Charles J. Hughes v. Tom Green County
Charles J. Hughes v. Tom Green County
Opinion
I
The County decided to recognize the Stephenses' generosity and efforts by attaching their family name to the new library. The County also decided to honor Duwain E. Hughes by putting his name on the library's Audio Visual Department. Mindful of the MPA agreement with Hughes's heirs, the commissioners court also resolved that the $ 500,000 recovery from SMU was "not substantial enough" to name the library for Hughes.
II
III
IV
Sovereign and governmental immunity are common-law concepts that generally protect the State and its political subdivisions from the burdens of litigation.
Harris Cty. v. Annab
,
V
* * *
Justice Boyd filed a concurring opinion, in which Justice Lehrmann and Justice Brown joined.
Justice Boyd filed a concurring opinion, in which Justice Lehrmann and Justice Brown joined.
I.
II.
III.
Cf.
Hughes v. Tom Green Cty.
,
Argued October 30, 2018
Opinion Delivered: March 8, 2019
Rehearing Denied May 31, 2019
This interlocutory appeal arises from a dispute in probate over title to property bequeathed in a will. Two beneficiaries under the will and the decedent's heirs each claimed the property. During the litigation, the heirs and one of the beneficiaries, a county, agreed to combine forces against the other beneficiary, a private university. The county and heirs agreed to share equally in any recovery each or either of them obtained in the proceedings. The university subsequently agreed to settle the litigation by paying $ 1 million to the other parties collectively in return for the release of their claims and the confirmation of title in the university. The settlement was divided between the county and the heirs under their agreement.
Later, one of the heirs sued the county, alleging among other things that the county breached a material term of their agreement. The county responded with a plea to the jurisdiction, asserting that governmental immunity barred the heir's suit on the agreement. The trial court agreed and dismissed the heir's claim. On appeal, the heir complained that the trial court's order was erroneous because it conflicted with
Texas A & M University-Kingsville v. Lawson
,
The court of appeals affirmed the trial court's order, concluding that
Lawson
did not apply for two reasons: (1) the agreement between the heirs and the county in the probate proceeding was not a settlement agreement, and (2) even if it was, the agreement "did not settle claims for which the County's immunity was waived."
In his Last Will and Testament, Duwain E. Hughes, Jr., of San Angelo, left "all of [his] interest in the oil, gas and other minerals in what is known as the DUWAIN E. HUGHES RANCHLANDS in Reagan and Irion Counties" to Southern Methodist University (SMU) for the purpose of establishing an endowed chair in the English Department. Hughes also left his home and all its contents, including his rare book and music collections, to Tom Green County. He directed that his home should be used as a branch library to be known as the "Duwain Hughes Branch of the Tom Green County Library." He provided further that the Library Board could sell the house and use the proceeds to buy new books and materials for the county library if that were a more beneficial use. Finally, Hughes devised the residue of his estate to the Tom Green County Library so that "some funds [might be] available for paying off any indebtedness against [his] home and for upkeep and for the purchase of new books."
By 1991, SMU's proceeds from the Ranchlands' oil and gas production exceeded $ 1.5 million, the highest level of funding for an English Department chair at the university. In an action styled In re the Will of Duwain E. Hughes, Jr. , in Tom Green County, SMU's Board of Trustees filed an application to release the restriction on the use of the bequest, seeking authority to use the excess funds for other purposes in SMU's English Department (the SMU Litigation). Tom Green County intervened, alleging that the testator's intent to establish and fund a single endowed chair at SMU had been accomplished. The County claimed it was therefore entitled to "all excess proceeds" under the will's residuary clause for the Tom Green County Library.
Later, Charles Hughes, the testator's nephew, intervened in the SMU Litigation on behalf of the testator's heirs at law, seeking title to the mineral interests claimed both by SMU and the County and praying for judgment against them both. He alleged that the will's grant to SMU of a vested remainder for the specific purpose of endowing a single chair was defeated once the chair was funded, resulting in "title to the remaining properties immediately rever[ting] to Hughes's heirs at law." Charles Hughes also alleged the County Library's sale of the testator's home and its contents caused the limited purpose of the will's residuary clause to lapse, creating a partial intestacy, entitling the heirs at law, not the County, to the disputed mineral interests and proceeds. The heirs thus turned the County's lapsed bequest theory back against the County.
The probate court directed the parties to mediate their competing claims. Before mediating with SMU, however, the County and heirs entered into a Mutual Partial Assignment (MPA) agreement to present a unified defense to SMU's request to lift the restrictions on its bequest. In this agreement, the County and heirs agreed to share equally in any recovery in the lawsuit by assigning each other an undivided 50% of their respective interests in the contested minerals and proceeds. The parties "control over prosecution and/or settlement of the litigation" was also shared jointly. The agreement additionally provided that the heirs would "retain and/or be assigned herein all executive rights" should the respective claims of either party to the minerals and proceeds succeed. The MPA agreement thus resolved the parties' claims against each other for purposes of the SMU Litigation. The agreement also contained a conditional provision that is at the heart of the present dispute. That provision stated the County would name the main library in honor of Duwain E. Hughes, Jr., "if the commissioners consider the County's ultimate recovery in the cause to be substantial enough for such recognition."
At the mediation ordered by the probate court, Hughes and the County collectively settled their title claims against SMU for $ 1 million and agreed to release their adverse claims to the minerals. The SMU Litigation concluded with the probate court rendering judgment on the releases, which vested title to the disputed minerals in SMU. Under the MPA's terms, the heirs and the County each received $ 500,000.
With its part of the settlement, the County began planning for a new library. The plans were beset by financial challenges, however, and the project languished for more than a decade. In 2006, Steve and Pollyanna Stephens initiated a new fundraising effort. This effort ultimately raised $ 16 million for the library, which included a $ 3 million donation from the Stephens Family.
Charles Hughes thought the recovery in the SMU Litigation substantial enough to warrant this honor for his uncle, however, and sued the County for the slight. The suit sought money damages and a declaration that the commissioners' vote to put the Stephens' name on the library was void because it did not comply with the Texas Open Meetings Act.
The County responded with a plea to the jurisdiction, arguing that governmental immunity barred Hughes's damages claim. The trial court granted the County's plea, dismissing all claims pertaining to the parties' MPA agreement. Hughes appealed. The appeal was interlocutory, however, because the order did not dispose of Hughes's open-meetings claim.
See
TEX. CIV. PRAC. & REM. CODE § 51.014 (authorizing appeal from certain interlocutory orders). The court of appeals affirmed the trial court's order, concluding the County indeed could not be sued for allegedly breaching its agreement in the prior probate proceeding.
As a preliminary matter, the County challenges our jurisdiction to review the interlocutory order underlying this appeal. The Texas Civil Practice and Remedies Code authorizes the appeal of an interlocutory order that "grants or denies a plea to the jurisdiction by a governmental unit" such as the County here. TEX. CIV. PRAC. & REM. CODE § 51.014(8). When the trial court signed the interlocutory order in this case, however, our jurisdiction over the ensuing interlocutory appeal depended on the existence of a dissent in the court of appeals or a conflict with a prior appellate decision.
See
Pidgeon v. Turner
,
The parties here argue about our appellate jurisdiction under the former law. Hughes contends that the court of appeals' decision conflicts with several opinions from this Court; the County maintains that no such conflict exists. But this dispute is no longer the specific basis for our jurisdiction over this appeal. Even though the trial court's order here predates the amendments to our jurisdiction, we generally apply jurisdictional statutes as they exist at the time of our judgment.
City of Austin v. Whittington
,
Hughes contends that the order sustaining the County's jurisdictional plea conflicts with
Texas A & M University-Kingsville v. Lawson
. In
Lawson
, a plurality of this Court concluded that the government could not create immunity for itself through settlement.
Lawson
,
The court of appeals concluded that
Lawson
's reasoning did not apply either because the MPA was not a settlement agreement or because the County's governmental immunity was never waived or otherwise abrogated in the SMU Litigation.
Contrary to the court of appeals' view, Hughes contends the MPA was a settlement agreement because the parties' cross-assignment of their respective rights to the contested mineral interests settled their adverse claims as to each other in the SMU Litigation. Hughes also complains that the court's view of the County's immunity in the SMU Litigation conflicts with our reasoning and analysis in
Reata Construction Co. v. City of Dallas,
In
Reata
, we said it was fundamentally unfair for a governmental entity to petition a court for affirmative relief while simultaneously asserting governmental immunity to bar another party's related and offsetting claims against that entity.
Id
. at 375-76 (citing
Guar. Trust Co. v. United States
,
The court of appeals acknowledges
Reata
's "voluntary litigation 'exception' to immunity," but distinguishes
Reata
on its facts.
The doctrine of sovereign immunity has been part of Texas jurisprudence since the days of the Republic.
See
Bd. of Land Comm'rs v. Walling
,
The foregoing assumes, however, that the government is an unwilling litigant, haled into court by a private plaintiff. The considerations that support the doctrine do not apply equally when the government invokes the jurisdiction of the courts to assert its own claims. And even though the Legislature has generally assumed responsibility for determining when and how to waive sovereign immunity, it remains a matter for the courts to determine
first whether sovereign immunity exists.
Wasson Interests
,
Here, the County intervened in probate to assert its title claim under the will's residuary clause to property that had passed to SMU for the purpose of endowing a department chair. The County claimed the endowment's purpose had been accomplished. The property the County's intervention put in issue was "all of the [decedent's] interest in the oil, gas, and other minerals in what is known as the Duwain E. Hughes Ranchlands." Thus, what the court of appeals characterized as the heirs' competing claim "for the funds going to SMU,"
Because the minerals devised to SMU had fully funded the bequest's sole purpose, the heirs asserted that "title to the remaining properties immediately reverted" to the heirs at law. The heirs also specifically negated the County's claim to the minerals by using the County's own theory of a lapsed bequest against it. They argued that the sole purpose of the residuary gift to the County no longer existed, causing a partial intestacy, which required title to the mineral interests to pass to the heirs at law rather than the County.
Without question, the County was a voluntary litigant.
See
Reata
,
The SMU Litigation concerned who, among the competing claimants, was entitled to a gift. Litigation over a gift does not implicate taxpayer dollars or otherwise threaten the public treasury. The litigation
thus does not invoke the primary policy concerns supporting immunity from suit-the payment of taxpayer dollars subject to legislative discretion or judicial intrusion on exercising that discretion.
See
Brown & Gay Eng'g,
The court of appeals also proposes to limit Lawson "to circumstances in which the government's immunity is statutorily waived." Id . at 7. But no principled distinction can be drawn between a claim that lies outside the contours of governmental immunity as in Reata and one that lies within such immunity, but for which the Legislature has provided a waiver. In either instance, the government lacks immunity from suit either because immunity has been abrogated or annulled to the limited extent explained in Reata or because the Legislature has chosen to waive immunity under its own terms. The court of appeals accordingly erred in rejecting Lawson based on its assumption of the County's immunity in the SMU Litigation.
The court of appeals' refusal to apply Lawson also rests on its belief that the MPA agreement was not a settlement agreement because it failed to settle anything. The court characterized the MPA as a joint defense agreement in which the parties agreed to pursue the litigation against SMU and split the proceeds of any settlement. Id . at 6. But it was more than that.
Before the MPA agreement, the County and heirs each claimed a superior right to the property. Their respective claims were not only adverse, but mutually exclusive. If one prevailed, the other could not. The MPA settled that adversity by the cross-assignment of "50% of all mineral interests" and "50% of the net proceeds" the County and heirs actually received in the SMU Litigation. If either prevailed, or SMU settled, they shared equally in the proceeds.
The court of appeals focused on one of the recitals in the agreement's preamble that stated "the agreement was 'in no way intended to eliminate or reduce in any fashion the causes of action, claims or rights held by the heirs-at-law or the County.' " Id . at 3. But the contractual terms of the MPA in fact reduce the rights of one of the parties in the property if indeed either has an enforceable claim to it. Moreover, the agreement does not merely anticipate a monetary settlement from SMU. The MPA provides for an equal division not only of any net proceeds but also of all mineral interests actually received in the lawsuit, providing further that the heirs are to retain or be assigned the executive rights in those interests. An award of mineral interests in the lawsuit suggests that one of the parties to the MPA might prevail on its mutually exclusive claim to the minerals and become obligated to assign half the award to the other party. And if the County were the one to prevail, the MPA required it to assign away the executive rights as well. Thus, despite its preamble, the MPA agreement did propose to eliminate or reduce the claims or rights of its signatories as to each other in the SMU Litigation.
The trial court's order, which granted the County's plea to the jurisdiction, included a handwritten notation that the MPA was "in fact a mutual Settlement Agreement." We agree with that notation even though the substance of the court's order is otherwise erroneous. The MPA settled the adversity that existed between the County and the heirs in the SMU Litigation, granting each a 50% interest in the others' claims and vesting "all control over prosecution and/or settlement of the litigation" jointly in the signatories. This agreement together with the settlement the parties jointly negotiated with SMU resulted in the release of all their shared claims and put an end to the litigation.
Lawson
provides that a governmental entity cannot create immunity for itself by settling a claim for which it lacks immunity only to assert immunity from suit in a subsequent action to enforce the government's agreement.
Lawson
,
In an earlier probate proceeding, Charles Hughes and Tom Green County both claimed ownership of the same mineral interests. They ultimately settled those competing claims. Hughes now alleges the County breached that settlement agreement, and the Court holds that governmental immunity does not bar Hughes's claim against the County for that breach. 573 S.W.3d 212, ----. I agree with that result, but not with the Court's analysis, which misapprehends both governmental immunity and our holding in
Reata Construction Corp. v. City of Dallas
,
The Court holds that the County's decision to intervene in the probate proceeding and assert an affirmative claim to the mineral interests "abrogated the County's governmental immunity as in
Reata
." 573 S.W.3d at 220. But
Reata
is irrelevant here because the claim Hughes asserted in the probate proceeding never implicated the County's immunity at all. We held in
Reata
that when a governmental entity voluntarily engages in litigation and asserts an affirmative claim for money damages, immunity does not apply to the defendant's counterclaims against the governmental entity if those counterclaims are "germane to, connected with, and properly defensive to" the governmental entity's claims, to the extent the counterclaims serve only to offset the amount of the governmental entity's recovery.
The probate proceeding's procedural background demonstrates why Reata has nothing to do with this case. Southern Methodist University initiated the in rem probate litigation seeking a judicial release of a will's restriction on SMU's use of the disputed mineral interests. At that time, of course, the lawsuit involved only SMU. The County promptly intervened and sought a declaration that the disputed mineral interests belonged to its local library. Almost two years later, Hughes intervened and sought a declaration that those interests belonged to him and the testator's other heirs. Although three parties ultimately competed for the mineral interests, no one asserted any claim-much less a claim for money damages-against the County. The County did not seek dismissal of Hughes's or SMU's claims; it knew as well as anyone that those claims did not implicate the County's governmental immunity.
If the County had filed a jurisdictional plea or motion to dismiss Hughes's claim in the probate proceeding, the trial court would (or, at least, should) have denied the plea outright-not because
Reata
's abrogation rule applied, but because immunity did not apply at all. Governmental immunity bar suits and claims
against
the state and its political subdivisions.
For centuries, courts and commentators have agreed that sovereign immunity bars suits and claims that private parties initiate against the government. English law recognized that "no suit or action can be brought
against the king
, even in civil matters, because no court can have jurisdiction over him." 1 WILLIAM BLACKSTONE , COMMENTARIES *242 (emphasis added). Based on that tradition, the U.S. Supreme Court has long admonished that "the entire judicial power granted by the Constitution does not embrace authority to entertain a suit brought by private parties
against a state
without consent given."
In re State of New York
,
But immunity is not implicated just because the government is a party to a lawsuit. Courts must have jurisdiction over
some
cases in which the government is a party, or else the government could never initiate or intrude in litigation.
See
JOSEPH STORY , A FAMILIAR EXPOSITION OF THE CONSTITUTION OF THE UNITED STATES § 332 (The Lawbook Exchange, Ltd. 1999) (1840) (explaining that article III, section 2 of the federal Constitution was meant to allow the government to sue to enforce its own rights and privileges);
Emp's of Dep't of Pub. Health & Welfare v. Dep't of Pub. Health & Welfare
,
In
this
proceeding, however, Hughes does assert a claim
against
the County, seeking damages for the County's alleged breach of the parties' agreement to settle their competing claims in the probate proceeding. Generally, governmental immunity bars a contract claim for damages against a governmental entity unless the legislature has waived that immunity.
See
Nazari
,
This case differs from
Lawson
in that Hughes is not suing for breach of an agreement settling claims for which the legislature had
waived
the County's immunity. Hughes had no need to argue waiver in the probate proceeding because he asserted no claims against the County, so governmental immunity did not apply at all. But the plurality's holding in
Lawson
was not limited to situations in which immunity was waived: "If a government entity agrees to settle a lawsuit from which it
is not immune
, [it cannot] claim immunity from suit for breach of the settlement agreement."
Governmental immunity does not bar Hughes's claim for the County's alleged breach of the parties' settlement agreement because immunity did not bar the claim the parties settled. But Reata has nothing to do with that conclusion. I respectfully disagree with the Court's reasoning, but I concur in its judgment.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.