Justice Willett delivered the opinion of the Court.
Following Hurricane Ike, federally funded rebuilding projects in disaster-stricken areas of Texas were overseen by various local governmental entities. This is a contract dispute between one of those entities
We answer yes: The statutory-immunity waiver applies. Texas homeowners were primary beneficiaries under the recovery-and-rehabilitation program, but they were not the only beneficiaries. The contract also benefitted the local governmental entity — directly so — providing rebuilding work the entity was obligated to provide itself. Accordingly, the chapter 271 immunity waiver applies.
We reverse the court of appeals' judgment.
In response to destruction caused by Hurricane Ike in 2008, the federal government block-granted disaster-relief funds to the states. Texas, through its Department of Housing and Community Affairs, distributed its share of federal funding to various local governmental entities including the South East Texas Regional Planning Commission (Planning Commission or Commission). The Commission is one of several regional planning commissions created under chapter 391 of the Local Government Code, generally charged with making "studies and plans to guide the unified, far-reaching development of a region."
Under a contract between the State and the Planning Commission, the State provided $95 million to the Commission for various disaster-relief and housing-restoration services.
The contract authorized the Planning Commission to subcontract the repair work and it entered into five contracts with Byrdson Services, LLC. A dispute arose between the Commission and Byrdson regarding the quality of Byrdson's work and payment due under the contracts. Byrdson sued the Commission for payments allegedly due.
The Planning Commission filed a plea to the jurisdiction, alleging governmental immunity from suit. Byrdson countered that immunity had been waived by chapter 271 of the Local Government Code. The trial court denied the plea.
On interlocutory appeal,
When evidence is presented with a plea to the jurisdiction, the trial court may rule on the plea as a matter of law if the evidence does not raise a fact issue on the jurisdictional question.
Political subdivisions of the State, including entities like the Planning Commission, possess governmental immunity from suit unless the Legislature has waived that immunity.
The Legislature has waived governmental immunity as to certain contract claims. Local Government Code section 271.152 provides:
Section 271.151(2)(A) provides that a "[c]ontract subject to this subchapter" means
The Planning Commission contends chapter 271 does not apply to this dispute, because its contracts with Byrdson do not state essential terms "for providing goods or services to the local governmental entity." Citizens benefitted, not the Commission.
In the past decade, we have decided several cases examining this very point — whether agreements provided goods or services to a local governmental entity: Ben Bolt-Palito Consolidated Independent School District v. Texas Political Subdivisions Property/Casualty Joint Self-Insurance Fund;
In Kirby Lake, we explained that the term "services" in chapter 271 "is broad enough to encompass a wide array of activities," and "includes generally any act performed for the benefit of another."
We hold the agreements Byrdson made with the Planning Commission do in fact provide services to the Commission and are thus covered by chapter 271's immunity waiver.
Byrdson argues that warranty and indemnity provisions in the contracts provide the requisite services to the Planning Commission. These provisions require Byrdson to warrant its work to the homeowner and to hold the Planning Commission harmless against third-party claims by reason of Byrdson's work under the contracts. Byrdson points us to a case with similar facts, where the City of El Paso received a block grant to provide weatherization services to homeowners, and then contracted with private companies to provide the services. The court of appeals noted provisions in the contract between a private contractor, High Ridge, and the City, requiring High Ridge "to provide a one year warranty to the client" and "to indemnify and defend the City from any causes of action and claims arising out of High Ridge's activities under the contract."
We do not decide whether the warranty and indemnity provisions, standing alone, would qualify as the provision of services to the Planning Commission for purposes of chapter 271. This result would be somewhat odd, in that contractual provisions intended to shield the Commission from liability would have the effect of waiving immunity, the purpose of which is to protect the public treasury from liability claims.
But we need not dwell on this conundrum. We conclude the Byrdson agreements provided services to the Planning Commission under chapter 271 because Byrdson performed services the Planning Commission was otherwise obligated to perform itself under its contract with the State. The contract between the State and the Planning Commission provided funds to the Commission, and obligated it to provide "owner homeowner repair, reconstruction, and new construction activities... demolition activities ... and single and multi-family rental rehabilitation, reconstruction and new construction activities" to households in its region. Among other obligations, the Commission was required to "provide homeowner repair, rehabilitation, reconstruction, new construction, and elevation assistance to a minimum of" 567 households. The contract
We reached a similar result in Kirby Lake, our most analogous recent case. In Kirby Lake, developers built water and sewer facilities for the Clear Lake Water Authority. Under agreements with the water authority, the developers leased the facilities to the authority, and it agreed to later purchase the facilities if a bond issue was approved.
The Planning Commission argues the homeowners and not the Commission were the real beneficiaries of the Byrdson contracts, since the homeowners received the benefits of the reconstruction services. But in Kirby Lake, too, homeowners and not the governmental entity were arguably the ultimate beneficiaries of the developers' efforts to build water and sewer facilities. This circumstance did not take the contracts outside the scope of chapter 271. We held the agreements provided sufficiently "concrete" services to the water authority to fall under chapter 271, because the developers "contracted to construct, develop, lease, and bear all risk of loss or damage to the facilities."
We reverse the court of appeals' judgment and remand the case to the trial court for further proceedings.
Act of April 18, 1963, 58th Leg., R.S., ch. 101, § 7, 1963 Tex. Gen. Laws 164, 174.
Id. § 9, 1963 Tex. Gen. Laws at 174.