San Benito Economic Development Corporation, Inc., Fred Sandoval, Mario Palomo, Ruben Cortez, Anna Garza Llanes, Daniel Cortez, Gabriel Herrera, Deborah A. Morales, Hector Gomez, Thomas W. Goodman, II, Ricardo Guerra, Pedro A. Galvan, and Joe E. Navarro v. Varco Real Estate San Benito, LLC

Summary

The Texas Thirteenth Court of Appeals considers an accelerated appeal arising from a temporary injunction in a dispute over the development and operation of Resaca Village. The court addresses whether a Type B economic development corporation has governmental immunity from tort claims under the Development Corporation Act and whether the temporary injunction was proper. The opinion states that the corporation lacks governmental immunity under the Texas Supreme Court’s decision in Rosenberg Development Corp. v. Imperial Performing Arts, Inc., and affirms in part while reversing and remanding in part.

Holdings

1. A Type B economic development corporation does not independently possess governmental immunity from suit as an arm of the State, and Texas Local Government Code section 505.106 does not grant such immunity for tort claims.
2. The election-of-remedies provision did not bar Varco's claims against the Individual appellants because Varco did not sue the City for tort claims or under the Texas Tort Claims Act.
3. A temporary injunction may not issue against named adverse parties without notice of the temporary-injunction hearing; the trial court abused its discretion by enjoining the Individuals without providing that notice.
4. The temporary-injunction hearing was not automatically stayed because the trial court had not entered an appealable ruling denying SBEDC's plea to the jurisdiction before conducting the hearing.
5. An applicant need establish a probable right to recover on only one independent cause of action to support a temporary injunction.
6. The evidence supported the trial court's finding of probable irreparable injury because interference with Varco's clients, operations, goodwill, reputation, and ability to complete the project involved harms not adequately measurable by monetary damages.

Questions Presented

1. Whether a Type B economic development corporation has governmental immunity from suit under the Texas Development Corporation Act for tort and related claims.
2. Whether the Texas Tort Claims Act's election-of-remedies provision barred Varco's claims against the individual directors and officials.
3. Whether the temporary injunction was invalid against the Individual appellants because they lacked notice of the temporary-injunction hearing.
4. Whether SBEDC's notice of interlocutory appeal from the plea-to-the-jurisdiction proceedings automatically stayed the temporary-injunction hearing.
5. Whether Varco was required to establish a probable right to relief on every pleaded claim to support a temporary injunction.
6. Whether the evidence supported a finding of irreparable injury.
7. Whether the temporary injunction exceeded the status quo.

Disposition

reversed_and_remanded