Lubbock County Water Control and Improvement District and Tommy Fisher, in His Official Capacity as President of the Board of Directors of the Lubbock County Water Control and Improvement District v. Church & Akin, L.L.C.

Summary

The Supreme Court of Texas held that a lease between Church & Akin, LLC and the Lubbock County Water Control and Improvement District did not constitute a written contract for providing goods or services under Chapter 271 of the Texas Local Government Code. The lease restricted the use of the premises to marina-related purposes but did not require Church & Akin to operate a marina or provide services to the Water District itself. The Court therefore held that Chapter 271 did not waive governmental immunity and dismissed Church & Akin’s breach-of-contract claims for lack of jurisdiction.

Holdings

1. A contract's title does not control whether Chapter 271 waives governmental immunity. A lease may qualify if its written terms state the essential terms of an agreement to provide goods or services to the local governmental entity, even when providing goods or services is not the contract's primary purpose.
2. The lease's provision restricting use of the premises to a marina and related purposes was a covenant against noncomplying use, not a covenant requiring Church & Akin to operate a marina. Church & Akin therefore did not contractually agree to provide marina-operation services to the Water District.
3. The catering-ticket provision did not constitute an agreement to provide services to the Water District. Even if it were construed as an agreement to issue tickets, it did not state the essential terms necessary to create an enforceable agreement for ticket-issuing services.
4. Church & Akin's obligation to pay rent equal to a percentage of sales did not constitute an agreement to generate sales, operate a marina, or provide services to the Water District.
5. Chapter 271 did not waive the Water District's immunity from suit because the lease did not state the essential terms of an agreement for providing goods or services to the Water District.

Questions Presented

1. Whether the lease was a written contract stating the essential terms of an agreement for providing goods or services to a local governmental entity under Texas Local Government Code section 271.151(2)(A).
2. Whether the lease's restriction on use of the premises, catering-ticket provision, or profit-based rent provision constituted an agreement by Church & Akin to provide services to the Water District sufficient to trigger the waiver of governmental immunity under section 271.152.
3. Whether the Water District's governmental immunity required dismissal of Church & Akin's breach-of-contract claims for lack of jurisdiction.

Disposition

reversed