Montgomery County Hospital District v. Smith

181 S.W.3d 844, 23 I.E.R. Cas. (BNA) 1734, 2005 Tex. App. LEXIS 10439, 2005 WL 3439927
CourtCourt of Appeals of Texas
DecidedDecember 15, 2005
Docket09-05-137 CV
StatusPublished
Cited by28 cases

This text of 181 S.W.3d 844 (Montgomery County Hospital District v. Smith) 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
Montgomery County Hospital District v. Smith, 181 S.W.3d 844, 23 I.E.R. Cas. (BNA) 1734, 2005 Tex. App. LEXIS 10439, 2005 WL 3439927 (Tex. Ct. App. 2005).

Opinion

OPINION

HOLLIS HORTON, Justice.

The trial court denied a plea to the jurisdiction filed by the Montgomery County Hospital District (hereafter “MCHD”). The MCHD appeals the trial court’s denial. We reverse and render.

In this suit, Tonya Smith, formerly employed by the MCHD, alleges the hospital terminated her in violation of Section 554.002(a) of the Whistleblower Act. Tex. Gov’t Code Ann. §§ 554.001-.010 (Vernon 2004). Smith contends that her termination occurred as a consequence of her report to one of MCHD’s board members that James Hamilton, MCHD’s CEO, entered into a contract to sell a building owned by the MCHD. Smith alleges that her report of the MCHD’s entering into this contract resulted in a change in attitude toward her by Hamilton, and led to a concerted effort in which he sought to find “any item to criticize” her.

*846 Several months later, Smith claims that Hamilton reassigned her from her duties as a liaison between the MCHD’s board and its employees to duties in a storage warehouse. On November 20, 2003, seven days after being reassigned to the warehouse, Smith asserts that Hamilton fired her under the pretext that “[it’s] just not working out.” The MCHD denied Smith’s claims, and asserted that Smith’s termination was based on her poor job performance and conduct unrelated to her retaliation claim.

Following her termination, the MCHD offered Smith a severance package. The MCHD offered to continue to pay Smith through the end of December, 2003 or for approximately six weeks following her termination, in exchange for a release of her claims. Ultimately, Smith rejected the MCHD’s severance offer.

On December 1, 2003, Smith alleges that she requested Hamilton, MCHD’s CEO, to “reconsider his decision.” On that date, Smith e-mailed a request to Hamilton. Smith’s request is central to the resolution of the issues on appeal. Her e-mail to Hamilton states:

From: Tonya Smith [e-mail address deleted]
Sent: Monday, December 01, 2003 9:49 AM
To: Hamilton, James
Subject: Release of Claims
Importance: High
Mr. Hamilton,
I hope that you had a good holiday with your family. I have spoken to Stacy regarding the release of claims document. She told me that you were standing by the number of 4,200 for my release. I am sincerely asking you to please reconsider. I know that you have a good heart and that is why I am even asking again. It would help my family out tremendously with the upcoming holidays and such to have the extra monies to keep us afloat for a little while. Again, I am sincerely asking to please, please reconsider. When I spoke to Greg he said that you were able to, but had to make the decision. I enjoyed working with you and the organization and am truly sorry for the way things worked out.
Please let me know so I may come to the District to finalize everything. Sincerely,
Tonya

The parties disagree on the meaning of Smith’s December 1, 2003 e-mail to Hamilton. Smith contends her e-mail constituted an appeal of Hamilton’s decision to terminate her employment. On the contrary, the MCHD contends the e-mail was not an appeal of Smith’s termination and points to Smith’s deposition testimony where Smith testified she did not intend her December 1, 2003 e-mail to constitute an appeal of her termination.

Alternatively, if the December 1, 2003 email is not sufficient to constitute an appeal of Smith’s termination, Smith invites us to create a judicial exception to Section 554.006 of the Texas Government Code, wherein the Legislature requires that a public employee invoke the applicable grievance or appeal procedure before filing a suit. Smith argues that appealing her termination through the MCHD appeal procedures would have been futile since Hamilton was her direct supervisor and the MCHD’s CEO. In response, the MCHD asserts that futility is not a recognized exception to the administrative appeal requirements established by the Legislature.

Finally, Smith asserts that complying with the grievance or appeal procedures of a governmental entity is procedural, and *847 not jurisdictional. As a result, Smith contends that the remedy for any failure on her part to comply with the MCHD’s appeal procedures is to abate her claims to allow them to go through the MCHD’s grievance procedures. The MCHD, on the other hand, asserts that Smith’s compliance with its appeal process is jurisdictional. As a result, the MCHD argues that we are required by law to dismiss Smith’s suit because it remains immune from her Whis-tleblower claims when its appeal process is not invoked as required by the Act.

To resolve this appeal, we must consider two issues. Did Smith initiate the MCHD’s disciplinary appeal process? If she did not initiate the appeal process, is her failure to do so a jurisdictional or procedural defect in her claim? We hold that Smith did not initiate the appeal process. We further hold that Smith’s failure to initiate an appeal under the MCHD’s appeal procedures is a jurisdictional defect that deprives the trial court of jurisdiction over her suit. As a result, we dismiss Smith’s claims against the MCHD.

STANDARD OF REVIEW

The Montgomery County Hospital District was created under the authority of the Texas Constitution and statute, Act of May 12, 1977, 65th Leg., R.S., ch. 258,1977 Tex. Gen. Laws 678-687. See Tex. Const. ART. IX, § 9; Tex. Health & Safety Code Ann. ch. 286 (Vernon 2001 & Supp.2005). No party contends that the MCHD is not either a state or local governmental entity with respect to Chapter 554 of the Texas Government Code, and Smith specifically alleged that the MCHD “is a political subdivision of the State of Texas.”

A governmental unit, as statutorily defined, may file an interlocutory appeal from a denial of its plea to the jurisdiction. tex. Crv. Prac. & Rem.Code Ann. § 51.014(a)(8) (Vernon Supp.2005); § 101.001 (Vernon 2005). The definition of “governmental unit” in Section 101.001 does not specifically include hospital districts, but the statutory definition of governmental unit is nevertheless broad, and includes any “institution, agency, or organ of government the status and authority of which are derived from the Constitution of Texas or laws passed by the legisla-ture_” See tex. Crv. Prac. & Rem.Code Ann. § 101.001 (3)(D) (Vernon 2005). Moreover, no party contends that the MCHD does not have the right to an interlocutory appeal, or that the MCHD does not qualify as a governmental unit under the broad definition contained in section 101.001 of the Civil Practice and Remedies Code. Thus, we have jurisdiction over this appeal.

A party, by asserting a plea to the jurisdiction, contests the trial court’s authority over the subject matter of the dispute. Texas Dep’t of Transp. v. Jones, 8 S.W.3d 636, 639 (Tex.1999).

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Bluebook (online)
181 S.W.3d 844, 23 I.E.R. Cas. (BNA) 1734, 2005 Tex. App. LEXIS 10439, 2005 WL 3439927, Counsel Stack Legal Research, https://law.counselstack.com/opinion/montgomery-county-hospital-district-v-smith-texapp-2005.