IN THE SUPREME COURT OF
════════════
No. 05-0321
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Petitioners,
v.
Dr. Sefa Koseoglu,
Respondent
════════════════════════════════════════════════════
On Petition for Review from the
Court of Appeals for the Tenth District of
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Argued November 14, 2006
Justice Green delivered the opinion of the Court.
In this case we consider whether a plaintiff who, on appeal, loses a plea to the jurisdiction based on sovereign immunity is entitled to a remand for an opportunity to cure the jurisdictional pleading defect. We conclude that when a pleading cannot be cured of its jurisdictional defect, a plaintiff is not entitled to amend. Additionally, we must interpret section 51.014(a) of the Texas Civil Practice and Remedies Code to determine whether appellate courts have jurisdiction to consider a government official’s appeal of a trial court’s denial of a plea to the jurisdiction based on sovereign immunity. We conclude that Section 51.014(a)(8) vests appellate courts with such jurisdiction.
Sefa Koseoglu worked as a contract
employee at the Texas Engineering Experiment Station, which is a division of the
Texas A&M University System. Koseoglu sued the Texas A&M
University System, the Texas Engineering Experiment Station (“Texas A&M,”
collectively), and Mark McLellan, his supervisor, for
allegedly breaching his employment contract. Both Texas A&M and McLellan filed pleas to
the jurisdiction asserting sovereign immunity and challenging the trial court’s
jurisdiction to hear Koseoglu’s claims. The trial
court denied the pleas to the jurisdiction, and Texas A&M and McLellan appealed. The
court of appeals reversed the trial court’s judgment with respect to Texas A&M’s appeal, holding Texas
A&M’s sovereign immunity from suit barred Koseoglu’s breach of contract claim. 167 S.W.3d 374, 384
(Tex. App.—Waco 2005, pet. granted). Rather than dismiss Koseoglu’s claim against Texas A&M, the court of appeals concluded Koseoglu deserved an opportunity to amend his pleadings and
therefore remanded the matter to the trial court.
I. Background
In 1999, while still employed by Texas A&M, Koseoglu began moonlighting for a private business enterprise he partially owned. In early 2002, soon after McLellan became Koseoglu’s supervisor, Koseoglu requested permission to continue his outside employment. McLellan denied Koseoglu’s request. Koseoglu nevertheless continued the outside employment and, in October 2002, McLellan informed Koseoglu that his employment would be terminated at the end of the following month. Seeking to negotiate the terms of his dismissal, Koseoglu sent a letter to the general counsel of the Texas A&M University System on December 19, 2002. In the letter, Koseoglu proposed that he be permitted to remain in his position until August 2003 and receive certain other financial and non-financial benefits. The letter included a blank signature line, under the word “AGREED,” which was then signed by an attorney in the Texas A&M general counsel’s office. On January 14, 2003, Koseoglu’s counsel sent a proposed draft of the final agreement to the Texas A&M general counsel’s office. The final agreement was never signed. Koseoglu’s counsel later wrote to the Texas A&M general counsel’s office that, by refusing to execute the January 14 settlement documents, the Texas A&M University System was in breach of the December 19 “agreement.”
In April
2003, Koseoglu sued McLellan
and Texas A&M for breach of contract, asserting
they breached the alleged December 19 agreement between Koseoglu and Texas A&M. Texas A&M and McLellan each pled the affirmative defense of sovereign
immunity and filed pleas to the jurisdiction. Koseoglu
filed a motion for summary judgment, contending in part that Texas A&M’s and McLellan’s sovereign
immunity had been waived for his breach of contract action because it had been
waived for an underlying action under 42 U.S.C. § 1983 in which Koseoglu asserted a denial of due process with respect to
his employment contract with Texas A&M. Four months after Texas A&M and McLellan filed their
pleas to the jurisdiction, the trial court denied them. Before the trial court
ruled on Koseoglu’s motion for summary judgment, Texas
A&M and McLellan each
filed an interlocutory appeal. The court of appeals reversed the trial court’s
denial of Texas A&M’s
plea to the jurisdiction and dismissed McLellan’s
interlocutory appeal for want of jurisdiction. 167 S.W.3d at
384. The court of appeals concluded that governmental entities do not
waive their immunity from suit in Texas by accepting benefits under a contract,
and that Koseoglu’s pleadings against Texas A&M
did not fit the narrow exception suggested by the plurality in Texas A &
M University—Kingsville v. Lawson, 87 S.W.3d 518 (Tex. 2002), because Koseoglu’s underlying Section 1983 claim was not one for
which sovereign immunity had been waived. 167 S.W.3d at
380. Thus, the court of appeals held Koseoglu’s
breach of contract claim was barred by Texas A&M’s sovereign immunity from suit and remanded
the case to the trial court, suggesting it might be possible for Koseoglu to state some entirely different claim for which
sovereign immunity might have been waived “with respect to the termination of
the employer-employee relationship.”
Texas A&M and McLellan argue the court of appeals erred on dual grounds. First, they contend the court of appeals erred in concluding it was without interlocutory appellate jurisdiction to review the jurisdictional plea filed by McLellan, a state official acting in his official capacity. Second, they argue the court of appeals should have dismissed Koseoglu’s breach of contract claim after it concluded it was barred by sovereign immunity, rather than remand it to the trial court. We first consider Texas A&M’s and McLellan’s second issue.
II. Koseoglu’s Suit Against Texas A&M
Koseoglu argues Texas A&M waived its sovereign immunity from suit on his
Section 1983 due process claims and therefore, under Lawson, 87 S.W.3d at
519-23, Texas A&M’s immunity has been waived in
this breach of contract case as well. In Lawson, a plurality of this
Court held a plaintiff’s claim for breach of an agreement settling his
underlying Whistleblower Act claim was encompassed within the Legislature’s
decision to waive immunity for Whistleblower Act claims.
However, rather than dismiss Koseoglu’s lawsuit
against Texas A&M, the court of appeals reversed
the trial court’s denial of Texas A&M’s plea to
the jurisdiction and remanded the cause to the trial court so that Koseoglu could amend his pleadings. 167
S.W.3d at 383-84. It is true that a plaintiff deserves “a reasonable
opportunity to amend” unless the pleadings affirmatively negate the existence of
jurisdiction.
Koseoglu argues a plaintiff is not required to amend his pleadings until they are determined by a court to be deficient. Thus, he contends he should now be provided an opportunity to amend. Texas A&M, on the other hand, argues the plaintiff’s opportunity to amend should come after the governmental entity files its plea to the jurisdiction, which puts the plaintiff on notice of alleged defects in his pleadings, but before the trial court takes any definitive action. Accordingly, Texas A&M contends, because Koseoglu had four months to amend his pleadings after it filed its jurisdictional plea, no further opportunity is warranted. Otherwise, Texas A&M argues, suits against governmental entities could be appealed at least twice before final judgment—once to obtain a reversal and remand, and a second time after the remand is ordered.
The court of appeals sided with Koseoglu,
concluding “a plaintiff may stand on his pleadings in the face of a plea to the
jurisdiction unless and until a court determines that the plea is meritorious.”
167 S.W.3d at 383 (citing
On this point, we generally agree with the court of appeals. Texas A&M’s proposed rule would essentially allow governmental entities the unjust advantage of being not only a litigant, but also the judge of the plaintiff’s pleadings. We decline to adopt such a rule. Thus, we agree that Koseoglu deserves the opportunity to amend his pleadings if the defects can be cured.
But Koseoglu’s pleading defects cannot be
cured, and he has made no suggestion as to how to cure the jurisdictional
defect. As is the case with special exceptions, a pleader must be given an
opportunity to amend in response to a plea to the jurisdiction only if it is
possible to cure the pleading defect. See Baylor Univ. v. Sonnichsen, 221 S.W.3d 632, 635 (
III. Appellate Jurisdiction Over McLellan’s Interlocutory Appeal
Absent the State’s consent to suit, a trial court has no jurisdiction
over claims against the State.
Our sole objective in construing Section 51.014(a)(8) is to give effect to the Legislature’s intent. Monsanto Co. v. Cornerstones Mun. Util. Dist., 865 S.W.2d 937, 939 (
A person may appeal from an interlocutory order of a district court, county court at law, or county court that:
. . . .
(5) denies a motion for summary judgment that is based on an assertion of immunity by an individual who is an officer or employee of the state or a political subdivision of the state;
. . . .
(8) grants or denies a plea to the jurisdiction by a governmental unit as that term is defined in Section 101.001;
. . . .
Section 101.001(3) of the Civil Practice and Remedies Code defines “governmental unit” as:
(A) this state and all the several agencies of government that collectively constitute the government of this state, including other agencies bearing different designations, and all departments, bureaus, boards, commissions, offices, agencies, councils, and courts;
(B) a political subdivision of this state, including any city, county, school district, junior college district, levee improvement district, drainage district, irrigation district, water improvement district, water control and improvement district, water control and preservation district, freshwater supply district, navigation district, conservation and reclamation district, soil conservation district, communication district, public health district, and river authority;
(C) an emergency service organization; and
(D) any other institution, agency, or organ of government the status and authority of which are derived from the Constitution of Texas or from laws passed by the legislature under the constitution.
We strictly
construe Section 51.014(a) as “a narrow exception to the general rule that only
final judgments are appealable.” Bally Total Fitness Corp. v.
Had McLellan filed a motion for summary
judgment based on an assertion of official immunity, he clearly would be
permitted under Section 51.014(a)(5) to appeal an
interlocutory denial of his motion for summary judgment. But McLellan did not file such a motion in the trial court and
instead asserts a right under Section 51.014(a)(8) to
appeal the trial court’s interlocutory denial of his plea to the jurisdiction.
While it is clear that the Legislature intended only a few and distinct classes
of “persons” to be permitted to bring interlocutory appeals in only a few
narrowly drawn situations, there is considerable conflict among the courts of
appeals about when state officials qualify to do so. Some courts of appeals have
concluded interlocutory review of a plea to the jurisdiction is not available
under Section 51.014(a)(8) when state officials are
sued in their official capacities because a state official is an individual
rather than “a governmental unit.” See, e.g.,
Castleberry Indep. Sch. Dist. v. Doe, 35 S.W.3d 777, 780 (Tex. App.—Fort
Worth 2001, pet. dism’d w.o.j.);
In arguing Section 51.014(a)(8) does not permit state officials to appeal the trial court’s denial of his plea to the jurisdiction, Koseoglu contrasts the language of Section 51.014(a)(8) with the language in Section 51.014(a)(5). Whereas Section 51.014(a)(8) permits interlocutory appeals of a trial court’s grant or denial of a “plea to the jurisdiction” by a “governmental unit,” Section 51.014(a)(5) permits interlocutory appeals of a trial court’s denial of a “motion for summary judgment” by an “individual who is an officer or employee of the state or a political subdivision of the state.” The Legislature, Koseoglu asserts, should be presumed to have understood the difference between an “individual who is an officer or employee of the state,” on the one hand, and “a governmental unit” on the other, when specifying the categories of persons that are permitted to employ the narrow exception to the general rule. Likewise, Koseoglu argues, the Legislature should be presumed to have understood the difference between a “motion for summary judgment” as it is used in Section 51.014(a)(5) and a “plea to the jurisdiction” as it is used in Section 51.014(a)(8).
But Koseoglu’s premise that the class of persons to which Section 51.014(a)(8) applies is confined by the term “governmental unit” is incorrect. This becomes clear when one considers which terms or phrases in Section 51.014(a) specify “what” can be appealed and “who” is entitled to pursue an appeal. Koseoglu argues the “what” applicable to Section 51.014(a)(5) is “a motion for summary judgment” and the “who” is “an individual who is an officer or employee of the state.” Likewise, he argues the “what” in Section 51.014(a)(8) is “a plea to the jurisdiction” and the “who” is “a governmental unit.” We disagree. The text of Section 51.014(a) makes it clear that the “who” applicable to each subsection is the term “person” that appears at the beginning of the statute. There is no indication that the phrases “an individual who is an officer or employee of the state” or “a governmental unit” in Sections 51.014(a)(5) and 51.014(a)(8), respectively, are intended to modify the term “person.” Instead, those phrases and others in the various subsections of the statute describe exactly “what” may be appealed from an interlocutory order.
For example, Texas A&M and McLellan cite Sections 51.014(a)(5) and 51.014(a)(6) as support for their proposition that only one class of “person” may appeal the orders described in Section 51.014(a). Section 51.014(a)(6) permits a person to appeal from an interlocutory order that:
denies a motion for summary judgment that is based in whole or in part upon a claim against or defense by a member of the electronic or print media, acting in such capacity, or a person whose communication appears in or is published by the electronic or print media, arising under the free speech or free press clause of the First Amendment to the United States Constitution, or Article I, Section 8, of the Texas Constitution, or Chapter 73.
Thus, Section
51.014(a)(6) limits interlocutory appeals to “members
of the electronic or print media” in certain instances involving the “free
speech or free press clause of the First Amendment to the United States
Constitution.” It can only be read as allowing appeals by members of the media
“or a person whose communication appears in or is published by” the media. No
other person would typically have standing to appeal a denial of “a motion for
summary judgment that is based in whole or in part upon a claim against or
defense by a member of the electronic or print media . . . or a person whose
communication appears in or is published by the electronic or print media.”
Similarly, there is no other way to read Section 51.014(a)(5) than to conclude that only an “individual who is an
officer or employee of the state or a political subdivision of the state” may
appeal an interlocutory order denying a motion for summary judgment. The only
other entity that would generally have standing to file such an appeal would be
a governmental body, but the words of Section 51.014(a)(5) offer no indication
or suggestion that it applies to any entity other than a state official, the
only entity which it describes. This stands to reason because an official sued
in his individual capacity would assert official immunity as a defense to
personal monetary liability, which is well suited for resolution in a motion for
summary judgment. See City of Lancaster v. Chambers, 883 S.W.2d 650, 653
(
Section 51.014(a)(8) differs from Sections 51.014(a)(5) and 51.014(a)(6) because, by its plain language allowing for interlocutory appeals of orders granting or denying pleas to the jurisdiction, it cannot be read as applying solely to a governmental unit, the entity which it describes. Interpreting “governmental unit” to modify the term “persons,” as Koseoglu would have us do, would preclude an aggrieved plaintiff, who is plainly not a governmental unit, from bringing an interlocutory appeal to challenge the grant of a jurisdictional plea. This would be inconsistent with the express language of Section 51.014(a)(8). It would be irrational for the Legislature to have intended that a governmental unit be the only “person” who may appeal from an interlocutory order because a governmental unit would have no reason to appeal the grant of a plea to the jurisdiction. For the entire phrase “grants or denies” to be given effect, the statute must allow an appeal to be filed by both a non-governmental plaintiff challenging the grant of a plea to the jurisdiction and a governmental defendant challenging the denial of one.[1]
Given that Section 51.014(a)(8) necessarily
applies to entities other than governmental units, there is no basis for
construing it to exclude state officials. Whereas the Legislature intentionally
restricted the application of Sections 51.014(a)(5) and 51.014(a)(6) by allowing
interlocutory appeals only from a denial of a motion for summary judgment,
Section 51.014(a)(8) is deliberately made more generous in its application.
There is no reason to believe the Legislature intended the statute to apply to
all parties who ordinarily would have standing to appeal an interlocutory order
granting or denying a jurisdictional plea with the sole exception of state
officials. First, such an interpretation would not comport with the text of the
statute because, just as Section 51.014(a)(8) gives no indication it excludes
non-governmental plaintiffs, it also gives no indication it excludes state
officials. Second, construing Section 51.014(a)(8) to exclude state officials
would draw an artificial distinction between pleas filed by governmental
entities and pleas filed by state officials asserting the entities’ sovereign
immunity from suit, a distinction we believe the Legislature could not have
intended. When a state official files a plea to the jurisdiction, the official
is invoking the sovereign immunity from suit held by the government itself. It
is fundamental that a suit against a state official is merely “another way of
pleading an action against the entity of which [the official] is an agent.”
Kentucky v. Graham, 473
Thus, we conclude McLellan’s appeal fits squarely into those appeals permitted by Section 51.014(a)(8). Read in whole, the statute provides that “a person,” in this instance McLellan, “may appeal from an interlocutory order . . . that . . . grants or denies a plea to the jurisdiction by a governmental unit,” such as Texas A&M, “as that term is defined in Section 101.001.” Tex. Civ. Prac. & Rem. Code § 51.014(a)(8). This construction is supported not only by the plain language of Section 51.014(a), but also by its logical application. A person sued in an official capacity should be able to appeal the denial of a jurisdictional plea in the same way as his employing governmental unit because both defendants’ interests in pleading sovereign immunity are identical. We are aware of no sound rationale for distinguishing one from the other.
To the contrary, there are sound reasons to treat the state official sued
in his official capacity and his employing governmental entity equally under
Section 51.014(a)(8). Construing Section 51.014(a)(8)
to exclude state officials sued in their official capacity would make appellate
jurisdiction in a case such as this turn on the same kind of technical
distinctions about the form of pleadings that we rejected in Department of
Criminal Justice v. Simons, 140 S.W.3d 338, 349 (Tex. 2004). In
Simons, we held the term “plea to the jurisdiction” in Section
51.014(a)(8) refers to the substance of the immunity
argument rather than “to a particular procedural vehicle.”
As may typically occur, an official sued in both his official and individual capacities can file a plea to the jurisdiction in defense of the official capacity claims against him and at the same time file a motion for summary judgment on official immunity grounds on the individual capacity claims against him. If either is denied, he may immediately appeal under Section 51.014(a)(8) or 51.014(a)(5), whichever applies. In this case, McLellan filed a plea to the jurisdiction in defense of claims against him in his official capacity.[3] Accordingly, Section 51.014(a)(8) vests the appellate courts with jurisdiction to hear McLellan’s interlocutory appeal.
Alternatively, Koseoglu suggests the availability of interlocutory appeal under Section 51.014(a)(8) turns not on the capacity in which the state official is sued, but on whether the official serves a legislative, judicial, or administrative function. But Koseoglu offers no authority for the proposition that this distinction is relevant to Section 51.014(a)(8), and we are aware of none. Thus, the court of appeals erred in concluding it was without jurisdiction to hear McLellan’s appeal.
IV. Conclusion
With respect to the trial court’s denial of Texas A&M’s plea to the jurisdiction, we affirm the portion of
the court of appeals’ judgment holding that Koseoglu’s
breach of contract claims against Texas A&M were barred by sovereign
immunity. But because Koseoglu’s pleadings are
incurably defective, remanding the cause to the trial court will serve no
legitimate purpose. Therefore, we reverse the court of appeals’ remand order and
dismiss Koseoglu’s claims against Texas A&M with prejudice. See Harris County v. Sykes,
136 S.W.3d 635, 636 (
________________________________________
Paul W. Green
Justice
OPINION DELIVERED: September 7, 2007
[1]
Section 51.014(a) references section 101.001(3) of the Tort Claims Act in
articulating its meaning of the term “governmental unit.” Koseoglu contends this reference eliminates all doubt as to
whether the Legislature intended individual state officials to be permitted to
bring a challenge by way of a plea to the jurisdiction. Government employees are
not included in the definition of “governmental unit” under the Tort Claims Act.
See Tex. Civ. Prac. & Rem. Code § 101.001(3)
(defining “governmental unit”). Texas A&M, however, argues that under the Tort Claims Act
officials sued in their official capacities have been treated by several of the
courts of appeals as the equivalent of governmental entities. See, e.g.,
Harrison v. Tex. Dep’t of Criminal Justice-TDCJID, No. 07-03-0239-CV,
2005 WL 1397415, at *2 (Tex. App.—Amarillo June 14, 2005, no pet.) (mem. op.); Tex. State Auditor’s Office v.
Mora-Nichols, No. 03-03-00113-CV, 2003 WL 22453830, at *4 (Tex. App.—Austin
Oct. 30, 2003, no pet.) (mem. op.);
Madox v. Thomas, No. 11-02-00042-CV,
2003 WL 21757477, at *2 (
[2]
Supporters of the provision believed “incorrect rulings on [jurisdictional
pleas] needlessly waste the time of the courts and can cost litigants hundreds
of thousands of dollars as they defend cases which should have been dismissed.”
See House Comm. On Civil
Practices, Bill Analysis,
[3] The parties disagree about whether Koseoglu brought claims against McLellan in his individual capacity. Any such claims are not at issue in this appeal because McLellan’s plea to the jurisdiction, whose denial gave rise to this appeal, invoked sovereign immunity only “to the extent [McLellan was] sued in his official capacity.” Therefore, any claims against McLellan in his individual capacity remain pending before the trial court. See, e.g., Smith v. Lutz, 149 S.W.3d 752, 756 n.3 (Tex. App.—Austin 2004, no pet.).