Ford, Inc. v. Collins Ford, Inc.

912 S.W.2d 271, 1995 WL 733394
CourtCourt of Appeals of Texas
DecidedAugust 30, 1995
Docket03-93-00669-CV
StatusPublished
Cited by13 cases

This text of 912 S.W.2d 271 (Ford, Inc. v. Collins Ford, Inc.) 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
Ford, Inc. v. Collins Ford, Inc., 912 S.W.2d 271, 1995 WL 733394 (Tex. Ct. App. 1995).

Opinion

912 S.W.2d 271 (1995)

CHARLIE THOMAS FORD, INC., Appellant,
v.
A.C. COLLINS FORD, INC., Appellee.

No. 03-93-00669-CV.

Court of Appeals of Texas, Austin.

August 30, 1995.

*272 William R. Crocker, Austin, for appellant.

Jack G. Carnegie, Holtzman Urquhart Bayko & Moore PC, Houston, for appellee.

Before POWERS, ABOUSSIE and B.A. SMITH, JJ.

POWERS, Justice.

Charlie Thomas Ford, Inc. appeals from a district-court judgment that vacates a final order of the Texas Motor Vehicle Commission in a suit for declaratory relief brought by appellee A.C. Collins Ford, Inc. We will reverse part of the district-court judgment and render judgment that Collins take nothing by its action for declaratory relief. We will affirm part of the judgment assailed by Collins in three cross-points.

THE CONTROVERSY

The Commission, under the Motor Vehicle Commission Code, Tex.Rev.Civ.Stat.Ann. art. 4413(36), §§ 1.03-7.01 (West Supp.1995), regulates the sale and distribution of new motor vehicles. One form of regulation is the licensing of retail dealers in new motor vehicles; and one aspect of licensing pertains to the location from which dealers sell the vehicles. See id. §§ 4.01-.02. Collins applied to the Commission for authority to move its Ford dealership from one location in Harris County to another. Thomas, a competing Ford dealer, protested the application, thereby giving rise to a contested case that the Commission was obliged to decide under the provisions of the Administrative Procedure Act (APA). See id. § 3.08; see also 16 Tex.Admin.Code § 103.6 (1995). See generally Administrative Procedure Act (APA), Tex.Gov't Code Ann. §§ 2001.001, .051-.225 (West 1995).[1] A hearing was held June 15-24, 1987, at which evidence and legal argument were received. A proposal for decision was thereafter served.[2]

In a meeting held September 6, 1989, the Commission, after oral argument by the parties, voted to deny Collins's application and to adopt the findings of fact and conclusions of law proposed by the agency's executive director who had served as hearing officer. The parties' lawyers asked permission to be *273 excused from the meeting and left the room after the commissioners indicated their consent. Immediately after they left, a commissioner suggested the need to make "certain corrections in the findings of fact." The other commissioners concurred. The commissioners voted then to amend the hearing officer's proposed findings of fact and to overrule the findings of fact and conclusions of law proposed by the contesting parties.[3]

The Commission subsequently issued its final order denying Collins's application, amending the hearing officer's findings of fact, and overruling the findings of fact and conclusions of law proposed by the parties. The order is dated September 6, 1989, the date of the hearing. The hearing officer and the Commission chairman actually signed the order September 8, 1989. Collins's lawyer states he received a copy of the order on September 11, 1989. Collins filed a motion for rehearing fifteen days thereafter, on September 26, 1989. Because the Commission did not act on the motion, it was overruled by operation of law after forty-five days. See APA § 2001.146(c).

Collins sued in district court for judicial review of the Commission's final order, alleging two causes of action against Thomas and the Commission. The first action was for a declaratory judgment holding void a Commission rule and all actions taken by the Commission in the contested case.[4] The second was an action to test for error of law the Commission's final order, a statutory cause of action authorized by section 7.01 of the Motor Vehicle Commission Code and governed by APA sections 2001.171-.178.

In an interlocutory order, the district court dismissed for want of jurisdiction all of Collins's claims save his action to declare void the Commission's final order on the ground that it was the result of a violation of the Open Meetings Act. Tex.Gov't Code Ann. §§ 551.001-.146 (West 1995) (the "Act"). In its final judgment, the district court vacated the Commission's final order and remanded the controversy to the Commission.

TEXAS OPEN MEETINGS ACT AND TEXAS REGISTER ACT VIOLATIONS

The parties join issue on whether the Commission's actions, taken immediately after the lawyers left the hearing room, amounted to a violation of the Act. The relevant evidence as to those actions is undisputed. In Thomas's second point of error, it contends the commissioner's actions did not amount to a violation of the Act as a matter of law.

The Act requires open meetings by governmental bodies and forbids closed meetings except for instances specified in the Act. See Act § 551.002. Save for emergencies, a meeting must be preceded by written notice posted in a place readily accessible to the general public at specified periods in advance of the meeting. See id. § 551.043. The term "closed meeting" refers to "a meeting to which the public does not have access." Id. § 551.001(1). The word "`open' means open to the public." Id. § 551.001(5). The Act provides that "[a]n action taken by a governmental body in violation of the [Act] is voidable." Id. § 551.141.

It is obvious that the lawyers were induced through mistake to leave the hearing room before the Commission determined every aspect *274 of the contested case. This does not, however, convert what was theretofore an "open meeting" into a "closed meeting" and thus into a violation of the Act. As indicated in the preceding paragraph, the purposes of the Act "are to enable public access to and to increase public knowledge of government decisionmaking." City of San Antonio v. Fourth Court of Appeals, 820 S.W.2d 762, 765 (Tex.1991) (orig. proceeding). There is no evidence or suggestion that any member of the public was denied access to the meeting or an opportunity to acquire knowledge of government decision making. There might conceivably have been Commission error resulting from the mistake, but the error did not amount to a violation of the Act, as claimed by Collins, and any prejudicial effect of the mistake is doubtful because Collins's counsel had completed his oral argument, directed at the proposed fact findings, before he was excused.

Collins contends the district-court judgment must be affirmed because it might rest upon a theory that the required notice of the meeting was insufficient. Collins argues that the Commission failed to issue and post advance notice of the separate and independent "meeting" that occurred after the lawyers left. We reject this reasoning. There is no second meeting shown in the record. Rather, the record shows without dispute that the commissioners' actions relative to the Collins case were taken in the same meeting that simply continued after the lawyers were excused at their request.

Collins also argues that the trial court might have deemed insufficient the notice posted by the Secretary of State because the notice, in its statement of the subject matter of the meeting, did not describe by name Collins's contested case. See Act § 551.041 (requiring that posted notice shall state "the date, hour, place, and subject matter of" a scheduled meeting (emphasis added)).

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

Related

Texas Mutual Insurance Co. v. Texas Department of Insurance
214 S.W.3d 613 (Court of Appeals of Texas, 2006)

Cite This Page — Counsel Stack

Bluebook (online)
912 S.W.2d 271, 1995 WL 733394, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ford-inc-v-collins-ford-inc-texapp-1995.