Kilgore Independent School District v. Darlene Axberg, John Claude Axberg, Sheila Anderson, and the State of Texas
535 S.W.3d 21
Tex. App.2017Background
- In June 2015, Kilgore ISD’s Board repealed a preexisting local option homestead exemption (LOHE) that had been in effect for the 2014 tax year; repeal occurred two weeks after the legislature passed SB1 (which increased the state homestead exemption and, via §11.13(n-1), barred school districts that had a 2014 LOHE from reducing or repealing it through Dec. 31, 2019).
- SB1 took effect contingent on voter approval of a constitutional amendment (SJR1); voters approved SJR1 in November 2015.
- Homeowners Darlene Axberg, John Claude Axberg, and Sheila Anderson sued KISD, seven individual trustees (official capacities), and Superintendent Cara Cooke (official capacity), seeking declaratory and injunctive relief, a tax refund for allegedly illegally collected taxes, and fees/costs; State intervened on plaintiffs’ behalf.
- Defendants moved to dismiss/plea to jurisdiction raising sovereign immunity, failure to plead/support ultra vires acts, failure to exhaust administrative remedies, educator/official immunity, election-of-remedies, and redundancy.
- The trial court denied the plea/motion; on appeal the court (1) dismissed ultra vires claims against the individual trustees and the superintendent as a matter of law, and (2) otherwise affirmed and remanded the case for further proceedings (finding KISD not immune, no exhaustion required, and election-of-remedies inapplicable).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether trustees’ votes and superintendent’s implementation were ultra vires | Axberg: trustees and Cooke acted beyond authority by repealing LOHE and failing to reinstate it after SB1/SJR1; thus ultra vires claims lie | KISD: votes and superintendent acts were within statutory authority and not ultra vires; ultra vires not adequately pleaded | Court: Votes by trustees as board and superintendent executing board directives are within authority; ultra vires claims against individual trustees and Cooke dismissed |
| Whether KISD is immune from suit (sovereign/governmental immunity) | Axberg: immunity does not bar declaratory/injunctive relief or tax refunds for illegally collected taxes paid under duress | KISD: plaintiffs seek monetary relief; sovereign immunity bars suit for money damages | Court: KISD not immune to declaratory/injunctive challenge to repeal; tax refund claim construed as equitable refund of illegally collected taxes and not barred by immunity |
| Whether plaintiffs were required to exhaust administrative tax remedies before suing | Axberg: not required because case presents pure questions of law and involves alleged ultra vires action/remedy that agency cannot provide | KISD: statutory administrative remedies under Tax Code are mandatory and jurisdictional; plaintiffs failed to exhaust | Court: factual issues undisputed and legal questions; exception to exhaustion applies—no exhaustion required |
| Whether filing against Cooke bars suit against KISD under election of remedies statute | Axberg: claims against district (declaratory) and against officers (ultra vires) are distinct; §37.006 requires governmental entities be parties to validity challenge | KISD: suit against employee in official capacity triggers §101.106(b) and bars suit against governmental unit on same subject unless consent | Court: §101.106(b) inapplicable here because ultra vires claims and declaratory challenge serve different functions; election-of-remedies defense rejected |
Key Cases Cited
- City of El Paso v. Heinrich, 284 S.W.3d 366 (Tex. 2009) (ultra vires suits permit injunctive/declaratory relief against officials and distinguish monetary damages)
- Texas Dept. of Parks & Wildlife v. Miranda, 133 S.W.3d 217 (Tex. 2004) (plea to jurisdiction standards and sovereign immunity principles)
- Hall v. McRaven, 508 S.W.3d 232 (Tex. 2017) (limits on ultra vires claims; errors within authority are not ultra vires)
- City of Houston v. Williams, 216 S.W.3d 827 (Tex. 2007) (suit framed as declaratory seeking payment of money can be barred by sovereign immunity)
- Brennan v. City of Willow Park, 376 S.W.3d 910 (Tex. App.—Fort Worth 2012) (refund of illegally collected taxes paid under duress is equitable and not barred by immunity)
- Kubosh v. Harris County, 416 S.W.3d 483 (Tex. App.—Houston [1st Dist.] 2013) (distinguishing refund claims from money-damages claims for immunity purposes)
- Franka v. Velasquez, 332 S.W.3d 367 (Tex. 2011) (interpretation of §101.106 election-of-remedies in government liability context)