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

2 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.

3 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

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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.

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