St. Agnes Academy, Sharpstown Civic Association, and Clarewood House Residents Association v. Texas Alcoholic Beverage Commission and Club Bellaire, Inc. D/B/A El Corral

Court of Appeals of Texas·Decided December 12, 2012·No. 03-12-00099-CV·Published

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN

NO. 03-12-00099-CV

St. Agnes Academy, Sharpstown Civic Association, and Clarewood House Residents Association, Appellants

v.

Texas Alcoholic Beverage Commission and Club Bellaire, Inc. d/b/a El Corral, Appellees

FROM THE DISTRICT COURT OF TRAVIS COUNTY, 126TH JUDICIAL DISTRICT NO. D-1-GN-11-003234, HONORABLE GISELA D. TRIANA-DOYAL, JUDGE PRESIDING

OPINION

St. Agnes Academy, Sharpstown Civic Association, and Clarewood House Residents Association (collectively “Protestants”) contested the application of Club Bellaire, Inc. d/b/a El Corral (“Club Bellaire”) for a permit to sell alcoholic beverages in the vicinity of Protestants’ properties. See Tex. Alco. Bev. Code Ann. § 5.435 (West 2007) (public participation in licensing or permitting hearings). Following a contested-case hearing, the administrative law judge (ALJ) recommended that Club Bellaire’s application be granted. The Texas Alcoholic Beverage Commission (TABC) accepted the ALJ’s recommendation and issued an order granting the application. Id. § 5.35 (“The commission may grant, refuse, suspend, or cancel alcoholic beverage permits and licenses as provided in this code.”). Protestants then filed a suit for judicial review against the TABC and Club Bellaire in Travis County District Court pursuant to the Administrative Procedure Act (APA), Tex. Gov’t Code Ann. §§ 2001.001-.902 (West 2008 & Supp. 2012). The

trial court granted the TABC’s and Club Bellaire’s pleas to the jurisdiction and dismissed the suit for lack of subject-matter jurisdiction without specifying its reasons. We will affirm.

DISCUSSION

A plea to the jurisdiction challenges the court’s authority to decide a case. Heckman v. Williamson Cnty., 369 S.W.3d 137, 149 (Tex. 2012). Whether a court has subject-matter jurisdiction and whether a plaintiff has alleged facts that affirmatively demonstrate subject-matter jurisdiction are questions of law that we review de novo. Texas Dep’t of Parks & Wildlife v. Miranda, 133 S.W.3d 217, 226 (Tex. 2004).

In this lawsuit, Protestants sought judicial review of the TABC’s order granting Club Bellaire’s application for an alcoholic-beverage permit, which they challenged before the agency on the basis of the business’s proximity to their real property, asserting that issuance of the requested permits would adversely affect the general welfare, health, peace, or safety of the people or violate the public sense of decency. See Tex. Alco. Bev. Code Ann. § 11.46(a)(8) (West Supp. 2012) (providing discretionary grounds for refusing application for alcoholic-beverage permit). The TABC and Club Bellaire filed pleas to the jurisdiction on the grounds that Protestants had no right to judicial review in this case because (1) section 11.67 of the Texas Alcoholic Beverage Code does not allow judicial review of TABC decisions granting an alcoholic-beverage permit, (2) even if the alcoholic beverage code authorizes judicial review in this case, Protestants failed to comply with statutory time limits provided in section 11.67, and (3) Protestants have not satisfied the APA’s threshold requirements because they lack a justiciable interest and, therefore, are not “aggrieved” within the meaning of APA section 2001.171. See id. § 11.67 (West Supp. 2012) (authorizing

judicial review from appeal of refusal, cancellation, or suspension of alcoholic-beverage permit); Tex. Gov’t Code Ann. § 2001.171 (West 2008) (authorizing judicial review for person aggrieved by decision in contested case after administrative remedies exhausted).

“It is well recognized under Texas law that there is no right to judicial review of an administrative order unless a statute provides a right or unless the order adversely affects a vested property right or otherwise violates a constitutional right.” Continental Cas. Ins. Co. v. Functional Restoration Assocs., 19 S.W.3d 393, 397 (Tex. 2000) (citing Stone v. Texas Liquor Control Bd., 417 S.W.2d 385, 385-86 (Tex. 1967)). The Texas Supreme Court has held, however, that section 2001.171 of the APA provides an independent right to judicial review of agency orders as long as the relevant enabling act does not prohibit judicial review. Texas Department of Protective & Regulatory Services v. Mega Child Care, Inc., 145 S.W.3d 170, 173, 199 (Tex. 2004). Thus, the central issue in this case is whether a provision in the Texas Alcoholic Beverage Code prohibits judicial review of TABC orders granting a permit.

On appeal, Protestants assert first that they have a right to judicial review under section 2001.171 of the APA because section 11.67 of the Texas Alcoholic Beverage Code, although specifically conferring a right to judicial review from an order “refusing, cancelling, or suspending” an alcoholic-beverage permit, does not expressly deny or prohibit judicial review from an order granting such a permit. Assuming they prevail on this threshold issue, Protestants also contend that (1) they are not subject to section 11.67’s 20-day deadline for prosecuting a suit for judicial review, and (2) the trial court erred in excluding the testimony of witnesses offered to help establish that Protestants met the prerequisites to suit set forth in section 2001.171 of the APA.

With regard to the first issue, Protestants assert that the alcoholic beverage code is “silent” regarding judicial review of a TABC decision to grant an alcoholic-beverage permit because there is no language specifically prohibiting judicial review of that type of decision. Consequently, they contend that an independent right to judicial review exists under the APA based on the supreme court’s decision in Mega Child Care, which recognized such a right absent a conflict with an agency’s enabling statute. 145 S.W.3d at 173, 199. The TABC and Club Bellaire respond that the alcoholic beverage code is not silent regarding the right of judicial review of TABC orders on permit applications because the code specifically limits judicial review to TABC decisions refusing, cancelling, or suspending an alcoholic-beverage permit and provides detailed requirements for prosecuting such appeals. The principal dispute here concerns the scope of Mega Child Care as it relates to section 11.67 of the alcoholic beverage code, and in particular, what it means for a statute to be “silent” regarding judicial review of an agency “decision.”

Under the alcoholic beverage code, the TABC has the power to “grant, refuse, suspend, or cancel alcoholic beverage permits and licenses as provided in [the] code.” Alco. Bev. Code § 5.35. Chapter 11 of the code, which provides the general statutory provisions applicable to alcoholic-beverage permits, directs some provisions to all four categories of decisions specified in section 5.35 while limiting others to only one or more of those actions. See generally id. § 11.01-.73 (West 2008 & Supp. 2012). Section 11.67 is one of the provisions that includes references to some but not all of the decisions that the TABC is authorized to make. Specifically, if the TABC has refused, canceled, or suspended a permit, section 11.67 of the code expressly authorizes the applicant to appeal the TABC’s decision subject to the following conditions:

(a) An appeal from an order of the commission or administrator refusing, cancelling, or suspending a permit or license may be taken to the district court of the county in which the applicant, licensee, or permittee resides or in which the owner of involved real or personal property resides.

(b) The appeal shall be under the substantial evidence rule and against the commission alone as defendant. The rules applicable to ordinary civil suits apply, with the following exceptions, which shall be construed literally:

(1) the appeal shall be perfected and filed within 30 days after the date the order, decision, or ruling of the commission or administrator becomes final and appealable;

(2) the case shall be tried before a judge within 20 days from the date it is filed;

Free access — add to your briefcase to read the full text and ask questions with AI

St. Agnes Academy, Sharpstown Civic Association, and Clarewood House Residents Association v. Texas Alcoholic Beverage Commission and Club Bellaire, Inc. D/B/A El Corral, (Tex. Ct. App. 2012).

St. Agnes Academy, Sharpstown Civic Association, and Clarewood House Residents Association v. Texas Alcoholic Beverage Commission and Club Bellaire, Inc. D/B/A El Corral (St. Agnes Academy, Sharpstown Civic Association, and Clarewood House Residents Association v. Texas Alcoholic Beverage Commission and Club Bellaire, Inc. D/B/A El Corral) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Block v. Community Nutrition Institute
467 U.S. 340 (Supreme Court, 1984)
Texas Department of Parks & Wildlife v. Miranda
133 S.W.3d 217 (Texas Supreme Court, 2004)
Coastal Habitat Alliance v. Public Utility Commission
294 S.W.3d 276 (Court of Appeals of Texas, 2009)
City of Amarillo v. Hancock
239 S.W.2d 788 (Texas Supreme Court, 1951)
Stone v. Texas Liquor Control Board
417 S.W.2d 385 (Texas Supreme Court, 1967)