Friends of Canyon Lake, Inc. v. Guadalupe-Blanco River Authority

96 S.W.3d 519, 2002 Tex. App. LEXIS 7756, 2002 WL 31426261
CourtCourt of Appeals of Texas
DecidedOctober 31, 2002
Docket03-02-00221-CV
StatusPublished
Cited by93 cases

This text of 96 S.W.3d 519 (Friends of Canyon Lake, Inc. v. Guadalupe-Blanco River Authority) 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
Friends of Canyon Lake, Inc. v. Guadalupe-Blanco River Authority, 96 S.W.3d 519, 2002 Tex. App. LEXIS 7756, 2002 WL 31426261 (Tex. Ct. App. 2002).

Opinion

MARILYN ABOUSSIE, Chief Justice.

This is an appeal of a declaratory judgment in a bond validation action authorizing the Guadalupe-Bianco River Authority (“the Authority”) to issue bonds relating to a water project that had been approved by the Texas Natural Resource Conservation Commission (“the TNRCC” or “the Commission”). 1 Appellant Friends of Canyon *523 Lake, Inc. (“FOCL”) appeals the district court’s order granting the Authority’s and the Commission’s pleas to the jurisdiction and the judgment failing to find that the Authority violated the notice requirements of the Open Meetings Act, see Tex. Gov’t Code Ann. § 551.041 (West 1994), validating the TNRCC approval, and authorizing the issuance of the bonds. In two issues, FOCL contends the district court erred because: (1) the evidence establishes as a matter of law that at its August 20, 1997 meeting the Authority violated the Open Meetings Act by taking final action on a matter not reflected in the notice of the meeting; and (2) the pleas to the jurisdiction were improperly granted because FOCL raised claims that were exempt from the exhaustion doctrine and were independent of FOCL’s claims under the Administrative Procedure Act. We will affirm the district court’s judgment.

BACKGROUND

The Authority is a ten-county conservation and reclamation district and agency of the State of Texas. See Tex. Const, art. XVI, § 59. On August 29, 1997, the general manager of the Authority, William E. West, filed an application (“the Application”) with the TNRCC requesting authorization to meet increasing demands for surface water in central Texas communities. The Application sought to: (1) increase the annual take from Canyon Reservoir from a maximum of 62,900 acre feet of water to 120,000 acre feet, (2) increase the maximum allowable over five consecutive years from 250,000 acre feet to 450,000 acre feet, and (3) sell the water outside of the Authority’s ten county area. On August 15, 1999, shortly after the Application had been declared administratively complete, notice of the Application was published in the San Antonio Express-News and the New Braunfels Herald-Zeitung, newspapers of general circulation in the area surrounding Canyon Reservoir. The TNRCC approved the Application and on August 9, 2001, issued an Amendment, to the Authority’s Certificate of Adjudication No. 18-2074 (“the Amendment”).

Shortly thereafter, appellant was incorporated and immediately filed three lawsuits contesting the TNRCC’s amendment decision. 2 Meanwhile, for the purpose of undertaking the water project, the Authority approved a resolution to issue $75,000,000 in contract revenue bonds. Issuance of the bonds was not approved by the Attorney General, however, because their security was jeopardized by the pending lawsuits. Therefore, the Authority brought this declaratory judgment action to resolve the controversy surrounding the issuance of the bonds. See Tex. Gov’t Code Ann. § 1205.021 (West 2000) (“Expedited Declaratory Judgment Act”).

FOCL and the other appellees, including the TNRCC, intervened in the Authority’s *524 suit. FOCL’s three suits were consolidated with the Authority’s expedited declaratory judgment action. On March 5, 2002, the district court heard arguments in a pretrial hearing on pleas to the jurisdiction filed by both the Authority and the TNRCC and subsequently dismissed all but one of FOCL’s challenges to the TNRCC’s decision to issue the Amendment. The district court determined that it lacked subject-matter jurisdiction of the complaints because FOCL had failed to exhaust its administrative remedies. Neither FOCL nor any individual member of FOCL timely requested a contested case hearing on the Application. 3 According to the district court, FOCL was not a “party” to the TNRCC proceeding and had no right to make a direct attack on the TNRCC’s issuance of the Amendment. See Tex. Gov’t Code Ann. § 2001.003(4) (West 2000); see also City of Port Arthur v. Southwestern Bell Tel. Co., 13 S.W.3d 841, 844 (Tex.App.-Austin 2000, no pet.).

However, the district court did not dismiss FOCL’s Open Meetings Act challenge, and on March 18, 2002, it conducted a trial on the Authority’s request for relief under the Expedited Declaratory Judgment Act and FOCL’s Open Meetings Act claims. In its final judgment, the district court ruled that the Authority had shown itself entitled to the relief sought and FOCL had failed to demonstrate any violation by the Authority of the Open Meetings Act. In its findings of fact and conclusions of law, the district court determined, among other things, that: (1) the actions relating to the Application that were taken by the Authority at its October 16, 1996 and August 20, 1997 board meetings were a “logical consequence” of the meetings and were, therefore, in compliance with the Open Meetings Act; (2) neither FOCL nor any of its members requested a contested case hearing on the Application; (3) FOCL’s Open Meetings Act claims were moot and impermissible collateral attacks on the Amendment; 4 and (4) the Application was, in any case, approved and ratified by the Authority’s Board on June 13, 2001, in a meeting that complied with the Open Meetings Act. FOCL’s challenges to the Amendment were thus without merit, and the Amendment constituted a valid and binding action of the TNRCC. The district court’s judgment authorized the Authority to issue the bonds necessary for its water project. This appeal followed.

DISCUSSION

On appeal, FOCL presents its Open Meetings Act issue first and the plea to the jurisdiction issue second. Because some arguments relevant to the first issue are addressed in our discussion of the *525 second, and also for the sake of convenience, we will first address FOCL’s contention that the district court erred by dismissing its claims on appellees’ pleas to the jurisdiction.

Plea to the Jurisdiction

A plea to the jurisdiction challenges the district court’s authority to determine the subject matter of the cause of action. Bland Indep. Sch. Dist. v. Blue, 34 S.W.3d 547, 554 (Tex.2000). Subject-matter jurisdiction raises a question of law, which we review de novo. Mayhew v. Town of Sunnyvale, 964 S.W.2d 922, 928 (Tex.1998). The burden is on the non-movant to plead facts sufficient to show that the district court has subject-matter jurisdiction. Texas Ass’n of Bus. v. Texas Air Control Bd., 852 S.W.2d 440, 446 (Tex.1993). Of course, a trial court must not force the non-movant to prove its entire case before trial. See Bland, 34 S.W.3d at 555.

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Bluebook (online)
96 S.W.3d 519, 2002 Tex. App. LEXIS 7756, 2002 WL 31426261, Counsel Stack Legal Research, https://law.counselstack.com/opinion/friends-of-canyon-lake-inc-v-guadalupe-blanco-river-authority-texapp-2002.