Opinion ID: 1757496
Heading Depth: 1
Heading Rank: 6

Heading: whether the claims fund is a waiver of sovereign immunity, and whether its operation is a violation of state or federal constitutional guarantees.

Text: Miss. Code Ann. § 21-15-6 (Supp. 1988) allows a city to purchase general liability insurance, and waive sovereign immunity to the limit of the insurance's coverage. The City of Jackson maintained a general fund of one million dollars to pay claims against the City of Jackson. There are several assertions of error on this issue. This Court has foreclosed the argument that self-insurance constitutes a city's waiver of sovereign immunity under Miss. Code Ann. § 21-15-6. Morgan v. City of Ruleville, 627 So.2d 275, 281 (Miss. 1993). However, our caselaw deals with a municipality's participation in the Mississippi Municipality Liability Plan. See Morgan, 627 So.2d at 281. The Morgan Court was clearly able to determine the purpose of the organization and its operation from the record established. Id. at 280-81. The organization's purpose stated that it was not meant to waive any applicable municipal immunity towards either the cities itself, or their employees. Id. at 281. See also Womble v. Singing River Hospital, 618 So.2d 1252 (Miss. 1993). In contrast, the City of Jackson has only admitted that this fund exists, it is worth $1,000,000, and it is used by the City of Jackson to pay claims for injuries, damages, and other losses. The City of Jackson has refused to admit that it is self-insured. Given the distinct difference in the development of the record between Morgan and this case, this Court cannot state that the City of Jackson's claims fund is the equivalent of a city's participation in the Mississippi Municipality Liability Plan, for purposes of preserving sovereign immunity for the City of Jackson. With more information, such as a set of guidelines, or by-laws, or a set of standard operating procedures, the trial court, and this Court could evaluate this question more effectively. This Court has long stated that equitable estoppel is available for individuals against municipalities. Witherspoon v. City of Meridian, 69 Miss. 288, 295, 13 So. 843, 844 (1891). Equitable estoppel requires a representation by a party, reliance by the other party, and a change in position by the relying party. Izard v. Mikell, 173 Miss. 770, 774, 163 So. 498, 499 (1935). Westbrook does not maintain that he continued to own and occupy the property after its annexation, relying on the City of Jackson's claims fund to reimburse his losses in the event of a fire. Since Westbrook did not claim reliance on the claims fund, any estoppel argument must fail. Westbrook makes a claim that the Remedy Clause of the Mississippi Constitution [4] requires equal access to the claims fund. This Court has recently held that since there was no right to sue the state under sovereign immunity when the Remedy Clause was adopted, the Remedy Clause is not generally violated by the principle of sovereign immunity. Robinson v. Stewart, 655 So.2d 866, 869 (Miss. 1995). Sovereign immunity is not waived through self-insurance. Morgan, 627 So.2d at 281. Therefore, if the City of Jackson's maintenance of this claims fund is determined to be self-insurance upon further development of the record, sovereign immunity would still bar recovery. Westbrook makes a claim that his due process rights were violated through the City of Jackson's selective payment of claims to some parties from the fund, but not others. This record is insufficient to determine what procedures were required for review of a claim under the City of Jackson's claims fund. As a result, it is impossible to discern whether Westbrook had a property interest in review of his claim, which is necessary for a due process review. Memphis Light, Gas and Water Div. v. Craft, 436 U.S. 1, 9, 98 S.Ct. 1554, 1560, 56 L.Ed.2d 30, 39 (1978). This Court reverses and remands this case for development of the record, to determine what, if any, property interest arose from the procedures used in administering the claims fund. The equal protection claim, regarding the City of Jackson's administration of its claims fund, is also an unanswered question. Westbrook does not allege suspect class discrimination, but discrimination only between those homeowners in his annexed area and those residents of Jackson with water lines. Without suspect criteria, a rational basis test is used. Madison v. Mississippi Medicaid Comm'n, 86 F.R.D. 178, 184 (N.D.Miss. 1980). The rational basis test requires a government to show that the act or policy is a rational means of achieving a legitimate government interest. Townsend v. Estate of Gilbert, 616 So.2d 333, 337 (Miss. 1993). The City of Jackson has failed to demonstrate how its fund's operation is a rational means to the end, since there is no information in the record to establish guidelines for the determination of who receives benefits, or does not receive benefits under the fund. This Court reverses and remands this judgment to develop the record. The record made should contain specific procedures used by the City of Jackson to determine which claims are worthy of compensation. Only then can this Court determine if the City of Jackson's operation of the claims fund survives Equal Protection scrutiny.