State v. Oakley

• Decision Date: 16 December 2005
• Docket Number: No. 03-05-00007-CV.,03-05-00007-CV.
• Citation: 181 S.W.3d 855
• Parties: STATE of Texas, Appellant, v. Barbara OAKLEY, as Guardian of the Estate and Person of Richard Danziger, A Disabled Adult, Appellee.
• Court: Texas Supreme Court

181 S.W.3d 855

STATE of Texas, Appellant, v. Barbara OAKLEY, as Guardian of the Estate and Person of Richard Danziger, A Disabled Adult, Appellee.

No. 03-05-00007-CV.

Court of Appeals of Texas, Austin.

December 16, 2005.

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Joel L. Thollander, Cynthia Lee Alexander, Asst. Solicitor General, General Litigation, Austin, for Appellant.

Scott Ozmun, Jeff Edwards, Whitehurst, Harkness, Ozmun & Brees, PC, Austin, for Appellee.

Before Justices B.A. SMITH, PATTERSON and PURYEAR.

OPINION

BEA ANN SMITH, Justice.

The question presented is whether a claim for compensation for wrongful imprisonment under chapter 103 of the civil practice and remedies code can be assigned to, and enforced by, a third party. See TEX. CIV. PRAC. & REM.CODE ANN. § 103.001-.154 (West 2005) (Compensation to Persons Wrongfully Imprisoned). We hold that it can. The State appeals the trial court's denial of its plea to the jurisdiction contending that (1) the statutory waiver of sovereign immunity in chapter 103 does not extend to an assignee, (2) common-law principles do not allow assignment of chapter 103 claims, and (3) there is no jurisdiction because the wrongfully convicted person has already received compensation through a settlement with the City of Austin. We affirm the trial court's denial of the plea to the jurisdiction.

Factual and Procedural Background

Christopher Ochoa and Richard Danziger were wrongfully imprisoned for over twelve years for the October 1988 rape and murder of Nancy DePriest. Ochoa falsely confessed to the crime and falsely implicated Danziger as a participant. Pursuant to a plea agreement, Ochoa pleaded guilty to murder on May 5, 1989. As required by the terms of the agreement, Ochoa testified against Danziger. Danziger was convicted of aggravated sexual assault and sentenced to life in prison on March 6, 1990. In 1996, another man confessed to the murder and was later linked to the crime by an extensive investigation conducted by the Travis County District Attorney's Office. The court of criminal appeals granted habeas corpus relief on the basis of actual innocence to both Ochoa and Danziger in December 2001, and their indictments were dismissed by the district court in February 2002. See Ex parte Ochoa, No. 74,246 (Tex.Crim.App. December 19, 2001) (unpublished per curiam opinion); Ex parte Danziger, No. 74,244 (Tex.Crim.App. December 19, 2001) (unpublished per curiam opinion). Ochoa sued the City of Austin in federal district court and received a sizable settlement. Danziger, through his guardian Barbara Oakley,¹ then brought suit against Ochoa for falsely implicating him in the murder. As part of a settlement agreement in that case, Ochoa assigned his right to compensation under chapter 103 of the civil practices and remedies code to Oakley, as Danziger's guardian. Oakley then brought suit against the State on behalf of Danziger as the assignee of Ochoa's rights.

Chapter 103: Compensation to Persons Wrongfully Imprisoned

Because the issues in this case require us to interpret the statute, it is useful to review the relevant provisions of chapter 103 of the civil practices and remedies code. Chapter 103 generally serves to compensate persons who have been wrongfully convicted and incarcerated by the State. A person is entitled to compensation under the chapter if (1) the person has served in whole or in part a sentence in prison under the laws of the State of Texas, and (2) the person has been pardoned on the basis of innocence or has been granted relief on the basis of actual innocence. TEX. CIV. PRAC. & REM.CODE ANN. § 103.001(a). A person need not show any fault by the State, and he is entitled to the same compensation whether his wrongful imprisonment resulted by accident or from intentional misconduct by the State.

Chapter 103 contains an explicit waiver of sovereign immunity, stating that a person may bring a suit against the State and that "the suit must be initiated by a verified petition alleging that the petitioner is entitled to compensation."² See id. § 103.101. If the trier of fact determines that the petitioner is entitled to compensation, the petitioner may collect expenses and attorney's fees, lost wages, and medical and counseling expenses. Id. § 103.105(a). Damages are capped at $500,000. Id. § 103.105(c). Once a finding is made that a person is entitled to compensation under this chapter, notice is given to the governor, lieutenant governor, and the appropriate committee chairs in the legislature so that the legislature may appropriate the funds to pay compensation. Id. § 103.152(a). Compensation is to be paid no later than September 1 of the year the appropriation is made. Id. § 103.152(b). Even if a person is otherwise entitled to compensation, payments under the statute terminate if the person is convicted of a felony or dies before receiving payment. Id. § 103.154.

Waiver of Sovereign Immunity

In its first issue, the State contends that there is no jurisdiction over Oakley's claim for compensation because the waiver of sovereign immunity contained in chapter 103 does not extend to her suit. Focusing on the filing requirements in section 103.101(b), the State argues that the statute permits a suit only by a person who is "entitled to compensation." See id. § 103.101(b). The State then concludes that Ochoa, not the assignee of his rights, is entitled to compensation as defined by the statute, and, accordingly, there is no waiver of sovereign immunity as to Oakley's suit on behalf of Danziger. See id. § 103.001(a). We agree that the plain language of the statute requires a petition to be filed by a person "entitled to compensation" and that, technically, only Ochoa meets this definition for the purposes of this suit. Thus, the waiver of sovereign immunity may only extend to a suit brought on behalf of Danziger if the common-law notion that an assignee stands in the shoes of the assignor applies to the waiver of sovereign immunity under chapter 103. See Holy Cross Church of Christ v. Wolf, 44 S.W.3d 562, 573 (Tex.2001); Burns v. Bishop, 48 S.W.3d 459, 466 (Tex.App.-Houston [14th Dist.] 2001, no pet.) (axiomatic that assignee walks in shoes of assignor); see also Vermont Agency of Natural Res. v. United States ex rel. Stevens, 529 U.S. 765, 773, 120 S.Ct. 1858, 146 L.Ed.2d 836 (2000) (assignee of claim has standing to assert the injury in fact suffered by assignor). We must determine if this principle of assignment is consistent with the policies underlying chapter 103 and sovereign immunity.

Our supreme court has long held that "no State can be sued in her own courts without her consent, and then only in the manner indicated by that consent." Wichita Falls State Hosp. v. Taylor, 106 S.W.3d 692, 694 (Tex.2003) (quoting Hosner v. De Young, 1 Tex. 764, 769 (1847)); see also Beers v. State, 61 U.S. (20 How.) 527, 529, 15 L.Ed. 991 (1857). Although the concept of sovereign immunity stems from the feudal fiction that "the King can do no wrong," Texas has abandoned that fiction and acknowledged that the purpose of retaining a significant measure of immunity is to protect the public treasury. Wichita Falls State Hosp., 106 S.W.3d at 697. The code construction act confirms that the restrictions on the waiver of sovereign immunity are intended to "preserve the legislature's interest in managing state fiscal matters through the appropriations process." TEX. GOV'T CODE ANN. § 311.034 (West 2005).

In determining whether there is a waiver of sovereign immunity, we are guided by three principles. See University of Tex. Med. Branch at Galveston v. York, 871 S.W.2d 175, 177 (Tex.1994). First, the waiver of governmental immunity is a matter addressed to the legislature. Id. Second, to waive sovereign immunity, a statute must contain a clear and unambiguous expression of the legislature's intent to waive sovereign immunity. TEX. GOV'T CODE ANN. § 311.034; Wichita Falls State Hosp. v. Taylor, 106 S.W.3d at 696; Federal Sign v. Texas S. Univ., 951 S.W.2d 401, 405 (Tex.1997); York, 871 S.W.2d at 177. Third, in accordance with section 311.023 of the code construction act, we must construe the waiver provision to give effect to the object sought to be attained by the statute. York, 871 S.W.2d at 177; see TEX. GOV'T CODE ANN. § 311.023 (West 2005).³ When construing a statute that purportedly waives sovereign immunity, we generally resolve ambiguities by retaining immunity. Wichita Falls State Hosp., 106 S.W.3d at 697. If the text and history of the statute create doubt as to whether the legislature intended to waive sovereign immunity, we are less likely to find a waiver. Id.

The State and the dissent argue that sovereign immunity is not waived as to this suit because chapter 103 does not clearly and unambiguously specify that a suit for wrongful imprisonment may be assigned. We think this misapplies and misunderstands the purpose of the supreme court's language requiring a statute to waive sovereign immunity clearly and unambiguously. Chapter 103 could not be clearer that the State's immunity is waived to allow suit for wrongful imprisonment. The extent of this waiver is also clear: the State can only be sued when there has been a wrongful imprisonment. It is not further required, as the dissent suggests, that the statute mention that a claim may be assigned. Such a holding would ignore the supreme court's teaching that when a statute is silent as to assignability, we must look to the common law, including principles of equity and public policy, to determine whether a claim may be assigned. PPG Indus., Inc. v. JMB/Houston Ctrs. Partners Ltd. P'ship, 146 S.W.3d 79, 87 n. 28 (Tex.2004); Jackson v. Thweatt, 883 S.W.2d 171, 175 (Tex.1994) ("As the statute at hand is silent as to the rights of assignees, we turn to the common law to fill the gap.") (quoting FDIC v. Bledsoe, 989 F.2d 805, 810 (5th Cir.1993)); see also Mobil Oil Corp. v. Ellender, 968 S.W.2d 917, 927 (Tex.1998) (...