Real Estate Developers Sue City of Eagle Pass Water Works System, City of Eagle Pass, and Roberto Gonzalez
By: Miguel Munoz, Eagle Pass Business Journal, Inc., Copyright 2019
Eagle Point Ranch, LP and its two real estate developers, Robert Mayo and Rick Anderson, filed a lawsuit against the City of Eagle Pass Water Works System, City of Eagle Pass, and Roberto Gonzalez on December 13, 2018, alleging breach of contract, economic coercion and duress, tortious interference, and other causes of action and seeking over $1,000,000 in damages.
Eagle Point Ranch, LP, Mayo and Anderson brought the lawsuit “to enforce an agreement entered into between Plaintiffs and the Eagle Pass Water Works System and the City of Eagle Pass.” Plaintiffs entered into an agreement on January 7, 2007 and later amended on October 10, 2008 with the Eagle Pass Water Works System regarding the construction of a 1,500 foot long 12 inch water line to the Eagle Point Ranch Subdivision at a cost in excess of $400,000 by Plaintiffs in exchange for the City of Eagle Pass’ approval of the final plat of Eagle Point Ranch Subdivision.
The dispute arises when Plaintiffs constructed the 1,500 foot long 12 inch water line, but Defendants Eagle Pass Water Works System and the City of Eagle Pass reneged on approving the final plat of the Eagle Point Subdivision claiming that the 1,500 foot long 12 inch water pipeline constructed did not provide sufficient water pressure for the development of Eagle Point Ranch Subdivision and requesting that a booster water pump station be additionally constructed at a considerable cost.
Plaintiffs allege that “other adjacent subdivisions have tapped into and continue to take water from lines connected to the 1,500 foot [water] line constructed and built by Plaintiffs pursuant to the Water Services Agreement. Persons connected to Eagle Pass Water Works System or its representatives, including Defendant [Roberto] Gonzalez and others associated with him, have benefitted and prospered from the development of the water line to the detriment of Plaintiffs.”
The lawsuit alleges that “Eagle Pass Water Works System, City of Eagle Pass and its representatives, including [Roberto] Gonzalez, have favored other owners and developers of subdivisions over Eagle Point by promoting and authorizing the development of such subdivisions finding they have adequate water service which only occurred as a result of requiring Plaintiffs to build and construct the Water Line.”
The lawsuit further alleges that “Defendants have resisted and failed to put similar requirements to provide additional water lines in the area on other developers in Hopedale and the surrounding area and have further refused to require other developers to contribute and/or defray cost of the development of the Water Line built and paid for solely Plaintiffs, despite these other developers sizable benefit by having water service either directly or indirectly supplied through the Water Line.
Plaintiffs further allege that “as a result of cronyism and self-dealing, water pressure has been reduced to Eagle Point and Defendants again look for Plaintiffs to build yet again another water project for the benefit of Defendants, their representatives and accomplices in the Hopedale area. In essence, Eagle Pass Water Works System and the City [of Eagle Pass] are in breach of their agreement, are attempting to manipulate, coerce and impose a significant change order on Plaintiffs, requiring them to now build a booster pump station to service not only the Eagle Point development, but also other developments which have tapped into water service supported by the Water Line under the direction, supervision and benefit of Defendants.”
Plaintiffs additionally allege that Defendants “engaged in ultra vires actions wherein Eagle Pass Water Works System and the City [of Eagle Pass], through their representatives, trustees, and managers operated outside of their scope of authority. Such actions include, but are not limited to, the promoting of other subdivisions controlled by associates, accomplices and business associates to obtain approval of their water needs by drawing water from lines connected to the Water Line built by Plaintiffs from which certain Defendants have profited through the development of those subdivisions. Based upon information and belief, Defendant Gonzalez has, while serving in his position with the Eagle Pass Water Works System and City [of Eagle Pass], taken advantage of Plaintiffs by working to require Plaintiffs to build the Water Line to create a loop pressure the Hopedale area and adjacent subdivisions in which he has a financial interest to benefit business associates and friends. By these actions, Gonzalez acted outside the course and scope of his authority with Eagle Pass Water Works and the City [of Eagle Pass].”
The Defendants vehemently deny all of the allegations raised by Plaintiffs and claim to have qualified immunity as public servants.
Plaintiffs seek Defendants be required to pay exemplary damages and their attorney’s fees incurred in prosecuting the lawsuit.
The case is in the 293rd Judicial District Court, Maverick County, Texas before the Honorable Maribel Flores and is scheduled for jury docket call on March 16, 2010 and jury selection and trial on March 18, 2020. The parties are currently engaged in discovery in the case.
