Bailey v. City of Austin

972 S.W.2d 180, 1998 WL 394211
CourtCourt of Appeals of Texas
DecidedAugust 13, 1998
Docket03-97-00789-CV
StatusPublished
Cited by75 cases

This text of 972 S.W.2d 180 (Bailey v. City of Austin) 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
Bailey v. City of Austin, 972 S.W.2d 180, 1998 WL 394211 (Tex. Ct. App. 1998).

Opinion

BEA ANN SMITH, Justice.

The main issue presented is whether Proposition 22, which amended the City of Austin’s city charter by referendum, violates the equal protection provisions of the Texas Constitution. Appellants Janice Bailey, Renee Villeneuve, Michael Moon, Tom Cox, Wendy Foxworth, Kathryn Janes, Mary Ann Hubbard, and Kasey Smith sued the City of Austin complaining that Proposition 22 violates the Texas Constitution and the Texas Insurance Code, and that the City was also liable under breach of contract and promissory estoppel. The district court granted summary judgment in favor of the City after both parties filed motions for summary judg-inent. Appellants bring four issues on appeal. We will affirm in part and reverse and remand in part the district court’s summary judgment.

BACKGROUND

At all relevant times, Bailey, Moon, Janes, and Hubbard were City employees, and Vil-leneuve, Cox, Foxworth, and Smith were their respective partners. Appellee is a municipality incorporated in the state of Texas. The City has traditionally offered life, health, and dental insurance plans to its employees, their spouses, and their dependent children as part of the benefits package it provides its employees. At issue is the health insurance: the City offers two HMOs and one self-funded plan (“City plan”). The City generally oversees and negotiates the HMO insurance plans for its employees; it administers and manages the City plan, much like a private insurance company. The City disseminates information and collects premiums which it deducts from the employee’s paychecks for all three plans. The City pays an employee’s premiums if she elects to be covered under the City plan; it pays only a portion if the employee is covered under either HMO. If an employee elects to extend health coverage to an eligible dependent, the City pays a portion of the dependent’s premium due under any of the offered plans.

Sometime in 1993, the City Council of the City was urged to extend insurance benefits to “domestic partners” 1 of City employees. The Human Resources Department gathered extensive information by contacting private employers and other cities regarding the costs and advantages of domestic partner benefits. Experts concluded that insurance rates would not be affected because there was no evidence that domestic partners constitute a “high-risk, high-cost group.” The City gave several reasons for its decision to offer domestic partners benefits: (1) to implement policies and programs that are fair and equitable; (2) to maintain and recruit *184 quality employees; and (3) to provide adequate medical coverage for employee dependents. On September 2, 1993, the City Council approved a change to the City’s personnel policy that defined eligible dependent to include “domestic partner,” thereby extending health benefits to all domestic partners and their children. The City notified its employees that domestic partner benefits would be available. During the limited open-enrollment period, an employee could enroll her domestic partner under any of the health insurance plans. To qualify, the employee and partner had to file with the Travis County Clerk’s office a formal Declaration of Domestic Partnership which requires the parties to attest to an emotionally committed relationship of mutual caring, mutual residency, joint responsibility for basic living expenses, and that no other partnership or marriage had existed in the last six months.

Although the projected cost was originally over $500,000 for the 1993-94 fiscal year, the actual cost at the end of the enrollment period was just over $100,000 for the fiscal year. 2 When coverage began in January 1994, one hundred employees had signed up to receive domestic partner benefits; seventy-one of those employees enrolled an opposite-sex partner and twenty-nine enrolled a same-sex partner. Among its enrollees were employee Moon and his same-sex partner Cox, and employee Bailey and her same-sex partner Villeneuve. Employee Janes and her same-sex partner Foxworth were waiting for six months to elapse with the intention to file a declaration of domestic partnership. Employee Hubbard and her same-sex partner Smith were denied domestic partner benefits after the passage of Proposition 22.

Proposition 22 passed by a majority vote on May 7, 1994. It amends Austin’s city charter to provide:

City employee benefits shall be as provided in the approved “Personnel Policies”; provided such City employee benefits shall in no case be extended to any persons other than an employee’s parents, spouse, children (including step-children, children for whom a court ordered guardianship or conservatorship has been assigned, qualified children placed pending adoption, and eligible grandchildren), sisters, brothers, grandparents, and the parents and grandparents of an employee’s spouse; except as otherwise provided in state or federal law and the term, spouse as defined in the “Personnel Policies” shall mean the husband or wife of the employee.

(Emphasis added). On May 17, 1994, the City informed its employees that benefits for domestic partners and their children were terminated effective May 9. Appellants filed suit in district court alleging that the proposition was unconstitutional and in violation of the Texas Insurance Code, 3 and that the City was liable to pay domestic partner benefits under a contract theory or in the alternative, under promissory estoppel. Both parties filed motions for summary judgment. The district court denied appellants’ motion and granted appellee’s motion on unstated grounds. Appellants come now appealing the district court’s judgment.

STANDING

The City contends that several of the appellants have no standing. To have standing the pleader must allege facts that affirmatively demonstrate the court’s jurisdiction to hear the cause. Texas Ass’n of Business v. Texas Air Control Bd., 852 S.W.2d 440, 446 (Tex.1993). When the trial court does not order a dismissal for want of jurisdiction, we consider standing for the first time on appeal. Id. Therefore, an appellate court should construe the petition in favor of the party, and if necessary review the entire record to determine if any evidence supports standing. Id. The general test for standing requires (1) a real controversy between the parties (2) that will be determined by the relief sought. Id. In other words, a plaintiff must assert some restriction of its own rights, not someone else’s. *185 See Texas Workers’ Compensation Comm’n v. Garcia, 893 S.W.2d 504, 518 (Tex.1995).

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Bluebook (online)
972 S.W.2d 180, 1998 WL 394211, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bailey-v-city-of-austin-texapp-1998.