in Re Sustainable Texas Oyster Resource Management, L.L.C.
575 S.W.3d 339
| Tex. | 2019Background
- Chambers–Liberty Counties Navigation District (the District) obtained by State patents ~23,000 acres of submerged land in Galveston Bay and later leased most of it to Sustainable Texas Oyster Resource Management, L.L.C. (STORM) to cultivate, harvest, and protect oysters.
- The Lease granted STORM broad rights (to deposit shell/rock, plant/harvest oysters, mark beds, post "No Trespass" notices) and was interpreted to give STORM exclusive farming rights over the leased submerged lands.
- The Texas Parks and Wildlife Department (the Department) issues oyster "certificates of location" and regulates oyster beds under Chapter 76 of the Parks & Wildlife Code; oyster-bearing waters and bottoms are state property.
- The State sued the District, its Commissioners (official-capacity), and STORM seeking (1) a declaratory judgment that the Lease is void as ultra vires and (2) monetary relief ("restitution") under Parks & Wildlife Code §§ 12.301 and 12.303.
- Trial court denied the District’s plea to the jurisdiction; the court of appeals allowed the State to pursue both money damages against the District and an ultra vires claim against the Commissioners (but not the District); the Supreme Court granted review.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Parks & Wildlife Code §§ 12.301/.303 waive the District’s governmental immunity to allow monetary recovery by the State | §12.301’s reference to "person" (and Code Construction Act definition) includes governmental subdivisions, so immunity is waived | Section 311.034 requires clear, unambiguous waiver; §12.301 can reasonably be read to apply only to private entities, so no waiver | No waiver; immunity bars the State’s monetary/restitution claim against the District |
| Whether the State can obtain monetary relief (retroactive) from a political subdivision in a regulatory enforcement action | State seeks "restitution" as regulatory enforcement, not ordinary damages—thus not barred | Retroactive monetary relief against a government is barred absent legislative consent, whether called restitution or damages | Retrospective monetary relief (including restitution) is barred by governmental immunity |
| Whether an ultra vires claim may be maintained against the District entity itself | State sought ultra vires declaratory relief against the District | Governmental entity remains immune; ultra vires claims lie against officials in official capacity | Ultra vires claim against the District entity is barred; cannot proceed against the District itself |
| Whether the Commissioners acted ultra vires by entering the Lease (and thus can be enjoined) | The Department has exclusive statutory authority to regulate oysters; Commissioners exceeded authority by granting exclusive oyster rights via lease | District cites general lease and land powers, fee-simple ownership of submerged land, and that its enabling statutes authorize leasing | The State adequately pleaded that Commissioners exceeded statutory authority; ultra vires claim against Commissioners may proceed for prospective relief |
Key Cases Cited
- Travis Cent. Appraisal Dist. v. Norman, 342 S.W.3d 54 (Tex. 2011) (distinguishes sovereign vs. governmental immunity principles)
- Tooke v. City of Mexia, 197 S.W.3d 325 (Tex. 2006) (governmental immunity framework)
- Reata Constr. Corp. v. City of Dallas, 197 S.W.3d 371 (Tex. 2006) (policy reasons for immunity; protection from monetary suits)
- City of Galveston v. State, 217 S.W.3d 466 (Tex. 2007) (State suing political subdivision does not negate immunity)
- Rolling Plains Groundwater Conservation Dist. v. City of Aspermont, 353 S.W.3d 756 (Tex. 2011) (statutory "person" does not automatically waive immunity under §311.034)
- City of El Paso v. Heinrich, 284 S.W.3d 366 (Tex. 2009) (ultra vires doctrine allows suits against officials for actions beyond authority; only prospective relief)
- Hall v. McRaven, 508 S.W.3d 232 (Tex. 2017) (limits on ultra vires claims where official acts pursuant to delegated discretion)
- Houston Belt & Terminal Ry. v. City of Houston, 487 S.W.3d 154 (Tex. 2016) (official acts beyond granted discretion are not immune)