Meekey v. Rick's Cabaret International, Inc.

171 S.W.3d 394, 2005 Tex. App. LEXIS 5458
CourtCourt of Appeals of Texas
DecidedJuly 14, 2005
DocketNo. 14-04-00348-CV
StatusPublished
Cited by1 cases

This text of 171 S.W.3d 394 (Meekey v. Rick's Cabaret International, 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
Meekey v. Rick's Cabaret International, Inc., 171 S.W.3d 394, 2005 Tex. App. LEXIS 5458 (Tex. Ct. App. 2005).

Opinion

OPINION ON REHEARING

CHARLES W. SEYMORE, Justice.

Appellees’ motion for rehearing is overruled. The substitute opinion of April 28, 2005 is withdrawn and the court issues this opinion on rehearing.

In this appeal from a dismissal for want of jurisdiction, P.B. Meekey and Michael Fulmer, individually, and on behalf of all others similarly situated, appeal a judgment in favor of Rick’s Cabaret International, Inc., Texas Richmond Corporation d/b/a The Men’s Club, Caligula XXI, D.S.S.S. Ariamerica, Inc., Mylonas Anar-gyros George d/b/a Baby Dolls Saloon, Ice Embassy, Inc. d/b/a Colorado Bar & Grill, The St. James Restaurant and Cabaret, [397]*397and D.N.W. Houston, Inc. on the ground that the Finance Commission has exclusive or primary jurisdiction over a dispute concerning an alleged violation of section 339.001 of the Finance Code. We reverse and remand for proceedings consistent with this opinion.1

I.BACKGROUND

Appellants used credit cards to purchase dances at the clubs owned by appellees. Appellants allege the regular price for a dance is twenty dollars. When appellants used a credit card, however, they were charged twenty-five dollars. Appellants filed suit alleging the five dollar charge to their credit cards was an illegal surcharge in violation of section 339.001. Section 339.001 of the Finance Code prohibits a seller from imposing a “surcharge on a buyer who uses a credit card for an extension of credit instead of cash, a check, or a similar means of payment.” As damages, appellants sought refund of the allegedly illegal surcharges. Appellees argue the dancers employed by their clubs are independent contractors who set their own prices and that they charge their customers an extra five dollars because that is the fee appellees charge the dancers for use of the clubs’ credit card machines.

In the trial court, appellees filed motions to dismiss and pleas in abatement alleging the trial court did not have original jurisdiction over appellants’ suit. The trial court found appellants’ claims under section 339.001 are purely statutory, arise from a pervasive regulatory scheme, and fall within the Finance Commission’s exclusive jurisdiction. The trial court further found the Finance Commission had primary jurisdiction over appellants’ claims. Because it found no original jurisdiction, the trial court dismissed appellants’ claims without prejudice. Appellant’s motion for new trial was denied.

II.STANDARD OF REVIEW

Whether an agency has exclusive or primary jurisdiction is a question of law we review de novo. Subaru of America, Inc. v. David McDavid Nissan, Inc., 84 S.W.3d 212, 222 (Tex.2002). Under a de novo standard, the appellate court exercises its own judgment and the trial court’s decision is afforded no deference. Quick v. City of Austin, 7 S.W.3d 109, 116 (Tex. 1998).

III.EXCLUSIVE JURISDICTION

District courts are courts of general jurisdiction, presumed to have subject matter jurisdiction absent a showing to the contrary. Subaru, 84 S.W.3d at 220. Pursuant to the Texas Constitution, a district court’s jurisdiction “consists of exclusive, appellate, and original jurisdiction of all actions, proceedings, and remedies, except in cases where exclusive, appellate, or original jurisdiction may be conferred by this Constitution or other law on some other court, tribunal, or administrative body.” Tex. Const, art. V, § 8. A similar presumption does not exist for administrative agencies, which may exercise only those powers the law confers upon them in clear and express statutory language and those reasonably necessary to fulfill a function or perform a duty that the Legislature has expressly placed with the agency. In re Entergy Corp., 142 S.W.3d 316, 322 (Tex.2004). As a creature of the legislature, an agency exercises only those powers conferred by statute. Public Util. Comm’n v. [398]*398City Pub. Serv. Bd., 53 S.W.3d 310, 316 (Tex.2001). Because an agency’s power is derived from a statute, whether it has exclusive jurisdiction depends on statutory interpretation. Subaru, 84 S.W.3d at 221. The existence of an agency’s primary or exclusive jurisdiction to resolve an issue is determinative of whether a party must first exhaust administrative remedies before the trial court has subject matter jurisdiction over a dispute. Id. at 222.

Appellees contend the Finance Commission has exclusive jurisdiction over this dispute by virtue of the following statutes:

§ 11.304 .Consumer Credit Rules
The finance commission may adopt rules necessary to supervise the consumer credit commissioner and ensure compliance with Chapter 14 and Title 4.
§ 14.101. General Duties of Commissioner
The commissioner shall enforce this chapter, Subtitles B and C of Title 4 and Chapter 394 in person or through an assistant commissioner, examiner, or other employee of the office.

Tex. Fin.Code Ann. §§ 11.304 & 14.101 (Vernon 1998).

The legislature granted the Texas Finance Commission authority to adopt rules necessary to supervise the Consumer Credit Commissioner and ensure compliance with Chapter 14 and Title 4 of the Finance Code. Tex. Fin.Code Ann. § 11.304 (Vernon 1998). Because Title 4 includes section 339.001, appellees argue the legislature has placed compliance with section 339.001 within the jurisdiction of the Finance Commission. Appellees further contend the commission’s jurisdiction is exclusive because the grant of rulemak-ing authority in section 11.304 makes section 339.001 part of the pervasive regulatory scheme the legislature established through its creation of the Texas Finance Commission. The language in section 11.304, however, does not expressly grant the commission exclusive jurisdiction over a dispute under section 339.001. No remedy is listed in section 11.304 or section 339.001.

In construing a statute, our purpose is to give effect to the legislature’s intent. See Gilbert v. El Paso County Hosp. Dist., 38 S.W.3d 85, 89 (Tex.2001). A statute that deprives a person of a common law right will not be extended beyond its plain meaning or applied to cases not clearly within its purview. St. Luke’s Episcopal Hosp. v. Agbor, 952 S.W.2d 503, 513 (Tex.1997). The language of section 11.304 does not clearly or plainly state that the legislature intended to replace a consumer’s common law remedies with the exclusive remedy of seeking relief from the Finance Commission. See Thomas v. Long, 97 S.W.3d 300, 303 (Tex.App.-Houston [14th Dist.] 2003, pet. granted on other grounds) (holding statute which provided that commission “shall adopt, publish, and enforce rules” did not refer to exclusive jurisdiction).

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Meekey v. RICK'S CABARET INTERN., INC.
171 S.W.3d 394 (Court of Appeals of Texas, 2005)

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171 S.W.3d 394, 2005 Tex. App. LEXIS 5458, Counsel Stack Legal Research, https://law.counselstack.com/opinion/meekey-v-ricks-cabaret-international-inc-texapp-2005.