Texas Racing Commission and Charla Ann King, Executive Director v. Javier Marquez D/B/A J&M Racing and Farm

CourtCourt of Appeals of Texas
DecidedAugust 19, 2011
Docket03-09-00635-CV
StatusPublished

This text of Texas Racing Commission and Charla Ann King, Executive Director v. Javier Marquez D/B/A J&M Racing and Farm (Texas Racing Commission and Charla Ann King, Executive Director v. Javier Marquez D/B/A J&M Racing and Farm) 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.

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Texas Racing Commission and Charla Ann King, Executive Director v. Javier Marquez D/B/A J&M Racing and Farm, (Tex. Ct. App. 2011).

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN

NO. 03-09-00635-CV

Texas Racing Commission and Charla Ann King, Executive Director, Appellants

v.

Javier Marquez d/b/a J&M Racing and Farm, Appellee

FROM THE DISTRICT COURT OF TRAVIS COUNTY, 345TH JUDICIAL DISTRICT NO. D-1-GN-09-001786, HONORABLE SCOTT H. JENKINS, JUDGE PRESIDING

MEMORANDUM OPINION

Appellee Javier Marquez d/b/a J&M Racing and Farm (Marquez) owned two

racehorses that ran in the same race in which one of his horses finished second. The horses,

however, were inadvertently wearing each other’s saddle cloth numbers in violation of commission

rules, and the race stewards disqualified both horses and redistributed the race purse. See 16 Tex.

Admin. Code § 313.406 (2011) (Tex. Racing Comm’n, Colors and Numbers). Marquez appealed

the stewards’ decision to appellant the Texas Racing Commission pursuant to the Texas Racing Act

(“Act”) and Commission rules. See Tex. Rev. Civ. Stat. Ann. art. 179e, § 3.08 (West 2010); 16 Tex.

Admin. Code § 307.67 (2011) (Tex. Racing Comm’n, Appeal to the Commission).

After the Commission refused to consider his appeal, Marquez filed this suit against

the Commission and appellant Charla Ann King, the Commission’s executive director, seeking

declarations pursuant to the Uniform Declaratory Judgments Act (UDJA) and section 2001.038 of the Administrative Procedure Act (APA). See Tex. Civ. Prac. & Rem. Code Ann. §§ 37.001-.011

(West 2008); Tex. Gov’t Code Ann. § 2001.038 (West 2008). Following a hearing, the trial court

denied Marquez’s request for declaratory relief pursuant to the APA but entered judgment in his

favor pursuant to the UDJA. The trial court declared that the director acted in excess of her statutory

authority by refusing to allow Marquez to appeal the stewards’ decision, by disqualifying Marquez’s

horses, and by redistributing the race purse. The court also ordered the second place purse

distributed to Marquez and awarded attorney’s fees.

On appeal, appellants contend that the trial court lacked jurisdiction over Marquez’s

claims for declaratory relief and that the trial court erred in awarding attorney’s fees. For the reasons

that follow, we affirm the trial court’s judgment in part and vacate and dismiss in part for lack of

subject matter jurisdiction.

FACTUAL AND PROCEDURAL BACKGROUND

The Racing Act and Commission Rules

The legislature has delegated the operation and management of the horse racing

industry to the Commission, including the authority to adopt rules necessary to administer the Act.

See Tex. Rev. Civ. Stat. Ann. art. 179e, §§ 1.02, 3.02(a) (West 2010). The Commission is required

to employ an executive director who administers the programs of the Commission and has all powers

that are necessary for such administration. See id. § 2.12(a); 16 Tex. Admin. Code § 303.8 (2011)

(Tex. Racing Comm’n, Executive Secretary). The legislature also has provided for the hiring of

stewards to supervise horse races. See Tex. Rev. Civ. Stat. Ann. art. 179e, § 3.07(a) (West 2010);

see also id. § 1.03(35) (West 2010) (“stewards” defined). The statute provides that stewards’ final

2 decisions are appealable to the Commission except as to two types of decisions: “[a] decision of the

stewards . . . on a disqualification for a foul in a race or on a finding of fact regarding the running

of a race.” See Tex. Rev. Civ. Stat. Ann. art. 179e, § 3.08.1

The commission rules further set forth the stewards’ duties, the right to appeal

stewards’ rulings, and the procedures for the filing of an appeal and the subsequent hearing. The

stewards’ general duties include the supervision of horse races and interpretation and enforcement

of the Act and commission rules:

(a) In addition to the other duties described in these Rules, the stewards have the general authority and supervision over the conduct of each race and all licensees at a racetrack during a race meeting. If a question arises during a race meeting regarding the operations of a racetrack or the conduct of racing that is not covered by the Act or the Rules, the stewards shall resolve the question in conformity with custom, precedent, justice, and the best interest of racing.

(b) The stewards are authorized to:

(1) interpret and enforce the Act and the Rules and to determine all questions, disputes, complaints, or objections relating to racing matters in accordance with the applicable laws, taking into

1 Section 3.08 provides:

(a) Except as provided by Subsection (b) of this section, a final decision of the stewards or judges may be appealed to the commission in the manner provided for a contested case under the Administrative Procedure and Texas Register Act (Article 6252-13a, Vernon’s Texas Civil Statutes).

(b) A decision of the stewards or judges on a disqualification for a foul in a race or on a finding of fact regarding the running of a race is final and may not be appealed.

Tex. Rev. Civ. Stat. Ann. art. 179e, § 3.08 (West 2010).

3 consideration such factors as, but not limited to, custom, precedent, justice, and the best interest of racing; . . .

(2) issue rulings, . . . .

16 Tex. Admin. Code § 313.22 (2011) (Tex. Racing Comm’n, General Duties of Stewards).

The rules provide that “[a] person aggrieved by a ruling of the stewards . . . may

appeal to the Commission,” and that a hearing on such an appeal “is a contested case and shall be

conducted by SOAH in accordance with the Rules regarding contested cases.” See id. § 307.67(a),

(c); see also id. § 307.3(a) (2011) (Tex. Racing Comm’n, Types of Proceedings) (“Examples of

contested case proceedings are an administrative penalty issued by the executive secretary and an

appeal from a stewards’ . . . ruling.”), §§ 307.31-.39 (2011) (Tex. Racing Comm’n, Contested Cases)

(describing procedure for administrative appeal, referral of contested case to SOAH, and suit for

judicial review). The director’s duties include docketing appeals of stewards’ rulings and referring

them to SOAH as contested case proceedings:

(a) Docketing. When a pleading to institute a contested case proceeding before the Commission is received, and it complies with the Rules as to form and content, the executive secretary shall docket the proceeding as pending, numbered in accordance with the docket numbering system of the Commission.

....

(c) Referral to SOAH. If after a reasonable time the proceeding cannot be settled through agreement, the executive secretary shall refer the matter to SOAH.

Id. § 307.31. With this background, we turn to the parties’ dispute.

4 The Parties’ Controversy

The parties stipulated to the underlying facts. Two of Marquez’s horses inadvertently

raced in the same race wearing the other’s saddle cloth number, a violation of commission rules. See

16 Tex. Admin. Code § 313.406 (“A horse starting in a race must carry a conspicuous saddle cloth

number . . . corresponding to its number in the official program.”). One of the horses finished

second, but based upon the rule violation, the stewards disqualified the horses and ordered the race

purse redistributed accordingly. Pursuant to the Act and corresponding commission rule, Marquez

filed an appeal of the stewards’ decision with the Commission three days later. See Tex. Rev. Civ.

Stat. Ann. art. 179e, § 3.08; 16 Tex. Admin. Code § 307.67. Based upon section 3.08(b) of the Act,

the Commission, however, determined that Marquez was not entitled to appeal the stewards’

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