Don Jackson Construction sued the Rockport-Fulton Independent School District seeking payment for repairs to district buildings damaged by Hurricane Harvey in 2017. The contractor worked through the Regional Pool Alliance, an intergovernmental unit created to help governmental entities perform services including property loss coverage. Don Jackson claimed the RPA hired it as general contractor for repairs throughout Aransas County, including RFISD property, but the RPA failed to pay for completed work totaling $1.1 million in settlements.
The appeals court held that RFISD maintained governmental immunity because there was no evidence the school board voted to approve any contract authorizing the RPA to act on its behalf. As Justice Fonseca wrote, 'While there is circumstantial evidence that would seem to hint at the probability of RFISD being a member of the RPA, this evidence fails to transcend mere suspicion and is so slight as to make any inference a guess.' The court emphasized that Texas law requires contracts be 'properly executed' on behalf of governmental entities to waive immunity.
The court delivered particularly sharp criticism of Don Jackson's evidence, writing that the contractor's circumstantial proof 'is so slight as to make any inference a guess and thus is no evidence.' Justice Fonseca acknowledged the strained logic of the situation, noting 'While it stretches credibility to claim that the RPA hired Don Jackson to repair RFISD's property for its own benefit, this Court's job is not to sit in the role of factfinder.'
The case arose after Don Jackson initially sought relief in arbitration against both RFISD and the RPA with the American Arbitration Association. When the arbitration panel denied RFISD's plea to jurisdiction and ruled in Don Jackson's favor, RFISD filed suit in the 36th District Court of Aransas County seeking a declaratory judgment that it maintained governmental immunity. The trial court granted RFISD's summary judgment motion on April 2, 2024.
Don Jackson argued that the RPA acted as RFISD's agent under the Interlocal Agreement and pointed to evidence including performance and payment bonds listing RFISD as co-owner of properties with the RPA, direct communication between Don Jackson and RFISD during construction, and weekly project meetings. The court rejected these arguments, finding that 'merely creating the implication that RFISD was a member of the RPA is not enough to waive RFISD's immunity' without evidence of board approval.
The ruling builds on several recent decisions by the same court involving the Regional Pool Alliance and Hurricane Harvey repair contracts. The court noted it had previously held in cases involving Aransas County and other entities that the RPA was authorized to hire third parties for insurance coverage, but only when there was 'undisputed evidence' that entities approved the Interlocal Agreement or appointed the RPA as their agent.
The decision clarifies that Texas Local Government Code Chapter 271's immunity waiver requires more than circumstantial evidence of agency relationships. Under Texas Education Code Section 44.031, school districts can only enter contracts through their board of trustees or by delegating authority to superintendents, making formal approval essential for valid contracts that waive governmental immunity.