Whitney Brewster, in Her Capacity as Executive Director of the Texas Department of Motor Vehicles v. Drew Roicki and Richard Roicki as Successors in Interest to Pinnacle Motors

Court of Appeals of Texas·Decided May 18, 2015·No. 04-14-00414-CV·Published

Opinion

Fourth Court of Appeals

San Antonio, Texas

OPINION

No. 04-14-00414-CV

Whitney BREWSTER, in her capacity as Executive Director of the Texas Department of Motor Vehicles, Appellant

v.

Drew ROICKI and Richard Roicki as Successors in Interest to Pinnacle Motors, Appellees

From the 407th Judicial District Court, Bexar County, Texas Trial Court No. 2013-CI-06565 Honorable Richard Price, Judge Presiding

Opinion by: Patricia O. Alvarez, Justice Concurring Opinion by: Sandee Bryan Marion, Chief Justice

Sitting: Sandee Bryan Marion, Chief Justice Patricia O. Alvarez, Justice Luz Elena D. Chapa, Justice

Delivered and Filed: May 13, 2015 AFFIRMED Appellant Whitney Brewster, Executive Director of the Texas Department of Motor Vehicles, asserted immunity from suit in the underlying cause regarding TxDMV’s decisions affecting four vehicle titles. The trial court denied her plea to the jurisdiction, and she appeals. Because Appellees raised a fact issue on whether Brewster acted without legal authority, which could invoke the ultra vires immunity exception, we affirm the trial court’s order.

BACKGROUND

Pinnacle Motors applied for marketable titles for three vehicles through the Bexar County Tax Assessor-Collector (BCTAC). BCTAC issued title receipts for the vehicles, and in 2008, TxDMV issued titles to the three vehicles. In 2009, Pinnacle applied for a bonded title for a 2008 Chrysler Sebring, but TxDMV refused to issue a marketable title because a “[t]itle was previously issued in Michigan and [the vehicle title was] branded as ‘scrap.’” In September 2009, TxDMV revoked the three titles it had issued earlier and noted the three vehicle’s titles “should be branded as Nonrepairable.”

In 2009, Pinnacle Motors sued Bexar County, BCTAC, and TxDMV. 1 Pinnacle complained that TxDMV improperly revoked three titles and refused to issue a fourth, and it sought an administrative hearing to review TxDMV’s decision. See TEX. TRANSP. CODE ANN. § 501.052 (West Supp. 2014). Following the hearing, Pinnacle, Bexar County, and BCTAC settled the suit. Under the settlement, BCTAC conditionally agreed to “reissue rebuilt salvage titles” to the four vehicles and Pinnacle agreed to dismiss with prejudice its claims against all parties. Pinnacle met the conditions, and BCTAC filed Pinnacle’s applications for rebuilt salvage titles, but TxDMV did not issue marketable titles.

In 2013, Pinnacle sued BCTAC, TxDMV, and Whitney Brewster in her official capacity as executive director of TxDMV. 2 TxDMV asserted its immunity from suit, the trial court denied its plea to the jurisdiction, and TxDMV appealed. This court dismissed Pinnacle’s claims against TxDMV but did not address Pinnacle’s claims against Brewster. 3

1 2009-CI-18817. 2 2013-CI-06565. 3 Tex. Dep’t of Motor Vehicles v. Pinnacle Motors, No. 04-13-00496-CV, 2014 WL 631453, at *3 (Tex. App.—San Antonio Feb. 19, 2014, no pet.) (mem. op.) (dismissing claims against TxDMV); id. at *2 (noting “any claims against [Brewster] remain pending and are not a subject of this appeal”).

In her March 2014 plea to the jurisdiction, Brewster asserts she is immune from suit because her actions were discretionary and lie outside the ultra vires immunity exception. Pinnacle 4 insists Brewster violated section 501.052 by refusing to abide by BCTAC’s determination to issue marketable titles, and because she acted without lawful authority, the ultra vires exception waives her immunity from suit.

ULTRA VIRES EXCEPTION, PLEA TO THE JURISDICTION “‘[S]uits to require state officials to comply with statutory or constitutional provisions are not prohibited by sovereign immunity’” but may proceed under the ultra vires exception. Tex. Dep’t of Ins. v. Reconveyance Servs., Inc., 306 S.W.3d 256, 258 (Tex. 2010) (per curiam) (quoting City of El Paso v. Heinrich, 284 S.W.3d 366, 372 (Tex. 2009)); accord Tex. Dep’t of Transp. v. Sefzik, 355 S.W.3d 618, 620 (Tex. 2011) (per curiam). The ultra vires exception waives a government official’s immunity in certain circumstances including where “the officer acted without legal authority.” Heinrich, 284 S.W.3d at 372; accord Sefzik, 355 S.W.3d at 620.

For an ultra vires claim to survive a plea to the jurisdiction, the plaintiff must “allege[]

facts that affirmatively demonstrate the court’s jurisdiction to hear the cause.” See Tex. Dep’t of Parks & Wildlife v. Miranda, 133 S.W.3d 217, 226 (Tex. 2004); see also Heinrich, 284 S.W.3d at 372. If the plaintiff’s pleadings demonstrate jurisdiction but the defendant challenges the alleged facts, the trial court must determine whether a jurisdictional fact question exists. See Lubbock Cnty. Water Control & Imp. Dist. v. Church & Akin, L.L.C., 442 S.W.3d 297, 305 (Tex. 2014) (noting the defendant bears the burden “to establish that it is a governmental entity entitled to governmental immunity” and the plaintiff must “establish, or at least raise a fact issue on, a waiver

4 Appellees Drew Roicki and Richard Roicki filed voluntary bankruptcy petitions. In the cause underlying this appeal, the Roickis identify themselves as successors in interest to Pinnacle Motorcars. For consistency with our February 19, 2014 opinion in appeal number 04-13-00469-CV, we refer to the Roickis as Pinnacle.

of immunity”); Miranda, 133 S.W.3d at 227. “If the evidence creates a fact question regarding the jurisdictional issue, then the trial court cannot grant the plea to the jurisdiction, and the fact issue will be resolved by the fact finder.” Miranda, 133 S.W.3d at 227–28.

STANDARD OF REVIEW

We may review the denial of a government official’s plea to the jurisdiction. TEX. CIV.

PRAC. & REM. CODE ANN. § 51.014(a)(8) (West 2014); Tex. A & M Univ. Sys. v. Koseoglu, 233 S.W.3d 835, 846 (Tex. 2007) (applying section 51.014(a)(8) to government officials sued in their official capacity); see Miranda, 133 S.W.3d at 221.

We review de novo the question of “whether [the trial] court has subject matter jurisdiction.” Miranda, 133 S.W.3d at 226 (citing Tex. Natural Res. Conservation Comm’n v. IT- Davy, 74 S.W.3d 849, 855 (Tex. 2002)). We examine the plea to the jurisdiction evidence like “that of a [traditional] summary judgment.” Id. at 228 (referencing TEX. R. CIV. P. 166a(c)); accord Heinrich, 284 S.W.3d at 372 (citing Miranda). We “take as true all evidence favorable to the nonmovant [and] indulge every reasonable inference and resolve any doubts in the nonmovant’s favor.” Miranda, 133 S.W.3d at 228 (citation omitted); accord Heinrich, 284 S.W.3d at 372 (citing Miranda).

PARTIES’ ARGUMENTS

Pinnacle, in its 2013 suit underlying this appeal, asked the trial court to declare that section 501.052 of the Texas Transportation Code makes BCTAC’s hearing determination final and binding on TxDMV. It argues that when BCTAC, after the hearing and as part of the settlement, agreed to “issue” rebuilt salvage titles to all four vehicles, BCTAC “overruled” (1) TxDMV’s revocation of the three previously issued titles and (2) TxDMV’s refusal to issue a fourth title. Pinnacle argues that section 501.052 makes BCTAC’s determination final and binding on

TxDMV. Thus, because she failed to issue marketable titles as required by Pinnacle’s settlement agreement with BCTAC, Brewster acted without legal authority and her immunity was waived.

Brewster argues her immunity has not been waived because there is no allegation that she personally took any action that was unlawful, TxDMV has discretion and final authority to determine whether and what type of title should be issued, and Pinnacle’s suit is an impermissible attempt to control state action. She also argues recent legislation applies in this case to strip the trial court of authority to order a change in the type of title issued by TxDMV.

ANALYSIS

We begin by determining whether Pinnacle’s suit is barred by sovereign immunity.

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Whitney Brewster, in Her Capacity as Executive Director of the Texas Department of Motor Vehicles v. Drew Roicki and Richard Roicki as Successors in Interest to Pinnacle Motors, (Tex. Ct. App. 2015).

Whitney Brewster, in Her Capacity as Executive Director of the Texas Department of Motor Vehicles v. Drew Roicki and Richard Roicki as Successors in Interest to Pinnacle Motors (Whitney Brewster, in Her Capacity as Executive Director of the Texas Department of Motor Vehicles v. Drew Roicki and Richard Roicki as Successors in Interest to Pinnacle Motors) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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