Justia Texas Supreme Court Opinion Summaries

Articles Posted in Government & Administrative Law
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In 2010, Houston voters approved “Proposition One,” allowing the city to create a “Pay-As-You-Go” Dedicated Drainage and Street Renewal (DDSR) Fund. Perez and others filed an election contest while the city enacted the Drainage Fee Ordinance (DFO), creating a new public utility and requiring Houston to establish drainage fees “against all real property in the city subject to such charges” and “provide drainage for all real property in the city on payment of drainage charges unless the property is exempt.” The DFO based the drainage fees on the benefited property’s type and square footage. Failure to pay drainage fees carried various penalties.In 2015, the Supreme Court held that Proposition One’s ballot language was misleading, rendering the Amendment invalid. Perez then challenged Houston’s assessment, collection, and expenditure of the drainage fee. In 2018, Houston passed a new charter amendment curing many of the defects Perez alleged in the drainage fee ordinance. Perez was left with ongoing claims for reimbursement of the drainage fees she paid before 2018 and for an injunction against the future expenditure of fees collected before 2018. The Texas Supreme Court affirmed the dismissal of those claims but remanded to allow Perez to replead in light of intervening events. Perez’s claims required her to articulate a viable theory of the DFO’s illegality to overcome Houston’s governmental immunity; her only theory failed as a matter of law. View "Perez v. Turner" on Justia Law

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TexCom sought to develop a commercial-waste-disposal facility on a 27-acre site in Montgomery County, near Conroe, that had one existing nonoperative injection well. TexCom sought to operate the existing well and construct up to three additional wells. Class I underground injection-control wells manage industrial waste by injecting it thousands of feet underground but can potentially harm drinking water and petroleum, so these injection wells undergo an extensive permitting process with the Texas Commission on Environmental Quality (TCEQ). A permit application must be accompanied by a letter from the Railroad Commission (RRC) concluding that the proposed wells “will not endanger or injure any known oil or gas reservoir.” RRC issued such a letter for TexCom but rescinded it after six years of administrative hearings, around the same time TCEQ issued its final order granting the permit application.The Texas Supreme Court affirmed TCEQ’s order granting the permit application as supported by substantial evidence; a migration finding, combined with the injection zone’s geological suitability, is sufficient to support TCEQ’s ultimate finding that the wells would be protective of water. The rescission did not deprive TCEQ of jurisdiction, and, on these facts, TCEQ did not violate the Texas Administrative Procedure Act by declining to reopen the administrative record for further proceedings. View "Dyer v. Texas Commission on Environmental Quality" on Justia Law

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The Supreme Court reversed the judgment of the court of appeals dismissing this case asserting that the city of Houston's house mayor and city council members acted ultra vires in spending tax revenue in Fiscal Year 2020 on anything other than the drainage fund, holding that the taxpayers had standing to assert their claims and sufficiently pleaded ultra vires acts.Plaintiffs, two Houston taxpayers, brought this case alleging that City officials misallocated tax revenue because the City Charter requires a certain amount of tax revenue to be allocated to a fund exclusively for drainage and street maintenance and that the officials acted ultra vires in spending the revenue on anything else. The officials filed a plea to the jurisdiction asserting governmental immunity. The trial court denied the plea. The court of appeals reversed, concluding that the taxpayers lacked standing. The Supreme Court reversed, holding (1) Plaintiffs alleged an illegal expenditure sufficient to support taxpayer standing; and (2) the City officials were not entitled to dismissal of Plaintiffs' ultra vires claim on governmental immunity grounds at this time. View "Jones v. Turner" on Justia Law

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The Supreme Court held that, absent a clear abuse of discretion, governmental immunity protects a zoning commission's determination that a proposed subdivision conforms with applicable law.After the City of Georgetown's Planning and Zoning Commission approved a preliminary plat for a new 89-home subdivision neighboring Escalera Ranch, a subdivision to the north the Escalera Ranch Owners' Association sued the Commission members, asserting that their approval of the plat was a clear abuse of discretion. The trial court granted the Commissioners' plea to the jurisdiction, concluding that the Association lacked standing to sue. The court of appeals reversed. The Supreme Court reversed, holding that the Commissioners adhered to their duty in determining that the preliminary plat conformed to the applicable standards. View "Schroeder v. Escalera Ranch Owners' Ass'n" on Justia Law

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The Supreme Court held that the Texas Medical Board is not required by federal law or permitted by Texas law to merely revise an initial report of a temporary sanction, rather than void it, when the Board later finds that the allegations have not been proved.Federal and State law require the Board to report a disciplinary action against a physician to the National Practitioner Data Bank to restrict the ability of incompetent physicians to move from state to state. The Board issued a temporary sanction against Dr. Robert Wayne Van Boven while it investigated misconduct allegations. The Board then issued a final order concluding that Van Boven was not subject to sanctions. Van Bovcen brought this ultra vires action against Board officials directing them to file a Void Report with the Data Bank, which would remove the initial report against him and a subsequent revision-to-action report from disclosure. The trial court denied Defendants' plea to the jurisdiction asserting sovereign immunity. The court of appeals reversed. The Supreme Court reversed, holding that the Board officials' actions in this case were ultra vires and that the officials were not immune from Van Boven's claims. View "Van Boven v. Freshour" on Justia Law

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The Supreme Court held that the Texas Commission on Environmental Quality's (TCEQ) general jurisdiction over water and water rights, including the issuance of water rights permits and water rights adjudication, does not include the authority to adjudicate conflicting claims to ownership of surface-water rights.Plaintiff brought this complaint seeking declarations that it was the sole owner of certain surface-water rights. Defendant filed a motion to dismiss the claims for lack of subject-matter jurisdiction, arguing that TCEQ has exclusive original jurisdiction to determine water-ownership rights. The trial court granted the motion to dismiss and the court of appeals affirmed. The Supreme Court reversed, holding that TCEQ lacks jurisdiction to decide conflicting claims of ownership to surface-water rights and that the adjudication of such claims is for the courts. View "Pape Partners, Ltd. v. DRR Family Properties LP" on Justia Law

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The Supreme Court reversed the judgment of the court of appeals concluding that substantial evidence did not support the Texas Commission on Environmental Quality's (TCEQ) decision granting an application filed by Dos Republicas Coal Partnership (DRCP) seeking renewal of a permit for wastewater discharge at a coal mine, holding that DRCP was the correct permit applicant.At the time of this dispute, TCEQ rules required both the operator and the owner of the facility to apply for a permit. DRCP owned the mine, but the dispute was whether DRCP or the contractor it hired to conduct day-to-day activities at the time was the mine's "operator." TCEQ concluded that DRCP was the mine's operator. The court of appeals disagreed, ruling that the application lacked the required applicant and should have been denied. The Supreme Court reversed, holding that DRCP was the entity responsible for the overall operation of the facility and was therefore the correct permit applicant. View "Texas Commission on Environment Quality v. Maverick County" on Justia Law

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The Supreme Court rendered judgment dismissing Petitioner's claims regarding his civil commitment as a sexually violent predator (SVP), holding that all of Petitioner's claims failed as a matter of law.Following a trial, a jury found that Petitioner was an SVP and issued a civil commitment order placing Petitioner in outpatient treatment and setting forth certain conditions. Petitioner later brought this lawsuit against the Texas Civil Commitment Office (TCCO) and the director of the office (collectively, the State), alleging that the TCCO's cost-recovery rules were invalid. The State filed a plea to the jurisdiction asserting immunity from suit. The district court dismissed all claims against the State except Petitioner's due process and takings claims. The court of appeals affirmed. The Supreme Court affirmed in part and reversed in part, holding that all of Petitioner's claims against the State failed as a matter of law and that the State's plea to the jurisdiction should have been granted in full. View "Matzen v. McLane" on Justia Law

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The Supreme Court held that Corpus Christi pharmacist John McNeill, who participated in a Medicaid drug program run by the Texas Health and Human Services Commission, was entitled to an administrative contested case hearing as to his challenge to the results of a program audit by the Commission.After the Commission audited McNeill, the auditor determined that McNeill had been overpaid by $69,911. McNeill requested a hearing, after which the Commission issued a final notice that reduced the overpayment amount to $64,549. McNeill thrice requested a contested case hearing before the State Office of Administrative Hearings. The Commission denied each request. McNeill sued the Commission, its commissioner, and its inspector general, seeking a declaration that he was entitled to a contested case hearing. The trial court granted the Commission's plea to the jurisdiction based on sovereign immunity and dismissed the complaint. The court of appeals reversed. The Supreme Court reversed, holding (1) McNeill's appeal was timely; and (2) the Commission's inspector general acted ultra vires in failing to perform her ministerial duty to provide McNeill a contested-case hearing under Tex. Gov't Code 531.1201, and the inspector general was not entitled to sovereign immunity. View "Phillips v. McNeill" on Justia Law

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The Supreme Court reversed in part and affirmed in part the judgment of the court of appeals concluding that Data Foundry, Inc., an internet service provider, had standing to bring its claims but affirming the trial court's dismissal of Data Foundry's claims in part on other grounds, holding that the court of appeals erred by affirming portions of the trial court's judgment.The City of Austin sets the rates that Austin Energy, an electric utility owned by the City, charged to Austin residents for retail electric services. Data Foundry, which purchased electricity from Austin Energy, brought this action alleging that the rates charged by the City were illegal. The trial court granted the City's motion to dismiss on the ground that Data Foundry lacked standing because it failed to allege it had suffered a particularized injury. The court of appeals affirmed the dismissal on other grounds. The Supreme Court remanded all of Data Foundry's claims to the trial court for further proceedings, holding (1) Data Foundry had standing to bring its claims; (2) the court of appeals correctly reversed the dismissal of some of Data Foundry's claims, including its common-law and constitutional claims; and (3) the court of appeals erred by affirming portions of the trial court's judgment on other grounds. View "Data Foundry, Inc. v. City of Austin" on Justia Law