Justia Texas Supreme Court Opinion Summaries

Petitioners, former employees of the City of Houston, filed suit against the Houston Municipal Employees Pension System (HMEPS) board members, asserting that the board members violated HMEPS’s enabling statute by requiring Petitioners’ continued participation in the City’s defined-benefit pension plan. The trial court found jurisdiction to be lacking, and the court of appeals affirmed. As provided by statute, the pension board has exclusive authority to interpret and supplement omissions in the statute and to determine all questions of law and fact pertaining to eligibility for membership, services and benefits. The board’s actions with respect to these matters are final and binding and therefore not amenable to judicial review. To defeat this jurisdictional bar, Petitioners asserted that subject-matter jurisdiction exists when the pension board fundamentally alters the terms of the statute without the City’s consent. The Supreme Court affirmed, holding that the trial court lacked subject-matter jurisdiction over the claims because (1) the pension board acted within the scope of its authority in construing the term “employee”; and (2) Petitioners failed to assert viable constitutional claims. View "Klumb v. Houston Municipal Employees Pension Sys." on Justia Law

Petitioner was court-martialed for sexual abuse and assault and imprisoned for eighteen years. Approximately two decades after the conviction, Petitioner applied to the Texas Department of Licensing and Regulation for a tow truck operator’s license. The Department denied Petitioner’s application based on his conviction. Petitioner contested the denial. An administrative law judge (ALJ) from the State Office of Administrative Hearings recommended that the Department issue a license. The Department, however, revised the ALJ’s findings of fact and conclusions of law to reject Petitioner’s application. The trial court reversed the Department’s decision, concluding that the Department’s alterations of the findings and conclusions were unlawful. The court of appeals reversed, ruling that the Department’s modifications were improper because the ALJ misinterpreted a provision of the Texas Occupations Code concerning licensing restrictions where an applicant has previously been convicted of a crime. The Supreme Court reversed, holding that the Department’s revisions of the findings of fact and conclusions of law constituted error because the revisions were unsupported by the plain language of the statute. View "Thompson v. Tex. Dep’t of Licensing & Reg." on Justia Law

After the State Board for Educator Certification revoked the teaching certificate of a schoolteacher, the schoolteacher sued to overturn the revocation. The trial court concluded that the Board’s decision was not supported by substantial evidence and was arbitrary and capricious. The court issued a permanent injunction prohibiting the Board from revoking the schoolteacher’s revocation and refused to allow the Board to supersede the judgment pending appeal. The State sought mandamus relief challenging the trial court’s denial of supersedeas. The court of appeals denied mandamus relief and abated the merits of the Board’s appeal pending the Supreme Court resolution of a narrow procedural issue. The Supreme Court denied relief, holding that a trial court has discretion to prevent the Board from re-revoking a teacher’s professional license while the Board appeals the court’s rejection of the Board’s initial revocation. View "In re State Bd. for Educator Certification" on Justia Law

Rosaena Resendez was fired from her position at the Texas Commission on Environmental Quality (TCEQ) after she reported alleged wrongdoing to supervisors within the organization and to the office of a state senator. Resendez sued TCEQ under the Whistleblower Act, which waives a state agency’s sovereign immunity from suit for retaliatory discharge under certain circumstances. The trial court sustained TCEQ’s plea to the jurisdiction and dismissed the case, concluding that Resendez’s reports were merely internal policy recommendations and not reports to an appropriate law-enforcement authority as required by the Act. The court of appeals reversed, concluding that Resendez’s internal reports were sufficient under the Act. The Supreme Court reversed, holding (1) Resendez’s internal report was insufficient under the Act; and (2) Resendez’s report to the senator’s office did not satisfy the Act’s requirements. View "Tex. Comm’n on Envtl. Quality" on Justia Law

William Drennan worked as an executive with Exxon Mobil Corporation (ExxonMobil), a Texas-based corporation. During his employment, Drennan received several forms of compensation through the corporation’s executive bonus-compensation Incentive Programs. The Incentive Programs included choice-of-law provisions providing for application of New York Law and allowed forfeiture of an executive’s bonus awards for engaging in “detrimental activity.” After Drennan retired he accepted a position at Hess Corporation, another large energy company. Drennan’s incentive awards were subsequently forfeited on the grounds that “there was a material conflict of interest, constituting detrimental activity” under the Incentive Programs. Drennan sued. The trial court entered judgment for ExxonMobil. The court of appeals reversed, holding that the choice-of-law provisions were unenforceable, that Texas law applied, and that the detrimental-activity provisions, as forfeiture conditions, were unenforceable covenants not to compete under Texas law. The Supreme Court reversed, holding that the New York choice-of-law provisions in the executive compensation plan were enforceable and that the detrimental-activity provisions were enforceable under New York law. View "Exxon Mobil Corp. v. Drennen" on Justia Law

Respondent, an employee of the Texas Department of Human Services (TDHS), reported wrongdoing to his supervisor. Respondent was disciplined by his supervisor, after which he reported the alleged violations he witnessed to his supervisor’s supervisor and then to the lead program manager. Respondent was subsequently terminated. Respondent sued TDHS under the Texas Whistleblower Act, claiming that he was terminated for reporting the wrongdoing. TDHS filed a plea to the jurisdiction, arguing that the trial court lacked jurisdiction because Respondent failed to make a good-faith report of a violation of law to an appropriate law-enforcement authority. The trial court denied TDHS’s plea to the jurisdiction. On remand, the court of appeals affirmed, holding that the supervisors were appropriate law-enforcement authorities within TDHS, and, alternatively, Respondent had a good-faith belief that he was reporting to appropriate law-enforcement authorities. The Supreme Court reversed, holding that Respondent neither reported the alleged violations to an appropriate law-enforcement authority nor in good faith could have believed he had, and therefore, Respondent was not entitled to the protections of the Whistleblower Act. View "Tex. Dep’t of Human Servs. v. Okoli" on Justia Law

Jimmy Carty died in an accident during his employment for the state. The workers’ compensation carrier for state employees (carrier) began paying death benefits to Christy, Jimmy’s wife, and the couple’s three minor children. Christy, individually, as representative of her deceased husband’s estate, and as next friend of the couple’s children, brought suit against two defendants. The Cartys settled with the defendants. The district court subsequently calculated the carrier's reimbursement and apportioned the remainder of the settlement funds among Christy and the children “in the same ratio as they received death benefits.” The carrier appealed, challenging the apportionment. The court of appeals certified to the Supreme Court the question of “how a net recovery in excess of the amount of benefits paid by the workers’ compensation carrier should be apportioned among beneficiaries when multiple beneficiaries recover from a third-party tortfeasor.” The Supreme Court answered that when multiple beneficiaries recover compensation benefits through the same covered employee, the workers’ compensation carrier’s right to a third-party settlement is determined by treating the recovery as a single, collective recovery rather than separate recoveries by each beneficiary. View "State Office of Risk Mgmt. v. Carty" on Justia Law

Shayn Proler, a firefighter with the Houston fire department, filed an administrative grievance seeking reassignment to a fire suppression unit under the terms of a collective bargaining agreement. After a hearing, Proler was reassigned to fire suppression. The City appealed, and Proler counterclaimed for disability discrimination. The trial court granted Proler’s plea to the jurisdiction. After a trial, the trial court entered judgment in favor of Proler on his disability claim. The court of appeals (1) reversed the order granting Proler’s plea to the jurisdiction insofar as the City claimed the hearing examiner exceeded his jurisdiction by awarding overtime compensation and insofar as the City requested declaratory judgment relief on this issue; and (2) affirmed the trial court’s judgment awarding injunctive relief and attorney fees to Proler on his disability discrimination claim. The Supreme Court (1) affirmed the court of appeals’ judgment reversing the order granting Proler’s plea to the jurisdiction; and (2) reversed the court of appeals’ judgment insofar as it affirmed the trial court’s judgment granting injunctive relief and attorney fees to Proler on his disability discrimination claim, as there was no evidence Proler was discriminated against on account of a disability. View "City of Houston v. Proler" on Justia Law

Most of the employees at a La Porte unit (“Unit”) of E. I. du Pont de Nemours and Company (“DuPont”) were covered by a collective bargaining agreement (“CBA”). When DuPont announced plans to spin off part of its operations, including the Unit, into a wholly owned subsidiary, DuPont Textiles and Interiors (“DTI”), almost all of the Unit employees moved to DTI, even though the CBA gave the employees the right to transfer to other DuPont jobs. DuPont subsequently sold DTI to Koch Industries, which reduced the former DuPont employees’ compensation and retirement benefits. Several of the former DuPont employees sued DuPont for fraudulently inducing them to terminate their employment and accept employment with DTI by misrepresenting that DTI would not be sold. The Fifth Circuit Court of Appeals certified questions of law to the Texas Supreme Court, which answered by holding (1) at-will employees cannot bring an action against their corporate employer for fraud that is dependent on continued employment; and (2) employees covered under a cancellation-upon-notice CBA that limits the employer’s ability to discharge its employees only for just cause cannot bring Texas fraud claims against their employer based on allegations that the employer fraudulently induced them to terminate their employment. View "Sawyer v. E.I. du Pont de Nemours & Co." on Justia Law

When Tyco Valves & Controls, L.P. decided to close one of its facilities located in Houston, Tyco offered certain employees retention agreements providing that, if the employees remained with the company through the facility’s closure, they would receive severance payments in the event they were not offered comparable employment with Tyco. After Tyco sold one of the production units located in the facility to another company, Plaintiffs, several former employees who had worked in that unit and been denied severance, filed a breach of contract action against Tyco. The trial court ruled in favor of the employees and awarded the severance pay. The court of appeals reversed. The Supreme Court affirmed, holding that the Employee Retirement Income and Security Act of 1974 preempted Plaintiffs’ breach-of-contract claims. View "Arsenio Colorado v. Tyco Valves & Controls, L.P." on Justia Law