Service Emp. Redev. V. Ind. School Dist.

• Citation: 163 S.W.3d 142
• Decision Date: 12 May 2005
• Docket Number: No. 2-03-116-CV.,2-03-116-CV.
• Parties: SERVICE EMPLOYMENT REDEVELOPMENT, Appellant v. FORT WORTH INDEPENDENT SCHOOL DISTRICT, Appellee.
• Court: Supreme Court of Texas

163 S.W.3d 142

SERVICE EMPLOYMENT REDEVELOPMENT, Appellant v. FORT WORTH INDEPENDENT SCHOOL DISTRICT, Appellee.

No. 2-03-116-CV.

Court of Appeals of Texas, Fort Worth.

March 3, 2005.

Rehearing En Banc Overruled April 14, 2005.

Rehearing En Banc Overruled May 12, 2005.

COPYRIGHT MATERIAL OMITTED

COPYRIGHT MATERIAL OMITTED

Kent F. Brooks; Ackerman & Savage, L.L.P., Michael T. Savage, Dallas, TX, for Appellant.

Chappell, Hill & Lowrance, L.L.P.; David Chappell, Cynthia L. Hill, David Holder, Fort Worth, TX, for Appellee.

PANEL A: CAYCE, C.J.; LIVINGSTON and WALKER, JJ.

OPINION

TERRIE LIVINGSTON, Justice.

I. INTRODUCTION

In this appeal, we must determine whether the trial court properly dismissed this breach of contract case for want of subject matter jurisdiction. Because we determine that appellee Fort Worth Independent School District (FWISD) is not immune from suit for breach of contract, that appellant Service Employment Redevelopment has standing to bring a breach of contract claim against FWISD, and that appellant did not fail to exhaust administrative remedies, we reverse and remand.

II. BACKGROUND FACTS

Appellant entered into a contract with FWISD under which appellant was to provide an alternative education program for FWISD students. The contract was initially effective for the 1995-96 school year and was dated December 12, 1995. Payment under the contract was to be made in accordance with a formula set forth in the contract. The contract required appellant to comply with applicable laws and with any rules of the Texas Education Agency or the FWISD Board of Education determined to be applicable. The contract further provided that "[i]f any provision . . . is declared invalid or unenforceable, such provision shall be deemed modified to the extent necessary and possible to render it valid and enforceable" and that "[a]ny unlawful provision shall be deemed stricken from the agreement and shall have no effect."

In December 1999, appellant sued FWISD alleging that the school district breached the contract by failing to compensate appellant in the amount required under education code section 37.008(g) for the 1995-96 school year.¹ See TEX. EDUC. CODE ANN. § 37.008(g) (Vernon Supp. 2004-05). Section 37.008(g) requires school districts to "allocate to a disciplinary alternative education program the same expenditure per student . . . that would be allocated to the student's school if the student were attending the student's regularly assigned education program." Id. According to appellant, the parties intended to incorporate section 37.008(g) into the contract but did not include it as a result of either mutual mistake or fraud by FWISD; thus, the formula FWISD used to calculate the amount to pay appellant was less than the amount the parties intended under section 37.008(g). Because appellant alleged that the contract did not comply with section 37.008(g), it asked the trial court to strike the allegedly unlawful payment formula and modify the contract's payment provision to conform with section 37.008(g).

III. DISCUSSION

FWISD filed a motion to dismiss for want of subject matter jurisdiction in the trial court alleging that appellant had no private right of action under education code section 37.008, had no standing to sue under education code section 37.008, and had not exhausted its administrative remedies. The trial court granted FWISD's motion to dismiss for want of subject matter jurisdiction without stating the specific grounds. On appeal, appellant challenges the trial court's dismissal of the case for lack of subject matter jurisdiction on all possible grounds. In five issues, appellant contends that the trial court reversibly erred in dismissing the case for lack of subject matter jurisdiction on the following grounds: FWISD is immune from suit, appellant has no private right of action under education code 37.008(g), appellant lacks standing, and appellant failed to exhaust administrative remedies.

An appellant must attack all independent bases or grounds that fully support a complained-of ruling or judgment. Britton v. Tex. Dep't of Criminal Justice, 95 S.W.3d 676, 681 (Tex.App.-Houston [1st Dist.] 2002, no pet.); see, e.g., Harris v. Gen. Motors Corp., 924 S.W.2d 187, 188 (Tex.App.-San Antonio 1996, writ denied). If an appellant does not, then we must affirm the ruling or judgment. Britton, 95 S.W.3d at 681. This rule is based on the premise that an appellate court normally cannot alter an erroneous judgment in favor of an appellant in a civil case who does not challenge that error on appeal. See Walling v. Metcalfe, 863 S.W.2d 56, 58 (Tex.1993). If an independent ground fully supports the complained-of ruling or judgment, but the appellant assigns no error to that independent ground, then (1) we must accept the validity of that unchallenged independent ground, and thus (2) any error in the grounds challenged on appeal is harmless because the unchallenged independent ground fully supports the complained-of ruling or judgment. See Walling, 863 S.W.2d at 58-59; Britton, 95 S.W.3d at 681 (stating that an appellate court normally cannot alter an erroneous judgment in favor of an appellant in a civil case who does not challenge that error on appeal). The same reasoning applies to a plea to the jurisdiction based on multiple grounds that the trial court sustains without specifying grounds. Britton, 95 S.W.3d at 682. On appeal, appellant has challenged all the possible grounds.

Because standing is implicit in the concept of subject matter jurisdiction and whether a trial court has subject matter jurisdiction is an issue determinative of the authority of a trial court to hear a case, we first address whether appellant had standing to bring a cause of action in this case.

IV. STANDING AND PRIVATE RIGHT OF ACTION

In its third and fourth issues, appellant complains that the trial court erred by dismissing the case for lack of standing and by determining that appellant has no private right of action under education code 37.008(g). FWISD contests appellant's standing by treating appellant's claim as a damage claim stemming from a violation of section 37.008(g) rather than a breach of contract claim on the contract. But in a breach of contract action, a named party to the contract has standing to sue on that contract. Copeland v. Alsobrook, 3 S.W.3d 598, 608 (Tex.App.-San Antonio 1999, pet. denied). So we must now determine the nature of appellant's claim.

Standing is implicit in the concept of subject matter jurisdiction. Waco ISD v. Gibson, 22 S.W.3d 849, 850 (Tex. 2000); Tex. Ass'n of Bus. v. Tex. Air Control Bd., 852 S.W.2d 440, 445-46 (Tex. 1993). Subject matter jurisdiction is essential to the authority of a court to decide a case. Tex. Ass'n of Bus., 852 S.W.2d at 443. Whether a plaintiff has standing is a question of law. In re Shockley, 123 S.W.3d 642, 647 (Tex.App.-El Paso 2003, no pet.). We construe appellant's pleadings in its favor and, if necessary, review the entire record to determine whether any evidence supports appellant's standing to sue FWISD. Tex. Ass'n of Bus., 852 S.W.2d at 446; In re C.M.V., 136 S.W.3d 280, 284-85 (Tex.App.-San Antonio 2004, no pet.).

Appellant argues that it has standing because its claim against FWISD is a breach of contract claim; therefore appellant has a private right of action against FWISD. See Renteria v. Trevino, 79 S.W.3d 240, 242 (Tex.App.-Houston [14th Dist.] 2002, no pet.). FWISD contends that appellant's claim is actually a money damages claim for violation of education code section 37.008(g) requiring the school district to spend the same amount per student in a disciplinary alternative education program as it does for students attending regular education programs. See TEX. EDUC.CODE ANN. § 37.008(g). FWISD argues that section 37.008 does not expressly provide a private right of action and that appellant has no standing to bring a claim under section 37.008. See id. However, despite the absence of an express provision for a private right of action, a breach of a statutory duty normally gives rise to a private right of action on behalf of the injured group of persons for whose benefit the statute was enacted. Nixon v. Mr. Property Mgmt. Co., 690 S.W.2d 546, 549 (Tex.1985); Securtec, Inc. v. County of Gregg, 106 S.W.3d 803, 815 (Tex.App.-Texarkana 2003, pet. denied); Lively v. Carpet Servs., Inc., 904 S.W.2d 868, 871 (Tex.App.-Houston [1st Dist.] 1995, writ denied). Accordingly, FWISD also argues that if the statute provides any right of action, it belongs to the alternative education students and their parents, not appellant.

Regardless of whether we agree with FWISD that appellant does not have a private right of action under section 37.008(g) of the education code, a review of appellant's pleadings makes clear that appellant did not bring a statutory claim under section 37.008(g) against FWISD. Instead, appellant brought a common-law breach of contract claim based upon the contract as modified by section 37.008(g).

The provision of the contract entitled "scope" provides that the contract "shall be deemed to include all agreements . . . and any additional provisions required by law, whether inserted or not." By contracting with FWISD, appellant agreed to provide certain students of the district with an alternative education program. Under the contract terms, appellant was required to comply with applicable laws and the rules of the Texas Education Agency or the FWISD Board of Education.

Appellant's pleadings allege that the parties intended that section 37.008(g) be incorporated into the contract and that due to mutual mistake the parties failed to incorporate it. In the alternative, appellant alleged in its pleadings that FWISD intentionally concealed the error and misrepresented to appellant that the contract included the correct terms. Appellant sought to reform the contract to incorporate section 37.008(g).

Additionally, appel...