John Gannon, Inc. v. Texas Department of Transportation

Court of Appeals of Texas·Decided April 9, 2024·No. 01-22-00762-CV·Published

Opinion

Opinion issued April 9, 2024

In The

Court of Appeals

For The

First District of Texas

date the complained-of order became final and appealable. See TEX. GOV’T CODE § 2001.176(a). John Gannon, Inc. (“JGI”) filed its petition seeking judicial review of an order of the Texas Transportation Commission (“Commission”), the governing body for the Texas Department of Transportation (“TxDOT”), on the 47th day. TxDOT moved to dismiss, arguing that the trial court lacked subject matter jurisdiction because JGI’s petition was untimely. The trial court agreed and dismissed JGI’s petition. On appeal, JGI contends: (1) the APA’s 30-day deadline is not jurisdictional, (2) the 30-day deadline did not apply to its constitutional claims, and (3) its untimely filing was excused by the Texas Supreme Court’s emergency order directing courts to exercise their discretion to modify or suspend filing deadlines during the COVID-19 pandemic. Because we conclude that the 30-day deadline is jurisdictional as to JGI’s claims and that the emergency order does not revive the trial court’s lost jurisdiction, we affirm.

Background

JGI owns commercial signs—billboards—that are located next to Texas highways. TxDOT is the state agency tasked with regulating billboards under the Texas Highway Beautification Act.2 See TEX. TRANSP. CODE §§ 391.001–.256; see

2 The Legislature enacted the Texas Highway Beautification Act in response to the Federal Highway Beautification Act, which became law in 1965. See Highway Beautification Act of 1965, Pub. L. No. 89-285, 79 Stat. 1028 (codified as amended at 23 U.S.C. § 131). The federal act aims to “protect the public investment in [interstate] highways, to promote the safety and recreational value of public travel,

also 43 TEX. ADMIN. CODE § 21.141. The Act’s purpose is to “promote the health, safety, welfare, morals, convenience, and enjoyment of the traveling public,” and “protect the public investment” in the highway system. TEX. TRANSP. CODE § 391.002(b). Noncompliant billboards are considered a “public nuisance.” Id. § 391.034(a)(2).

Billboard owners like JGI must obtain a license and a permit from TxDOT before erecting or maintaining a billboard in a regulated area. See id. §§ 391.061, .067. Relevant here, TxDOT may impose administrative penalties on noncompliant billboard owners or cancel their permits. Id. § 391.0355(a).

Beginning in 2019, TxDOT sought to cancel four of JGI’s billboard permits for noncompliance based on allegations that:

(1) The Lampasas Billboard (Permit 17-00196) did not meet wind load requirements and was too tall. See 43 TEX. ADMIN. CODE § 21.188; TEX.

TRANSP. CODE § 391.038.

(2) The Fayette Billboard (Permit HBA-26375) was too big. See 43 TEX.

ADMIN. CODE § 21.182(a).

(3) The Jackson Billboard (Permit 17-00317) was too big. See id.

(4) The Montgomery Billboard (Permit HBA-25622) was modified without a permit and located too close to a highway exit ramp. See id. §§ 21.191(c)(5), .193(b).

and to preserve natural beauty.” 23 U.S.C. § 131(a). To that end, it requires that all states control the erection and maintenance of outdoor advertising signs along the nation’s highways. Id. § 131(a), (c). Absent provisions for controlling such signs, a state risks losing ten percent of its highway funds. Id. § 131(b).

In response to TxDOT’s cancellation notices, JGI asserted its right to a contested case hearing on the alleged violations and any administrative penalties TxDOT might impose.3 See TEX. GOV’T CODE § 2001.003(1) (“‘Contested case’ means a proceeding . . . in which the legal rights, duties, or privileges of a party are to be determined by a state agency after an opportunity for adjudicative hearing.”). An administrative law judge considered the parties’ evidence and issued a proposal for decision containing findings of fact and conclusions of law. She found that (1) TxDOT had not shown that JGI failed to certify that the Lampasas Billboard met the wind load requirements, (2) JGI had lowered the height of the Lampasas Billboard, (3) JGI had reduced the size of the Fayette and Jackson Billboards, and (4) JGI had not obtained an amended permit before changing the Montgomery Billboard. She proposed cancellation of the Montgomery Billboard permit but only administrative penalties for the other, cured violations.

On February 25, 2021, the Commission adopted the administrative law judge’s proposal for decision, ordered the cancellation of the Montgomery Billboard permit, and imposed administrative penalties of $235,500 for the Lampasas, Fayette, and Jackson Billboards. JGI filed a motion for rehearing, which was overruled by operation of law on April 21, 2021. See id. § 2001.146(c) (“A state agency shall act

3 TxDOT sought administrative penalties of up to $1,000 per day of violation for each permit.

on a motion for rehearing not later than the 55th day after the date the decision or order that is the subject of the motion is signed or the motion for rehearing is overruled by operation of law.”). Consequently, the Commission’s order became final and appealable on April 21, 2021, making any petition for judicial review due by May 21, 2021. See id. § 2001.176(a) (“A person initiates judicial review in a contested case by filing a petition not later than the 30th day after the date the decision or order that is the subject of complaint is final and appealable.”). JGI petitioned for judicial review on June 7, 2021.4 TxDOT moved to dismiss for want of jurisdiction, arguing that its sovereign immunity had not been waived because JGI filed its petition late. JGI responded and moved for leave to late file its petition, arguing that the trial court should excuse the untimely filing under the Texas Supreme Court’s emergency orders allowing modification or suspension of statutory deadlines during the COVID-19 pandemic.

The trial court did not rule on JGI’s motion for leave. But it granted TxDOT’s motion to dismiss and dismissed JGI’s suit with prejudice.

4 JGI’s petition asserted that the Commission’s order: (1) violated a constitutional or statutory provision, (2) exceeded TxDOT’s authority, (3) was made through unlawful procedure, (4) was affected by other legal error, (5) was not reasonably supported by substantial evidence, and (6) was arbitrary and capricious.

Subject Matter Jurisdiction JGI contends the trial court erred in dismissing its petition for lack of subject matter jurisdiction. JGI also contends the trial court had discretion to extend the 30-day deadline under the Texas Supreme Court’s emergency order modification or suspension of statutory deadlines during the COVID-19 pandemic. A. Standard of Review A plea to the jurisdiction is a dilatory plea challenging a trial court’s authority to decide a case and seeking dismissal of a case for lack of subject matter jurisdiction. See Harris Cnty. v. Sykes, 136 S.W.3d 635, 638 (Tex. 2004); Bacon v. Tex. Hist. Comm’n, 411 S.W.3d 161, 170 (Tex. App.—Austin 2013, no pet.). “In Texas, sovereign immunity deprives a trial court of subject matter jurisdiction for lawsuits in which the state or certain governmental units have been sued unless the state consents to suit.” Tex. Dep’t of Parks & Wildlife v. Miranda, 133 S.W.3d 217, 224 (Tex. 2004). “Sovereign immunity from suit defeats a trial court’s subject matter jurisdiction and thus is properly asserted in a plea to the jurisdiction.” Id. at 225–26. The plaintiff must affirmatively show the trial court’s jurisdiction, Heckman v. Williamson Cnty., 369 S.W.3d 137, 150 (Tex. 2012), including a waiver of sovereign immunity in suits against the government, Town of Shady Shores v. Swanson, 590 S.W.3d 544, 550 (Tex. 2019).

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