Neeley v. WEST ORANGE-COVE CONSOLIDATED INDEP. SCH. DIST.

228 S.W.3d 864
CourtCourt of Appeals of Texas
DecidedJune 21, 2007
Docket03-06-00460-CV
StatusPublished

This text of 228 S.W.3d 864 (Neeley v. WEST ORANGE-COVE CONSOLIDATED INDEP. SCH. DIST.) 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
Neeley v. WEST ORANGE-COVE CONSOLIDATED INDEP. SCH. DIST., 228 S.W.3d 864 (Tex. Ct. App. 2007).

Opinion

228 S.W.3d 864 (2007)

Shirley NEELEY, Texas Commissioner of Education; the Texas Education Agency; Carol Keeton Strayhorn, Texas Comptroller of Public Accounts; and the Texas State Board of Education, Appellants
v.
WEST ORANGE-COVE CONSOLIDATED INDEPENDENT SCHOOL DISTRICT; Coppell Independent School District; La Porte Independent School District; Port Neches-Groves Independent School District; Dallas Independent School District, et al., Appellees[*].

No. 03-06-00460-CV.

Court of Appeals of Texas, Austin.

June 21, 2007.

*865 Danica L. Milios, Asst. Solicitor Gen., Austin, for Appellants.

Diego M. Bernal, David G. Hinojosa, Mexican American Legal Defense & Educational Fund, Inc., San Antonio, for Intervenor.

George Bramblett Jr., Haynes & Boone, LLP, Dallas, Randall B. Wood and Doug W. Ray, Ray, Wood & Bonilla, Austin, J. David Thompson III, Bracewell & Guliani, LLP, Houston, for Appellees.

Before Chief Justice LAW, Justices PURYEAR and HENSON.

OPINION

DIANE HENSON, Justice.

The State appellants challenge the award of attorneys' fees to the school district appellees (the Districts) in a suit for declaratory and injunctive relief under the Uniform Declaratory Judgments Act (UDJA) and article VII, § 1 and article VIII, § 1-e of the Texas Constitution.

Four Texas school districts, who were later joined by 43 additional districts (collectively, the West Orange-Cove Districts), initially brought suit against the State, claiming that the State's school-finance *866 system constituted a state property tax prohibited by article VIII, § 1-e and that the system failed to adequately provide for a general diffusion of knowledge as required by article VII, § 1. Two additional sets of school districts, the Edgewood Districts and the Alvarado Districts, intervened, also seeking declarations that the system violated article VII, § 1. The trial court found in favor of the Districts on all but one claim and awarded attorneys' fees to the Districts.

The State appealed directly to the Texas Supreme Court, which held that the school-finance system met the standards of article VII, § 1, but that it created a state property tax in violation of article VIII, § 1-e. The supreme court remanded the case to the trial court to reconsider the amount of attorneys' fees to be awarded. On remand, the trial court reinstated the original amount of attorneys' fees awarded to the West Orange-Cove Districts and awarded fees to the Edgewood and Alvarado Districts in a slightly reduced amount.

The State appeals the award of attorneys' fees to the Districts, claiming that the trial court abused its discretion in awarding attorneys' fees because (1) the relief sought by the Districts' declaratory-judgment claim was identical to that available directly under self-executing constitutional provisions and (2) the trial court did not properly account for the fact that the State prevailed in the Texas Supreme Court on all but one of the Districts' claims.

BACKGROUND

In 2001, the West Orange-Cove Districts, a group that was originally made up of four Texas school districts but has since grown to a coalition of 47 districts, filed a lawsuit claiming that the school-finance system's property tax cap of $1.50 per $100 resulted in a state property tax in violation of article VIII, § 1-e of the Texas Constitution.[1] The trial court dismissed the case, and that dismissal was affirmed by this Court, but the Texas Supreme Court reversed our judgment, remanding the case to allow the West Orange-Cove Districts to proceed with their claim. West Orange-Cove Consol. Indep. Sch. Dist. v. Alanis, 107 S.W.3d 558 (Tex.2003). The original four plaintiff districts were then joined by 43 additional districts, and the West Orange-Cove Districts amended their petition to include an adequacy claim, stating that the school-finance system prevented them from providing a "general diffusion of knowledge," in violation of article VII, § 1.[2] The Edgewood and Alvarado Districts intervened in the case, asserting adequacy claims and also including efficiency claims, arguing that the school-finance system was inefficient in violation of article VII, § 1. Each set of districts also sought attorneys' fees under the UDJA.

The trial court ruled in favor of the West Orange-Cove Districts on their claims for declaratory relief under article VII, § 1 and article VIII, § 1-e. The trial court also ruled in favor of the Edgewood and Alvarado Districts on their adequacy claims and their efficiency claims that were related to facilities funding, but ruled in favor of the State on the Edgewood and Alvarado Districts' efficiency claims related to maintenance and operations funding. In a separate, bifurcated proceeding, the *867 trial court awarded attorneys' fees to each set of Districts under the UDJA. See Tex. Civ. Prac. & Rem.Code Ann. § 37.009 (West 1997).

The State filed a direct appeal of the trial court's judgment to the Texas Supreme Court, but did not challenge the award of attorneys' fees.[3] The supreme court affirmed the trial court's article VIII, § 1 ruling, but ruled in favor of the State on the adequacy and efficiency claims. In light of these rulings, the supreme court remanded the case for reconsideration of the attorneys' fees award, stating, "[W]e reverse the award of attorney fees and remand the case to the district court to reconsider what award of attorney fees, if any, is appropriate. We express no opinion on this issue." Neeley v. West Orange-Cove Consol. Indep. Sch. Dist., 176 S.W.3d 746, 799 (Tex.2005).

On remand and after a hearing, the district court reinstated the West Orange-Cove Districts' award of $2,657,606.00 in attorneys' fees. The trial court awarded reduced amounts of $1,256,395.20 to the Edgewood Districts and $263,912.50 to the Alvarado Districts. Each set of districts was awarded post-judgment interest and conditional appellate fees.

STANDARD OF REVIEW

A trial court's judgment in granting or denying attorneys' fees in a declaratory-judgment action is reviewed for an abuse of discretion. Oake v. Collin County, 692 S.W.2d 454, 455 (Tex.1985). The trial court's judgment will not be reversed unless "the trial court abused its discretion by awarding fees when there was insufficient evidence that the fees were reasonable and necessary, or when the award was inequitable or unjust." Bocquet v. Herring, 972 S.W.2d 19, 21 (Tex.1998).

DISCUSSION

The State contends that the Districts are not entitled to attorneys' fees under the UDJA because a declaratory judgment may not be used solely as a vehicle to obtain attorneys' fees. The State argues that because articles VII and VIII are self-executing constitutional provisions, the Districts were limited to bringing direct claims under the Constitution and are therefore ineligible for attorneys' fees under the UDJA. However, the State did not assert this argument until after the case had been remanded to the trial court for reconsideration of the attorneys' fees award.

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Related

West Orange-Cove Consolidated I.S.D. v. Alanis
107 S.W.3d 558 (Texas Supreme Court, 2003)
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214 S.W.3d 770 (Court of Appeals of Texas, 2007)
Edgewood Independent School District v. Meno
917 S.W.2d 717 (Texas Supreme Court, 1995)
Miller v. University Savings Assoc.
858 S.W.2d 33 (Court of Appeals of Texas, 1993)
Head Industrial Coatings & Services, Inc. v. Maryland Insurance Co.
981 S.W.2d 305 (Court of Appeals of Texas, 1998)
City of Corpus Christi v. Public Utility Commission of Texas
572 S.W.2d 290 (Texas Supreme Court, 1978)
Oake v. Collin County
692 S.W.2d 454 (Texas Supreme Court, 1985)
Nations v. State
944 S.W.2d 795 (Court of Appeals of Texas, 1997)
Bocquet v. Herring
972 S.W.2d 19 (Texas Supreme Court, 1998)
Neeley v. West Orange-Cove Consolidated Independent School District
228 S.W.3d 864 (Court of Appeals of Texas, 2007)

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228 S.W.3d 864, Counsel Stack Legal Research, https://law.counselstack.com/opinion/neeley-v-west-orange-cove-consolidated-indep-sch-dist-texapp-2007.