Charles J. Hughes appeals from the trial court's order granting Tom Green County's plea to the jurisdiction. Hughes sued the County for breach of contract and unjust enrichment based on an agreement Hughes and the County entered into in connection with prior litigation and for violation of the Texas Open Meetings Act. See generally Tex. Gov't Code §§ 551.001 -.146. Asserting its governmental immunity, the County filed a plea to the jurisdiction as to the claims based on the agreement. The trial court granted the plea, and Hughes filed this interlocutory appeal. See Tex. Civ. Prac. & Rem. Code § 51.014(a)(8). For the reasons that follow, we affirm the trial court's order.
BACKGROUND
Hughes's uncle, Duwain E. Hughes, Jr., by his will, left certain mineral interests in trust for the lifetime benefit of two individuals and the remainder of the mineral interests to Southern Methodist University (SMU) for the purpose of establishing an endowed chair in the English Department. Duwain Hughes also left his home and rare book and music collections to the County, directed that his home be named as the "Duwain Hughes Branch of the Tom Green County Library," and bequeathed his residuary estate to the County for the purpose of paying off any indebtedness against the home, for upkeep of the home,
The parties agreed to mediate the case in May 1994. One or two days prior to mediation, Hughes and the County entered into a Mutual Partial Assignments agreement (MPA), which is the basis of Hughes's breach of contract claim. In the MPA, Hughes and the County agreed, in essence, to split equally the proceeds of any settlement payment from SMU.
Hughes and the County proceeded to mediation with SMU, at which the parties entered into a settlement agreement whereby SMU agreed to pay $1 million to the other parties. Subsequently, the parties executed a "Compromise and Settlement and Release of All Claims," in which the parties confirmed SMU's agreement to pay the other parties $1 million, agreed to entry of judgment declaring that SMU has a vested fee title in the mineral interests, and agreed to release the restrictions on SMU's and the County's use of the funds left to them. In the "Compromise and Settlement and Release of All Claims," the County, Hughes, and the other heirs released SMU from all of the claims they had asserted in the SMU Litigation. In July 1994, the County Commissioners ratified the parties' agreements in the SMU Litigation. In September 1994, the trial court in the SMU Litigation entered a
In 2013, Hughes filed suit against the County asserting claims for breach of the MPA, unjust enrichment, and violations of the Open Meetings Act.
APPLICABLE LAW AND STANDARD OF REVIEW
Governmental immunity protects political subdivisions, including counties, from suit and from liability. See Tex. Civ. Prac. & Rem. Code § 101.001(3)(B) (defining "governmental unit" to include counties); Ryder Integrated Logistics, Inc. v. Fayette Cty. ,
Governmental immunity defeats a court's subject matter jurisdiction in a pending case and is therefore properly asserted in a plea to the jurisdiction. Engelman Irrigation Dist. v. Shields Bros. ,
DISCUSSION
Hughes asserts that the County waived its immunity from suit for breach of the MPA in two ways. First, Hughes contends that the County waived immunity by voluntarily intervening in the SMU litigation, settling the suit-from which it was not immune-and then breaching the terms of the settlement agreement. Second, Hughes argues that the County waived immunity by its conduct in breaching the MPA. We address each argument in turn.
Voluntary Intervention and Settlement
In his first issue, Hughes argues that the County waived its immunity from suit for breach of the MPA because the MPA was a settlement agreement in a lawsuit for which the County had no immunity by virtue of its voluntary intervention. Hughes relies on Texas A & M University-Kingsville v. Lawson ,
First, we cannot agree that the County waived its immunity from suit by intervening in the SMU Litigation. Implicit in Hughes's argument is reliance on the voluntary litigation "exception" to immunity applied by the Texas Supreme Court in Reata. See
In Reata , a property owner sued Reata for negligence after Reata drilled into a water main, flooding the property owner's building.
Here, the County did not make a decision to seek affirmative relief from Hughes and asserted no claims to which Hughes filed related defensive claims. See
For the same reason, the MPA was not a settlement agreement in any matter material under the Lawson analysis, as Hughes contends. The language of the MPA did not include any reference to release or settlement of any claims between Hughes and the County; rather, it was in the nature of a joint defense agreement, expressly providing that the MPA did not eliminate their respective claims, that they agreed to pursue the litigation against SMU, and that they would split the proceeds from any settlement with SMU. Simply
Further, even if we were to somehow construe the MPA as a settlement agreement, the holding in Lawson is limited to circumstances in which the government's immunity is statutorily waived. See
Moreover, even if we were to apply the Lawson court's holding to judicially created "exceptions" such as that in Reata , there would be no waiver of immunity here because, as discussed above, the County's intervention in the SMU Litigation does
"Waiver by Conduct "
In his second issue, Hughes argues that the County waived immunity from suit by its conduct. Hughes relies on Federal Sign v. Texas Southern University , in which the Texas Supreme Court declined to find that the university waived its immunity by contracting with a private party but, in a footnote, left open the door for the possibility of "waiver by conduct" in "other circumstances." See
Since then, the Supreme Court and this Court have repeatedly declined to apply a waiver-by-conduct theory. See, e.g., Sharyland Water Supply Corp. v. City of Alton ,
As this Court stated in Carowest ,
Carowest's notion that the City can unilaterally waive its governmental immunity through its own actions traces back to the Texas Supreme Court's now-infamous footnote in Federal Sign v. Texas Southern University intimating that "[T]here may be ... circumstances where the State may waive its immunity by conduct other than simply executing a contract so that it is not always immune from suit when it contracts." But in the years since it decided Federal Sign , the high court has clarified-and repeatedly emphasized-that it defers to the Legislature, not the actions of individual governmental units, to determine whether, when, and how sovereign or governmental immunity should be waived. In so doing, moreover, it has squarely rejected the notion that a governmental entity with authority to enter contracts, or an agent acting on its behalf, can contractually waive immunity from suit, as Carowest insists occurred here. It has similarly declined repeated requests to recognize a "waiver by conduct," and has never gone further than its suggestion in Federal Sign that such a waiver might conceivably occur under some set of facts it has not yet seen. Similarly, in the absence of further guidance from the supreme court, this Court (at least in recent years) has consistently rejected requests that we recognize "waivers by conduct" under a variety of factual scenarios.
Hughes cites Texas Southern University v. State Street Bank & Trust Co. , in which the First Court of Appeals upheld the trial court's denial of the university's plea to the jurisdiction based on the "extraordinary factual circumstances" presented. See
However, State Street is the only case of which we are aware that has applied the waiver-by-conduct exception, and this Court has previously declined to follow State Street. In Labrado v. University of Texas at El Paso , this Court concluded that the facts did not parallel those in State Street and noted that this Court does "not have discretion to recognize the underlying exception to sovereign immunity in the absence of supreme court authority." No. 03-10-00009-CV,
On the facts before us and in the absence of guidance from the Texas Supreme Court as to what actions might justify waiver by conduct, we decline to apply the "waiver-by-conduct" exception to governmental immunity to the complained-of conduct in this case. See Labrado ,
CONCLUSION
Having overruled Hughes's issues, we affirm the trial court's order granting the County's plea to the jurisdiction as to Hughes's claims based on the MPA.
Notes
Other heirs intervened in the SMU Litigation and were parties to the agreement forming the basis of Hughes's breach of contract claim, but they are not parties to this appeal.
Specifically, Hughes alleged that the gift to SMU created a vested remainder subject to complete defeasance, which was defeased upon completion of the endowment, or a fee simple determinable that automatically terminated upon completion of the endowed chair, causing ownership of the mineral rights to revert to Duwain Hughes's heirs. Under either theory, Hughes argued, SMU's interest terminated, and because Duwain Hughes had failed to specify to whom it was to pass next, Duwain Hughes's heirs automatically became vested.
The MPA provided that each party would assign to the other 50% of the net proceeds it received from settlement of the SMU Litigation. It appears from the record that no assignments were ever made and that instead the parties simply split the proceeds.
The will authorized the County to sell the home if it "fail[ed] to be useful" as a library and to use the proceeds for the purchase of books and materials for the Tom Green County Library.
In his open meetings claim, which remains pending before the trial court and is not before us in this appeal, Hughes asserts that the County violated the Open Meetings Act by taking the official vote to name the new main library outside of open session and seeks to have the resolution naming the library declared void and set aside.
Hughes later replaced his claim for unjust enrichment with an "Action for Money Had and Received," containing virtually identical allegations. At the hearing on the plea to the jurisdiction, Hughes stated that he had withdrawn the claim for unjust enrichment and offered to stipulate that he did not intend to pursue it. To the extent Hughes intended to retain his claim for money had and received based on the County's acceptance of the settlement proceeds pursuant to the MPA, it was dismissed by the trial court's order dismissing all claims "pertaining to the [MPA]." On appeal, Hughes asserts no arguments specifically concerning that claim.
The County points out that Lawson was a plurality opinion and argues that it is not binding. However, subsequent Texas Supreme Court holdings have followed it. See, e.g., City of Hous. v. Estate of Jones ,
Hughes contends that at the hearing on the plea to the jurisdiction, the County agreed that Lawson applied to this case. However, the record reflects that the County stated only that if SMU, against whom the County asserted claims, were the party claiming breach of contract, "that would be an easy recognizable exception to immunity if that was the factual scenario in this case, but it isn't." In any event, the County cannot confer jurisdiction on the trial court by its agreement; instead, only the Legislature can. See Koseoglu ,
See Tex. Gov't Code §§ 2260.001 -.108 (providing procedure for independent contractor to seek resolution of claim against state through contested case hearing); Tex. Civ. Prac. & Rem. Code §§ 107.001 -.007 (providing procedure for seeking legislative consent to sue government).
