Court Case 4

Dr. William Allan Kritsonis Case Three Court of Appeals of Texas, El Paso. Marcelino FRANCO, Appellant, v. YSLETA INDEPENDENT SCHOOL DISTRICT, Appellee. No. 08-07-00160-CV. LITIGANTS Plaintiffs- Appellants: Marcelino FRANCO Defendant- Appellee: YSLETA INDEPENDENT SCHOOL DISTRICT BACKGROUND After school principal brought action asserting claims against school district for alleged violations of the Texas Whistleblower Act, asserting that he was indefinitely suspended from his job after he reported asbestos hazards to school district officials, the school district moved to enforce a settlement agreement. No action was taken on the motion, and the school district then moved for summary judgment, asserting that principal breached the agreement by failing to dismiss the action. The 34th Judicial District Court, El Paso County, granted the motion and entered summary judgment in favor of the school district. School principal appealed. FACTS An enforceable contract is formed when the following essential elements are satisfied between the parties to an agreement: (1) an offer; (2) an acceptance in strict compliance with the terms of the offer; (3) a meeting of the minds; (4) each party's consent to the terms; and (5) execution and delivery of the contract with the intent that it be mutual and binding. In determining enforceability of a purported contract, whether the parties have come to a “meeting of the minds,” and therefore acceptance of the offer, is measured objectively according to what the parties said and did, and the parties' subjective thoughts and beliefs do not control. A genuine issue of material fact existed as to whether school principal formed a binding settlement agreement with school district to release his whistleblower claims, or whether board of trustees' approval of the settlement was an unmet condition precedent to

the formation of the agreement, and thus, summary judgment for school district was precluded in the principal's whistleblower case. The doctrine of “substantial performance” applies in breach of contract actions, and allows a party who has only substantially performed its contract obligations to recover for the opposing party's breach. DECISION The District focuses the arguments in its brief on evidence that it has substantially performed its obligations as outlined in the March 27 letter, and that Mr. Franco has breached the agreement by not dismissing the lawsuit. The doctrine of substantial performance applies in breach of contract actions, and allows a party who has only substantially performed its contract obligations to recover for the opposing party's breach. DICTA The court of appeals, David Wellington Chew, C.J. held that a triable issue existed as to whether school principal formed a binding settlement agreement with the district to release his claims. Reversed and remanded. IMPLICATIONS A settlement agreement is a contract, and is governed by principles generally applicable under contract law. See Kosty v. S. Shore Harbour Cmty. Ass'n, Inc., 226 S.W.3d 459, 464 (Tex.App.-Houston [1st Dist.] 2006, pet. denied). An enforceable contract is formed when the following essential elements are satisfied between the parties to the agreement: (1) an offer; (2) an acceptance in strict compliance with the terms of the offer; (3) a meeting of the minds; (4) each party's consent to the terms; and (5) execution and delivery of the contract with the intent that it be mutual and binding. Copeland v. Alsobrook, 3 S.W.3d 598, 604 (Tex.App.-San Antonio 1999, pet. denied). Whether the parties have come to a “meeting of the minds,” and therefore acceptance of the offer, is measured objectively according to what the parties said and did. Id. The parties' subjective thoughts and beliefs do not control. Id. When the “meeting of the minds” element is contested, it is a question for the fact finder. Submitted to Dr. William Allan Kritsonis