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Brown & Gay Engineering, Inc. v. Zuleima Olivares, Individually and as the Representative of the Estate of Pedro Olivares, Jr., & Pedro Olivares
461 S.W.3d 117
Tex.
2015
Check Treatment

*1 H7 ENGINEERING, & GAY BROWN

INC., Petitioner, See also 316 S.W.3d 114. Individually OLIVARES,

Zuleima Representative of the Estate of Olivares, Jr., Olivares,

Pedro & Pedro

Respondents

No. 13-0605

Supreme Court of Texas.

Argued October

Opinion April Delivered:

H9 seeking sovereign-immu- diction the same nity protection unit enjoy had it performed the work itself. The trial court granted plea, reversed, but the court of appeals holding *3 firm was not immune from suit. extending sovereign We hold that immuni- ty engineering to the firm does not serve purposes doctrine, underlying the and we According- therefore decline to do so. ly, we affirm the court of appeals’ judg- ment. Background

I. During early January hours of Allensworth, R. Allens- Will W. William 2007, an intoxicated driver an entered exit worth, L.L.P., Aus- Allensworth & Porter ramp Westpark Tollway of the in Fort tin, for Amicus Curiae American Council County. proceeded Bend He east Engineering Companies of Texas. westbound lanes for approximately eight LLP, Murray Beck Fogler, Redden miles before with a car driven colliding Houston, party for other interested Mike Olivares, Pedro Jrl Both drivers were Inc. Enterprises, Stone killed. Higgins, Sean Wilson Elser Moskowitz County portion The Fort Bend of the LLP, Houston, for Pe- Edelman & Dicker Tollway fell the purview under of the Fort titioner Brown & Inc. Engineering, County Authority, Bend Toll Road a local & Kelly, Kelly, Durham Pit- Peter M. government corporation design, created to tard, L.L.P., Molina, Ricardo Molina Law build, Tollway. operate Rather Firm, Houston, Respondent for Zuleima government employees than utilize to car- Olivares, Individually Repre- and as the ry Authority responsibilities, out its Olivares, sentative of the Estate of Pedro Engineering entered into an Services Jr., & Pedro Olivares. with Brown Agreement Gay Engineer- Transportation Inc. to Texas ing, pursuant opinion Justice Lehrmann dеlivered the 431.066(b), section which authorizes Code Court, Green, of the in which Justice to retain government corporations local Johnson, Boyd, and Justice Justice Justice required develop “engineering services joined. Devine transportation facility system.” Un- Authority delegat- sovereign immunity agreement, The doctrine of bars der that responsibility designing road against legisla- suit absent ed the layouts Gay, private engi- signs and traffic to Brown & tive consent. subject Authority’s neering lawfully approval firm contracted with a of Directors.1 Brown & design unit to and construct Board contractually responsible furnishing firm roadway, party and a third sued the responsi- necessary equipment personnel its negligence carrying out required to juris- perform firm its duties and was plea bilities. The filed Authority ployees. 1. The maintаined no full-time em- project, governmental immunity.

maintain insurance for the includ- tied to See Tex. compensation, commercial Adjutant workers’ Ngakoue, General’s Office liability, business automobile liabil- general (Tex.2013) 350, 356 (explaining ity, liability, profes- excess umbrella against acting a suit official liability. sional capacity “merely in an official another way pleading against an action the enti- mother, individually and Olivares’s (inter- ty agent” the official an estate, which representative of his and his father omitted)). nal Authority Gay, quotation and Brown & marks and citation sued othefs,2 among alleging the failure to granted plea, The trial court design signs, install proper warning reversed, appeals court of holding flashers, and other traffic-control devices govern- was not entitled to around the exit where the intoxicat- ramp mental an immunity because was inde- *4 Tollway proximately ed driver entered the contractor, pendent not an “employee” of Authority caused Olivares’s death. The Authority as term is defined plea jurisdiction govern- filed a to the on the Texas Act.3 401 Tort Claims S.W.3d mental-immunity grounds. The trial court 363, (Tex.App.-Houston 378-79 [14th plea, interlocutory ap- on denied 2013). Dist.] reversed, peal of appeals holding the court Court, Gay argues this Brown & Authority was immune from independent its status as an discretionary claims on its based acts re- government employee rather than a does placement sufficiency lated to the of not foreclose its entitlement to the same signs and other traffic-control and traffic- immunity Authority. afforded to the It safety Cnty. devicеs. Fort Bend Toll Olivares, 114, argues that the appeals’ Road Auth. v. 316 court of reliance S.W.3d (Tex.App.-Houston 121-26 Tort misplaced [14th Claims Act was Dist.] 2010, pet.). appeals The court of re- ‘employee’ because the Act “uses to delin- give manded the case to the trial court to eate the govern- circumstances where the opportunity the Olivareses an to amend ment will be liable under a waiver of im- remand, pleadings. their Id. at 129. On munity,” not “to limit scope of ... Authority, Olivareses nonsuited the governmental unwaived immunity.” whose longer is no at issue in Brown & argues pur- further proceeding. this poses sovereign immunity of are served extending it to entities then plea filed its own jurisdiction, governmental authorized arguing that it was an functions employee Authority of the in which the being sued itself would be im- capacity its official and was therefore enti- mune. initially Authority, The Olivareses ‍​​‌‌​‌​​‌​‌​‌‌​​​​‌​​‌‌​​​​​​​‌‌​​‌‌‌​​‌‌​​​‌‌‌​‍sued "employee” 3. The Tort Claims Act defines as County, County, Harris Fort Bend the Texas person, including agent, "a an officer or who Department Transportation, of and the Harris paid governmental is in the service of a unit County Authority. They Toll Road amended by competent authority, but does not include petition their to add Brown & and Mi- contractor, independent agent an an or em- Enterprises, chael Stone Inc. as defendants. contractor, ployee of an a TxDOT, County, County, Harris Fort Bend person performs who tasks details of County Authority and the Harris Toll Road which the unit does not have Enterprises have all been nonsuited. Stone legal right to control.” Tex. Civ. Prac. & party petition not a to the for review filed in 101.001(2). Rem. Code Court.

121 relief, Legisla forms of and leaves to the Analysis II. ture the of determination when to allow Purpose Origin and of A. tax resources to “away be shifted Immunity Sovereign purposes their intended defending toward presented we are again Once paying judgments.” lawsuits and Tex. questions parameters about the Natural Res. Conservation Comm’n v. IT- immunity, the well-established sovereign (Tex.2002) Davy, 74 S.W.3d 853-54 “that ‘no can be sued in her doctrine state (plurality op.); Dep’t see also Tex. consent, her and then own courts without Sefzik, Transp. v. only in the manner indicated that con (Tex.2011) curiam) (per (noting sover ” Mexia, City Tooke v. sent.’ eign immunity “shield[s] the state from (Tex.2006) (quoting Hos S.W.3d relief,” seeking lawsuits other forms of (1847)). 1 Tex. DeYoung, ner v. just seeking money judgments). suits And developed “While inherently while connected protec doсtrine, common-law we “have consistent fisc, public tion of the ly Legislature deferred to the to waive preserves separation-of-powers principles immunity.” Corp. Reata Constr. such by preventing judiciary from interfer (Tex. Dall., City Legislature’s prerogative with the 2006) omitted). Referred to as (emphasis Hosp. allocate tax dollars. See Rusk State *5 immunity governmental applied when Black, (Tex.2012) 88, v. 392 97 S.W.3d subdivisions,4 political the state’s Travis (noting immunity that respects “the rela Norman, Appraisal Dist. v. 342 Cent. judi tionship legislative between the and (Tex.2011), 54, im S.W.3d 57-58 government”); cial branches of see also immunity both from munity encompasses Univ., Sign Fed. v. Tex. 951 S. S.W.2d liability, Reata immunity suit and from (Tex.1997) (out (Hecht, J., concurring) at 374. Immu Corp., Constr. S.W.3d financial justifi lining political modern nity liability is an affirmative defense from sovereign immunity). cations for judgment that enforcement of a bars Sovereign immunity protects thus im against governmental entity, while by preventing potential public as a whole munity against bars suit suit disruptions key government services may in a entity altogether and be raised government funds that could occur when Lueck, jurisdiction. v. plea State substantially unexpectedly are divert (Tex.2009); 290 S.W.3d Wichita by litigation. recognizes It also that ed Hosp. Taylor, Falls State Legislature responsibility has the (Tex.2003). 692, 696 public how these funds will be determine sig Although origins spent. But with this benefit comes the doctrine’s antiquated “shield[ing] public “feudal fiction that nificant cost: lie ” im wrong,’ modern-day consequences from the costs and King ‘the can do no governments,” of their justifications protecting provident revolve around actions Tooke, immu at at public treasury. Taylor, 106 S.W.3d S.W.3d сore, nity places shouldering those “protects 695. At its the doctrine the burden injured indi political consequences” from “costs and subdivisions] State its [and money other Bacon v. Tex. Historical damages” lawsuits for viduals. See sovereign immunity refer to both doctrines. 4. We will use the term throughout opinion the remainder of the Comm’n, 172 (Tex.App.- recognizes private that contractors are not (noting pet.) Austin “sover entitled to sovereign immunity under cer- eign immunity generally shields our state tain circumstances imply does not government’s improvident acts—however such immunity entities are entitled to in all harsh, improvident, unjust, infuriatingly or other situations. (inter these acts seem” boneheaded hand, On the other the Olivareses con- omitted)). quotation nal marks and citation statutory tend that affirmative extensions by foreclosing- And does so —-absent contractors in some legislative litigation judi waiver—the instances demonstrate legislative intent to cial remedies that would be available to foreclose such immunity specific absent a injured person complained-of had the legislative grant. For example, the Trans- acts private persons. been committed portation provides indepen- Code that an dent regional transporta- of a we do consider whether authority tion “performs a function of unit immune from suit authority specified or other [certain government’s immunity or whether the has damages only entities] liable for Instead, been company waived. authority extent that the or entity would performed allegedly negligent acts in be liable” for the function it- carrying governmеn- out a contract with a Transp. 452.056; § self. Tex. see Code tal unit seeks to invoke the same also id. 452.0561 (extending the same enjoys. itself With contractors of mind, the considerations outlined above entities). statutory certain transportation parties’ arguments.

we examine the argue Olivareses that the absence of legislation similar applicable to contractors Extending B. Effect of Statutes of local corporations like the Immunity Limiting Authority legislative evinces intent to de- *6 Notwithstanding ju the doctrine’s prive such immunity. contractors of That dicial origins, parties argue part both in may be the but it does not answer that Legislature has resolved whether the question before us. sovereign immunity to extend to a private Gay. contractor like Brown & Brown & Sovereign immunity a com is Gay explicitly рrohibits creation, cites a statute that mon-law “it judi and remains the private parties gov that contract with the ciary’s responsibility to define the bound finance, construct, operate, ernment aries of the ... doctrine and to determine maintain, manage correctional facilities under what circumstances im sovereign from claiming sovereign immunity in a suit munity exists in the first instance.” Reata arising from services under the contract. Constr. Corp., By 197 S.W.3d at 375. con 495.001, trast, §§ above, .005.5 Brown Legislature noted de Tex. Gov’t Code Gay& infers provision from this that sov termines when and to what extent to waive ereign immunity private extends to immunity. entities that Accordingly, the ab contracting perform government func sence of a statutory grant tions, provided by whether, unless otherwise stat irrelevant to as a matter of com law, ute. disagree. We The fact that a statute mon the boundaries of im- private 5. operating "A performed vendor under a con- from the services under con- by subchapter may tract private authorized this county.” tract vendor or Tex. sovereign immunity arising claim in a suit Gov't Code 495.005. performing subdivisions private government munity encompass functions, it should be their extended exercising contractors perform entities authorized to government func- those func- discretion below, tions. For the reasons discussed tions.6 they that do not.

we hold matter, As an initial we note that Brown Gay& cites no evidence to support its Immunity Sovereign and C. justification proposed ignores Private Contractors many play highly factors at within the Immunity Extending Sovereign competitive government-contract world of Gay Further Does Not Brown bidding. disregards It also the fact that Purpose Rationale Doctrine’s can private companies manage and do insurance, exposure by obtaining their risk analysis of whether to Guiding our Gay as Brown & did in this case. But immunity to con extend assuming holding private even entities Gay whether do like Brown & tractors for their own in fact negligence liable with and furthers comports so contracting makes with those entities more justify this other legitimate purposes expensive government, argu- for the Brown & con harsh doctrine. wise immu- supports extending sovereign ment immunity serves extending tends if nity to these contractors the doc- disagree. purposes. these We strictly a cost-saving trine is measure. It Seizing general purpose pro- is not. fisc, Brown & ar- tecting public Sovereign immunity con- has never been de- gues money any save the fended as a mechanism to avoid tractors will specifically, public expenditures. while all increases Rath- long in the term. More er, exposure designed guard against that its it was Gay recognizes Brown & money judgment expenditures” “unforeseen associated with to defense costs and Tollway government’s defending lawsuits and project’s will not affect the cost hamper gov- “that could paying judgments asserts that government, generally diverting costs associated ernment functions” funds the increased purposes. Sefzik, their litigation exposure contractors’ will be allocated 621; resulting IT-Davy, at 74 S.W.3d at 853. passed government, on to the way contractor in no ‍​​‌‌​‌​​‌​‌​‌‌​​​​‌​​‌‌​​​​​​​‌‌​​‌‌‌​​‌‌​​​‌‌‌​‍prices Immunizing private contract ex- higher *7 rationale, if holding an ami- furthers this rationale. Even pense. Citing the same improvident urges adopt private party a framework liable for its own cus brief us con- immunity government to a actions in sovereign that would extend discretionary indirectly higher tract leads to overall entity performing private work, engaging in long government as the contrac- costs to entities government so contractors, will be re- govern- private authorized to do so and the those costs tor is negotiated price. in the contract performed be immune had it flected ment would test, government plan spend- proposing itself. the This allows work that, reasonable accura- just sovereign project on the amicus contends cy. immunity political has been extended to end, immunity. Dep't that Tex. Parks

6. To that is correct Wildlife Miranda, (Tex.2004). sovereign the Tort Claims Act does not creаte immunity; “provides a limited waiver” of contrast, immunizing govern- While By sovereign immunity protects the political and its sub- entities, the State ment —both activities of no sov- directly divisions—from suit serves ereign is entitled to extend that protec- purposes because costs asso- doctrine’s through tion ad more nothing infinitum potential lawsuit cannot be ciated with private than private contracts. en- [The project’s Litiga- at the outset. anticipated tity] is not entitled to immuni- sovereign therefore dis- against tion ty protection unless it can demonstrate allocation of funds rupts its actions were actions of the Kansas end, only option may the back when government, subject executed money previously earmarked be to divert system]. control of [the It purpose.7 is this diver- for another turn, Id. at 597. In we held that another of disrupting sion—and the associated risk private company “operate[d] solely services—that im- upon the system]” direction of [the munity Accordingly, the ratio- addresses. no discretion in “exercise[d] its activities” underlying nale the doctrine of indistinguishable system, from the immunity support extending does not such that “a against lawsuit one [wa]s Gay. to Brown & against lawsuit the other.” Id. This rea- soning implies private parties exercis- Sovereign Immunity 2. Ex- Does Not ing independent discretion are not entitled Companies tend to Private Exercis- to sovereign immunity. ing Independent Discretion requirement control in discussed directly have never addressed We K.D.F. reasoning consistent with the private gov the extension of federal courts have in extending utilized contractors, analysis but our ernment derivative to federal contractors Rex, (Tex.1994), K.D.F. v. 878 S.W.2d 589 only in limited circumstances. For exam- In that is instructive. we examined ple, International, in Butters v. Vance private company whether a that contracted Inc., employee a female of a securi- Employees’ with the Kansas Public Retire ty firm supplement hired to security at the System, ment Kansas enti California residence of Saudi roy- Arabian ty manage created to and invest Kansas firm gender als sued the discrimination employees’ savings, state retirement could being after declined a assign- favorable system’s sovereign benefit from the immu (4th Cir.2000). ment. 225 F.3d nity advantage and take of a Kansas stat Although the firm had recommended the required ute that all ‘directly “actions employee assignment, for the Saudi mili- indirectly’ against system” to bе tary supervisors rejected brought particular county in a the recommenda- Kansas. tion on grounds Id. at K.D.F. required interpret assignment us to statutory language that is not at issue offend Islamic law and Saudi cultur- here; however, al rejecting Concluding norms. that the Saudi company’s any assertion that lawsuit would be immune from suit *8 against “indirectly” was a lawsuit under Foreign Sovereign the Immunities against system, Act, the we tellingly noted: the Fourth Circuit then considered above, did, private parties purchase categories As noted like Brown and several of insur- protect- coverage have an Tollway project. established means of ance the The ing specter costly premiums coverage themselves from the undoubtedly liti- for this were Indeed, gation- during as noted above bidding pro- taken into aсcount the —insurance. to, contractually required was cess.

125 several dikes im attached to the ment to construct was whether Holding that it arising at 465. security firm. Id. mune from claims the result fact that the did, relied on the the court property erosion and loss of when the orders following Saudi Arabia’s firm “was by damage allegedly was caused the expressly employee],” promote [the not to existence, dikes’ not the manner of their not [have the firm “would noting that construction). immunity” had to derivative entitled

been] Yearsley involving in a case a We cited sovereign made firm rather than the the city hired to build sewer lines promotion. the Id. decision to decline the along city-owned easement accordance at 466. city’s plans specifications. with the and im the extension of limitation on This Dietert, 156 Tex. Glade contractors is ech munity (1956). city had inadvertent- example, Ack in other cases. For oed ly acquire failed to the entire easement as LLC, Dredging federal v. Bean erson plans, reflected the and the contractor alleg damages sued for contractors were trespass bulldozing was sued for after conjunction dredging in edly by caused portion property. of a landowner’s River Gulf Outlet Mississippi with the (5th Cir.2009). at issue in While was not Glade 589 F.3d 196 project. city the landowner com- Ross because the owed Yearsley v. W.A. Con Relying on Co., Yearsley pensation taking, 309 U.S. 60 S.Ct. for a we cited struction (1940), the Fifth Circuit L.Ed. 554 proposition other for the case law were entitled held that the contractors to third public-works contractor “is liable their actions taken within immunity for negligence perform- for in the parties authority pur the of their scope result of ance of the work and not F.3d furthering project. pose of according to the con- performed the work however, 206-07, Notably, 210.8 at at 644. tract.” Id. significant plaintiffs’ court found cases, complained-of In each of these policy Congress’s allegations “attacked] im- the contractor was conduct for which maintaining [project], creating effectively gov- attributed to the mune was separate negligence by act any is, cause of the alleged That ernment. (em Id. at 207 Contractor Defendants.” action of injury not the added); Yearsley, see also phasis contractor, by the the action taken (holding at S.Ct. U.S. contractor.9 through the govern the federal contractor directed compliance with contractor's caused Fifth Circuit noted that the contractors’ 8. The government’s specifications, the con- jurisdiction- to dismissal was not entitlement immunity the to the same tractor is entitled F.3d at 207. al. 589 enjoy, the con- because aptly circumstances, is, court summarized 9. One federal district effec- those tractor under governing the extension of de- the framework organ tively acting as an of government, Where, to federal contractors rivative independent discretion. without however, follows: perform contractor is hired task, exercise but is allowed to the same underlying the The rationale determining the task how discretion in easy to understand. contractor defense is accomplished, if the manner be should government hires a contractor Where the ultimately ac- task, causes performing the task given specifies the perform a party the contrac- harm to third per- tionable task to be manner in which the formed, derivative is not entitled to tor contractor is later haled traced, be immunity, the harm can because for a harm that was into court to answer *9 actions; complain Authority’s they the Olivareses do not assert Gay’s by imple- caused Brown & Gay harm Brown is liable for & its own actions. menting Authority’s specifications the or Ross, appeals In the court of held following any specific di- government “equivalent the law firm was the a state or contract at rections Under the orders. employee” official or being sued in its offi- issue, responsible Gay Brown & was cial capacity. 333 S.W.3d at But 742-43. “drawings, specifications and de- preparing Gay notably Brown & has the abandoned Further, for all the Olivares- signs.” tails very argument the case to would seem complain do the decision to es not about support: that the Olivareses sued Brown Tollway the or the fact of its build mere & employee its existence, but that Brown & was inde- capacity effectively official and therefore negligent in the pendently designing signs Moreover, government. sued the deter- layouts Tollway. traffic the Brown the mining whether law firm was the Gay’s in designing & decisions the Toll- Ross, equivalent of a state official in the way’s safeguards are its own.10 court of appeals pleadings examined the to principles have echoed in Similar been plaintiff conclude that the had sued the law decisions, appellate by Texas court cited agent entity firm as an taxing Gay, addressing Brown & extension of had no indicating “asserted facts private agents to govern of the taxing entities did not legal right have the ment. Two of these cases extended immu to control the details of the tax-collecting nity law firms hired assist the task delegated [the firm].” Id. unpaid with collecting taxes. Regardless of whether these were cases Linebarger, Ross v. Blair Goggan, decided, correctly government’s L.L.P., (Tex. right Sampson, 333 S.W.3d 736 to control that led these courts to extend App.-Houston pet.); [1st Dist.] to a City contrac- City, v. First S.W.2d of ‍​​‌‌​‌​​‌​‌​‌‌​​​​‌​​‌‌​​​​​​​‌‌​​‌‌‌​​‌‌​​​‌‌‌​‍Hous. utterly tor is absent here. The evidence (Tex.App.-Houston writ [1st Dist.] denied). Houston, shows that Brown & City indepen- In was an the court of dent contractor with appeals engaged design in a discretion to principal- traditional Tollway’s agency analysis signage layouts. to hold that the law firm and road city’s agent today was not liable as We need not establish on the some whether plaintiffs degree by claim that city breached an of control “accord and immunity protection satisfaction.” at extend its to a private contrast, 479-80. do party; Olivareses not hold we no control is assert that Brown Gay& liable for the determinative.11 government’s not to the actions or deci- failure contractor’s to act in accordance sions, government’s to the contractor's with the directives. KBR, Inc., perform decision Bixby F.Supp.2d in an task unsafe (D.Or.2010). Similarly, manner. the contractor is where perform hired according pre- the task argument, Gay's 10. At oral counsel specifications cise comply but fails to recognized that Tollway the details оf the specifications, those and the contractor’s project, “discretionary functions” as government specifica- deviation from the counsel, put by delegated were to Brown & actionably party, tions harms a third Gay. is not entitled to be- cause, again, the harm caused policy 11. The amicus asserts that "no reason” specified insistence on a supports employing analy- a control-oriented so, performance manner of doing recog- but rather implicitly sis. In the amicus *10 ry between Brown Gay relationship cites Foster v. exists & Brown & Finally, Further, Gay Authority. and the in System, suing Teacher Retirement 2008, no Brown & do not pet.), to the Olivareses effec- (Tex.App.-Austin tively money immunity in this seek to recover from the support the extension case, coverage governmеnt. a retired teacher sued the claims case. In that Unlike Foster, the System implicated of Texas which both state- the Teacher Retirement (a Aetna, funded and the plan agency’s as well as the insurance agency) state Aetna, duty to the indemnify underlying to private hired administer the company Gay’s pock- suit threatens Brown & plan. Id. at The agency’s insurance 885. ets. denial suit from Aetna’s of health arose coverage concluding on a claim after sum, In adopt Gay’s cannot Brown & we provider

the not in-network and the was contention to share in that it is entitled the medically necessary. treatment was not Authority’s immunity solely be- held appeals Id. The court of that both the Authority statutorily cause the was author- immune agency Aetna were from suit engage Gay’s ized to services arising coverage for out of the deni- claims performed would have immune had it been However, al. Id. at the terms of the is, those That we services itself. decline to contract, relationship between the the extend to entities the same immu- contractor, state and the and the agency for nity enjoys reasons direct of state funds in that implication justifies unrelated to the rationale that case it from the at hand. distinguish case immunity place. such in the first not threaten Foster, Olivareses’ suit does allocated appeals recog-

In the court of not to funds does seek nized that Aetna had discretion to inter- merely Brown for that, hold liable follow- explained pret plan, insurance directions. Brown & with the “Aetna agency, under the contract responsible negligence for its own simply administrative services provide[d] (and as a cost of doing business to of health care to provision facilitate did) risk, just against insure Further, Id. the in- retirees.” [covered] had with a it contracted fully funded state plan surance owner. no stake in such that Aetna had a claim’s denial, agency approval or set Qualified D. and Of- Justifications agent acted plan, terms of the Aetna as an Immunity Support ficial Do Not fiduciary capacity agen- and in a Sovereign Immunity Extension cy, agreed indemnify to agency and the Parties Private obligations arising of its any

Aetna for out cost-saving rationale addition to the good-faith performance. at 889-90. above, Gay& discussed Brown cites compared The court Aetna the “fiducia- Supreme opinion Filarsky ry intermediaries” discussеd in federal U.S. Court’s extending sovereign holding private company argue case that “a Delia law im- contractors ad protected by Eleventh Amendment avoiding interest munity seeking if amounts one vances the suit timidity” part on the “unwarranted money state.” Id. at recover — cases). duties. U.S. performing public In this those (citing no fiducia- support its extension policy nizes concerns are de- hind does central to regardless a control-oriented ciding here of whether should be extended. whether above, applies. length analysis policy As be- discussed at *11 -, 1657, 1665, 182 to 132 L.Ed.2d 662 some resemblance the Texas common- S.Ct. (2012). Filarsky was The issue whether immunity, law defense of official which government hired to do work individuals protects government person officers from something permanent than a “оn other discretionary liability performing al enjoyed qualified full-time basis” same good scope duties in faith within of immunity government as traditional em Hatley, authority.12 their v. 887 Kassen brought against ployees claims them (Tex.1994); 4, S.W.2d 8 see also Ballan 42 under U.S.C. Id. at 1660. 1983. Builders, Inc., tyne 144 Champion Supreme Court held a attor that (Tex.2004) (“Common 417, S.W.3d 424 law engaged by city investigate ney necessity official is based on immunity qualified matter assert im personnel could public public of to act in the inter officials munity alleging a suit constitutional vio est with confidence without the hesi during lations committed the course of the tation having that could arise from their investigation. Id. at 1667-68. The continually judgment questioned by ex distinguish Court saw basis to between Kassen, In litigation.”). tended we noted government employee, a full-time who the well-established distinction bеtween would be entitled to such immunity, assert protects “official which immunity, individu government and an individual to do hired liability,, sovereign al officials from [and] work some other basis. Id. immunity, protects governmental which Gay’s Brown & reliance on Filar- liability.” entities from 887 at 8. S.W.2d sky's qualified-immunity analysis is mis recognized We also that a em placed. qualified The federal of doctrine ployee’s right immunity to official unre immunity “protects government officials right lated to a plaintiffs pursue liability damages ‘from for civil insofar as a legislative under waiver clearly their conduct does not violate es immunity. Further, sovereign Id. unlike statutory rights tablished or constitutional suit, sovereign immunity from which as person of which a reasonable would have noted above be raised in a plea ” Callahan, known.’ Pearson v. 555 U.S. jurisdiction, immunity affir official is an 223, 231, 129 S.Ct. 172 L.Ed.2d 565 mative pled defense must be (2009) (quoting v. Fitzgerald, Harlow 457 proved by party asserting City it. 800, 818, U.S. 73 S.Ct. L.Ed.2d Chambers, Lancaster v. (1982)).' sovereign immunity, Unlike (Tex.1994). qualified immunity protect does coffers tax-funded from law In this Brown Gay& has never money Rather, suits and judgments. argued official-immunity defense protects government personal officials’ cof may person be asserted fers “shielding] officials from harass “on something 'work ‍​​‌‌​‌​​‌​‌​‌‌​​​​‌​​‌‌​​​​​​​‌‌​​‌‌‌​​‌‌​​​‌‌‌​‍other ment, distraction, liability they when permanent than a or full-time basis.” Fi perform their reasonably.” duties larsky, 132 at 1660. it ever S.Ct. Nor has pled or argued that the elements of the

Qualified immunity unique is a Instead, ly doctrine, federal defense are calling into satisfied here. further n Filarsky Gay argues doubt in Brown & that it relevance the issue is entitled best, case. immunity this At doctrine bears same Chambers, City immunity Lancaster v. we noted cer was to official entitled for his qualified conducting federal high-speed law on actions in chase. (Tex.1994). police evaluating instructive in whether a offi- underlying supporting Brown & cites no evidence policies enjoys. But itself simply qualified shortage willing are notwith contractors official contention. to that standing irrelevant line of cases. declining argues also contrac-

to extend III. Conclusion Brown will make it difficult tors like immuni- We decline extend engage pri- government to talented for the *12 solely ty contractors based personal liability. of parties vate fearful the nature the contractors’ work when above, fails to speculation such As noted very the provides the rationale for doctrine ability party’s a private take into account for supрort doing so. We hold that the through liability exposure manage that granting trial court in erred It the ignores also countervail- insurance. Gay’s plea jurisdiction the and that the contracting make that ing considerations appeals properly that court reversed attractive, the not with the affirm Accordingly, order. we the court of the of concern about least of which is lack judgment. appeals’ pay. ability to government’s Moreover, law a line of Texas case long filed an opinion Chief Justice Hecht government contractors’ liabili

recognizes in in concurring judgment, the which high in their road and ty negligence for joined. Willett and Justice Guzman Justice See, v. e.g., Bay, Inc. way construction. 322, Ramos, (Tex.App.- 139 S.W.3d Brown not in the participate Justice did denied) (holding pet. Antоnio San decision. hired for that a contractor enti construction work was not highway Hecht, joined by Justice Chief Justice im to share in the state’s tled Guzman, concurring Willett Justice con munity when the contractor exercised judgment. the the maintaining siderable discretion inju plaintiffs site where the construction An Immunity protects government. the McClelland, occurred); v. ry Overstreet govern- is not independent contractor the (Tex.Civ.App.-Amarillo Therefore, immunity pro- not ment. does w.o.j.) (holding writ dism’d that independent That sim- tect an contractor. highway hired government contractor for syllogism to me resolve this ple seems duty had a to exercise construction work case. using ordinary protect care to travelers may act as independent An contractor gov the fact the highway despite the becoming in effect the government, the itself not be liable for ernment could held purposes, limited for or negligence agents); the of its officers cf. does, it it should be entitled to the when Gehring, Strakos immunity. statutory A ex government’s (Tex.1962) (holding, in the context 793-94 ample Transpor is 452.0561 of the Section doctrine, rejecting “accepted work” Code, in provides which that “[a]n tation county contractor hired to relocate performing ... dependent contractor alongside not fencing widened roads was public transportation of [certain function injuries liability from tort for insulated damages only to the is liable for entities] county accepted that occurred after ... liable if entity would be condition extent the work but were caused entity ... were premises). left itself in which contractor cites cases immune for in rep- function.”1 The Court several from suit his conduct examples. But an inde providing other resenting governmental entity.4 Courts pendent acting only contractor in the ser have concluded that a construction con- govern is not a vice of from may depend, tractor’s suit 1 statutory example A this is ment actor. not, on a entity’s control Code, Section 495.005 of the Government work, over the contractor’s rather provides which vendor “[a] suit complains over whether of the operating under a contract correction [for very project, existence of a governmen- may al claim services] facilities and decision, tal opposed the contractor’s arising in a suit performance.5 A contractor act for performed”.2 the services itself liable sense is an determining whether work, performance negligent of its but in- as acting simply implementing sofar as it government, govern- of the the extent it is decisions entitled *13 independent ment’s control the con- over immunity.6 government’s An not con- tractor’s actions is relevant but authority agency contractor’s or even to example, clusive. For the relevant, government serve the are also lawyer necessarily over is limit- control its but the ultimate issue is whether the inde- lawyer’s duty ed the under the rules of pendent actually is contractor authorized professional indepen- conduct to “exercise government the to act place. its judgment” dent professional represent- The Fort County client.3 Bend Toll Road Au- ing a Thаt limited control not- thority has withstanding, lawyer a been said to be Gay tasked Brown & with selecting 452.0561; Co., Yearsley § 1. Tex. also id. see 5. See v. W.A. Ross Constr. 309 Transp. Code 452.056(d) ("[A]n independent 18, § 20-21, contractor U.S. 60 S.Ct. 84 L.Ed. 554 performs regional ... ... that function of (federal [a (1940) contractor immune from lia- authority transportation pub- or certain other bility where the lawsuit attacked dikes’ exis- transportation entities] lic is liable for dam- construction); tence rather than method of the ages only authority to the extent that the or LLC, Dredging Ackerson v. Bean F.3d 589 196 entity authority entity would if the be liable (5th Cir.2009) (concluding that federal con- function....”); performing were the itself id. Yearsley's "govern- tractors were to entitled 454.002(b) (“An independent § contractor immunity” liability ment-contractor municipality provides behalf of a on mass Congress’s рroject where the lawsuit attacked gov- transportation that is an service essential acts). rather than own contractors’ damages ernmental function ... is liable for only municipality extent that the recognized 6. We in Allen Keller v. Fore Co. municipality performing be liable if the were man, (Tex.2011), 343 S.W.3d 425-426 function.”); 460.105(c) ("[A]n § id. inde- duty contractor owes no pendent county [a-coordinated contractor of design highway project safely care where authority] performs transportation compliance the contractor in strict acts authority damages function of the is liable for governmental entity’s specifications. We only authority extent that would be distinguished may between "the duties that be [authority] performing if the itself liable were upon imposed function.”). a contrаctor that has some discretion in the contract and a Id. 495.005. (citing contractor that is left none”. at Gehring, rakos v. St (Tex. 3. Tex. R. Prof’l Conduct 2.01. Disciplinary 1962) (op. rehearing)). That such a contractor Linebarger, Goggan, Samp- v. acts as and 4. Ross Blair & son, L.L.P., 736, 742, be therefore entitled to its 745-747 follows (Tex.App.-Houston pet.). principle. [1st Dist.] from same signs supervised road designing SYSTEM, SAN ANTONIO WATER Authority did work. But the firm’s Petitioner, do how to the work. not tell Brown & sep- retained discretion Brown & Authority and thus from it from the arated NICHOLAS, Respondent Debra I immunity.7 therefore Authority’s judgment. in the Court’s concur NO 13-0966 my join opinion. its But I cannot Supreme Court Texas. incorrect, view, also unnecessary, January 13, Argued does, affording argue, the Court does highway April DELIVERED: OPINION shielding immunity’s purpose serve liability. from financial argues that contractor liabil it,

ity, or the cost insurance cover costs, conse construction

increases government,

quently contract costs response is that

long-term. The Court’s protect purpose expendi from unforeseen

tures, merely to save costs. very position

Court’s contradicted which it relies:

authority on “While sovereign immunity originated

doctrine from protect public fisc unforeseen hamper

expenditures govern that could functions, it been shield

mental has used to seeking other

the state lawsuits The Court’s restricted relief’.8

forms of is not purpose

view of the

supported by authority. death, damage, injury, property or recognized personal Legislature

7. The has also compliance compliance direction with contract the contractor is See, liability. ‍​​‌‌​‌​​‌​‌​‌‌​​​​‌​​‌‌​​​​​​​‌‌​​‌‌‌​​‌‌​​​‌‌‌​‍prerequisite be for limits or to the condition defect documents material e.g., Tex. Civ. Prac. & Rem. Code 97.002 personal ("A proximate of the that was the cause repairs high- who or constructs death.”). damage, injury, property or road, way, Department street the Texas Transportation claimant is not liable Dept. Transp. Sefzik, 8. Tex. personal property damage, or injury, curiam) (Tex.2011) (per (emphasis performance arising of the death from the omitted). added) (citations if, repair at the of the construction or time

Case Details

Case Name: Brown & Gay Engineering, Inc. v. Zuleima Olivares, Individually and as the Representative of the Estate of Pedro Olivares, Jr., & Pedro Olivares
Court Name: Texas Supreme Court
Date Published: Apr 24, 2015
Citation: 461 S.W.3d 117
Docket Number: 13-0605
Court Abbreviation: Tex.
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