2024 Tex. Bus. 6
THE BUSINESS COURT OF TEXAS ELEVENTH DIVISION
XTO ENERGY, INC., § § Plaintiff, § § V. § Cause No. 24-BCllB-0008 § § HOUSTON PIPE LINE COMPANY, § LP, ETC KATY PIPELINE, LLC, § ENERGY TRANSFER FUEL, LP, § and OASIS, PIPELINE, LP, § § Defendants. §
OPINION AND ORDER
Syllabus
This opinion addresses the removability to the Business Court of cases filed before September 1, 2024, when removal has been contested. The Court concludes that., in such circumstances, Section 8 of House Bill 19 limits Business Court authority to act to cases filed on or after September 1, 2024.1
1 This syllabus is provided for the convenience of the reader; it is not part of the Court's opinion and should not be cited or relied upon as legal authority.
challenging the Business Court's authority on the grounds that it lacks jurisdiction over a
case removed from the district court that was commenced before September 1, 2024. After
consideration of the Motion and the parties' responsive briefs, the Court grants the Motion
to Remand.
BACKGROUND
Texas (the "District Court") in 2021 against defendants Houston Pipe Line Company, LP,
ETC Katy Pipeline, LLC ("ETC"), Energy Transfer Fuel, LP, and Oasis Pipeline, LP
(collectively, "Defendants"), who filed a counterclaim for monies allegedly owed under the
parties' agreement. The disputed issues relate to natural gas transportation charges
incurred during Winter Storm Uri in February 2021.
including two mandamus petitions filed by ETC that are currently pending in the First Court
of Appeals.2 On October 1, 2024, Defendants removed the case to this Court. XTO filed its
Motion to Remand on October 10.
LEGAL STANDARD
a court has subject-matter jurisdiction over a suit is a question oflaw. Tex. Dep)t ofParks &
Wildlife v. Miranda, 133 S.W.3d 217, 226 (Tex. 2004). Because courts "may not assume
2 See In re Houston Pipe Line Company, 01-24-00397-CV; and In re Houston Pipe Line Company, 01-24-00508-CV.
2 jurisdiction for the purposes of deciding the merits of the case," Sinochem Int)l Co. v.
Malaysia Int'l Shipping Corp., 549 U.S. 422, 431 (2007), the Court must first resolve the
jurisdictional question before it may proceed further.
ANALYSIS
A. The Court must construe Section 8 of House Bill 19.
effect to the Legislature's intent as expressed in its plain language." Defendants' Brief in
Support of Removal at 2 (citing R.R. Com'n of Tex. v. Tex. Citizens, 336 S.W.3d 619, 628
(Tex. 2011)). And: "We must presume that the Legislature chooses its words carefully." Id.
at 5.
express intention of the Texas Legislature" was to exclude from removal all cases that were
on file before September 1, 2024. XTO's Motion to Remand at
argument, XTO references the Business Court's enabling legislation; specifically, Section
8 of House Bill 19, which states that the "changes in law made by this Act apply to civil
actions commenced on or after September 1, 2024."
removal of cases filed before September 1, 2024. When the Legislature wants to exclude
cases filed before a certain date, Defendants argue, it uses more precise language to do so.
the Texas Business Court. Act of May 25, 2023, 88th Leg., R.S., ch. 380 §§ 1-9, 2023 Tex.
3 Sess. Law Serv. 919, 919-929. House Bill 19 was codified into Chapter 25A of the Texas
Government Code.
9f9 Well, almost all of it was codified. Section 8 of House Bill 19 did not find its
way into the Texas Government Code, but it is in the text of the enabling legislation that
Governor Abbott signed into law. Thus, the first question presented is whether courts
should look to the enabling legislation when interpreting a law. The short answer is "yes."
CjflO Under the enrolled bill rule, the text of the enrolled statute "as authenticated
by the presiding officers of each house, signed by the governor (or certified passed over
gubernatorial veto), and deposited in the secretary of state's office, is precisely the same as
and a 'conclusive record' of the statute that was enacted by the legislators." Ass 1n of Texas
Pro. Educators v. Kirby, 788 S.W.2d 827, 829 (Tex. 1990). Accordingly, when analyzing
the text of the Business Court's governing statute to determine its authority and
jurisdiction to hear the case, the Court must apply Section 8 and presume that the enrolled
bill accurately expresses the Legislature's intent. See TEX. Gov'T CODE §311.029 (under
Texas's Code Construction Act, "the language of the enrolled bill version controls" over
any subsequent printing of the statute).
B. The Court lacks subject-matter jurisdiction over this lawsuit.
Cjfll As noted above, Section 8-the portion of the enrolled bill upon which XTO
relies-states that the "changes in law made by this Act apply to civil actions commenced
on or after September 1, 2024." Thus, XTO argues, no case that was already on file can be
removed after that date- at least absent agreement of the parties that does not exist here.
Defendants retort that the Legislature would have used the word "only" if it intended to
4 exclude all cases filed before September 1, 2024-viz.J remand would only be required if the
Act was said to apply "only to civil actions commenced on or after September 1, 2024."
The statute, Defendants say, "clearly affirms the Court's ability to start accepting cases on
September 1, 2024" but is silent with respect to the intended effect on cases commenced
before that date. Defendants 1 Brief in Support at 5.
5 of House Bill 19 states that "the business court is created September 1, 2024." Obviously,
the Court could not have started accepting cases before that date. Cf In re Dallas County)
697 S.W.3d 142, 164 (Tex. 2024) (under Senate Bill 1045, the 15th Court of Appeals'
"vacancies" could not have existed before September 1, 2024-the date the bill brought
the Court into existence). And it needed no further authorization to accept cases
commenced on or after September l; the day a court is created is the day it can start
accepting cases. 3 So Defendants' reading of Section 8 renders its date reference at best
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2024 Tex. Bus. 6
THE BUSINESS COURT OF TEXAS ELEVENTH DIVISION
XTO ENERGY, INC., § § Plaintiff, § § V. § Cause No. 24-BCllB-0008 § § HOUSTON PIPE LINE COMPANY, § LP, ETC KATY PIPELINE, LLC, § ENERGY TRANSFER FUEL, LP, § and OASIS, PIPELINE, LP, § § Defendants. §
OPINION AND ORDER
Syllabus
This opinion addresses the removability to the Business Court of cases filed before September 1, 2024, when removal has been contested. The Court concludes that., in such circumstances, Section 8 of House Bill 19 limits Business Court authority to act to cases filed on or after September 1, 2024.1
1 This syllabus is provided for the convenience of the reader; it is not part of the Court's opinion and should not be cited or relied upon as legal authority.
challenging the Business Court's authority on the grounds that it lacks jurisdiction over a
case removed from the district court that was commenced before September 1, 2024. After
consideration of the Motion and the parties' responsive briefs, the Court grants the Motion
to Remand.
BACKGROUND
Texas (the "District Court") in 2021 against defendants Houston Pipe Line Company, LP,
ETC Katy Pipeline, LLC ("ETC"), Energy Transfer Fuel, LP, and Oasis Pipeline, LP
(collectively, "Defendants"), who filed a counterclaim for monies allegedly owed under the
parties' agreement. The disputed issues relate to natural gas transportation charges
incurred during Winter Storm Uri in February 2021.
including two mandamus petitions filed by ETC that are currently pending in the First Court
of Appeals.2 On October 1, 2024, Defendants removed the case to this Court. XTO filed its
Motion to Remand on October 10.
LEGAL STANDARD
a court has subject-matter jurisdiction over a suit is a question oflaw. Tex. Dep)t ofParks &
Wildlife v. Miranda, 133 S.W.3d 217, 226 (Tex. 2004). Because courts "may not assume
2 See In re Houston Pipe Line Company, 01-24-00397-CV; and In re Houston Pipe Line Company, 01-24-00508-CV.
2 jurisdiction for the purposes of deciding the merits of the case," Sinochem Int)l Co. v.
Malaysia Int'l Shipping Corp., 549 U.S. 422, 431 (2007), the Court must first resolve the
jurisdictional question before it may proceed further.
ANALYSIS
A. The Court must construe Section 8 of House Bill 19.
effect to the Legislature's intent as expressed in its plain language." Defendants' Brief in
Support of Removal at 2 (citing R.R. Com'n of Tex. v. Tex. Citizens, 336 S.W.3d 619, 628
(Tex. 2011)). And: "We must presume that the Legislature chooses its words carefully." Id.
at 5.
express intention of the Texas Legislature" was to exclude from removal all cases that were
on file before September 1, 2024. XTO's Motion to Remand at
argument, XTO references the Business Court's enabling legislation; specifically, Section
8 of House Bill 19, which states that the "changes in law made by this Act apply to civil
actions commenced on or after September 1, 2024."
removal of cases filed before September 1, 2024. When the Legislature wants to exclude
cases filed before a certain date, Defendants argue, it uses more precise language to do so.
the Texas Business Court. Act of May 25, 2023, 88th Leg., R.S., ch. 380 §§ 1-9, 2023 Tex.
3 Sess. Law Serv. 919, 919-929. House Bill 19 was codified into Chapter 25A of the Texas
Government Code.
9f9 Well, almost all of it was codified. Section 8 of House Bill 19 did not find its
way into the Texas Government Code, but it is in the text of the enabling legislation that
Governor Abbott signed into law. Thus, the first question presented is whether courts
should look to the enabling legislation when interpreting a law. The short answer is "yes."
CjflO Under the enrolled bill rule, the text of the enrolled statute "as authenticated
by the presiding officers of each house, signed by the governor (or certified passed over
gubernatorial veto), and deposited in the secretary of state's office, is precisely the same as
and a 'conclusive record' of the statute that was enacted by the legislators." Ass 1n of Texas
Pro. Educators v. Kirby, 788 S.W.2d 827, 829 (Tex. 1990). Accordingly, when analyzing
the text of the Business Court's governing statute to determine its authority and
jurisdiction to hear the case, the Court must apply Section 8 and presume that the enrolled
bill accurately expresses the Legislature's intent. See TEX. Gov'T CODE §311.029 (under
Texas's Code Construction Act, "the language of the enrolled bill version controls" over
any subsequent printing of the statute).
B. The Court lacks subject-matter jurisdiction over this lawsuit.
Cjfll As noted above, Section 8-the portion of the enrolled bill upon which XTO
relies-states that the "changes in law made by this Act apply to civil actions commenced
on or after September 1, 2024." Thus, XTO argues, no case that was already on file can be
removed after that date- at least absent agreement of the parties that does not exist here.
Defendants retort that the Legislature would have used the word "only" if it intended to
4 exclude all cases filed before September 1, 2024-viz.J remand would only be required if the
Act was said to apply "only to civil actions commenced on or after September 1, 2024."
The statute, Defendants say, "clearly affirms the Court's ability to start accepting cases on
September 1, 2024" but is silent with respect to the intended effect on cases commenced
before that date. Defendants 1 Brief in Support at 5.
5 of House Bill 19 states that "the business court is created September 1, 2024." Obviously,
the Court could not have started accepting cases before that date. Cf In re Dallas County)
697 S.W.3d 142, 164 (Tex. 2024) (under Senate Bill 1045, the 15th Court of Appeals'
"vacancies" could not have existed before September 1, 2024-the date the bill brought
the Court into existence). And it needed no further authorization to accept cases
commenced on or after September l; the day a court is created is the day it can start
accepting cases. 3 So Defendants' reading of Section 8 renders its date reference at best
superfluous, and possibly a nullity-contrary to the canon that presumes the entirety of a
statute is intended to have effect. See TEX. Gov'T CODE §311.021(2). See also Jorrie v.
Charles) No. 24-BC04B-0001, 2024 Tex. Bus. 4, at 7 (" Any other construction of Section
8 renders its commencement date mere surplusage. "). See also Malouf v. State ex rel. Ellis,
694 S.W.3d 712, 718 (Tex. 2024) (courts must consider whole text of statute and construe
it so that no part is meaningless).
3 See Energy Transfer LPv. CulbersonMidstreamLLC1 No. 24-BC0lB-0005, 2024 Tex. Bus. 1, at 7 ("Section 8 does more than set the [business] court's first operational date. If that were all that Section 8 does, it would read, 'The court may begin accepting cases beginning on September 1, 2024. '")
5
unius est exclusio alterius-translated from Latin as "the expression of one thing is the
exclusion of another." See Johnson v. Second Inj. Fund) 688 S.W.2d 107, 108 (Tex. 1985)
("The legal maxim Expressio unius est exclusio alterius is an accepted rule of statutory
construction in this state."); A. Scalia & B. Garner, Reading Law: The Interpretation of
Legal Texts 107-11 (2012) (discussing negative implication canon). Thus, the Act's express
statement that its changes in law apply to "cases commenced on or after September 1,
2024" necessarily implies a reverse inference: that the change in law-removal, in this
instance-does not apply to cases that were on file before that date.
statute is presumed to be prospective in its operations unless expressly made retrospective."
TEX. Gov'T CODE §311.022. But Defendants' approach would flip the presumption ofnon-
retroactivity on its head. See Morningstar Winans v. Berry) No. 24-BC04A-0002, 2024
Tex. Bus. 5, at 4 (citing Tux. Gov'TCODE §311.022). This, too, supports the conclusion that
Defendants' reading of the Act should not direct the Court's decision. The plain language
of Section 8, read in context with the whole of House Bill 19, demonstrates that the
6 Legislature intended to exclude the non-consensual removal of all cases filed before
September 1, 2024. 4 Defendants' remaining arguments do not persuade us to the contrary. 5
C. The Court need not address XTO's remaining arguments.
XTO's arguments that (1) Defendants' removal was untimely or (2) that consequentialist
considerations- specifically, the pendency of two mandamus petitions in the First Court of
Appeals-dictate a ruling in its favor.
CONCLUSION
Plaintiff's Motion to Remand is hereby GRANTED, and the Court hereby directs the
Business Court Clerk to remand this cause to the 133rd Judicial District Court of Harris
County, Texas.
4 Because XTO objects to removal, the Court does not address whether TEX. Gov'T CODE 25A. 006(f) 's allowance of removal from the district court by agreement of the parties "at any time during the pendency of the action" may alter the Court's decision in this case. The decision herein, moreover, comports with all other Texas Business Court rulings to date involving the non- consensual removal of a case that was commenced before September 1, 2024. See Energy Transfer LP, supra n.5; Synergy Global Outsourcing, LLC v. Hinduja Global Solutions, Inc., No. 24-BC0lB- 0007, 2024 Tex. Bus. 2; Tema Oil and Gas Co. v. ETCFieldServs., LLC, No. 24-BC0SB-0001, 2024 Tex. Bus. 3; Morningstar Winans, supra. The Texas Business Court opinions and orders cited herein can be found at https://www.txcourts.gov/businesscourt/opinions. 5 In particular, Defendants' reliance upon the omission of the word "only" from Section 8 (Defendants' Briefin Support at 5-7) cannot bear the weight they place upon it. See, e.g., In re Dallas County, 697 S.W.3d at 158 (preferring "the fair meaning of the text" over "the hyperliteral meaning of each word") (quoting A. Scalia & B. Garner, Reading Law, at 356); In re Off. of Att'y Gen., 456 S.W.3d 153, 155-56 (Tex. 2015) ("courts should resist rulings anchored in hyper-technical readings of isolated words or phrases. The import of language, plain or not, must be drawn from surrounding context, particularly when construing everyday words and phrases that are inordinately context- sensitive."). See also Energy Transfer, supra n.5 at 8-9; Tema Oil and Gas, supra n.6 at 9-12. 7 IT IS SO ORDERED.
4.11 JUDGE, TEXAS BUSINESS ELEVENTH DIVISION
DATED: November 26, 2024