AC Interests L.P., Formerly American Coatings, L.P. v. Texas Commission on Environmental Quality

CourtCourt of Appeals of Texas
DecidedMay 19, 2015
Docket01-15-00378-CV
StatusPublished

This text of AC Interests L.P., Formerly American Coatings, L.P. v. Texas Commission on Environmental Quality (AC Interests L.P., Formerly American Coatings, L.P. v. Texas Commission on Environmental Quality) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
AC Interests L.P., Formerly American Coatings, L.P. v. Texas Commission on Environmental Quality, (Tex. Ct. App. 2015).

Opinion

ACCEPTED 01-15-00378-CV FIRST COURT OF APPEALS HOUSTON, TEXAS AC Interests v. TCEQ 5/19/2015 4:15:11 AM CHRISTOPHER PRINE Appeal Cause Number 01-15-00378-CV CLERK

AC INTERESTS, L.P. FORMERLY § FIRST COURT OF APPEALS AMERICAN COATINGS, L.P. § OF TEXAS FILED IN Appellant § 1st COURT OF APPEALS v. § HOUSTON, TEXASHOUSTON, TEXAS § 5/19/2015 4:15:11 AM TEXAS COMMISSION ON § CAUSE NO. 01-15-00378-CV CHRISTOPHER A. PRINE ENVIRONMENTAL QUALITY, § Clerk Appellee §

APPELLANT’S BRIEF FOR NOTICE OF APPEAL OF CAUSE NO. D-1-GN-14-005160

FROM THE 345th JUDICIAL DISTRICT

To the Honorable Justices

Appellant AC Interests L.P., formerly American Coatings, L.P., Plaintiffs

in the court below, respectfully submits this amendment to its brief in appeal of

the 91a motion to dismiss granted in favor of Appellee, Texas Commission on

Environmental Quality (“TCEQ”). TCEQ's plea alleged that, AC Interests

(“Appellant”) did not serve citation in a timely manner. The original notice of

appeal was filed on April 2, 2015. The above cause was received and filed in the

1st Court of Appeals from the 3rd Court of Appeals, pursuant to a Supreme Court

Transfer Order issued March 24, 2015.

Because AC Interests filed their original petition citing to the TEX.

WATER CODE they properly served citation on TCEQ, within the one year

timeframe allowed by statute. To summarize the Appellant’s Brief, because the

Appellant fulfilled statutory requirements, the district court’s order should be

reversed.

1 AC Interests v. TCEQ Appeal Cause Number 01-15-00378-CV

Background

The FIRST COURT OF APPEALS notice dated April 23, 2015 states:

On April 23, 2015 the certified clerk's record was filed. If the clerk’s record is incomplete, appellant or any other party should seek to supplement the record. Tex. R. App. P. 34.5(c). If there is no reporter’s record or if the reporter’s record has already been filed, appellant’s brief is due 30 days from this date; if it is an accelerated appeal, appellant’s brief is due 20 days from this date. Tex. R. App. P. 38.6(a). All motions or other documents (i.e., briefs) filed with the Court must comply with Tex. R. App. P. 9.

This appeal is not an accelerated appeal; therefore, the due date is May 23,

2015.

Statement of the Case

This case involves an appeal from the district court's dismissal of a case on

grounds of a 91a motion to dismiss. TCEQ’s motion to dismiss was based on the

erroneous premise that the Clean Air Act is controlling and the Texas Water Code

should not be taken into account. The argument ignores the fact that the Water

Code was cited to in the original petition and even with the Clean Air Act the

appellant can serve citation after the 30 day period with a showing of good and

sufficient cause for the delay.

Issues Presented

2 AC Interests v. TCEQ Appeal Cause Number 01-15-00378-CV

In issuing its Order granting the TCEQ’s 91a motion to dismiss and

dismissing Appellant's case, the district court committed errors of law because:

1. AC Interests properly served citation to the TCEQ within one year of filing the

petition as allowed by the TEX. WATER CODE.

a. The Texas Legislature purposefully removed the provision of 30 day

service of citation from the TEX. WATER CODE.

2. Applying a 30 day timeframe to serve the TCEQ unduly harmed the Appellant

3. Appellant can show that, even if the Clean Air Act is the controlling statute,

that Appellant had good and sufficient cause for the delay in service of

citation.

4. Granting the 91a motion to dismiss is denying the Appellant a vested property

right.

Summary of the Argument

The court erred in granting TCEQ’s 91a motion to dismiss. They erred in

granting the motion for three reasons, (1) the court looked to the Clean Air Act as

opposed to the TEX. WATER CODE as the original petition was filed citing to

the TEX. WATER CODE, (2) applying a 30 day timeframe to serve citation on

the defendant unduly harmed the appellant, AC Interests, (3) even if the court

thinks it is appropriate to apply the Clean Air Act and ignore the TEX. WATER

CODE, appellant can show good and sufficient cause for the delay, and (4) the

3 AC Interests v. TCEQ Appeal Cause Number 01-15-00378-CV

Appellant has a vested property right in the emission credits.

The standard of review is de novo, meaning the appellant court can

substitute their judgment of whether or not the lower court held correctly in

saying that the plaintiff’s claim had no basis in law or in fact. The court, “must

construe the pleadings liberally in favor of the plaintiff, look to the pleader's

intent, and accept as true the factual allegations in the pleadings to determine if

the cause of action has a basis in law or fact.” Wooley v. Schaffer, 447 S.W.3d 71,

76 (Tex. App.—Houston [14th Dist.] 2014), reh'g overruled (Oct. 9, 2014).

Ac Interests should be allowed to move forward with their claim for

emission credits. They will be able to show that they have complied with the

TCEQ’s standards to receive emission credits. AC Interests is being unduly

harmed by being denied the opportunity to petition for the emission credits that

they have earned by emitting fewer toxins into the water and air. The statute that

should be examined is the Water Code as the Clean Air Act unduly harms the

plaintiff.

The court granting TCEQ’s 91a motion to dismiss is keeping the appellant

from obtaining the emission credits that they have earned and that they are

entitled as well as denying them a vested property right.

Argument

The issue before this Court is whether the district court was correct in

4 AC Interests v. TCEQ Appeal Cause Number 01-15-00378-CV

granting TCEQ’s 91a motion to dismiss based on service of citation not being

within 30 days of Appellant filing their petition.

1. The court erred in granting TCEQ’s 91a motion to dismiss because the Water Code allows for a one year time period to serve citation.

Pursuant to TEX. WATER CODE §5.353, there is a one year time limit on

service of process, “If the plaintiff does not secure proper service of process

(pursuant to §5.351) or does not prosecute his suit within one year after it is filed,

the court shall presume that the suit has been abandoned.”1 TEX. WATER CODE

§5.351 was ignored in the 91a motion to dismiss. The TEX. WATER CODE

should be controlling because the original petition said this suit was being filed

under the TEX. WATER CODE. As the time frame is 1 year under the TEX.

WATER CODE the citation was served in a timely manner; therefore there is a

basis in law and in fact.

Imposing a 30 day timeframe in which to serve citation unduly harms that

plaintiff as the Water Code is clear that AC Interests had one year to secure proper

service of process. Appellant served citation on the TCEQ well within the one year

timeframe. In addition, the Appellee had constructive knowledge that a suit had

been filed on December 12, 2014, two days after Appellant electronically filed

their petition.

1 Hill v. Lower Colorado River Auth., 568 S.W.2d 473, 477 (Tex. Civ. App.—Austin 1978), writ refused NRE (Nov. 15, 1978) (quoting TEX. WATER CODE §5.351).

5 AC Interests v.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Millicent Curry v. Sheriff Jack Heard
819 F.2d 130 (Fifth Circuit, 1987)
Proulx v. Wells
235 S.W.3d 213 (Texas Supreme Court, 2007)
Hill v. Lower Colorado River Authority
568 S.W.2d 473 (Court of Appeals of Texas, 1978)
Castro v. Harris County
663 S.W.2d 502 (Court of Appeals of Texas, 1983)
Price v. Estate of Anderson
522 S.W.2d 690 (Texas Supreme Court, 1975)
William Carl Wooley v. Randy Schaffer
447 S.W.3d 71 (Court of Appeals of Texas, 2014)
First State Bank & Trust Co. v. Ramirez
126 S.W.2d 16 (Texas Supreme Court, 1939)
Buie v. Couch
126 S.W.2d 565 (Court of Appeals of Texas, 1939)
Ley v. Ley
62 S.W.2d 503 (Court of Appeals of Texas, 1933)

Cite This Page — Counsel Stack

Bluebook (online)
AC Interests L.P., Formerly American Coatings, L.P. v. Texas Commission on Environmental Quality, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ac-interests-lp-formerly-american-coatings-lp-v-texas-commission-on-texapp-2015.