. H.B. 2039, 79th Leg., R.S. (2005) (emphasis added). There is no indication that the Legislature intended to exclude self-insurance fund agreements from enforcement. While the mere act of self-insuring does not itself constitute a waiver of immunity, see Tex. Gov’t Code § 2259.031, entering into “a written contract stating the essential terms of [an] agreement for providing goods or [insurance] services to [a] local governmental entity” clearly does. Tex. Loa Gov’t Code § 271.151(2), .152.
The Fund next contends Section 271.152 does not clearly and unambiguously waive its immunity from suit because some of the Fund’s members, such as counties, do not meet Section 271.151(3)’s definition of a “local governmental entity.” But as we
Because the Fund is a “local governmental entity” as defined by Section 271.151(3), and “was authorized ... to enter” and did in fact enter into “a written contract stating the essential terms of the agreement for providing [insurance] services to [a] local governmental entity,” which agreement was properly executed, Tex. Loc. Gov’t Code § 272.151(2), we conclude that the statutory waiver applies to this insurance-coverage dispute.
Ben Bolt asserts a number of alternative grounds upon which it claims the Fund’s immunity from suit was waived, but does not claim that success on these other points would afford it greater relief. Because we hold that Section 271.152 of the Local Government Code waives the Fund’s immunity from suit, we do not consider them.
III. Conclusion
Because Section 271.152 of the Local Government Code waives the Fund’s immunity from Ben Bolt’s claim arising out of the insurance agreement between the parties, we reverse the court of appeals’ judgment and remand to the trial court for further proceedings.
Notes
. Act of May 23, 2005, 79th Leg., R.S., ch. 604, § 1, 2005 Tex. Gen. Laws 1548 (codified atTEX. Loc. Gov’t Code §§ 271.151 — . 160).
. Although the court of appeals termed the immunity the Fund possessed as "sovereign,” political subdivisions of the State actually enjoy governmental immunity. Though closely
. We note that this definition of “local government” does not mean that the Fund is a governmental unit for all purposes, but only for purposes of the Interlocal Cooperation Act. Id. § 791.003 (confining the definition of "local government” to "[withi]n this chapter”). Indeed, within the Government Code, the Legislature defines the term "local government” to include and also to exclude school districts for different purposes. Compare Tex Gov’t Code § 772.009(i) (defining "local governmental entity” to include a school district concerning governmental planning), with Tex Gov’t Code § 783.003(3) (defining "local government” to exclude school districts under the Uniform Grant and Contract Management Act).
. Because Section 271.152 is partially retroactive, it would waive the Fund’s immunity even though it was enacted after Ben Bolt purchased the insurance policy. See Tooke,
Dissenting Opinion
joined by Justice HECHT, dissenting in part.
I agree with most of the Court’s opinion, but respectfully dissent from Part 11(D) because I do not believe that section 271.152 of the Local Government Code clearly and unambiguously waives the Fund’s governmental immunity.
I agree with the Court that the Fund is a discrete governmental unit performing a governmental function, and therefore possesses immunity from suit unless the Legislature has waived it. I also agree that the Fund is a “local governmental entity” under sections 271.151(3) and 271.152. However, I part company on whether the Legislature in 2005 clearly waived the Fund’s immunity for two principal reasons: (1) deciding whether a contract is “subject to this subchapter” requires this Court to actually see and read the contract, which exists nowhere in the record; and (2) even accepting Ben Bolt’s description of the contract, it falls outside the restrictive language of the statute’s immunity waiver (or at minimum does not “clearly and unambiguously” fall within it).
It is axiomatic that “a waiver of immunity must be clear and unambiguous,” Tooke v. City of Mexia,
Rightly or wrongly, the Legislature chose the preposition “to” — not the opposite term “from” — and this is a grammatical distinction with a difference. As any fax cover sheet (or elementary school valentine card) makes clear, the words have diametrically opposite definitions and convey diametrically opposite meanings; generally, the preposition “to” means “in a direction toward” while “from” means “in a direction away.” The core commodity covered by the agreement, casualty insurance, flows from the Fund, not to the Fund as the statute requires.
Certainly, reasonable people can argue that construing the statute as not providing a waiver of immunity impairs the purpose underlying the overall scheme, but we interpret statutory text as we find it. The clearest manifestation of what lawmakers intended is what lawmakers enacted, and it is not this Court’s role to embroider or spruce up statutory language, particularly when such embellishment requires us to read a term as really meaning the polar opposite. This is not an overly technical interpretation but one that recognizes the special deference owed legislative policy choices in the context of contract claims against the government, even if critics find those choices odd, unfair, or imprudent. Moreover, it is an interpretation that acknowledges the settled principle that immunity waivers must be unequivocal.
The Court relies principally on two arguments to scale the “to/from” hurdle. First, it avers that “the relationship between the Fund and its members differs from an ordinary consumer/seller relationship” and that because members like Ben Bolt “elect a governing board, and a board subcommittee resolves claims disputes,” the members do in fact provide services to the Fund.
In any event, even if the described board- and elaims-related activities were detailed in the insurance contract itself, these seem to be little more than oversight-related activities to help set up and maintain the Fund, and the Legislature has expressly preserved immunity for such functions: “[t]he establishment and maintenance of a self-insurance program by a governmental unit is not a waiver of immu
Second, the Court cites a House bill analysis to bolster its view that “to” should also be read to mean “from,” and concludes, “There is no indication that the Legislature intended to exclude self-insurance fund agreements from enforcement.”
At minimum, the Legislature’s selection of “to” instead of the directionally opposite “from” renders the purported waiver less than conclusive and a flimsy basis for holding that the Legislature has waived immunity beyond all doubt. More fundamentally, it is difficult to conclude with unalloyed certainty that a contract is “subject to this subchapter” and thus an undeniable waiver of immunity when the contract itself appears nowhere in the record.
In sum, the statute’s immunity language does not evince the Legislature’s unequivocal intent to cover this specific contract. Accordingly, since we must resolve uncertainties over legislative consent- in favor of immunity, I would hold that the Legislature has not abrogated the Fund’s immunity from suit.
I find none of Ben Bolt’s other arguments for disregarding the Fund’s immunity persuasive and would affirm the judgment of the court of appeals.
. These dueling snippets of legislative history illustrate the peril of placing undue reliance on secondary materials. Anyone looking for a preferred interpretation can usually find a ready ally lurking in the legislative record, even if the statute’s literal text points the opposite direction. I do not reject out of hand the principled use of legislative history to unearth reliable guidance (unless the text’s plain language is unequivocal), Sheshunoff,
