Carl Owens, Jr., Connie Owens, Michael Terry, and Sandi Terry v. the City of Tyler, Texas
Carl Owens, Jr., Connie Owens, Michael Terry, and Sandi Terry v. the City of Tyler, Texas
Opinion
*851 The City of Tyler built Lake Tyler in 1946 and leased lakefront lots to residents. The Owens, Terry, and Chatelain families lease three contiguous lots on the lake pursuant to lease agreements with the city. The Chatelains decided to build a new pier and boathouse extending from their lot onto the water. They asked the city for a building permit. The Owens and Terry families objected. After some attempts at compromise, the city approved the Chatelains' request for a permit.
The Owens and Terry families sued the city and the Chatelains, seeking to block the construction. They alleged several causes of action, including breach of contract. The city filed a plea to the jurisdiction asserting governmental immunity. The trial court denied the plea. The city took an interlocutory appeal pursuant to TEX. CIV. PRAC. & REM. CODE § 51.014(a)(8). Relying primarily on
Wasson Interests, Ltd. v. City of Jacksonville
,
After the court of appeals issued its decision, this Court decided
Wasson Interests, Ltd. v. City of Jacksonville
,
to determine whether governmental immunity applies to a breach-of-contract claim against a municipality, the proper inquiry is whether the municipality was engaged in a governmental or proprietary function when it entered the contract, not when it allegedly breached that contract. Stated differently, the focus belongs on the nature of the contract, not the nature of the breach. If a municipality contracts in its proprietary capacity but later breaches that contract for governmental reasons, immunity does not apply.
Wasson II
at 149. By no fault of its own, the court of appeals did not conduct the inquiry described above, under which the city's immunity from a breach of contract claim depends on "the nature of the contract, not the nature of the breach."
The petition for review is granted, the judgment of the court of appeals is vacated, and the case is remanded to the court of appeals for further consideration in light of Wasson II .
Reference
- Full Case Name
- Carl OWENS, Jr., Connie Owens, Michael Terry, and Sandi Terry, Petitioners v. the CITY OF TYLER, Texas, Respondent
- Cited By
- 4 cases
- Status
- Published