Porth v. Morgan

622 S.W.2d 470, 1981 Tex. App. LEXIS 4119
Court of Appeals of Texas·Decided September 24, 1981·No. 1462·Published·Cited by 7 cases

Opinion

McKAY, Justice.

This is a declaratory judgment suit to determine two questions. The issues presented are whether the Commissioners Court of Houston County, solely by its own order, is empowered to increase the membership of the Board of Directors of the Houston County Hospital Authority from seven to nine members and to appoint a majority of those members.

Appellant Porth sued the County Judge and the County Commissioners of Houston County (Commissioners Court), alleging that the Commissioners Court, pursuant to Article 4494r, Tex.Rev.Civ.Stat.Ann., 1 created the Houston County Hospital Authority (Hospital Authority) on October 26, 1964, and in so doing provided “that the Houston County Hospital Authority shall be governed by a Board of Directors consisting of seven members.”

Porth further alleged that on June 24, 1968, the Board of Directors (Board) of the Hospital Authority adopted a resolution authorizing the issuance of First Mortgage Revenue Bonds and the execution and delivery of an Indenture of Mortgage and Deed of Trust to secure these bonds. Porth pled that the Trust Indenture was to be effective July 1, 1967 and that it provided in Section 12.06:

In accordance with the act, it is hereby provided that four members (being a majority) of the Board of Directors of the Authority shall be selected as herein provided. Such four members shall be appointed for terms of two years each by a majority vote of the Board of Directors . 2

*472 Porth further alleged that on January 28, 1980, the Commissioners Court passed an order increasing the size of the Board from seven to nine members, and thereafter appointed two new members.

The questions posed by Porth are (1) whether the Commissioners Court could increase the size of the Board of the Hospital Authority solely on its own order and (2) whether the Commissioners Court can solely by its own action appoint a majority of the members of the Board of the Hospital Authority.

The Commissioners Court answered by a plea in abatement, a plea in bar that question (2) was moot and non justiciable, and asserted that Porth lacks standing to sue. The Commissioners Court also sought a declaratory judgment that it has and had authority under the statute and the Trust Indenture to appoint more than three members of the Board and can legally, solely by its own action, appoint a majority of the Board. Four members of the Board, Cur-rie, Von Doenhoff, Dorsey and Jones, intervened with pleas in bar that question (2) was moot because of action of the Board pursuant to a resolution adopted at the February 1, 1980, meeting, that Porth lacks standing and has no justiciable interest in the issues, and further pleading that the Commissioners Court is empowered to increase the size of the Board of the Hospital Authority. These intervenors filed a counter-claim asking the court to declare void the Board’s action in electing Porth as a hospital director, to declare Porth’s office vacant, and for a declaratory judgment.

Other members of the Board and a number of doctors who were members of the medical staff of the hospital intervened.

The trial court declared in its judgment that the Commissioners Court can increase the size of the Board of the Hospital Authority from seven to eleven members solely on its own orders; that the governing body of the county can, solely by its own action, appoint a majority of the members of the hospital board; and that four members of the hospital board are to be appointed by the hospital board and the remaining members appointed by the Commissioners Court regardless of the number of directors.

The trial court further declared that J. B. Sallas is a Class One member, that the position held by Porth is a Class 2 membership; that Adrian A. Davis is a Class 2 member; that the other Class 1 membership has expired, and that remaining members of the Board draw lots for that position; that the term of office for Class 1 members expires October 26,1980; that the term for Class 2 members expires October 16, 1981; that the office of director of the hospital board held by Porth is declared to be vacant as of July 11, 1980, and that Porth is removed as a director effective July 11, 1980.

Plaintiff Porth and counter-defendants Sallas, Driskell and Davis appeal.

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Porth v. Morgan, 622 S.W.2d 470, 1981 Tex. App. LEXIS 4119 (Tex. Ct. App. 1981).

622 S.W.2d 470 (Porth v. Morgan) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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