Todd Shipyards Corp. v. Texas Employment Commission

245 S.W.2d 371, 1951 Tex. App. LEXIS 1894
CourtCourt of Appeals of Texas
DecidedDecember 20, 1951
Docket12277
StatusPublished
Cited by13 cases

This text of 245 S.W.2d 371 (Todd Shipyards Corp. v. Texas Employment Commission) 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.

Bluebook
Todd Shipyards Corp. v. Texas Employment Commission, 245 S.W.2d 371, 1951 Tex. App. LEXIS 1894 (Tex. Ct. App. 1951).

Opinion

MONTEITH, Chief Justice.

This action was brought by Todd Shipyards Corporation in the County Court of Galveston County for judicial review of an administrative decision rendered by the Texas Employment Commission granting unemployment compensation benefits to Andrew Ochoa, under subsections (h) and (i) of the Texas Unemployment Compensation Act, Article 5221b-4, Vernon’s Annotated Civil Statutes. Todd Shipyards Corporation also sought a judgment declaring unconstitutional a so-called “double affirmation” provision of the Texas Unemployment 'Compensation Act and a judgment decreeing that, under the Compensation Act, the Employment Commission could not legally pay unemployment compensation pending an appeal from the Commission’s decision until a final decision had been rendered by a court or ultimate administrative authority authorizing its payment.

In a trial before the Court judgment was rendered cancelling and setting aside an award of benefits to Andrew Ochoa and directing that Todd Shipyards Corporation’s benefit wage account be credited with the benefit wages that had been paid to Ochoa for the stated reason that the rules, orders and decisions of the Texas Employment Commission granting him benefits were not reasonably supported by substantial evidence introduced in Court. The Court rendered a declaratory judgment construing the so-called “double affirmation” provision of said Article 5221b-4, holding said provision to be constitutional and as meaning that the benefits referred to in said Article 5221b-4 should be paid until a decision reversing a decision approving the decision of the appeal tribunal wás rendered.

The Court decreed that the Texas Employment Commission was authorized by statute to charge benefit wages against the benefit wage account of Todd Shipyards Corporation at the time the benefits were certified by the Commission to the State Comptroller and that Todd Shipyards Corporation, being an employer, had no right to a stay or supersedeas from these benefit wage charges until the decision of the Commission was finally reversed.

Texas Employment Commission and Andrew Ochoa duly excepted to the portions of said judgment setting aside the orders and decrees of the Employment Commission as not reasonably supported by substantial evidence, and Todd Shipyards Corporation excepted to the trial of this cause under the substantial-evidence rule and to such portions of the judgment as enter a declaratory decree determining the so-called “double affirmation” clause to be constitutional.

Findings of fact and conclusions of law were prepared and caused to be filed by the trial court in which it was found that Andrew Ochoa had been an employee of Todd Shipyards Corporation from January 26, 1946, until October 4, 1949, and that he was under contract to work for Todd and be available for work for it from July 28, 1949, to October 4, 1949. The Court found that Ochoa resigned from his last work with Todd on October 4, 1949, for two reasons: (1) to seek work in Houston, and (2) to obtain his retirement contributions which were held by Todd, and that at that time he signed a termination and separation slip; that Ochoa filed his initial claim for benefits under the Compensation Act on October 4, 1949; that his claim was disqualified on a hearing before a representative of the Commission and that on appeal, this decision was reversed by the Commission’s appeal tribunal and he was awarded unemployment compensation benefits. The court found that Todd had sustained no irreparable injury.

In this action both parties have filed briefs as both appellants and appellees.

The so-called double affirmation clause, under Section (b) of said Article 5221b-4, provides that “If an appeal is duly filed, benefits with respect to the period prior *373 to the final determination of the Commission, shall be paid only after such determination; provided, that if an appeal tribunal affirms a decision of a deputy, or the Commission affirms a decision of an appeal tribunal, allowing benefits, such benefits shall be paid regardless of any appeal which may thereafter be taken but if such decision is finally reversed, no employer’s account shall be charged with benefits so paid.”

The substantial-evidence rule, under which the trial court conducted its review in this appeal, is a rule governing the effect to be given the findings of fact by an administrative agency upon a contest in court of an order of such agency. Our statutes do not provide for the making of findings of fact by an administrative agency. However, if the validity of an order of such an agency is contested in court, certain presumptions are indulged in favor of the validity of such order, and if the matter covered by the order is one committed to the agency by the Legislature and involves the exercise of its sound judgment and discretion in the administration of the matter so committed to it, the court will not undertake to put itself in the position of the agency but will sustain the action of the agency so long as its conclusions are reasonably supported by substantial evidence. Railroad Commission v. Shell Oil Co., 139 Tex. 66, 161 S.W.2d 1022; Jones v. Marsh, 148 Tex. 362, 224 S.W.2d 198; Thomas v. Stanolind Oil & Gas Co., 145 Tex. 270, 198 S.W.2d 420; Trapp v. Shell Oil Co., Inc., 145 Tex. 323, 198 S.W.2d 424.

Under the above authorities and under this record, the trial court’s decision in deciding this case under the substantial-evidence rule was, we think, proper.

The review of this appeal is provided for under subsections (h) and (i) of said Article 5221b-4, Vernon’s Annotated Civil Statutes, the material parts of which read:

“(h) Appeal to Courts: Any decision of the Commission in the absence of an appeal therefrom as herein provided shall become final ten (10) days after the date of notification or mailing thereof, and judicial review thereof shall be permitted only after any party claiming to be aggrieved thereby has exhausted his remedies before the Commission as provided by this Act. The Commission shall be deemed to be a party to any judicial action involving any such decision * *

“(i) Court Review: Within ten (10) days after the decision of the Commission has become final, any party aggrieved thereby may secure judicial review thereof by commencing an action in any court of competent jurisdiction in the county of claimant’s residence against the Commission for the review of its decision, in which action any other party to the proceeding before the Commission shall be made a defendant. Such trial shall be de novo. * * * An appeal may be taken from the decision of the trial court, in the same manner, as is provided in other civil cases. * * * Upon the final determination of such judicial proceeding, the Commission shall enter an order in accordance with such determination. A petition for judicial review shall not act as a supersedeas.”

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245 S.W.2d 371, 1951 Tex. App. LEXIS 1894, Counsel Stack Legal Research, https://law.counselstack.com/opinion/todd-shipyards-corp-v-texas-employment-commission-texapp-1951.