Rylander v. Caldwell

• Decision Date: 31 May 2000
• Citation: 23 S.W.3d 132
• Parties: (Tex.App.-Austin 2000) Carole Keeton Rylander, Comptroller of Public Accounts for the State of Texas, Appellant v. Marcie Caldwell, Individually and on Behalf of all Others Similarly Situated, Appellee NO. 03-00-00063-CV
• Court: Texas Court of Appeals

Page 132

23 S.W.3d 132 (Tex.App.-Austin 2000)

Carole Keeton Rylander, Comptroller of Public Accounts for the State of Texas, Appellant v. Marcie Caldwell, Individually and on Behalf of all Others Similarly Situated, Appellee

NO. 03-00-00063-CV

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN

May 31, 2000

FROM THE DISTRICT COURT OF TRAVIS COUNTY, 261ST JUDICIAL DISTRICT NO. 99-13088, HONORABLE MARY PEARL WILLIAMS, JUDGE PRESIDING

[Copyrighted Material Omitted] Before Chief Justice Aboussie, Justices Kidd and Smith

Bea Ann Smith, Justice

Appellee Marcie Caldwell sued the Comptroller seeking a declaration that section 51.702(b) of the Texas Government Code is unconstitutional. The Comptroller filed a plea to the jurisdiction, which the trial court denied. The Comptroller now appeals the trial court's interlocutory order,¹ alleging that the court erred because appellee's suit is barred by sovereign immunity or the trial court otherwise lacked subject matter jurisdiction. We will affirm the trial court's order denying the plea to the jurisdiction.

BACKGROUND

Caldwell filed a class action lawsuit challenging the constitutionality of section 51.702(b) of the Texas Government Code. The statute provides in part: "In addition to other court costs, a person shall pay $15 as a court cost on conviction of any criminal offense in a statutory county court, including cases in which probation or deferred adjudication is granted." Tex. Gov't Code Ann. § 51.702(b) (West Supp. 2000). The court cost is to be collected "in the same manner as other fees, fines, or costs are collected in the case." Id. § 51.702(c). The court clerk must then send the collected fees or costs to the Comptroller. See id. § 51.702(d). The Comptroller deposits the fees into a judicial fund, which is used to supplement judges' salaries in participating statutory county courts. See id. Not all counties with statutory county courts have opted to collect the additional fees to supplement judges' salaries. Because this results in court costs that vary from county to county, Caldwell claims her rights under the due course of law and equal rights provisions of the Texas Constitution have been violated.

In her suit, Caldwell, individually and on behalf of the certified class, sought to enjoin the Comptroller from continuing to collect and disburse the court costs collected under section 51.702(b) of the Government Code, asked the court to declare that section 51.702(b) of the Government Code violates the Texas Constitution, and sought reimbursement of reasonable attorney's fees. In response, the Comptroller filed a plea to the jurisdiction, alleging the court was without jurisdiction to consider Caldwell's suit because (1) Caldwell lacks standing to seek the relief requested; (2) the Comptroller is not the proper defendant; (3) injunctive relief is not proper because Caldwell and the class have an adequate remedy at law; (4) Caldwell's claims are barred by the doctrine of sovereign immunity; (5) Caldwell has no claim for declaratory relief; and (6) Caldwell failed to comply with the Tax Code's requirements for claiming a refund. The trial court denied the Comptroller's plea to the jurisdiction, and the Comptroller appeals this interlocutory order. On appeal the Comptroller complains that Caldwell's suit is barred by sovereign immunity, Caldwell is required to challenge the collection of the fees under the Texas Code of Criminal Procedure, and no justiciable controversy exists between Caldwell and the Comptroller that can be addressed through injunctive or declaratory relief.

DISCUSSION

Subject matter jurisdiction is essential to the authority of a court to decide a case. See Texas Ass'n of Business v. Texas Air Control Bd., 852 S.W.2d 440, 443 (Tex. 1993). "A plea to the jurisdiction contests the trial court's authority to adjudicate the subject matter of the cause of action." Texas State Employees Union/CWA Local 6184 v. Texas Workforce Comm'n, 16 S.W.3d 61, 65 (Tex. App. Austin 2000, no pet. h.). In order to prevail, the party asserting the plea to the jurisdiction must show that even if all the allegations in the plaintiff's pleadings are taken as true, there is an incurable jurisdictional defect apparent from the face of the pleadings, rendering it impossible for the plaintiff's petition to confer jurisdiction on the trial court. See id.

Because subject matter jurisdiction presents a question of law, we review the trial court's decision under a de novo standard of review. See id. at 65. In reviewing a trial court's ruling on a plea to the jurisdiction, we do not look at the merits of the case; rather, we "construe the pleadings in favor of the plaintiff," look to the pleader's intent, and accept the pleadings' factual allegations as true. Id. at 5. "The truth of the plaintiff's allegations is at issue only if the defendant pleads and proves that the allegations were fraudulently made to confer jurisdiction on the court." Id. at 5.

In her first point of error, the Comptroller contends that Caldwell's suit is barred by the doctrine of sovereign immunity because the State has not waived sovereign immunity in suits such as this one unless the cause of action is brought under the Tax Code. In the alternative, the Comptroller argues that while an exception to sovereign immunity arises for State officials' ultra vires acts, the Comptroller's actions were not ultra vires and therefore, the exception does not apply.²

Sovereign immunity generally protects the State from lawsuits for damages absent legislative consent to sue the State. See Federal Sign v. Texas S. Univ., 951 S.W.2d 401, 405 (Tex. 1997). However, when a party's rights have been violated by the unlawful acts of a state official or by a state agent acting pursuant to an unconstitutional law, the suit is not an action against the State requiring the State's consent. See Texas Workers' Compensation Comm'n v. Garcia, 862 S.W.2d 61, 72 (Tex. App. San Antonio 1993), rev'd on other grounds, 893 S.W.2d 504. This is true even though the judgment may be binding on the State. See id.

The State maintains that the trial court was without jurisdiction to consider Caldwell's cause of action because the "Legislature has not specifically granted Plaintiffs permission to sue the Comptroller" to recover fees from the State or to enjoin the Comptroller other than through the Tax Code. Chapter 112 of the Tax Code sets out the prerequisites necessary to bring suit against the State to recover taxes or fees paid to the State under protest. See Tex. Tax Code Ann. § 112.052 (West 1992); Contran Corp. v. Bullock, 567 S.W.2d 616, 616 (Tex. Civ. App. Austin 1978, no writ). Here, however, Caldwell does not seek a refund of a tax or fee as contemplated by Chapter 112 of the Tax Code; nor is Caldwell seeking to enjoin collection of the fees. The relief requested by Caldwell consists of a declaration that section 51.702 of the Government Code is unconstitutional and an injunction prohibiting the Comptroller from continuing to administer funds pursuant to that section claims that are in essence not against the State and therefore do not require the State's consent to be sued.³

The Comptroller also contends that it has not waived its sovereign immunity because the Comptroller's acts in disbursing the collected fees were not ultra vires. The Comptroller was acting pursuant to the legislature's mandate, and thus the exception to sovereign immunity does not apply. According to the Comptroller, "there are no cases allowing declaratory and injunctive relief . . . from the State without a waiver of sovereign immunity, where the State was acting according to an express statute." We disagree.

It is axiomatic that a "party must have legislative consent or statutory authorization before it can maintain a suit and recover a judgment that will operate to control state action, subject the state to liability, or affect the state's property rights and interests." Bagg v. University of Tex. Med. Branch, 726 S.W.2d 582, 584 (Tex. App. Houston [14th Dist.] 1987, writ ref'd n.r.e.). However, contrary to the Comptroller's assertions, it is also well recognized that declaratory relief is the proper remedy when challenging the constitutionality of a statute and that plaintiffs are not required to obtain the State's consent before suing for declaratory judgment. See Garcia, 862 S.W.2d at 72; Cobb v. Harrington, 190 S.W.2d 709, 713 (Tex. 1945). A suit seeking a declaratory judgment that a state agent is acting pursuant to an unconstitutional law is not an action against the State barred by sovereign immunity. See Garcia, 862 S.W.2d at 72. It is also well settled that when a party's rights have been violated by a state agent's action pursuant to an unconstitutional law, that party may sue to remedy the violation or prevent its recurrence. See id.; Director of the Dep't of Agric. & Env't v. Printing Indus. Ass'n, 600 S.W.2d 264, 265-66 (Tex. 1980). Thus, a party may seek to enjoin the actions of a state official even though the official may assert defenses only as a state official acting on behalf of the State and even though the judgment may be binding on the State. See Garcia, 862 S.W.2d at 72; Bagg, 762 S.W.2d at 585. The suit is not a suit against the State. Because Caldwell's suit falls squarely within this exception to sovereign immunity, we overrule the State's first point of error.

The Comptroller next argues that Caldwell's exclusive remedy to contest the section 51.702(b) fees is to file a motion to correct costs under article 103.008 of the Code of Criminal Procedure. The Comptroller maintains that the district court is without jurisdiction to consider the constitutionality of the section 51.702 fees because they are criminal fees and should be contested in the court where the criminal case was last pending. Article 103.008(a) of the Code of Criminal Procedure provides: "On the filing of a motion by a defendant not later than one...