Texas Alcoholic Beverage Com'n v. Sfair

Decision Date31 January 1990
Docket NumberNo. 04-88-00343-CV,04-88-00343-CV
Citation786 S.W.2d 26
CourtTexas Court of Appeals
PartiesTEXAS ALCOHOLIC BEVERAGE COMMISSION, Appellant, v. George SFAIR, Mike Sfair Individually and d/b/a Sfair, Appellees.

Karen D. Matlock, Asst. Atty. Gen., Austin, for appellant.

Charles J. Lieck, Jr., San Antonio, for appellees.

Before REEVES, CHAPA and CARR, JJ.

ON APPELLANT'S MOTION FOR REHEARING

PER CURIAM.

This court's opinion of November 8, 1989, is withdrawn and the following opinion is substituted.

Appellant, Texas Alcoholic Beverage Commission (TABC), appeals the trial court's judgment which reversed the Commission's decision.

George and Michael Sfair, the owners of a neighborhood club known as Sfair's, hold a mixed beverage permit and a mixed beverage late hours permit. On December 6, 1986, Sfair's and its bartender, Laura Bennett Carpenter, were cited by TABC agents for serving an alcoholic beverage after 2:00 a.m. and for permitting consumption of an alcoholic beverage after 2:15 a.m. A hearing was held before a hearing officer for the TABC, who filed proposed findings and a recommendation that the Sfairs' permits be suspended for seven days or that the Sfairs pay a civil penalty of $1,050.00 in lieu of the suspension. The Sfairs appealed this decision to the district court.

After a hearing and review of the agency findings, the trial court reversed the Commission's ruling and set it aside. The TABC appeals the trial court's judgment to this court.

The dispositive issue we have before us is one of the trial court's jurisdiction. The TABC, in its motion for rehearing before this court, asserts that the Sfairs failed to timely perfect their appeal to the district court and that, therefore, the trial court had no jurisdiction. This is the first time that the question of jurisdiction has been raised. The general rule is that points of error raised for the first time in a motion for rehearing are too late and will not be considered. Watson v. Glens Falls Ins. Co., 505 S.W.2d 793, 797 (Tex.1974); Great Commonwealth Life Ins. Co. v. Olton State Bank, 607 S.W.2d 604, 608 (Tex.Civ.App.--Amarillo 1980, no writ). However, fundamental error may be raised for the first time in a motion for rehearing. City of Arlington v. Bardin, 478 S.W.2d 182, 191 (Tex.Civ.App.--Fort Worth 1972, writ ref'd n.r.e.); Trevino v. Gonzalez, 749 S.W.2d 221, 226-27 (Tex.App.--San Antonio 1988, writ denied). The assumption of jurisdiction where none exists is fundamental error and may be raised for the first time on appeal. McCauley v. Consol. Underwriters, 157 Tex. 475, 304 S.W.2d 265, 266 (1957).

In order to consider this point, we must set out a few more facts concerning the procedural history of this case. On September 1, 1987, the TABC held its hearing. The Commission entered its first order, imposing penalties against the Sfairs, on October 22, 1987. The Sfairs filed their motion for rehearing on November 4, 1987. The Commission overruled the Sfairs' motion for rehearing by written order signed November 10, 1987. On its own motion, almost two weeks after it had overruled the Sfair's motion for rehearing, the Commission entered a written order granting rehearing of the cause and the parties entered into written stipulations of facts. The examiner held a second hearing on February 5, 1988. On April 19, 1988, the Commission entered a new order adopting the hearing examiner's first amended proposal and assessed the same punishment as in the original order. The Sfairs' filed a motion for rehearing on this order on April 29, 1988.

According to the Administrative Procedure and Texas Register Act (APTRA) (TEX.REV.CIV.STAT.ANN. art. 6252-13a (Vernon Supp.1990)), the Commission timely entered its first order on October 22, 1987. The Sfairs' first motion for rehearing was timely filed and overruled by the Commission. Under the APTRA, the overruling of the motion by written order triggered the Sfairs' appellate timetable. TEX.REV.CIV.STAT.ANN. art. 6252-13a, sec. 16(c) (Vernon Supp.1990). This section of the Act provides:

(c) A decision is ... final and appealable on the date of rendition of the order overruling the motion for rehearing....

Thus, the Sfairs' petition was due to be filed in the district court on December 10, 1987: within thirty days after the decision is final and...

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