Anna Dickson, Individually and on Behalf of All Others Similarly Situated v. American General Life Insurance Company

CourtTexas Supreme Court
DecidedSeptember 6, 2024
Docket22-0730
StatusPublished

This text of Anna Dickson, Individually and on Behalf of All Others Similarly Situated v. American General Life Insurance Company (Anna Dickson, Individually and on Behalf of All Others Similarly Situated v. American General Life Insurance Company) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anna Dickson, Individually and on Behalf of All Others Similarly Situated v. American General Life Insurance Company, (Tex. 2024).

Opinion

Supreme Court of Texas ══════════ No. 22-0730 ══════════

Anna Dickson, Individually and on Behalf of All Others Similarly Situated, Petitioner,

v.

American General Life Insurance Company, Respondent

═══════════════════════════════════════ On Petition for Review from the Court of Appeals for the Ninth District of Texas ═══════════════════════════════════════

JUSTICE YOUNG, concurring in the denial of the petition for review.

Respondent American General Life Insurance Company challenged the trial court’s interlocutory class-certification order and raised two issues on appeal—one concerning jurisdiction and the other concerning the merits. The court of appeals bypassed the jurisdictional issue and reversed the trial court’s order on the merits. The court explained that while private litigants like American General have a statutory right to immediately appeal Rule 42 class-certification orders, it was “not aware of any statute giving a private litigant . . . the right to file an interlocutory appeal from a ruling on a plea to the jurisdiction.” 2022 WL 2719633, at *5 (Tex. App.—Beaumont July 14, 2022) (citing Tex. Civ. Prac. & Rem. Code § 51.014). From that premise it reached this result: “We conclude that we lack jurisdiction to consider the arguments American General raises in its [jurisdictional] issue.” Id. That conclusion was error—serious error. The correct premise was this one: “Courts always have jurisdiction to determine their own jurisdiction.” Hous. Mun. Emps. Pension Sys. v. Ferrell, 248 S.W.3d 151, 158 (Tex. 2007) (emphasis added). And that principle goes further for an appellate court, which “always has jurisdiction to determine its own, and the lower courts’, jurisdiction.” Abbott v. Mexican Am. Legis. Caucus, 647 S.W.3d 681, 699 (Tex. 2022) (emphasis added). That foundational premise of judicial authority means that a court—especially an appellate court—is never right to think that it is empowered to reach a merits question but forbidden from resolving an antecedent jurisdictional dispute. So courts never lack jurisdiction—that is, power and authority—to resolve challenges to subject-matter jurisdiction. They also have the obligation to do so. Subject-matter jurisdiction is perhaps the one thing that courts must always address when contested or otherwise in doubt. After all, courts “may not assume jurisdiction for the purpose of deciding the merits of the case.” Sinochem Int’l Co. v. Malay. Int’l Shipping Corp., 549 U.S. 422, 431 (2007) (citing Steel Co. v. Citizens for a Better Env’t, 523 U.S. 83, 94 (1998)). If an appeal on the merits is properly pending before an appellate court (like an interlocutory appeal of a class-certification order), therefore, that court needs no separate procedural vehicle (like an appealable denial of a plea to the jurisdiction) before it can and must first

2 discharge its duty to ensure its own jurisdiction. The order of operations is not optional. Resolving the merits and then addressing a justiciability challenge is no better than planning to cook a plate of spaghetti only after eating it. The results are equally grotesque in either scenario. Whether a challenge to subject-matter jurisdiction is well-founded, of course, is a wholly different matter. My chief point today is to emphasize that courts must resolve any jurisdictional challenges—hard or easy, first raised in the trial court or first raised in the court of appeals, raised by a party or raised by the court itself—before turning to the merits. Sometimes a jurisdictional challenge is easily resolved, like the one in this case. The court of appeals did have the authority to reach the merits question because American General’s jurisdictional objections, while made in good faith, are mistaken. It would be appropriate for us to reverse and remand for the court of appeals to reach that jurisdictional question in the first instance, as it should have done all along. I instead concur in the denial of the petition for review so that I can emphasize the essential order of operations for the future yet allow this case to come to its inevitable end.

I

Dickson sued American General for allegedly withholding interest due on a significant number of life-insurance policies. She later amended her pleadings to assert claims on behalf of a putative class. In the sixth amended petition (the live pleading), Dickson asserted equitable claims of money had and received and unjust enrichment. American General, in turn, challenged her claims on two grounds. First, in a plea to the jurisdiction, American General argued that the trial court lacked subject-

3 matter jurisdiction because Dickson was essentially seeking a declaration of unconstitutionality of an Insurance Code provision but failed to join the Insurance Commissioner as a necessary and indispensable party.1 See Tex. R. Civ. P. 39. Second, in response to the class-certification motion, American General reiterated its argument that the court lacked subject-matter jurisdiction and also argued that the nature of Dickson’s equitable claims, along with the factual variations attending each putative class member’s policy, were unsuitable for class-wide litigation and thus could not satisfy Rule 42’s predominance requirement. See Tex. R. Civ. P. 42(b)(3). The record does not show that the trial court ever expressly ruled on American General’s plea to the jurisdiction, but the court did hold a hearing on the class-certification motion, which it granted months later.2 American General then exercised its statutory right to appeal that interlocutory order under § 51.014(a)(3) of the Civil Practice and Remedies Code. American General maintained its position that class certification was improper under Rule 42’s predominance requirement. Importantly, though, American General also argued on appeal, as it had

1 As American General points out in its briefing, Dickson had indeed raised a question of constitutionality more expressly before dropping it in the live pleading. 2 A trial court, of course, is bound by the same jurisdictional principles that bind all courts. Thus, it is impermissible to ignore a challenge to its subject- matter jurisdiction and proceed to any merits decision. A trial court that reaches a merits issue implicitly denies a plea to the jurisdiction. See Thomas v. Long, 207 S.W.3d 334, 339–40 (Tex. 2006) (holding that a trial court’s merits ruling constituted an implicit denial of a jurisdictional challenge). One reason for this principle is that no court of this State should be presumed to undertake the unlawful and ultra vires action of reaching a merits issue without resolving a contested issue of jurisdiction.

4 previously in its plea to the jurisdiction and its response to the class- certification motion, that the trial court lacked subject-matter jurisdiction because of Dickson’s failure to join the Insurance Commissioner in the suit. The court of appeals did not reject American General’s jurisdictional challenge. The court instead determined that it lacked authority to consider it at all. “[E]ven had the trial court ruled on the plea,” the court reasoned, “we are not aware of any statute giving a private litigant . . . the right to file an interlocutory appeal from a ruling on a plea to the jurisdiction.” 2022 WL 2719633, at *5 (citing Tex. Civ. Prac. & Rem.

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Anna Dickson, Individually and on Behalf of All Others Similarly Situated v. American General Life Insurance Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anna-dickson-individually-and-on-behalf-of-all-others-similarly-situated-tex-2024.