ICON Benefit Administrators II, L.P. American Administrative Group, Inc. And HealthSmart Preferred Care, II, L.P. v. Greg Abbott, Attorney General of Texas And the City of Lubbock

CourtCourt of Appeals of Texas
DecidedAugust 22, 2013
Docket03-11-00459-CV
StatusPublished

This text of ICON Benefit Administrators II, L.P. American Administrative Group, Inc. And HealthSmart Preferred Care, II, L.P. v. Greg Abbott, Attorney General of Texas And the City of Lubbock (ICON Benefit Administrators II, L.P. American Administrative Group, Inc. And HealthSmart Preferred Care, II, L.P. v. Greg Abbott, Attorney General of Texas And the City of Lubbock) 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
ICON Benefit Administrators II, L.P. American Administrative Group, Inc. And HealthSmart Preferred Care, II, L.P. v. Greg Abbott, Attorney General of Texas And the City of Lubbock, (Tex. Ct. App. 2013).

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN

NO. 03-11-00459-CV

ICON Benefit Administrators II, L.P.; American Administrative Group, Inc.; and HealthSmart Preferred Care, II, L.P., Appellants

v.

Greg Abbott, Attorney General of Texas; and The City of Lubbock, Appellees

FROM THE DISTRICT COURT OF TRAVIS COUNTY, 345TH JUDICIAL DISTRICT NO. D-1-GN-11-001866, HONORABLE JOHN K. DIETZ, JUDGE PRESIDING

OPINION

This is an appeal from an order denying a temporary injunction in a suit challenging

an Attorney General’s open-records decision. The suit was initiated by appellants ICON Benefit

Administrators II, L.P.; American Administrative Group, Inc. (AAG); and HealthSmart Preferred

Care, II, L.P. (collectively the “Parker Group”1) and seeks to compel the City of Lubbock and the

Attorney General to withhold from public disclosure an “audit report” in the City’s possession that

addresses services provided by Parker Group entities to the City. Following an evidentiary hearing,

the district court issued an order denying the Parker Group’s application for temporary injunction.

The Parker Group filed a notice of appeal and moved for an emergency stay pending this Court’s

resolution of its appeal. We granted the stay. For the reasons explained below, we now overrule the

Parker Group’s contentions on appeal, affirm the district court’s order, and vacate the stay.

1 A reference to the entities’ common ownership or affiliation, also used by the parties. BACKGROUND

From 2004 through 2006, the City of Lubbock contracted with two Parker Group

companies—appellants ICON and AAG—to provide third-party administration of the City’s self-

funded health-care plan. The City contracted with a third Parker Group company—appellant

HealthSmart—to serve as the City’s “preferred provider” organization for that same plan. During

the course of the City’s relationship with the Parker Group, disputes arose as to whether ICON

and AAG had complied with their administrator contracts with the City, and the Parker Group

ultimately initiated arbitration proceedings to resolve the disputes. The Parker Group also filed a

related defamation action in a Dallas County court at law against several of the City’s employees

who, according to the Parker Group, had publicly and falsely accused the Parker Group of

mishandling the City’s contracts.

In the Dallas defamation case, the City hired an expert, Sally Reaves, to audit the

administrative services that ICON and AAG had performed for the City’s health-care plans. The

purpose of the audit was to determine whether the employees’ alleged statements regarding the

Parker Group were, in fact, true, and thus not actionable defamation. Thereafter, a discovery dispute

arose as to whether Reaves could gain access to certain Parker Group documents and information

that were ostensibly necessary for her to conduct her audit. The Dallas County Court at Law ordered

the Parker Group to produce certain sensitive materials under a protective order that restricted the

use and disclosure of the materials and “all information derived therefrom.” The protective order

was later amended to allow the City to use the protected materials in the arbitration proceeding.

Before Reaves finished her audit and report, the parties settled the Dallas defamation

case, and it was dismissed. But the arbitration remained ongoing, and the parties to that proceeding

2 disputed whether Reaves’s forthcoming audit could be used in it. The arbitrator ruled that the City

could use the audit and issued a protective order that was substantially identical to the one issued in

the Dallas lawsuit. The City instructed Reaves to finish her audit. Reaves later submitted to the City

a document dated March 18, 2011, and titled “Audit of the Parker Group Administration of Benefit

Plans for the City of Lubbock” (Reaves Audit).

In April 2011, shortly after Reaves submitted the Reaves Audit to the City, the

City received three requests under the Texas Public Information Act (PIA)2 that called for its

production. Concluding that the Parker Group’s interests were implicated, the City notified the

Parker Group of the requests and requested an opinion from the Attorney General as to whether

the PIA required it to produce the Reaves Audit. See Tex. Gov’t Code §§ 552.301 (PIA provision

requiring governmental body that receives written request for information it wishes to withhold

to ask for decision from attorney general), .305 (requiring governmental body that requests decision

to notify affected third parties that they may submit briefing to attorney general). The Attorney

General determined that the City was required to release the Reaves Audit because it was subject to

mandatory disclosure under the PIA. See Tex. Att’y Gen. OR2011-08928.

Around this same time, the Parker Group had filed a motion in the dismissed Dallas

defamation suit seeking enforcement of that court’s protective order to prevent public disclosure

of the Reaves Audit. The Parker Group argued that the protective order prohibited public disclosure

of the Reaves Audit because it contained protected materials and information derived from them.

After a hearing, the Dallas County Court at Law signed an order in July 2011 declaring that public

2 The PIA is codified in Chapter 552 of the Government Code. See Tex. Gov’t Code §§ 552.001–.353.

3 disclosure of the Reaves Audit was not prohibited by the protective order and denying the Parker

Group’s motion. The Parker Group appealed the county court at law’s order to the Dallas Court of

Appeals. Recently, that court reversed the county court at law’s order, holding that the protective

order prohibits public disclosure of the Reaves Audit. See Icon Benefit Admins. II, L.P. v. Mullin,

__S.W.3d__, No. 05–11–00935–CV, 2013 WL 2423171, at *6 (Tex. App.—Dallas June 5, 2013,

no pet. h.).

While its appeal to the Dallas Court of Appeals remained pending, the Parker Group

filed the underlying suit in the Travis County District Court against the Attorney General and the

City, seeking declaratory judgment that the Reaves Audit was protected from public disclosure. See

Tex. Gov’t Code §§ 552.3215, .325 (PIA provision authorizing suit for declaratory judgment by

party seeking to withhold information from requestor). The Parker Group also requested temporary

and permanent injunctions enjoining the public release of the audit. The district court granted the

Parker Group’s request for a temporary restraining order, but after discovery and an evidentiary

hearing on its application for a temporary injunction, issued an order denying Parker Group’s

application and dissolving the temporary restraining order. In its order, the district court stated

that the Reaves Audit “is a completed report, audit, evaluation, or investigation made of, for, or by

a governmental body” under PIA section 552.022(a), that “there is no other law excepting the

Reaves Audit from disclosure,” and that the Parker Group “failed to prove a probable right of

recovery to support” its application for temporary injunction. It is from this order that Parker Group

now appeals.3

3 See Tex. Civ. Prac. & Rem. Code § 51.014(a)(4) (permitting interlocutory appeal of district court’s grant or denial of an application for temporary injunction).

4 DISCUSSION

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

Related

Presidio Independent School District v. Scott
309 S.W.3d 927 (Texas Supreme Court, 2010)
Texas Department of Public Safety v. Cox Texas Newspapers, L.P.
343 S.W.3d 112 (Texas Supreme Court, 2011)
INEOS Group Ltd. v. Chevron Phillips Chemical Co., LP
312 S.W.3d 843 (Court of Appeals of Texas, 2009)
Texas Department of Transportation v. Able
35 S.W.3d 608 (Texas Supreme Court, 2000)
Butnaru v. Ford Motor Co.
84 S.W.3d 198 (Texas Supreme Court, 2002)
Cherokee Water Co. v. Gregg County Appraisal District
801 S.W.2d 872 (Texas Supreme Court, 1990)
EI Du Pont De Nemours & Co. v. Robinson
923 S.W.2d 549 (Texas Supreme Court, 1996)
Beck v. LAW OFFICES OF EDWIN J. TERRY, JR.
284 S.W.3d 416 (Court of Appeals of Texas, 2009)
Donalson v. Barr
86 S.W.3d 718 (Court of Appeals of Texas, 2002)
State v. Southwestern Bell Telephone Co.
526 S.W.2d 526 (Texas Supreme Court, 1975)
City of Brownsville v. Alvarado
897 S.W.2d 750 (Texas Supreme Court, 1995)
Davis v. Huey
571 S.W.2d 859 (Texas Supreme Court, 1978)
Jackson v. State Office of Administrative Hearings
351 S.W.3d 290 (Texas Supreme Court, 2011)
Texas Board of Chiropractic Examiners v. Texas Medical Ass'n
375 S.W.3d 464 (Court of Appeals of Texas, 2012)

Cite This Page — Counsel Stack

Bluebook (online)
ICON Benefit Administrators II, L.P. American Administrative Group, Inc. And HealthSmart Preferred Care, II, L.P. v. Greg Abbott, Attorney General of Texas And the City of Lubbock, Counsel Stack Legal Research, https://law.counselstack.com/opinion/icon-benefit-administrators-ii-lp-american-administrative-group-inc-texapp-2013.