Lone Star Groundwater Conservation District, Richard J. Tramm, Sam W. Baker, M. Scott Weisinger, Jim Stinson, John D. Bleyl, Jace Houston, Roy McCoy Jr., Rick Moffatt, and W. B. Wood v. City of Conroe, Texas, Quadvest, L.P., Woodland Oaks Utility, L.P., Crystal Springs Water Co., Inc., Everett Square, Inc., E.S. Water Consolidators, Inc., Utilities Investment Co., Inc., and T&W Water Service Company

515 S.W.3d 406, 2017 WL 444362, 2017 Tex. App. LEXIS 925
CourtCourt of Appeals of Texas
DecidedFebruary 2, 2017
DocketNO. 09-16-00201-CV
StatusPublished
Cited by10 cases

This text of 515 S.W.3d 406 (Lone Star Groundwater Conservation District, Richard J. Tramm, Sam W. Baker, M. Scott Weisinger, Jim Stinson, John D. Bleyl, Jace Houston, Roy McCoy Jr., Rick Moffatt, and W. B. Wood v. City of Conroe, Texas, Quadvest, L.P., Woodland Oaks Utility, L.P., Crystal Springs Water Co., Inc., Everett Square, Inc., E.S. Water Consolidators, Inc., Utilities Investment Co., Inc., and T&W Water Service Company) 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
Lone Star Groundwater Conservation District, Richard J. Tramm, Sam W. Baker, M. Scott Weisinger, Jim Stinson, John D. Bleyl, Jace Houston, Roy McCoy Jr., Rick Moffatt, and W. B. Wood v. City of Conroe, Texas, Quadvest, L.P., Woodland Oaks Utility, L.P., Crystal Springs Water Co., Inc., Everett Square, Inc., E.S. Water Consolidators, Inc., Utilities Investment Co., Inc., and T&W Water Service Company, 515 S.W.3d 406, 2017 WL 444362, 2017 Tex. App. LEXIS 925 (Tex. Ct. App. 2017).

Opinion

*409 OPINION

HOLLIS HORTON, Justice

In this interlocutory appeal, the Lone Star Groundwater Conservation District 1 and its Directors seek appellate review of orders overruling their pleas to the jurisdiction. In their pleas, the District and the District’s directors challenged the trial court’s power to decide the claims of several “Large Water Producers,” 2 who sued the District and its directors because the District was threatening to enforce groundwater production rules that the Large Water Producers asserted in the suit were invalid. According to the Large Water Producers, the rules they challenge are invalid because they attempt to regulate the production of groundwater in ways the Legislature never authorized.

While the Large Water Producers’ petition includes claims that the pleas did not address, this appeal, with respect to the District, concerns the Large Water Producers’ challenge to the validity of the District’s rules that placed limits on the volume of groundwater that each Large Water Producer was allowed to produce on a yearly basis from its wells. See Tex. Civ. Prac. & Rem. Code Ann. §§ 37.001-.011 (West 2015) (Declaratory Judgments Act). While the Large Water Producers acknowledge that the Legislature delegated some authority to the District to regulate groundwater, they claim the Legislature did not authorize groundwater districts to place annual production limits on individual groundwater producers regardless of the number of wells or acreage owned by a producer. Additionally, in its petition, the Large Water Producers asserted section 37.009 of the Declaratory Judgments Act authorized their recovery of fees from the District should they prevail on the claims they raised in their suit. See Tex. Civ. Prac. & Rem. Code Ann. § 37.009 (authorizing trial courts, in suits filed under the Declaratory Judgments Act, to award reasonable and necessary attorney’s fees and costs as are equitable and just).

In response to the petition, the District asserted that while the Declaratory Judgments Act generally authorizes courts to consider challenges asserting that a statute or ordinance is invalid, it claimed the Act did not authorize the courts to consider complaints about the validity of a governmental entity’s rules. See id. § 37.004 (Subject Matter of Relief). The District also argues that the Declaratory Judgments Act does not operate as a general waiver of immunity, and that it did not waive immunity with respect to claims seeking to recover attorney’s fees.

The Directors’ plea asserted that they were immune from all of the claims the Large Water Producers were making in their suit. According to the Directors, because the Large Water Producers’ claims all concern their votes on rules adopted by the District, the Water Code immunized them from the claims which were all based on their official votes or actions. See Tex. Water Code Ann. § 36.066(a) (West Supp. 2016). On appeal, the Directors argue that the trial court should have dismissed them from the suit based on the immunity the *410 Legislature extended to them in section 36.066(a) of the Texas Water Code. Id.

With respect to the arguments the Directors raise in their appeal, we agree that the Large Water Producers’ claims are based entirely on the votes the directors cast on the rules the Large Water Producers have challenged in their suit. Because the Water Code immunizes directors of groundwater districts from claims that are based on their votes as directors, we hold that the trial court abused its discretion when it denied the Directors’ pleas. Id.

With respect to the District’s appeal, we conclude that the Texas Water Code expressly authorizes courts to consider challenges that concern the validity of a groundwater district’s rules. We further conclude that the Legislature, in the Water Code, expressly authorized the courts to remedy a successful challenge to the validity of a groundwater district’s rules by declaring the groundwater district’s rules invalid. See Tex. Water Code Ann. § 36.251 (West Supp. 2016) (providing that anyone affected by a rule of a groundwater district may file suit against the district to challenge the validity of the rule); Tex. Water Code Ann. § 36.254 (West 2008) (as to groundwater districts, making the Water Code cumulative of other legal and equitable remedies). Consequently, we hold the trial court did not abuse its discretion by denying the Large Water Producers’ plea as to the claims the Large Water Producers filed to challenge the validity of certain of the District rules. Nonetheless, we further conclude that no provisions of the Texas Water Code authorize a court to award attorney’s fees to a party who successfully challenges the validity of a groundwater district’s rules. Additionally, the Declaratory Judgments Act does not independently waive a groundwater district’s governmental immunity with respect to claims for attorney’s fees. Compare Tex. Civ. Prac. & Rem. Code Ann. § 37.009 (generally authorizing attorney’s fees for proceedings that are brought under the Declaratory Judgments Act), with Tex. Water Code Ann. § 36.066(g)-(h) (West Supp. 2016) (authorizing courts to award attorney’s fees to a groundwater district if the groundwater district prevails in a suit; however, provision is silent regarding awarding attorney’s fees to a party who successfully challenges the validity of a groundwater district’s rules). Therefore, we hold the trial court erred when it failed to grant the District’s plea with respect to the Large Water Producers’ claims for attorney’s fees.

Background

The Large Water Producers consists of several private and public entities that produce groundwater from wells in Montgomery County. In 2015, dissatisfied with the production limits the District created through the rulemaking authority delegated to it by the Legislature, the Large Water Producers filed suit claiming that the rules the District created imposing per-producer yearly production limits on their production of groundwater were invalid because they purported to regulate the production of groundwater in ways the Legislature never authorized.

In response to the suit, the District and the Directors filed pleas to the jurisdiction. We note that all of the claims against the Directors were brought against them in their official capacities as members of the District’s board. We further note that for the purpose of this appeal, the Plaintiffs’ Fourth Amended Petition 3 is the petition *411 that is the pleading that was before the trial court when it denied the pleas.

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515 S.W.3d 406, 2017 WL 444362, 2017 Tex. App. LEXIS 925, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lone-star-groundwater-conservation-district-richard-j-tramm-sam-w-texapp-2017.