Supreme Court Enjoins Enforcement of Agency's Data-Collection Method

The Texas Supreme Court issued one opinion with this week's orders.  In El Paso Hospital District v. Texas Health & Human Services Commission (No. 05-0372), the Court granted the District's motion for rehearing, withdrew the opinion issued on August 31, 2007, and substituted another in its place.

In both instances, the Court held that HHSC's February 28 cutoff for gathering data for Medicaid patients was an agency rule and, because HHSC did not follow proper rule-making procedures, declared the rule invalid.  Originally, the Court "remanded the rule to [HHSC ] for further action."  But the Court acted more decisively in the opinion on rehearing,"revers[ing] the court of appeals' judgment and render[ing] judgment declaring the rule invalid and enjoining its enforcement."

In light of its new disposition, the Court remanded the case to the trial court for further proceedings, specifically a review of individual claims data excluded by the February 28 cutoff.

This Week's Supreme Court Orders & Opinions

The Texas Supreme Court issued two decisions with this week's orders:

In Igal v. Brightstar Information Technology Group, (No. 04-0931), the Court held that the Texas Workforce Commission's final adjudication denying recovery of wages under the Texas Payday Law's administrative procedure bars a subsequent common-law claim for the same wages in state court.  Justice Brister (joined by Chief Justice Jefferson and Justices O'Neill and Medina) dissented.

In Morales v. Liberty Mutual Insurance Co. (No. 05-0754), the Court concluded that a proceeding before a Texas Workers' Compensation Commission appeals panel involved whether a worker's widow had suffered a "compensable" injury that entitled her to pursue workers' comp benefits and bring suit in her home county.  The Court reversed the court of appeals' judgment, which affirmed the trial court's judgment of dismissal, and remanded to the trial court for further proceedings.

This Week's Supreme Court Orders & Opinions

The Texas Supreme Court handed down six decisions with this week's orders.

In Mid-Century Insurance Co. v. Ademaj (No. 05-0016), a declaratory judgment action, the Court held that insurers may lawfully collect Texas Automobile Theft Prevention Authority fees from auto insurance policyholders without including such fees in rate filings required under Article 5.101 of the Insurance Code.  Because the trial court and court of appeals concluded otherwise, the supreme court reversed and rendered judgment that plaintiff take nothing.  Justice O'Neill (joined by Justice Medina) issued a concurring opinion.

In Houston Municipal Employees Pension System v. Ferrell (No. 05-0587), the Court held that 29 members of the Pension System could not bring a declaratory judgment action to adjudicate their rights under the statute that created the System.  Because the statute expressly provides that the administrative agency's interpretation is "final and binding on any interested party," the Court held that the trial court lacked jurisdiction over the case, reversed the court of appeals' judgment, and dismissed for want of jurisdiction.  Justice Brister (joined by Justice O'Neill) concurred.

In Montgomery County, Texas v. Park (No. 05-1023), the Court defined an "adverse" personnel action under the Texas Whistleblower Act (which provides no definition) as one that "would be likely to dissuade a reasonable, similarly situated worker from making a report under the Act."  Concluding thatplaintiff failed to meet that definition, the Court reversed the court of appeals' judgment and rendered judgment for the County.

In Ogletree v. Matthews (No. 06-0502), the Court determined that a defendant in a health-care liability action has no right to an immediate interlocutory appeal when the trial court denies a motion to dismiss and grants the claimant a 30-day extension of time to cure defects in otherwise timely served expert reports.  Because the court of appeals reached the same conclusion, the supreme court affirmed the lower court's judgment.  Justice Willett delivered a concurring opinion.

In Best Buy Co. v. Barrera (No. 07-0028) (per curiam), a class action in which plaintiffs sought return of restocking fees, the Court followed its recent decision in Stonebridge Life Insurance Co. v. Pitts andconcluded that individual issues will predominate over common issues of proof.  Holding that plaintiffs thus failed to satisfy TRCP 42(b)(3)'s predominance requirement, the Court reversed the court of appeals' judgment affirming the class-certification order and remanded the case to the trial court.

In In re McKee (No. 06-0055) (orig. proceeding) (per curiam), the Court denied a mandamus petition seeking to invalidate an administrative judge's assignment of one trial judge to hear a recusal motion involving another trial judge when the administrative judge had previously recused himself from the case.  Noting that it had previously declined mandamus relief from the denial of a recusal motion, the Court applied the updated Prudential standard and concluded that there would be no significant benefit to granting relief in this case.

Jurisdiction Vested When Administrative Period Expired

In Wallace v. Texas Department of Health, the Third Court of Appeals has held that the trial court acquired subject-matter jurisdiction over a prematurely filed Texas Commission on Human Rights Act claim when the statutory administrative period ended.  Under the statute, the Commission had exclusive jurisdiction over the dispute until 180 days after the employee filed his administrative complaint or until he received a right-to-sue letter from the Commission.  The appellate court reversed the trial court's judgment granting the Texas Department of Health's plea to the jurisdiction after concluding that the employee was not required to dismiss and re-file his lawsuit before jurisdiction could vest in the district court.