Pete Smith v. James E. Nelson, State Commissioner of Education, in His Official Capacity Only And Zapata County Independent School District

Court of Appeals of Texas·Decided August 9, 2001·No. 03-00-00168-CV·Published

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN



ON MOTION FOR REHEARING



NO. 03-00-00168-CV
Pete Smith, Appellant


v.



James E. Nelson, (1) State Commissioner of Education, in his Official Capacity Only;

and Zapata County Independent School District, Appellees



FROM THE DISTRICT COURT OF TRAVIS COUNTY, 201ST JUDICIAL DISTRICT

NO. 98-13924, HONORABLE PAUL R. DAVIS, JUDGE PRESIDING

Pete Smith signed a contract with Zapata County Independent School District to serve as a high school football coach and athletic coordinator. Mid-year he was reassigned, without a change in pay, to serve as a physical education teacher in an elementary school. When the school district denied his grievance seeking reinstatement, Smith sought to appeal to the State Commissioner of Education. The Commissioner may hear a grievance regarding a written employment contract between a school district and its employee if a violation of the contract "causes or would cause monetary harm to the employee." See Tex. Educ. Code Ann. § 7.057(a)(2)(B) (West 1996). The Commissioner dismissed Smith's appeal, finding that the alleged violation of his contract did not cause him monetary harm. The district court affirmed that decision. We first affirmed that ruling on the ground that Smith failed to allege facts affirmatively demonstrating monetary harm. (Opinion dated January 11, 2001.) On motion for rehearing, we recognized that the issue of monetary harm had been presented to the Commissioner and held that he erred in dismissing Smith's appeal for lack of jurisdiction. (Opinion dated March 15, 2001.) However, we granted the motion for rehearing without receiving or seeking a response from appellees, as required by Rule 49.2 of the Texas Rules of Appellate Procedure. See Tex. R. App. P. 49.2. That provoked a second motion for rehearing from appellees who asked us to reconsider the jurisdictional question, which we have done. Now, a majority of the court holds that the issue of monetary harm was properly before the Commissioner and that the Commissioner correctly determined that the contract violation of which Smith complains did not cause him monetary harm as contemplated by section 7.057(a)(2)(B) of the Education Code. We withdraw our earlier opinion and judgment dated March 15, 2001, and substitute this opinion in its stead. We affirm the district court's judgment affirming the Commissioner's order dismissing Smith's appeal for want of jurisdiction.

FACTUAL AND PROCEDURAL BACKGROUND

Smith signed a three-year contract with the school district to be high school athletic coordinator and head football coach from July 1997 through June 2000. The contract provided that Smith would be "subject to assignment and reassignment of positions or duties, additional duties, changes in responsibilities or work, transfers, or reclassification at any time during the contract term." It further provided that "[n]o right of tenure nor any other contractual obligation, other expectancy of continued employment, or claim of entitlement is created beyond the contract term."

In October 1997, Smith was relieved of his coaching duties and reassigned as a physical education teacher at Zapata South Elementary School. The district did not change Smith's pay as a result of the reassignment. Smith filed an administrative grievance, alleging that "[n]othing in the contract or elsewhere authorizes [his] purported reassignment to classroom teacher," and that he had not received notice of any deficiencies in his performance, had not been given an opportunity to respond to any allegations that led to his reassignment, and was "given no due process prior to" his reassignment. Smith contended he had been unlawfully reassigned and sought reinstatement as head football coach. Following a grievance conference, the district superintendent denied Smith's grievance, finding that the contract allowed for Smith's reassignment and that reinstatement was "not a viable option."

After the district's board of trustees denied his grievance in January 1998, Smith filed a petition for review with the Commissioner, contending the reassignment violated his contract and asking to be reinstated. The district answered Smith's petition, arguing the Commissioner lacked jurisdiction under section 7.057 because Smith had not pled that he had suffered any monetary harm. Smith responded by attaching as proof of monetary harm his affidavit and the affidavits of two high school football coaches and the executive director of the Texas High School Coaches Association, all stating that Smith's removal as head football coach and athletic director and reassignment as elementary school physical education teacher would harm his prospects of getting another coaching contract in the future. The Commissioner considered this evidence of monetary harm, as required by Bland Independent School District v. Blue, 34 S.W.3d 547, 555 (Tex. 2000), in determining whether he had jurisdiction to hear the appeal.

The Commissioner determined that he lacked jurisdiction to hear the appeal. He noted that contract law allows recovery for "natural, probable, and foreseeable" consequences of a breach and "when a contractual breach would cause monetary harm." Because Texas law does not allow recovery of lost earning capacity for breach of a contract, the Commissioner concluded that "lost earning capacity is not a natural, probable, and foreseeable loss [or] an expected result of a breach of contract." The Commissioner also noted that Smith could not recover lost earning capacity damages due to the district's sovereign immunity from tort claims. Smith sought judicial review of the Commissioner's dismissal, (2) and following a hearing, the district court affirmed the Commissioner's decision. Smith then sought review in this Court.



COMMISSIONER'S JURISDICTION

Before 1995, any person aggrieved by the school laws or an action or decision by any school board or board of trustees could appeal to the Commissioner. See Act of June 6, 1990, 71st Leg., 6th C.S., ch. 1, art. II, § 2.22, 1990 Tex. Gen. Laws 1, 22 (formerly Tex. Educ. Code Ann. § 11.13, since amended); Act of June 30, 1984, 68th Leg., 2d C.S., ch. 28, art. I, part D, § 3, 1984 Tex. Gen. Laws 117, 129 (same). The statute was then amended to limit the right of teachers and other employees to appeal to the Commissioner:



§ 7.057. Appeals



(a) Except as provided by Subsection (e), a person may appeal in writing to the commissioner if the person is aggrieved by:



(1) the school laws of this state; or



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Pete Smith v. James E. Nelson, State Commissioner of Education, in His Official Capacity Only And Zapata County Independent School District, (Tex. Ct. App. 2001).

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