Eagle Pass City Council Approves Settlement of Eagle Point Ranch, LP Lawsuit Against City, City Water Works, and Roberto Gonzalez
By: Miguel Munoz, Eagle Pass Business Journal, Inc., Copyright 2020
The City of Eagle Pass, Texas City Council unanimously approved a settlement agreement of the lawsuit brought by Eagle Point Ranch, LP, Robert Mayo, and Rick Anderson against the City of Eagle Pass Water Works System, City of Eagle Pass, and Roberto Gonzalez at its special meeting held on Tuesday, May 19, 2020.
Eagle Point Ranch, LP, Robert Mayo, and Rick Anderson filed the lawsuit against the City of Eagle Pass Water Works System, City of Eagle Pass, and Roberto Gonzalez on December 18, 2018 in the 293rd Judicial District Court in Maverick County, Texas, alleging breach of contract, economic coercion and duress, tortious interference, and other causes of action seeking damages over $1,000,000.
Plaintiffs brought the lawsuit against the City, City Water Works, and Roberto Gonzalez in order “to enforce an agreement entered into between the Plaintiffs and the Eagle Pass Water Works System and the City of Eagle Pass…entered…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’s approval of the final plat of Eagle Point Ranch Subdivision.”
Plaintiffs alleged they constructed the 1,500 foot long 12 inch water line, but the Eagle Pass Water Works System and the City of Eagle Pass reneged on approving the final plat of Eagle Point Ranch Subdivision by requiring additional conditions not in the agreement, including a booster water pump station.
Plaintiffs further alleged that the City of Eagle Pass Water Works System and its representative, Roberto Gonzalez, allowed other subdivisions tap into their 1,500 foot long 12 inch water line while not requiring other subdivisions the same requirements as Eagle Point Ranch Subdivision and that the City of Eagle Pass Water Works System, City of Eagle Pass, and Roberto Gonzalez favored other owners and developers of subdivisions over Eagle Point Ranch Subdivision.
The lawsuit underwent extensive discovery between the parties as well as the taking of depositions of many City and City Water Work officials and representatives since its filing on December 18, 2018 as it faced an imminent jury trial date before the Honorable Maribel Flores of the 293rd Judicial District Court in Eagle Pass, Texas.
Agenda Item Number 7 called for “the discussion and possible action on a Resolution of the City Council of the City of Eagle Pass, Texas approving a Settlement Terms Agreement between Eagle Point Ranch, LP, Robert Mayo, and Rick Anderson, as Plaintiffs, and the City of Eagle Pass, Texas, City of Eagle Pass Water Works System, and Roberto Gonzalez, as Defendants, involving a cause of action between the Plaintiffs and Defendants…” in the 293rd Judicial District Court, Maverick County, Texas.
Upon reaching Agenda Item No. 7 concerning the lawsuit, City Attorney Heriberto Morales recommended to City Council that it be moved for discussion and consultation with legal counsel in Executive Session since Agenda Item No. 13 called for discussion of the lawsuit in Executive Session. City Council approved to move Agenda Item No. 7 and take it into Executive Session together with Agenda Item No. 13.
The City Council later went into Executive Session and discussed with City Attorney Heriberto Morales and Legal Counsel Clarissa Rodriguez the Eagle Point Ranch, LP lawsuit and the terms of a proposed settlement agreement between the parties for about two hours.
Upon returning from Executive Session into Open Session at 8:29 P.M., the City Council unanimously approved the Settlement Agreement of the Eagle Point Ranch, LP lawsuit as discussed in Executive Session and Council Member Yolanda P. Ramon made the motion and seconded by Council Member Rudy Villalpando without any public discussion of the terms of the settlement agreement.
City of Eagle Pass taxpayers were unable to learn the terms of the City’s settlement agreement with Eagle Point Ranch, LP, Robert Mayo, and Rick Anderson since no discussion was held during Open Session except to move for its approval and subsequent unanimous vote to approve it. City taxpayers have expressed concerns regarding not being informed of the terms of the settlement agreement by the City Council and City Administration.
