Ac Interests, L.P., Formerly American Coatings, L.P. v. Texas Commission on Environmental Quality
543 S.W.3d 703
Tex.2018Background
- AC Interests timely filed a petition in Travis County seeking judicial review of the Texas Commission on Environmental Quality’s denial of emission-reduction credits, but served citation on the Commission 58 days after filing (statute required service within 30 days).
- Texas Health & Safety Code § 382.032 provides the appeal procedure: a person "may" appeal by filing a petition (a), the petition "must be filed within 30 days" (b), and citation "must be accomplished within 30 days" after filing (c); later subsections impose duties to prosecute with diligence and allow dismissal if abandoned.
- The primary legal question is whether subsection (c)’s 30-day service-of-citation requirement is mandatory (a condition precedent that bars the appeal if not met) or directory (non-jurisdictional, no automatic bar).
- The dissenting opinion (Justice Boyd) argues that the Code Construction Act defines "must" as creating a condition precedent, that service of citation is jurisdictional and constitutionally required, and that failure to comply should result in dismissal of the appeal.
- The dissent emphasizes textual/contextual clues: the Legislature’s use of "may/must/shall," the absence of a good-cause exception for filing or service (but existence of one later), statutory aims of prompt review, and principles favoring strict construction of waivers of sovereign immunity.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether §382.032(c)’s 30-day service-of-citation requirement is mandatory (condition precedent) such that late service bars judicial review | AC Interests contends timely filing satisfied the appeal prerequisite and late service should not bar the appeal; filing alone is enough to "appeal" under (a) | TCEQ (and dissent) argue §382.032(c)’s "must" creates a condition precedent; timely service is jurisdictional and failure requires dismissal | Justice Boyd (dissent) would hold the service deadline is mandatory and failure to meet it bars the appeal (dissenting position summarized here) |
Key Cases Cited
- Centex Corp. v. Dalton, 840 S.W.2d 952 (Tex. 1992) (definition and effect of a condition precedent)
- Chisholm v. Bewley Mills, 287 S.W.2d 943 (Tex. 1956) (no absolute test for mandatory vs. directory provisions)
- Helena Chem. Co. v. Wilkins, 47 S.W.3d 486 (Tex. 2001) (consider plain meaning, whole act, object, and consequences when deciding mandatory vs. directory)
- Edwards Aquifer Auth. v. Chem. Lime, Ltd., 291 S.W.3d 392 (Tex. 2009) (absence of penalty does not automatically render "must" directory)
- Albertson’s, Inc. v. Sinclair, 984 S.W.2d 958 (Tex. 1999) (when silent on consequences, look to statute’s purpose)
- Wilson v. Dunn, 800 S.W.2d 833 (Tex. 1990) (service of citation essential to confer district court jurisdiction)
- Crosstex Energy Servs., L.P. v. Pro Plus, Inc., 430 S.W.3d 384 (Tex. 2014) (avoid interpretations that render statutory language meaningless)
- BankDirect Capital Fin., LLC v. Plasma Fab, LLC, 519 S.W.3d 76 (Tex. 2017) (statutory time periods typically do not permit substantial compliance)
- McKanna v. Edgar, 388 S.W.2d 927 (Tex. 1965) (strict compliance required for service rules; failure invalidates attempted service)
