Nandita Berry, in Her Official Capacity as Secretary of State of the State of Texas v. Texas Democratic Party and Gilberto Hinojosa in His Official Capacity as Chair of the Texas Democratic Party

CourtCourt of Appeals of Texas
DecidedNovember 7, 2014
Docket03-14-00220-CV
StatusPublished

This text of Nandita Berry, in Her Official Capacity as Secretary of State of the State of Texas v. Texas Democratic Party and Gilberto Hinojosa in His Official Capacity as Chair of the Texas Democratic Party (Nandita Berry, in Her Official Capacity as Secretary of State of the State of Texas v. Texas Democratic Party and Gilberto Hinojosa in His Official Capacity as Chair of the Texas Democratic Party) 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.

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Nandita Berry, in Her Official Capacity as Secretary of State of the State of Texas v. Texas Democratic Party and Gilberto Hinojosa in His Official Capacity as Chair of the Texas Democratic Party, (Tex. Ct. App. 2014).

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN

NO. 03-14-00220-CV

Nandita Berry, in her Official Capacity as Secretary of State of the State of Texas, Appellant

v.

Texas Democratic Party and Gilberto Hinojosa in his Official Capacity as Chair of The Texas Democratic Party, Appellees

FROM THE DISTRICT COURT OF TRAVIS COUNTY, 419TH JUDICIAL DISTRICT NO. D-1-GN-13-002362, HONORABLE ORLINDA NARANJO, JUDGE PRESIDING

OPINION

The Texas Democratic Party and its chair, Gilberto Hinojosa, (collectively, the TDP)

sued Nandita Berry, in her Official Capacity as Secretary of State of the State of Texas, (the

Secretary) seeking reimbursement of certain of its primary-election expenses for the 2012 election.1

See Tex. Elec. Code §§ 173.001-.088 (governing primary-election financing). The trial court denied

the Secretary’s plea to the jurisdiction, from which she perfected this interlocutory appeal. See Tex.

Civ. Prac. & Rem. Code § 51.04(a)(8) (authorizing interlocutory appeal from denial of governmental

entity’s challenge to jurisdiction). The principal issue on appeal is whether the TDP satisfied all

statutory prerequisites to suit necessary to invoke the limited waiver of sovereign immunity in

1 John Steen, in his official capacity as Secretary of State, was the original defendant. Nandita Berry was substituted as the defendant when she succeeded Steen as Secretary of State in January 2014. section 173.086 of the Texas Election Code. See Tex. Elec. Code § 173.086(a) (authorizing person

who submitted “a statement of estimated primary election expenses” under Chapter 173, Subchapter

D of Election Code to challenge amount approved for reimbursement of primary-election expenses).

We conclude that the TDP failed to invoke section 173.086’s waiver of immunity because it did not

timely submit to the Secretary an itemized estimate of the category of expense for which it

seeks reimbursement in the underlying lawsuit. See id. § 173.081(b)(1) (statement of estimated

primary-election expenses is required to “contain an itemized estimate . . . of the primary expenses

to be incurred”). We therefore reverse the trial court’s order denying the Secretary’s plea to the

jurisdiction and dismiss the TDP’s claims for want of jurisdiction.

STATUTORY SCHEME GOVERNING STATE REIMBURSEMENT OF PRIMARY-ELECTION EXPENSES

As authorized by Chapter 173 of the Election Code, state funds appropriated to

finance primary elections may be spent to reimburse “expenses incurred by a political party in

connection with a primary election” if such expenses are “necessary for the holding of a primary

election.” Id. § 173.001(a), (b). “Regardless of whether state funds are requested for paying primary

expenses, a written statement of estimated expenses to be incurred in connection with a primary

election shall be submitted to the secretary of state by . . . the state chair, for expenses of the state

chair or state executive committee.” Id. § 173.081(a)(2). Among other required components, “the

statement must . . . contain an itemized estimate, prepared by the authority submitting the statement,

of the primary expenses to be incurred and a statement by the authority of whether state funds are

requested.” Id. § 173.081(b)(1). The “statement of estimated primary-election expenses” (SEPE)

2 for a general primary election must be submitted not later than the 45th day before that election, and

the SEPE for a runoff primary election must be submitted no later than the 10th day after the general

primary election day. Id. § 173.081(c)(2), (e).

On receipt of a SEPE, the Secretary “shall review the statement to determine which

items of estimated expense and the amounts of those items to approve.” Id. § 173.082(a). The

Secretary “shall approve an item of estimated expense if the secretary determines that it is reasonably

necessary for the proper holding of the primary election.” Id. § 173.082(b). The Secretary is thus

charged with determining, on a per-item basis, which expense items to approve in whole or part.

The Secretary must “promptly notify the authority submitting the statement of each item of estimated

expense not approved or approved in a reduced amount,” and no primary funds may be used to pay

an item of estimated primary-election expenses that has not been approved by the Secretary.

Id. § 173.082(c), (d).

Chapter 173 authorizes the state comptroller to pay, in installments, the bulk of the

estimated primary expenses that have been approved by the Secretary. The final installment,

however, cannot be paid until the party chair has filed a final expense report itemizing the actual

primary expenses incurred. Id. §§ 173.083, .084. The final expense report must be filed with the

Secretary within 30 days after the general or runoff election, as applicable, regardless of whether

state funds are requested for paying primary expenses. Id. § 173.084(a), (b).

Thus, the statute expressly contemplates that an initial estimate of primary expenses

expected to be incurred may vary from the expenses actually incurred in holding the primary. If the

final expense report reveals that primary expenses were overestimated in the SEPE, the discrepancy

3 is to be resolved in the final installment payment. Id. § 173.083(d). If the actual expenditure for an

item of primary-election expense exceeds the amount estimated for the item in the SEPE, the excess

expense may be paid with state funds in accordance with the provisions in section 173.085.

Id. § 173.085(a). To obtain reimbursement from the state for an excess primary expense, section

173.085 requires that the party chair include in the final expense report “(1) an identification of the

item for which the excess expense was incurred; (2) the amount of the excess; and (3) an explanation

of the reason for exceeding the estimate.” Id. § 173.085(b). The Secretary can approve state

payment of the excess expense only if “that payment is justified by good cause.” Id. § 175.085(c).

If the Secretary does not approve all the primary-election expenses requested, “[t]he

authority who submitted a statement of estimated primary election expenses under [subchapter D of

chapter 173] may challenge in a district court in Travis County the amount of state funds approved

by the secretary of state for disbursement.” Id. § 173.086(a).

TDP’S CLAIM FOR REIMBURSEMENT OF LITIGATION EXPENSES

In the present case, the TDP seeks reimbursement from state primary funds for

litigation expenses incurred in connection with several federal court lawsuits challenging

redistricting maps adopted by the Texas Legislature in 2011. According to the TDP: it was sued in

some of the lawsuits and intervened in others; its participation in the lawsuits was necessary and was

related to the 2012 primary elections because the TDP had been enjoined from using the 2011

redistricting maps for the 2012 elections; and the party reasonably and necessarily incurred attorney’s

fees and expenses in connection with the lawsuits. It is undisputed that the TDP (1) was a party to

at least some of the redistricting lawsuits before the 2012 SEPE was due; (2) had actually incurred

4 at least some attorney’s fees and expenses related to that litigation before the 2012 SEPE filing

deadline; and (3) timely filed its 2012 SEPE but did not include in that report any amount for

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