Lead Opinion
OPINION
About twenty-seven acres of waterfront property, gulfward of the seawall on Galveston Island, present the basis for this dispute. Henry and Rosemarie Porretto sued the Texas General Land Office (the GLO), and its commissioner, Jerry Patterson, together with the Galveston Park Board, and its executive director, Lou Miller, alleging that the defendants have interfered with their fee simple ownership of the property and taken it without compensation. The trial court dismissed the case on the defendants’ pleas to the jurisdiction, in which they asserted governmental immunity.
The Porrettos appeal, contending (1) the facts alleged support a takings claim, for which no immunity exists, (2) although immunity bars an action for trespass to try title as to the State, the Porrettos nevertheless can sue Patterson and Miller, (3) an interim settlement agreement executed by the Porrettos, the GLO, and the Park Board, and filed with the trial court, is enforceable, and (4) section 306.041(a) of the Local Government Code waives any governmental immunity. We conclude that the Porrettos’ takings claim is not barred by governmental immunity, and we follow Texas Supreme Court precedent allowing suit against the officials. We further conclude that the Local Government Code does not otherwise waive governmental immunity, and thus governmental immunity bars the Porrettos’ claim for slander of title. Finally, we conclude that the Porrettos’ breach of settlement agreement claim may proceed only insofar as it relates to claims against which no governmental immunity lies in the first instance. We therefore affirm in part and reverse and remand in part.
Background
There being no reporter’s record or trial court findings, we recite the facts from the Porrettos’ petition, which we accept as true at this stage of the proceedings.
According to the Porrettos’ petition, in recent years, the defendants wrongfully have occupied, used, and interfered with the Porrettos’ use of their property. In addition, the Porrettos claim a cloud on the title to the land. The Porrettos point to three leases, attached as exhibits to their petition. First, in October 1994, the State, through the GLO, leased the property to the City of Galveston for the purpose of beach replenishment. Second, in December 1994, the State, through the GLO, leased the property to the City of Galveston for the purpose of public recreational use, and placed the leases under Park Board Management. Third, in November 1999, the City of Galveston, by and through the Park Board, leased a portion of the disputed property to Paul Roure and Virginia Nagra for the purpose of providing beach concessions. According to the Porrettos, these leases recite that the State and Galveston County own the land south of the seawall, without acknowledgment of the Porrettos’ land. In July 2001, the Porrettos entered an agreement to sell their property to Southbrook Investments, Inc. for 7.5 million dollars. Southbrook later cancelled the contract, citing a cloud on the Porrettos’ title caused by the three government leases.
In their petition, the Porrettos seek (1) a declaratory judgment against all defendants that they have “no right of ownership of any nature as to the Property[,]” (2) to quiet title, via a trespass to try title claim against Patterson and Miller, (3) compensation for a taking of their land, as the Fifth Amendment and Article 1, section 17 of the Texas Constitution afford, and (4) damages for slander of title. In addition, while this litigation was pending in the trial court, the Porrettos and the defendants participated in a mediation, reached a settlement agreement, and filed it with the trial court. Their agreement foundered in its execution. The Porrettos amended their petition to include a breach of contract claim based on the defendants’ alleged failure to comply with the terms of the settlement.
In response to the suit, the defendants answered, and filed pleas to the jurisdiction based on the doctrine of governmental immunity. The defendants did not offer evidence in support of their plea, nor did they dispute the Porrettos’ evidence of ownership of the tracts in question or the veracity of the lease agreements attached to the Porrettos’ petition.
Standard and Scope of Review
Subject-matter jurisdiction is essential for a court to have the authority to resolve a case, and a trial court lacks jurisdiction over a governmental unit that is immune from suit. Tex. Ass’n of Bus. v. Tex. Air Control Bd.,
A plaintiff bears the burden to allege facts affirmatively demonstrating the trial court’s jurisdiction to hear the case. Dallas Area Rapid Transit v. Whitley,
The Takings Claim
The Porrettos contend the trial court erred in dismissing their constitutional takings claim. They observe that this case has two aspects: allegations that the government is “using” or “taking” their property, which support their claim for inverse condemnation, and allegations that governmental officials are wrongfully claiming title them land, for which longstanding Texas Supreme Court precedent allows a suit to proceed. The defendants respond that the Porrettos improperly have recast a trespass to try title claim against the State as a takings claim, the former a claim for which they must obtain legislative consent to sue, and thus the Porrettos allege no claim that survives a jurisdictional plea.
The Fifth Amendment grants a landowner the right to seek compensation from the government for land that it takes: “[N]or shall private property be taken for public use, without just compensation.” U.S. Const, amend. V. Likewise, the Texas Constitution provides, “No person’s property shall be taken, damaged or destroyed for or applied to public use without adequate compensation being made, unless by the consent of such person.... ” Tex. Const, art. I, § 17. Thus, while sovereign immunity protects the State from lawsuits for monetary damages, it “offers no shield against a taking claim brought under Article I, section 17 of the Texas Constitution.” Kenedy Mem’l Found, v. Mauro,
In contrast, a trespass to try title action against the State requires legislative consent. State v. Lain,
With respect to the Porrettos’ takings claim, we disagree with the government — a takings claim is not a functional equivalent of a trespass to try title claim or a suit to quiet title. In a trespass to try title or to quiet title action, an owner sues to recover immediate possession of land unlawfully withheld. Katz v. Rodriguez,
On the other hand, a takings claim is one in which a landowner alleges that the government has taken his property for public use without permission, for which he seeks compensation. City of Abilene v. Burk Royalty Co.,
In support of their position, the defendants rely upon Bell v. State Department of Highways and Public Transportation,
In Texas Southern, a bank sued the university for inverse condemnation after the university refused to pay for equipment provided to it under a lease/purchase
Instead, the facts in this case resemble those in State v. Riemer and Kenedy Memorial Foundation v. Mauro, cases in which takings claims survived a plea to the jurisdiction. See State v. Riemer,
Finally, the defendants respond that the Porrettos’ takings claim must be dismissed for lack of jurisdiction because they had no intent to take the Porrettos’ land, but rather only to assert the government’s “rights.” But the government offered no evidence on the issue of ownership or title, or even a colorable assertion of ownership in the land; therefore, we must accept the Porrettos’ allegation that they are the fee simple owners of the land as true for purposes of evaluating this appeal. Viewed, as we must, in a light favorable to conferring jurisdiction, an allegation that the government conveyed leasehold rights to a third party on land that the Porrettos’ own is not an allegation of accidental or unintended use of land; rather, it is an allegation of an intentional act that interferes with the vested right of a landowner. See Riemer,
At this stage of the proceedings, the government did not controvert the Porret-tos’ allegations of ownership of the land in question, and have challenged the Porret-tos’ claims without regard to the truth of their claim of ownership.
Trespass to Try Title Claims against the Government Officials
The Porrettos further contend the trial court erred in dismissing their trespass to try title claims against governmental officials Patterson and Muller. Recognizing that the State and Galveston are immune from a trespass to try title action, the Porrettos rely upon State v. Lain to sue Patterson and Muller, who acted in their official capacities when executing the leases that the Porrettos contend cloud their title.
In Lain, a landowner filed a trespass to title suit against the State and several of its officials, alleging that the State had trespassed on his land by constructing a ferry landing and dredging a channel over his property.
When suit for recovery of title to and possession of land, filed without legislative consent, is not against the state itself, but is against individuals only, the mere assertion by pleading that the defendants claim title or right of possession as officials of the state and on behalf of the state, will not bar prosecution of the suit.
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One who takes possession of another’s land without legal right is no less a trespasser because he is a state official or employee, and the owner should not be required to obtain legislative consent to institute a suit to oust him simply because he asserts a good faith but overzealous claim that title or right of possession is in the state and that he is acting for and on behalf of the state.
Id. at 552,
The Lain court then established the trial court’s procedure for adjudicating such cases:
[W]hen officials of the State are the only defendants, or the only remaining defendants, and they file a plea to the jurisdiction based on sovereign immunity, it is the duty of the court to hear evidence on the issue of title and right of possession and to delay action on the plea until the evidence is in. If the plaintiff fails to establish his title and right of possession, a take nothing judgment should be entered against him as in other trespass to try title cases. If the evidence establishes superior title and right of possession in the sovereign, the officials are rightfully in possession of the sovereign’s land as agents of the sovereign and their plea to the jurisdiction based on sovereign immunity should be sustained. If, on the other hand, the evidence establishes superior title and right of possession in the plaintiff, possession by officials of the sovereign is wrongful and the plaintiff is entitled to relief. In that event the plea to the jurisdiction based on sovereign immunity should be overruled and appropriate relief should be awarded against those in possession. ... The judgment against the individuals, predicated as it is upon an incidental determination that title and right of possession is in the plaintiff, is not binding on the sovereign.
In Texas Parks & Wildlife v. Miranda, the Texas Supreme Court held that a trial court’s review of a plea to the jurisdiction challenging the existence of jurisdictional facts should mirror that of a traditional summary judgment.
The court in Lain expressly held that a trespass to try title action can be maintained against governmental officials acting in their official capacities. Lain,
There being no evidence in the record from which to conclude that the government had a colorable right of possession, or even an assertion of right or title to the property in question, we hold that the trial court erred by granting Patterson’s and Muller’s pleas to the jurisdiction on the Porrettos’ trespass to try title claims against them. We note that any judgment against Patterson and Muller does not bind the State. See Lain,
Breach of Contract
The Porrettos further contend that the trial court erred by granting the GLO and Patterson’s jurisdictional pleas on the Porrettos’ breach of contract claims. They allege that the GLO and Patterson breached the settlement agreement by “refusing to provide a letter disclaiming any state interest in the Porrettos’ waterfront lots above the mean high tide line.” The Porrettos further contend that the GLO and Patterson have waived immunity from suit on the settlement agreement. In Texas A & M University — Kingsville v. Lawson, the Texas Supreme Court held that a governmental entity that agrees to settle a lawsuit from which it is not immune cannot claim immunity from suit for breach of the settlement agreement relating to that claim.
Although we have held that the Porrettos’ trespass to try title action can proceed against Patterson, it does not follow that they may proceed with their breach of contract claim against him. The Porrettos’ breach of contract claim seeks recovery for Patterson’s failure to execute a letter disclaiming any interest by the State in portions of the disputed property. Only persons having actual authority to act on behalf of the State can bind it in contract. State ex rel. Dep’t of Crim. Justice v. Vitopro Foods, Inc.,
The Local Government Code
Relying on Missouri Pacific Railroad v. Brownsville Navigation District,
Conclusion
We reverse the trial court’s order as it relates to the Porrettos’ inverse condemnation claims, and remand those claims for further proceedings. We reverse the trial court’s order as it relates to the trespass to try title claims against Patterson and Muller, individually, and remand those claims for further proceedings. We reverse the order as it relates to the Porret-tos’ breach of contract claim against the GLO and remand that claim for further proceedings, but only insofar as that claim corresponds to the claim for inverse condemnation. We affirm the trial court’s judgment as it relates to the Porrettos’ breach of contract claim against Patterson, individually, and to the Porrettos’ claims for slander of title. All pending motions are denied as moot.
Chief Justice RADACK, dissenting.
Notes
. See City of Houston v. Northwood Mun. Util. Dist. No. 1,
. The lease agreements refer to "state owned submerged land,” which may form the basis for an assertion of title by the State. See City of Galveston v. Texas Gen. Land Office,
. The Park Board observes in its post-submission briefing that it at least leased the property to a third party in reliance on its lease with the GLO, and thus it acted under color of contract. See State v. Holland,
. In this respect, this case differs from cases in which the State is immune because it has provided evidence that it acted under of color of contract. See, e.g., Holland,
. The officials fur&er respond that Lain is inapplicable because, in that case, the State was not a party, whereas here, the State is a party through the GLO, with respect to the Porrettos’ claim for inverse condemnation. Lain,
. Although Lain expressly permits suit against government officials who wrongfully assert title in a landowner’s private property to quiet title, and we follow it for that principle, we do not suggest that government officials waive immunity for money judgments sought in such a suit. Lain,
Concurrence Opinion
dissenting in part and concurring in part.
I respectfully dissent from the panel’s resolution of issue one. The defendants argue that the Porrettos’ case is not truly an inverse condemnation case, but is, in fact, a trespass to try title action because it involves a dispute over title to real property. The defendants also argue that, because the State is actually claiming ownership of the property, it has no intent to take the Porrettos’ property. I agree with the defendants.
Texas courts have repeatedly held that a trespass to try title action is the proper method of adjudicating rival claims to real property. Martin v. Amerman,
Thus, the question presented is whether the Porrettos can try the State’s title in an inverse condemnation proceeding. I think not. In Bell v. State Department of Highways and Public Transportation, the plaintiff filed a declaratory judgment, seeking a declaration that he held title to property upon which the State had built a highway.
In Texas Southern University v. State Street Bank and Trust Co., the plaintiff entered into an equipment lease with Texas State University (TSU), a governmental entity.
As in Bell, I believe that the Porrettos’ claim is “in effect” á trespass to try title suit. Both the Porrettos and the State claim to own the property at issue. “Any suit that involves a dispute over the title to land is, in effect, an action in trespass to try title, whatever its form and regardless of whether legal or equitable relief is sought.” Jordan v. Exxon Corp.,
As in TSU v. State Street Bank, the Porrettos’ pleading does not show the requisite intent necessary to establish a taking claim. The State claims the property under color of title; it is not “taking” property that it believes belongs to the Porrettos.
Indeed, were we to agree that the State’s claim of title to real property could be adjudicated through a takings claim, we would be creating a waiver of the State’s sovereign immunity in all actions involving the validity of the State’s title to real property. The opposing party in a trespass to try title claim against the State would always be able to circumvent the State’s immunity from suit simply by pleading his case as an inverse condemnation. Such artful pleading should not be permitted to effect a waiver of the State’s sovereign immunity.
In sum, the Porrettos’ takings claim fails because (1) it is “in effect” a trespass to try title action because it asks the court to adjudicate rival claims to the property, and (2) when acting under color of title, the State does not have the requisite intent to “take” the property of another. Because the Porrettos bring a trespass to try title action against the State, not a takings claim, they must first obtain legislative consent, which they did not do. See State v. Lain,
Accordingly, I would overrule issue one.
Because I believe that the GLO is entitled to immunity, I would also hold that it is immune from the Porrettos’ breach of contract claim. See Tex. A & M Univ.— Kingsville v. Lawson,
Accordingly, I would also overrule issue three in its entirety.
I concur in the remaining portions of the opinion.
