ACCEPTED 15-24-00007-CV FIFTEENTH COURT OF APPEALS AUSTIN, TEXAS 12/13/2024 5:58 PM No. 15-24-00007-CV CHRISTOPHER A. PRINE CLERK ____________________________________________________ FILED IN 15th COURT OF APPEALS IN THE FIFTEENTH COURT OF APPEALS AUSTIN, TEXAS 12/13/2024 5:58:29 PM OF TEXAS CHRISTOPHER A. PRINE ____________________________________________________ Clerk
Michael Morath, in his Official Capacity as Texas Commissioner of Education Appellant v.
Kingsville Independent School District, et al. Plaintiff-Appellee School Districts
and Pflugerville Independent School District, et al. Intervenor-Appellee School Districts ____________________________________________________
On Appeal from the 419th District Court of Travis County ____________________________________________________
Appellee School Districts’ Joint Brief Regarding Jurisdiction ____________________________________________________
TO THE HONORABLE COURT:
The Appellee School Districts respectfully submit this supplemental brief
requested by the Court on the issue of whether Section 39.151 of the
Education Code deprives the trial court of jurisdiction.
Appellees recognize that jurisdictional issues may be raised for the first time on appeal. See, e.g., Oncor Elec. Delivery Co. LLC v. Chaparral Energy,
LLC, 546 S.W.3d 133, 138 (Tex. 2018). But it is telling that the Commissioner,
who has been ably represented by experienced legal counsel throughout this
case, has never argued that Section 39.151 deprives the courts of jurisdiction
in this case. There are at least six reasons why such an argument lacks merit
and cannot be adopted by this Court.
First, the exhaustion of administrative remedies doctrine does not apply
to ultra vires claims. Lazarides v. Farris, 367 S.W.3d 788, 798 (Tex. App.—
Houston [14th Dist.] 2012, no pet.); see also City of Houston v. Williams, 99
S.W.3d 709, 717 (Tex. App.–Houston [14th Dist.] 2003, no pet.) (explaining
the related principle that exhaustion of administrative remedies is also not
required when an agency attempts to exercise authority beyond its statutorily
conferred powers); Jackson v. Houston Indep. Sch. Dist., 994 S.W.2d 396,
401 (Tex. App.—Houston [14th Dist.] 1999, no writ) (same).; Jones v. Dallas
Indep. Sch. Dist., 872 S.W.2d 294, 296 (Tex. App.—Dallas 1994, writ denied)
(same). That makes sense because properly understood, ultra vires claims
are not exceptions to immunity; “rather, when a governmental officer is sued
for allegedly ultra vires acts, governmental immunity does not apply from
the outset.” Houston Belt & Terminal Ry. Co. v. City of Houston, 487 S.W.3d
154, 158 n.1 (Tex. 2016). Here, Appellees have alleged ultra vires claims. The
2 Legislature could have written a single statute that said, “The Commissioner
may assign A-F Ratings whenever and however he would like to do so.” The
Legislature did not create that scenario for unfettered bureaucratic
discretion in the A-F ratings process. (In other words, the Legislature did not
declare Calvinball “rules” for such an important process.) Instead, the
Legislature adopted a detailed A-F ratings process that requires the
Commissioner to implement the accountability system by adopting rules in
a manner that provides a transparent, effective, and fair system. See Tex.
Educ. Code §§ 39.001–39.408.
Second, exhaustion of administrative remedies is not required when the
case is “controlled by pure questions of law.” Clint Ind. Sch. Dist. v. Marquez,
487 S.W.3d 538, 545–46 (Tex. 2016). If there were fact questions in this case
regarding the temporary injunction or plea to the jurisdiction, the Court
would be required to defer to the trial court’s resolution of any conflicting
evidence, see Butnaru v. Ford Motor Co., 84 S.W.3d 198, 204 (Tex. 2002),
and “indulge every reasonable inference and resolve any doubts in” favor of
the school districts. See Texas Dep’t of Parks & Wildlife v. Miranda, 133
S.W.3d 217, 229 (Tex. 2004). But in this case, the Commissioner has not
disputed any of the evidence. The issues in this case present pure questions
of law that can be decided based on the undisputed evidence in the record.
3 Third, even if the exhaustion doctrine did apply, the text of the statute
forecloses any exhaustion of administrative remedies argument. Section
39.151 provides no avenue to challenge the Commissioner’s actions in this
case. Section 39.151(a) states that the Commissioner “by rule shall provide
a process for a school district or open-enrollment charter school to challenge
an agency decision made under this chapter relating to an academic or
financial accountability rating that affects the district or school, including a
determination of consecutive school years of unacceptable performance
ratings.” Tex. Educ. Code § 39.151(a) (emphasis added). Appellees are
unaware of any rule the Commissioner adopted for the 2022–23 school year
that provided any process for them to challenge the Commissioner’s actions
described in the pleadings in this case. The Commissioner has not identified
any such rule.
Fourth, even if the exhaustion doctrine applied and the Commissioner
had adopted rules, the rules would not have allowed school districts to
challenge the Commissioner’s ultra vires actions. At the time of the hearing
no accountability rules for the 2022–23 school year had been adopted.
However, the Commissioner had published proposed rules, which were later
adopted, and those rules do not provide an administrative appeal that would
have allowed school districts to challenge the Commissioner’s adoption or
4 implementation of the accountability system. 3 RR 1023 (Intervenors’
Exh. 16). The proposed 2023 Accountability Manual (Plaintiffs’ Exhibit 7),
which had not been adopted at the time of the underlying hearing,
contemplated an appeals process that would not have allowed school
districts to challenge the Commissioner’s ultra vires actions. Indeed, the
proposed rules state that “a successful accountability appeal is usually
limited to such rare cases as a data or calculation error attributable to the
testing contractor(s), a regional education service center (ESC), or the Texas
Education Agency (TEA). 3 RR 252 (P7, 000244). The proposed manual
further states that “[t]he basis for appeals should be a data or calculation
error attributable to TEA, an ESC, or the testing contractor(s).” 3 RR 253 (P7,
000245).1
Fifth, even if the exhaustion doctrine applied and the Commissioner had
adopted rules that would have allowed school districts to raise the issues in
this lawsuit in that administrative appeal, exhaustion would not be required
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ACCEPTED 15-24-00007-CV FIFTEENTH COURT OF APPEALS AUSTIN, TEXAS 12/13/2024 5:58 PM No. 15-24-00007-CV CHRISTOPHER A. PRINE CLERK ____________________________________________________ FILED IN 15th COURT OF APPEALS IN THE FIFTEENTH COURT OF APPEALS AUSTIN, TEXAS 12/13/2024 5:58:29 PM OF TEXAS CHRISTOPHER A. PRINE ____________________________________________________ Clerk
Michael Morath, in his Official Capacity as Texas Commissioner of Education Appellant v.
Kingsville Independent School District, et al. Plaintiff-Appellee School Districts
and Pflugerville Independent School District, et al. Intervenor-Appellee School Districts ____________________________________________________
On Appeal from the 419th District Court of Travis County ____________________________________________________
Appellee School Districts’ Joint Brief Regarding Jurisdiction ____________________________________________________
TO THE HONORABLE COURT:
The Appellee School Districts respectfully submit this supplemental brief
requested by the Court on the issue of whether Section 39.151 of the
Education Code deprives the trial court of jurisdiction.
Appellees recognize that jurisdictional issues may be raised for the first time on appeal. See, e.g., Oncor Elec. Delivery Co. LLC v. Chaparral Energy,
LLC, 546 S.W.3d 133, 138 (Tex. 2018). But it is telling that the Commissioner,
who has been ably represented by experienced legal counsel throughout this
case, has never argued that Section 39.151 deprives the courts of jurisdiction
in this case. There are at least six reasons why such an argument lacks merit
and cannot be adopted by this Court.
First, the exhaustion of administrative remedies doctrine does not apply
to ultra vires claims. Lazarides v. Farris, 367 S.W.3d 788, 798 (Tex. App.—
Houston [14th Dist.] 2012, no pet.); see also City of Houston v. Williams, 99
S.W.3d 709, 717 (Tex. App.–Houston [14th Dist.] 2003, no pet.) (explaining
the related principle that exhaustion of administrative remedies is also not
required when an agency attempts to exercise authority beyond its statutorily
conferred powers); Jackson v. Houston Indep. Sch. Dist., 994 S.W.2d 396,
401 (Tex. App.—Houston [14th Dist.] 1999, no writ) (same).; Jones v. Dallas
Indep. Sch. Dist., 872 S.W.2d 294, 296 (Tex. App.—Dallas 1994, writ denied)
(same). That makes sense because properly understood, ultra vires claims
are not exceptions to immunity; “rather, when a governmental officer is sued
for allegedly ultra vires acts, governmental immunity does not apply from
the outset.” Houston Belt & Terminal Ry. Co. v. City of Houston, 487 S.W.3d
154, 158 n.1 (Tex. 2016). Here, Appellees have alleged ultra vires claims. The
2 Legislature could have written a single statute that said, “The Commissioner
may assign A-F Ratings whenever and however he would like to do so.” The
Legislature did not create that scenario for unfettered bureaucratic
discretion in the A-F ratings process. (In other words, the Legislature did not
declare Calvinball “rules” for such an important process.) Instead, the
Legislature adopted a detailed A-F ratings process that requires the
Commissioner to implement the accountability system by adopting rules in
a manner that provides a transparent, effective, and fair system. See Tex.
Educ. Code §§ 39.001–39.408.
Second, exhaustion of administrative remedies is not required when the
case is “controlled by pure questions of law.” Clint Ind. Sch. Dist. v. Marquez,
487 S.W.3d 538, 545–46 (Tex. 2016). If there were fact questions in this case
regarding the temporary injunction or plea to the jurisdiction, the Court
would be required to defer to the trial court’s resolution of any conflicting
evidence, see Butnaru v. Ford Motor Co., 84 S.W.3d 198, 204 (Tex. 2002),
and “indulge every reasonable inference and resolve any doubts in” favor of
the school districts. See Texas Dep’t of Parks & Wildlife v. Miranda, 133
S.W.3d 217, 229 (Tex. 2004). But in this case, the Commissioner has not
disputed any of the evidence. The issues in this case present pure questions
of law that can be decided based on the undisputed evidence in the record.
3 Third, even if the exhaustion doctrine did apply, the text of the statute
forecloses any exhaustion of administrative remedies argument. Section
39.151 provides no avenue to challenge the Commissioner’s actions in this
case. Section 39.151(a) states that the Commissioner “by rule shall provide
a process for a school district or open-enrollment charter school to challenge
an agency decision made under this chapter relating to an academic or
financial accountability rating that affects the district or school, including a
determination of consecutive school years of unacceptable performance
ratings.” Tex. Educ. Code § 39.151(a) (emphasis added). Appellees are
unaware of any rule the Commissioner adopted for the 2022–23 school year
that provided any process for them to challenge the Commissioner’s actions
described in the pleadings in this case. The Commissioner has not identified
any such rule.
Fourth, even if the exhaustion doctrine applied and the Commissioner
had adopted rules, the rules would not have allowed school districts to
challenge the Commissioner’s ultra vires actions. At the time of the hearing
no accountability rules for the 2022–23 school year had been adopted.
However, the Commissioner had published proposed rules, which were later
adopted, and those rules do not provide an administrative appeal that would
have allowed school districts to challenge the Commissioner’s adoption or
4 implementation of the accountability system. 3 RR 1023 (Intervenors’
Exh. 16). The proposed 2023 Accountability Manual (Plaintiffs’ Exhibit 7),
which had not been adopted at the time of the underlying hearing,
contemplated an appeals process that would not have allowed school
districts to challenge the Commissioner’s ultra vires actions. Indeed, the
proposed rules state that “a successful accountability appeal is usually
limited to such rare cases as a data or calculation error attributable to the
testing contractor(s), a regional education service center (ESC), or the Texas
Education Agency (TEA). 3 RR 252 (P7, 000244). The proposed manual
further states that “[t]he basis for appeals should be a data or calculation
error attributable to TEA, an ESC, or the testing contractor(s).” 3 RR 253 (P7,
000245).1
Fifth, even if the exhaustion doctrine applied and the Commissioner had
adopted rules that would have allowed school districts to raise the issues in
this lawsuit in that administrative appeal, exhaustion would not be required
1 Indeed, at oral argument, the Commissioner, consistent with these past representations, stated that the appeals process under his rules is “usually sort of a mathematical” and is “not usually a constitutional challenge or anything like that.” The Commissioner further explained that it “is a process that districts can go through if they think that something had been incorrectly done with their ratings.” It is not a process that would allow school districts to challenge whether the Commissioner had acted ultra vires in his adoption and implementation of rules (or his failure to adopt and implement rules) regarding the accountability system.
5 because the administrative appeal would cause irreparable injury. See
Jackson v. Houston Indep. Sch. Dist., 994 S.W.2d 396, 401 (Tex. App.—
Houston [14th Dist.] 1999, no writ) (holding that exhaustion is not required
when there is a threatened irreparable injury); Jones v. Dallas Indep. Sch.
Dist., 872 S.W.2d 294, 296 (Tex. App.—Dallas 1994, writ denied) (same).
Under the Commissioner’s proposed rules for an appeal, which were adopted
after the hearing, an appeal could not be filed until after the irreparable
injury occurred, i.e., after the Commissioner had already assigned ratings
and released them to the public. 3 RR 252 (P7, 000244) (“No appeals will be
resolved before the public release of ratings.”) For the reasons discussed in
the parties’ briefing, the temporary injunction temporarily prevents the
irreparable injury that would occur by allowing the Commissioner to
unlawfully assign 2023 ratings, and the permanent injunction the parties are
seeking would permanently prevent that irreparable injury. In other words,
the appeals process cannot be invoked unless and until the Commissioner
assigns and publishes accountability ratings—the very thing that would be an
ultra vires act that imposes irreparable injury.
Sixth, even if the exhaustion doctrine applied and the Commissioner had
adopted rules that would have allowed for a meaningful appeal and there
were not irreparable injury issue, the Court would be required to remand this
6 case to allow the school districts to assert the futility exception to the
exhaustion doctrine. See, e.g., Jabary v. City of Allen, No. 05-12-01608-CV,
2014 WL 3051315, at *1 (Tex. App. July 3, 2014) (mem. op.) (“A party may
forgo the administrative determination, however, if an exception, such as
futility, is established.”) (citing Mayhew v. Town of Sunnyvale, 964 S.W.2d
922, 929 (Tex.1998)). Remand would be required because if the exhaustion
defense is raised for the first time in on appeal, the school districts would be
entitled to limited jurisdictional discovery on the futility exception. Hearts
Bluff Game Rance, Inc. v. State, 381 S.W.3d 468, 491 (Tex. 2012) (quoting
Miranda, 133 S.W.3d at 233) (explaining that a court should allow a
“reasonable opportunity for targeted discovery” if it is necessary regarding
jurisdictional issues); see also Jabary, 2014 WL 3051315 at *3 (explaining
that evidence was necessary to determine whether exhaustion of
administrative remedies would have been futile).
7 CONCLUSION & PRAYER The Commissioner has never argued that Section 39.151 of the Education
Code deprives the trial court of jurisdiction under the exhaustion of
administrative remedies doctrine because it does not. Accordingly, for the
reasons discussed above and in their briefing, Plaintiff and Intervenor
Appellee School Districts respectfully request the Court affirm the trial
court’s temporary injunction order and the order denying Appellant’s plea to
the jurisdiction.
In the alternative, if the Court determines that the exhaustion of
administrative remedies doctrine is potentially applicable in this case,
Appellees respectfully request the Court remand this case to allow for limited
jurisdictional discovery on the futility exception.
8 Respectfully submitted,
/s/ David J. Campbell /s/ J. David Thompson
DAVID J. CAMPBELL J. DAVID THOMPSON dcampbell@808west.com dthompson@thompsonhorton.com State Bar No. 24057033 State Bar No. 19950600 KEVIN O’HANLON CHRISTOPHER B. GILBERT kohanlon@808west.com cgilbert@thompsonhorton.com State Bar No. 15235500 State Bar No. 00787535 BENJAMIN CASTILLO THOMPSON & HORTON LLP bcastillo@808west.com Phoenix Tower, Suite 2000 State Bar No. 24077194 3200 Southwest Freeway NICK MADDOX Houston, Texas 77027 nmaddox@808west.com 713-554-6767 Telephone State Bar No. 24092739 713-583-9611 Facsimile O’HANLON, DEMERATH & CASTILLO 808 West Ave. CARLOS G. LOPEZ Austin, Texas 78701 clopez@thompsonhorton.com (512) 494-9949 State Bar No. 12562953 (512) 494-9919 (fax) KATHRYN E. LONG klong@thompsonhorton.com Counsel for Plaintiff State Bar No. 24041679 School Districts Appellees THOMPSON & HORTON LLP 500 North Akard Street, Suite 3150 Dallas, Texas 75201 972-853-5115 Telephone 972-692-8334 Facsimile
Counsel for Intervenor School District Appellees
9 CERTIFICATE OF SERVICE Pursuant to Tex. R. App. P. 9.5(e), an automated certificate of service will
be generated when this document is e-filed.
10 Automated Certificate of eService This automated certificate of service was created by the efiling system. The filer served this document via email generated by the efiling system on the date and to the persons listed below. The rules governing certificates of service have not changed. Filers must still provide a certificate of service that complies with all applicable rules.
Kathryn French on behalf of David Campbell Bar No. 24057033 kfrench@808west.com Envelope ID: 95319753 Filing Code Description: Other Brief Filing Description: Appellee School District's Supp Briefing Status as of 12/16/2024 8:04 AM CST
Associated Case Party: Office of the Texas Attorney General
Name BarNumber Email TimestampSubmitted Status
Beth Klusmann beth.klusmann@oag.texas.gov 12/13/2024 5:58:29 PM SENT
Associated Case Party: Kingsville ISD, et al.
Kevin OHanlon kohanlon@808west.com 12/13/2024 5:58:29 PM SENT
David Campbell dcampbell@808west.com 12/13/2024 5:58:29 PM SENT
Nick Maddox nmaddox@808west.com 12/13/2024 5:58:29 PM SENT
Lea Ohrstrom lohrstrom@808west.com 12/13/2024 5:58:29 PM SENT
Benjamin Castillo bcastillo@808west.com 12/13/2024 5:58:29 PM SENT
Kathryn French kfrench@808west.com 12/13/2024 5:58:29 PM SENT
Case Contacts
Kristy Alonzo kalonzo@thompsonhorton.com 12/13/2024 5:58:29 PM SENT
Nancy Villarreal nancy.villarreal@oag.texas.gov 12/13/2024 5:58:29 PM SENT
David Thompson dthompson@thompsonhorton.com 12/13/2024 5:58:29 PM SENT
David J.Campbell dcampbell@808west.com 12/13/2024 5:58:29 PM SENT
Christopher Gilbert cgilbert@thompsonhorton.com 12/13/2024 5:58:29 PM SENT
Carlos Lopez clopez@thompsonhorton.com 12/13/2024 5:58:29 PM SENT