366 S.W.3d 751
Tex. App.2012Background
- Accountants Bass, Bauer, and Grutzmacher were former Arthur Andersen employees who audited Enron in 1997–1998.
- Texas State Board of Public Accountancy pursued disciplinary actions against them after Enron's collapse.
- ALJs at SOAH issued proposals for decision finding serious audit errors but recommending limited sanctions.
- Board held four public meetings, with executive sessions to seek counsel; final orders issued after deliberations.
- Board reversed ALJs on some points and imposed sanctions: revocation for Bass and Bauer, three-year probated suspension for Grutzmacher.
- Accountants sued for judicial review, including a TOMA claim alleging illegal closed sessions and voidable orders; trial court granted partial summary judgment for accountants on the TOMA claim, voiding the orders and enjoining re-prosecution.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the final orders were voidable under TOMA. | Bass contends final orders were void due to improper closed sessions. | Board contends open-session votes cured any issues and orders were valid. | No voidable final action; Board's open-session votes cured the defect. |
| Whether permanent injunction against future action was appropriate. | Accountants seek ongoing injunction to stop any further action. | Board argues no ongoing violation justifies injunction. | Injunction reversed; no ongoing or prospective TOMA violation established. |
| Whether the executive sessions violated the attorney-consultation exception. | Accountants argue sessions violated 551.071 and privilege prohibiting the final action. | Board contends sessions were authorized under the exception. | Dispositive issue not resolved for voiding orders; Board's open-session votes control. |
Key Cases Cited
- Weatherford v. City of San Marcos, 157 S.W.3d 473 (Tex.App.-Austin 2004) (voidability limited to final actions; open vote can validate later steps)
- Olympic Waste Servs. v. City of Grand Saline, 204 S.W.3d 496 (Tex.App.-Tyler 2006) (open-session vote not voidable despite closed-session merits discussion)
- Burks v. Yarbrough, 157 S.W.3d 876 (Tex.App.-Houston [14th Dist.] 2005) (closed-session issues did not void subsequent payments or actions)
- Gonzalez v. United Indep. Sch. Dist., 911 S.W.2d 118 (Tex.App.-San Antonio 1995) (no TOMA violation when final vote occurred in open session after alleged closed-session violations)
- Board of Trustees v. Cox Enters., Inc., 679 S.W.2d 86 (Tex.App.-Texarkana 1984) (actual resolution must occur in public; open-session final action governs)
- City of San Antonio v. Fourth Ct. of Appeals, 820 S.W.2d 762 (Tex.1991) (public access goals; exceptions exist for confidential attorney communications)
