Webb v. City of Dallas TX ( 2003 )


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  •                           REVISED JANUARY 16, 2003
    IN THE UNITED STATES COURT OF APPEALS
    FOR THE FIFTH CIRCUIT
    No. 01-11398
    ANN TENISON HEREFORD WEBB; LIZANN TENISON WEBB; BYRON JAMES
    WEBB; CAMILLE ELIZABETH WEBB SEWELL
    Plaintiffs - Appellees
    v.
    CITY OF DALLAS, TEXAS; CITY OF DALLAS PARKS AND RECREATION
    DEPARTMENT; CITY OF DALLAS PARKS & RECREATION BOARD; PAUL
    DYER, Director, City of Dallas Parks & Recreation Department
    Defendants - Appellants
    Appeal from the United States District Court
    for the Northern District of Texas
    December 16, 2002
    Before KING, Chief Judge, and JOLLY and HIGGINBOTHAM, Circuit
    Judges.
    KING, Chief Judge:
    This interlocutory appeal requires us to decide whether, as
    the district court held, Defendants are immune from suit based on
    Texas’s   doctrine   of    sovereign   immunity.     Resolution   of   this
    question requires us to first decide whether the Plaintiffs have
    constitutional standing to sue.        Because we agree that Plaintiffs
    have asserted a claim in this controversy sufficient to satisfy
    Article III’s minimum constitutional standing requirements and that
    No. 01-11398
    -2-
    state sovereign immunity from suit does not bar Plaintiffs’ claims
    against Defendants, we affirm the order of the district court to
    the extent that it denied Defendants’ sovereign immunity from suit.
    I.    FACTS AND PROCEDURAL BACKGROUND
    A.     The Parties Involved and Legal Instruments at Issue
    This case involves a dispute regarding deed restrictions on
    property donated to the City of Dallas.         Edward O. and Annie M.
    Tenison (“the Tenisons”) had four children. Their son, Edward Hugh
    Tenison, predeceased his parents. Edward Hugh Tenison was survived
    by two children, Elizabeth Ann Tenison and Edward Hugh Tenison, Jr.
    Elizabeth Ann Tenison was the grandmother of Plaintiff-Appellee Ann
    Tenison Hereford Webb and the great-grandmother of Plaintiffs-
    Appellees   Lizann   Tenison   Webb,   Byron   James   Webb   and   Camille
    Elizabeth Webb Sewell (together, the “Webbs”).          Hence, the Webbs
    are the great-grandchildren and great-great-grandchildren of the
    Tenisons.
    On December 12, 1922, Edward O. Tenison executed his will, in
    which he bequeathed $25,000 to each of his three living children:
    Mrs. Cruger T. Smith, Mrs. Dan M. Craddock and Mr. James C.
    Tenison.    The will also created separate trusts in the amount of
    $25,000 for each of his three grandchildren, including Elizabeth
    Ann Tenison.     Edward O. Tenison left the “rest, residue, and
    remainder” of his estate to his wife, Annie M. Tenison.             At the
    time he executed the will, the Tenisons owned the land that is the
    No. 01-11398
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    subject of the current dispute.
    On March 23, 1923, the Tenisons deeded 78.8 acres of real
    estate located between East Grand Avenue and East Pike Road to the
    City of Dallas in memory of their son, Edward Hugh Tenison.      The
    deed included the following restriction,
    But this conveyance is made for the purposes of a public
    park only, and upon the express condition that the
    property shall always be used by the City of Dallas, for
    the purposes of a public park for the use and enjoyment
    of the people of the City of Dallas, and for such
    purposes exclusively.    Said park shall be known and
    designated for all time as “Tenison Park.” And if said
    property, or any part thereof, shall not be used for the
    purposes of a Public Park, or if said property, or any
    part thereof, shall be used for any purpose other than
    public park purposes as above provided for, or should the
    name of said park be changed from the above designated,
    then and in each such event the right and title of the
    City of Dallas to the property hereby granted shall
    cease, and said property and all right and title thereto
    shall at once revert to and vest in us or our heirs, and
    it shall be lawful for us or our heirs to re-enter upon,
    take, repossess and enjoy all and singular the property
    hereby granted as in our former estate.
    On March 29, 1923, the Tenisons donated a second tract of land to
    the City of Dallas under the same terms and conditions as the first
    conveyance.
    Edward O. Tenison died in 1924.   On October 5, 1925, Annie M.
    Tenison executed a will, providing that,
    [The] rest, residue and remainder of the property of
    which I may die seized or possessed, or to which I may be
    entitled at the time of my death, whether real, personal
    or mixed, and wheresoever situated, I give, devise and
    bequeath to my beloved children, Mrs. Cruger T. Smith,
    Mrs. Dan M. Craddock, and James Charles Tenison.
    Annie M. Tenison died in 1927.
    No. 01-11398
    -4-
    B.   The Current Dispute
    As the grantee under the deeds, the City of Dallas operated
    two municipal golf courses on the property known as Tenison Park.
    In 1998, the Dallas City Council approved a plan to redesign the
    Tenison Park West Course, and the renovated golf course was opened
    for business in October 2000.        The Webbs allege that rising green
    fees    effectively   excluded    certain   citizens    from   the   use   and
    enjoyment of the property and that the name of the property was
    also changed from “Tenison Park” to “Tenison Highlands.”
    On November 22, 2000, the Webbs filed suit in federal court
    against the City of Dallas, its Parks and Recreation Department and
    Parks and Recreation Board and Park Director Paul Dyer, in his
    official capacity (together the “City”).          In general, the Webbs
    claimed that the City “t[ook] said property and ha[ve] not used and
    expressed intention not to use the property for purposes of a
    public park.” More specifically, in their First Amended Complaint,
    the Webbs sought a reverter of the property to them as heirs of the
    Tenisons, a declaration that they have the right to immediately
    reenter upon and take possession of the property, damages for
    breach of the Dallas City Charter and Texas trust law and an
    accounting of all profits realized by the City’s activities from
    November 1999 through the date of final judgment in this case.             The
    Webbs    further   generally     claimed,   without    particularizing     the
    specific relief sought, relief under a state trespass to try title
    No. 01-11398
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    cause of action.
    The Webbs moved for partial summary judgment on their claims
    for   declaratory    relief,       trespass   to   try   title   and   right    of
    reverter.    The City moved for summary judgment on the basis that
    the Webbs are not legally entitled to enforce restrictions in the
    deeds and moved for judgment on the pleadings on the basis that the
    doctrine of sovereign immunity precludes the Webbs from bringing
    suit against the City.
    C.    The District Court Decision
    On   October   4,    2001,    the   United    States    Magistrate   Judge
    recommended that the district court deny all pending motions in
    this case.    By order dated October 17, 2001, the district court
    adopted the “Findings and Recommendation of the United States
    Magistrate   Judge,”      effectively     denying    the     City’s   motion   for
    summary judgment and for judgment on the pleadings.
    The City appeals the district court’s order denying its
    motion.
    II.      STANDARD OF REVIEW
    This court reviews de novo the denial of a summary judgment
    motion based on standing.1           This court also reviews de novo the
    denial of a motion for judgment on the pleadings based on state
    1
    Ass’n of Cmty. Orgs. for Reform Now v. Fowler, 
    178 F.3d 350
    , 356 (5th Cir. 1999).
    No. 01-11398
    -6-
    sovereign immunity.2   In adjudicating a motion for judgment on the
    pleadings, the court may look only to the pleadings and must accept
    all facts pleaded therein as true.3
    III.    ARTICLE III STANDING AND STATE SOVEREIGN IMMUNITY
    The issues before the court on appeal are (1) whether the
    Webbs claim an interest in the property sufficient to satisfy the
    jurisdictional   injury-in-fact   requirement   of   Article   III,   and
    (2) whether, even if Article III standing is found, the City is
    nevertheless immune from suit under the doctrine of sovereign
    immunity.   Regarding the City’s argument that the Webbs lack a
    legal interest to sue as “heirs” under the deeds, the district
    court specifically determined that genuine issues of material fact
    exist as to whether the Webbs are legal “heirs” of the Tenisons, as
    that term is used in the relevant deeds.        Regarding the City’s
    argument that Texas’s sovereign immunity doctrine immunizes it from
    the present suit, the district court concluded that the City waived
    immunity from both suit and liability.          On appeal, the City
    contends that the Webbs have not satisfied the injury-in-fact
    requirement for this court to have Article III jurisdiction and
    that it has not waived immunity from suit such that subject matter
    jurisdiction to entertain the merits of the Webbs’ claims is
    2
    PYCA Indus., Inc. v. Harrison County Waste Water Mgmt.
    Dist., 
    81 F.3d 1412
    , 1417-20 (5th Cir. 1996).
    3
    St. Paul Fire & Marine Ins. Co. v. Convalescent Serv.,
    Inc., 
    193 F.3d 340
    , 342 (5th Cir. 1999).
    No. 01-11398
    -7-
    present.
    A.     Standing under Article III
    Initially, we must conclude that we have jurisdiction under
    Article III of the United States Constitution before proceeding to
    the merits of the City’s claim of sovereign immunity from suit.4
    In response to the City’s motion for summary judgment that the
    Webbs do not possess a right to enforce the deed restrictions as
    “heirs” when the residuary clause in Annie M. Tenison’s will left
    the “rest, residue and remainder” of her property to her three
    children, the district court found that “genuine issues of material
    fact as to whether plaintiffs are the ‘heirs’ of Edward O. and
    Annie M. Tenison, as that term is used in the Tenison deeds,”
    precluded summary judgment.          On appeal, we are not called upon to
    review    the   merits   of   the    district   court’s   summary     judgment
    determination     regarding    the    Webbs’    alleged   ownership    rights.
    Rather, in order to review the discrete sovereign immunity question
    on appeal, we must only determine that the minimum constitutional
    requirements for standing are satisfied.5
    The Webbs are not direct descendants of the named beneficiaries
    4
    See Steel Co. v. Citizens for a Better Env’t, 
    523 U.S. 83
    , 93-94 (1998); Calderon v. Ashmus, 
    523 U.S. 740
    , 745 & n.2
    (1998); House the Homeless, Inc. v. Widnall, 
    94 F.3d 176
    , 179 n.7
    (5th Cir. 1996).
    5
    Coopers & Lybrand v. Livesay, 
    437 U.S. 463
    , 468 (1978)
    (discussing the Cohen doctrine and the limited jurisdiction of an
    appellate court to review “an important issue completely separate
    from the merits of the action.”).
    No. 01-11398
    -8-
    of the residuary clause of Annie M. Tenison’s will.                         Moreover,
    neither of the Tenison wills specifically references the future
    interest created by the Tenison Park conveyances to the City.
    Nevertheless, in their First Amended Complaint, the Webbs have
    undoubtedly     asserted     an   interest        in     this   property     dispute
    sufficient to satisfy the injury-in-fact jurisdictional requirement
    of the Article III standing doctrine.
    Standing    to    sue   is   the    “core    of     Article    III’s   case-or-
    controversy      requirement,      and     the         party    invoking      federal
    jurisdiction bears the burden of establishing its existence.”6                    To
    invoke federal jurisdiction, the Webbs are required to allege facts
    demonstrating that they have suffered an injury-in-fact — an
    invasion of a legally protected interest which is (a) concrete and
    particularized and (b) actual or imminent, not conjectural or
    hypothetical.7        This   requirement     is    part    of   the   “irreducible
    constitutional     minimum”       required       to     establish     Article    III
    standing.8
    Here, the Webbs have asserted a “personal stake” in the
    dispute that is concrete and particularized.9                      As alleged, the
    6
    Id. at 103-04.
    7
    Lujan v. Defenders of Wildlife, 
    504 U.S. 555
    , 560
    (1992); Gore, Inc. v. Espy, 
    87 F.3d 767
    , 771 (5th Cir. 1996).
    8
    Riley v. St. Luke’s Episcopal Hosp., 
    196 F.3d 514
    , 532
    (5th Cir. 1999).
    9
    Raines v. Byrd, 
    521 U.S. 811
    , 818 (1997).
    No. 01-11398
    -9-
    conduct of the City in violating the deed restrictions has affected
    the Webbs in a personal, individual and particularized way because
    as “heirs” under the deeds, they have a personal stake in seeing
    that the City adheres to the restrictions on the use of the Tenison
    property.10
    The Webbs may ultimately fail to prove ownership or any
    property interest entitlement to the Tenison property.   Facially,
    however, the First Amended Complaint (including its reference to
    the express language of the relevant deeds) avers that the Webbs
    suffered a concrete constitutional injury-in-fact by the City’s
    failure to operate the Tenison property in accordance with the deed
    restrictions and that through the express conveyance of a fee
    simple subject to a condition subsequent, the Webbs can now redress
    this injury by exercising their right of reentry as “heirs.”11
    These allegations assert an interest in the property dispute
    sufficient to meet the minimum constitutional requirements of
    Article III.
    B.   Sovereign Immunity
    Having dispensed with the question whether the Webbs have
    constitutional standing to pursue their claims, we now turn to the
    10
    
    Id.
    11
    See Lawyers Trust Co. v. City of Houston, 
    359 S.W.2d 887
    , 890 (Tex. 1962) (discussing the characterization of a fee
    simple determinable and a fee simple subject to a condition
    subsequent); Gutierrez v. Rodriguez, 
    30 S.W.3d 558
    , 560 (Tex.
    App.– Texarkana 2000, no pet.).
    No. 01-11398
    -10-
    question whether the City has waived immunity from suit.
    In answering a question where, as here, jurisdiction is based
    on diversity of citizenship, we have a duty to apply the forum
    state’s jurisprudence.12       Further, where, as here, we are asked to
    resolve a sovereign immunity question in a diversity of citizenship
    case, we must defer to the sovereign immunity law of the forum
    state.13
    Under Texas law, immunity from liability and immunity from
    suit    are   two   distinct   principles.14   Immunity   from   liability
    protects the State from a judgment against it even if the State
    legislature has expressly consented to suit; in contrast, immunity
    from suit bars an action against the State unless the State
    expressly consents to suit.15         The City concedes that it waived
    immunity from liability by accepting the deed-restricted conveyance
    of land from the Tenisons.          It thus only asserts immunity from
    suit, not liability.
    We note at the outset that under Texas law, a suit against a
    municipality or its agencies arising out of the performance of its
    governmental duties or to recover for alleged breach of a contract
    is deemed to be a suit against the State of Texas for purposes of
    12
    Erie R. Co. v. Tompkins, 
    304 U.S. 64
    , 79-80 (1938).
    13
    Tompkins v. El Paso, 
    449 F.2d 842
    , 844 (5th Cir. 1971).
    14
    Id. at 405.
    15
    Id.
    No. 01-11398
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    state sovereign immunity unless some special exception applies.16
    The Webbs     principally     aver    that    immunity   from      suit   has   been
    expressly waived by statute and by express provisions of the Dallas
    City Charter and, alternatively, that immunity from suit has been
    waived by the City’s conduct in accepting the deed-restricted
    conveyances here.       The City disagrees with both arguments.
    Before turning to the question of waiver of immunity from suit
    under Texas law, however, we briefly address the Webbs’ initial
    contention that the doctrine of sovereign immunity does not even
    apply to the instant lawsuit because this is an action in rem to
    recover title to and possession of land.
    1.      In Rem Proceeding
    The Webbs essentially contend that sovereign immunity does not
    bar this proceeding because they are simply seeking a declaration
    of what already belongs to them.              It is true that an entity or
    person whose rights have been violated by the unlawful action of a
    state     official    may   bring    suit    against   that     state     official,
    individually, to remedy the violation or prevent its occurrence and
    that such a suit is not a suit against the State requiring
    statutory    authorization     because       the   conduct    of   the    agent   or
    16
    See Federal Sign v. Tex. S. Univ., 
    951 S.W.2d 401
    , 408
    (Tex. 1997); Gates v. City of Dallas, 
    704 S.W.2d 737
    , 738 (Tex.
    1986); Cranford v. City of Pasadena, 
    917 S.W.2d 484
    , 487 (Tex.
    App. – Houston [14th Dist.] 1996, no writ); Avmanco, Inc. v. City
    of Grand Prairie, 
    835 S.W.2d 160
    , 165 (Tex. App. – Fort Worth
    1992, writ dism’d as moot).
    No. 01-11398
    -12-
    official is unauthorized and thus “ultra vires.”17         However, the
    claims raised by the Webbs do not fall within this narrow class of
    claims    excepted   from   the   general    rule   requiring   statutory
    authorization to maintain a suit against the State.18           The Webbs
    have not sued officials in their individual capacities, and the
    Texas Supreme Court has clearly held that suits against the State
    or its agencies for title to land or suits against the State or its
    agencies seeking injunctive relief to enforce contractual rights
    17
    See, e.g., Tex. Highway Comm’n v. Tex. Assoc. of Steel
    Importers, Inc., 
    372 S.W.2d 525
    , 530 (Tex. 1963) (concluding that
    legislative consent was not required to bring a declaratory
    judgment suit against the Highway Commission); Cobb v.
    Harrington, 
    190 S.W.2d 709
    , 712 (Tex. 1945) (holding that
    legislative consent was not required for a declaratory judgment
    suit against the State Comptroller to determine the
    constitutionality of a tax statute).
    18
    See, e.g., Tex. Natural Resource Conservation Comm’n v.
    IT - Davy, 
    74 S.W.3d 849
    , 861 (Tex. 2002) (making clear that a
    plaintiff cannot circumvent the doctrine of sovereign immunity by
    seeking declaratory relief that essentially resolves a breach of
    contract issue); Federal Sign v. Tex. S. Univ., 
    951 S.W.2d 401
    ,
    408 (Tex. 1997) (holding that a suit seeking injunctive relief to
    enforce contractual rights is necessarily a suit against the
    State that cannot be maintained without legislative permission);
    State v. Lain, 
    349 S.W.2d 579
    , 582 (Tex. 1961) (concluding that a
    suit for title to land against the State or its agency cannot be
    maintained without legislative consent); Herring v. Houston Nat’l
    Exchange Bank, 
    253 S.W. 813
    , 814 (Tex. 1923) (stating that a suit
    against state officers to require them to perform a contract by
    the State or to establish the validity of a contract by the State
    is a suit against the State itself); Tex. Parks & Wildlife Dept.
    v. W.M. Callaway, 
    971 S.W.2d 145
    , 152 (Tex. App. – Austin 1998,
    no writ) (holding that “[a]lthough [plaintiff’s] request for
    declaratory relief is not premised expressly on breach of
    contract,” legislative consent is still required because, in
    essence, the plaintiff is seeking a declaration of his rights
    under the easement and an order enforcing those rights).
    No. 01-11398
    -13-
    are necessarily suits against the State requiring legislative
    authorization to sue.19      Further, we note that in addition to
    injunctive and declaratory relief, the Webbs also seek legal relief
    in the form of an accounting and money damages for the City’s
    alleged breach of the covenants and of the Dallas City Charter.
    Thus, their in rem distinction is misplaced.20
    2.   Express Waiver of Sovereign Immunity
    The Webbs persuaded the district court that the City had
    expressly   waived   its   immunity   from   suit.   The   Texas   Local
    Government Code states that home-rule municipalities, such as the
    City of Dallas, “may plead and be impleaded in any court.”21
    Further, the Dallas City Charter states that the City of Dallas
    shall have the power “to sue and be sued.”22         The Dallas City
    19
    IT - Davy, 74 S.W.3d at 861; Federal Sign, 951 S.W.2d
    at 408;   Lain, 349 S.W.2d at 582.
    20
    See, e.g., Federal Sign, 951 S.W.2d at 404-05
    (claimants seeking both equitable and legal relief were required
    to secure legislative consent to sue the state agency).
    21
    Section 51.075 of the Texas Local Government Code,
    entitled “Authority Relating to Lawsuits,” states that “[t]he
    municipality may plead and be impleaded in any court.” TEX. LOCAL
    GOV’T CODE ANN. § 51.075 (Vernon 1999).
    22
    Section 1(2) of Chapter II, entitled “Powers of the
    City,” of the Dallas City Charter provides, in relevant part,
    that,
    The City of Dallas, as such body politic and corporate,
    shall have perpetual succession and shall have the
    following powers:
    (1) to use a corporate seal;
    (2) to sue and be sued;
    No. 01-11398
    -14-
    Charter provision does not restrict the forum for suits against the
    City to courts of the State.23        The district court relied on these
    two provisions to find an express waiver of sovereign immunity from
    suit here. The City argues this conclusion is in error, contending
    that the code and charter provisions relied on by the district
    court are simply confirmations that the City of Dallas has the
    corporate capacity to sue and be sued.        Alternatively, buttressing
    its argument    with   four   state    decisions   from   Texas   courts   of
    appeals, it seeks to have this court certify the express waiver
    issue to the Texas Supreme Court as an “unsettled” question of
    state law.
    In Missouri Pacific Railroad Co. v. Brownsville Navigation
    District,24 the Texas Supreme Court held that a statute with
    language similar to that found in § 51.075 and the Dallas City
    Charter provision waived immunity from suit.         The statute in that
    case states that,
    All navigation districts . . . may sue or be sued in all
    courts of this state in the name of such navigation
    district, and all courts of this state shall take
    (3)   to plead and be impleaded in all courts;
    (4)   to institute and prosecute suits without
    giving security therefore, and to appeal from
    judgments of the courts . . . .
    Dallas, Tex., Charter ch. II, § 1(2) (1999).
    23
    Id.
    24
    
    453 S.W.2d 812
     (Tex. 1970).
    No. 01-11398
    -15-
    judicial notice of the establishment of all districts.25
    The Texas Supreme Court stated that this language “quite plain[ly]”
    “gives general consent for District to be sued in the courts of
    Texas” such that immunity from suit is expressly waived.26
    More recently, in Travis County v. Pelzel & Assoc.,27 the Texas
    Supreme Court again addressed whether a statute “clearly and
    unambiguously” waives the State’s immunity from suit.              Section
    89.004(a), entitled “Presentation of Claim,” provides that “[a]
    person may not sue on a claim against a county unless the person
    has   presented   the   claim   to   the   commissioners   court   and   the
    commissioners court has neglected or refused to pay all or part of
    the claim.”28     The court held that this language did not waive
    Travis County’s immunity from suit because the statute did not
    state clearly and unambiguously that Travis County could be sued.
    Rather, the court found that the provision just as easily could
    simply create a condition precedent to suit.29         Important to this
    conclusion was the finding that the original statutory language
    providing that the county may “sue and be sued” was deleted in 1879
    25
    Id. at 813 (emphasis added).
    26
    Id.
    27
    
    77 S.W.3d 246
     (Tex. 2002).
    28
    TEX. LOCAL GOV’T CODE ANN. § 89.004(a) (Vernon 1999).
    29
    Pelzel, 77 S.W.3d at 250.
    No. 01-11398
    -16-
    to leave text “largely resembling the current statute” in place.30
    As stated by the Texas Supreme Court, “well over a hundred years
    ago, the Legislature deleted the only language arguably waiving
    sovereign   immunity,     suggesting   that    it   intended    to   preserve
    counties’ immunity from suit.”31         In so concluding, the court
    discussed Missouri Pacific in some detail.            However, it did not
    overrule    its   prior    holding.      Instead,      the     Pelzel   court
    distinguished the less-than-clear legislative expression of waiver
    in the “Presentation of Claim” statute from the “sue and be sued”
    language applicable to navigation districts found by the Missouri
    Pacific court to “quite plain[ly]” waive immunity from suit.32
    As stated, the City asserts that four Texas courts of appeals
    have held that similar “sue and be sued” provisions do not waive
    the State’s immunity from suit.33             While this is an accurate
    statement of Texas law, it is a well-settled principle that in
    diversity cases, we “seek guidance by looking to the precedents
    established by intermediate state appellate courts” only when the
    30
    Id. at 249-50.
    31
    Id. at 250.
    32
    Id.
    33
    See, e.g., City of Dallas v. Reata Constr. Corp., 
    83 S.W.3d 392
    , 398 (Tex. App. – Dallas 2002, no pet.); Jackson v.
    City of Galveston, 
    837 S.W.2d 868
    , 871 (Tex. App. – Houston [14th
    Dist.] 1992, writ denied); Townsend v. Memorial Med. Ctr., 
    529 S.W.2d 264
    , 267 (Tex. Civ. App. – Corpus Christi 1975, writ ref’d
    n.r.e.); Childs v. Greenville Hosp. Auth., 
    479 S.W.2d 399
    , 401
    (Tex. Civ. App. – Texarkana 1972, writ ref’d n.r.e.).
    No. 01-11398
    -17-
    state supreme court has not spoken on an issue or there has been
    some intervening change in the law that requires us to make an Erie
    guess regarding how the Texas Supreme Court would most likely
    decide an issue.34    Here, the Texas Supreme Court has addressed the
    question we are called upon to now answer, and the state appellate
    court decisions cited by the City do not persuade us to veer from
    this precedent.      The cases cited by the City, for the most part,
    either follow pre-Missouri Pacific law or completely fail to
    mention Missouri Pacific.35    Moreover, as argued by the Webbs, the
    City’s argument that the “sue and be sued” provision is just a
    recognition of its corporate capacity to sue and be sued is also
    belied by the fact that the vast majority of state courts of
    appeals to address the express legislative waiver question in the
    context of similar “sue and be sued” clauses follow Missouri
    34
    Howe v. Scottsdale Ins. Co., 
    204 F.3d 624
    , 628 (5th
    Cir. 2000); see also Herrmann Holdings Ltd. v. Lucent Techs.
    Inc., 
    302 F.3d 552
    , 558 (5th Cir. 2002) (“[I]n deciding this
    case, we are required to make an Erie guess as to what the Texas
    Supreme Court would most likely decide.”)
    35
    See, e.g., Reata Constr. Corp., 
    83 S.W.3d at 398
    (following Jackson (discussed infra) without citing to Missouri
    Pacific, to find the “sue and be sued” provision “simply speak[s]
    to the City’s capacity to sue and its capacity to be sued when
    immunity has been waived.”) (emphasis in original); Jackson, 837
    S.W.2d at 871 (simply following Townsend (discussed infra)
    without analysis); Townsend, 529 S.W.2d at 267 (relying solely on
    Childs (discussed infra), which, in turn, relied solely on cases
    decided before Missouri Pacific, to hold that a hospital district
    is immune from suit despite a “sue and be sued” statutory
    provision); Childs, 479 S.W.2d at 401 (relying on pre-Missouri
    Pacific cases to find, without discussion, no waiver of immunity
    from suit).
    No. 01-11398
    -18-
    Pacific as controlling Texas Supreme Court precedent.36
    We find controlling Texas Supreme Court authority for the
    district court’s holding that the City has expressly waived its
    immunity from suit in this case and see no need to certify the
    36
    See, e.g., Tarrant County. Hosp. Dist. v. Henry, 
    52 S.W.3d 434
    , 448 (Tex. App. – Fort Worth 2001, no pet.) (“It is
    well settled that this type of [sue and be sued] statutory
    provision is a consent to suit, resulting in waiver of immunity
    from suit.”); Alamo Comm. Coll. Dist. v. Obayashi Corp., 
    980 S.W.2d 745
    , 748 (Tex. App. – San Antonio 1998, pet. denied)
    (stating that “[b]y subjecting junior college districts [] to the
    same general law applicable to independent school districts
    [through a provision that states the district can sue and be
    sued], it appears to us, clearly and unambiguously, the Texas
    Legislature granted its consent to sue junior college community
    districts and we so hold”); Engelman Irrigations Dist. v. Shields
    Bros., Inc., 
    960 S.W.2d 343
    , 347 (Tex. App. – Corpus Christi
    1997) (finding that the irrigation district was not entitled to
    immunity from suit because of a “sue and be sued” clause), pet.
    denied per curiam, 
    989 S.W.2d 360
     (Tex. 1998); Knowles v. City of
    Granbury, 
    953 S.W.2d 19
    , 23 (Tex. App. – Fort Worth 1997, pet.
    denied) (“As a home-rule municipality, Granbury may sue and be
    sued. Had it wanted to exempt itself from liability, it could
    have . . . Because the Local Government Code and Granbury’s
    charter provide that the city may be sued, its immunity from suit
    is [] waived.”); Avmanco, Inc. v. City of Grand Prairie, 
    835 S.W.2d 160
    , 165 (Tex. App. – Fort Worth 1992, writ dism’d as
    moot) (“While there is no general law waiving the State’s
    immunity from suit where liability is sought because of breach of
    contract, the City is liable here because both the State and the
    City have enacted legislation providing their respective consents
    to suits against the City. Furthermore, the city charter of
    Grand Prairie itself provides that the City may sue and be
    sued.”); Dillard v. Austin Indep. Sch. Dist., 
    806 S.W.2d 589
    , 593
    & n.3 (Tex. App. – Austin 1991, writ denied) (concluding that
    through a “sue and be sued” provision, the Texas Legislature gave
    its consent for an independent school district to be sued).
    No. 01-11398
    -19-
    question of express waiver to the Texas Supreme Court.37               Express
    legislation provides that the City may be sued.                As a home-rule
    municipality, the City may exempt itself from suit.                It has not
    done so here.
    As its resolution is not essential to our holding, we do not
    address the Webbs’ final argument that the City waived its right to
    assert immunity from suit by “accepting the benefits of the gifts,
    subject to the terms and conditions thereof.”
    IV.     CONCLUSION
    Plaintiffs      have   asserted   a   claim     in   this   controversy
    sufficient to satisfy the jurisdictional requirements of Article
    III.        Further,   sovereign    immunity    from    suit   does   not   bar
    Plaintiffs’ suit against the City of Dallas.                   We AFFIRM the
    district court’s order insofar as it denied the City sovereign
    immunity from suit.
    37
    See Vaught v. Showa Denko K.K., 
    107 F.3d 1137
    , 1142
    (5th Cir. 1997) (holding that certification “is appropriate only
    if it appears to the certifying court that there is no
    controlling precedent in the decisions of the Supreme Court of
    Texas”) (internal quotation omitted).