561 S.W.3d 146
Tex.2018Background
- Occidental Chemical and affiliated companies (Oxy) own two permanent commercial piers built from San Patricio County shoreline extending into Corpus Christi Bay (Nueces County), used for loading tankers.
- Both San Patricio County and Nueces County have assessed ad valorem taxes on the same piers for years; Oxy paid under protest seeking refunds.
- Longstanding boundary litigation between the counties (dating to 1972) produced a 2003 judgment fixing the boundary at the shoreline (mean lower low tide) and stating that past and future natural and artificial shoreline modifications belong to San Patricio County.
- The Legislature enacted Tex. Loc. Gov’t Code §72.010 (2017) authorizing property owners affected by overlapping taxing boundaries to file original suits in the Texas Supreme Court to fix boundaries and determine which taxing unit is owed taxes, with a 90-day decision deadline.
- Oxy filed an original mandamus petition under §72.010 asking the Supreme Court to determine which county is owed taxes on the piers; Nueces County challenged the Court’s jurisdiction and the statute’s constitutionality.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Supreme Court has original jurisdiction under §72.010 to decide which county is owed taxes | §72.010 validly confers original jurisdiction; mandamus/declaratory relief appropriate to stop double taxation | Nueces: statute exceeds Art. V §3(a) limits (Love factors), requires fact findings, and is an improper delegation | Court: original jurisdiction proper under Love and Allcat; case raises legal questions and urgent public interest—jurisdiction sustained |
| Whether §72.010 is unconstitutionally retroactive or impairs Nueces’s rights | Oxy: statute is jurisdictional and remedial, addressing an ongoing double-taxation problem | Nueces: statute impairs vested right to continue litigating in Refugio County and overturns prior judgments | Court: Robinson test and precedent permit jurisdictional statutes to apply to pending litigation; no unconstitutional retroactivity found |
| Whether Oxy’s piers are part of San Patricio County (thus taxes owed to San Patricio) | Piers are artificial shoreline-related improvements appurtenant to upland; common law littoral/riparian rights make piers part of the land county | Nueces: 2003 judgment concerned shoreline location, not man-made structures; piers do not alter county boundary and private improvements don’t change boundaries | Court: Piers treated as part of the upland (San Patricio) under common law and the 2003 judgment’s shoreline boundary; taxes owed to San Patricio |
| Whether taxing authorities’ collection in reliance on statutes precludes mandamus/refund | Oxy: even if officials relied on statutes, they lacked authority to tax; mandamus is appropriate to compel refunds | Nueces: enforcement of tax statutes was a mistake, not ultra vires; mandamus inappropriate | Court: Reliance on statute does not prevent mandamus if statute provides no legal authority; mandamus available and relief ordered |
Key Cases Cited
- Love v. Wilcox, 28 S.W.2d 515 (Tex. 1930) (sets limitations on Legislature’s power to confer original jurisdiction on the Supreme Court)
- In re Allcat Claims Serv., L.P., 356 S.W.3d 455 (Tex. 2011) (upheld legislative grant of original jurisdiction for tax-related constitutional challenge and permitted correlative injunctive/declaratory relief)
- Robinson v. Crown Cork & Seal Co., 335 S.W.3d 126 (Tex. 2010) (adopted multi-factor test for retroactivity challenges)
- Univ. of Tex. Sw. Med. Ctr. v. Estate of Arancibia, 324 S.W.3d 544 (Tex. 2010) (jurisdictional statutes affecting court power may apply to pending cases)
- In re Nestle USA, Inc., 387 S.W.3d 610 (Tex. 2012) (post-Allcat tax-related challenges and relief analysis)
- City of Corpus Christi v. Davis, 622 S.W.2d 640 (Tex. App.—Austin 1981, writ ref’d n.r.e.) (discusses littoral rights and appurtenance of wharves/piers to upland)
- City of Galveston v. Menard, 23 Tex. 349 (Tex. 1859) (recognizes riparian/littoral owner rights to construct wharves and piers)