Michael Morath, in His Official Capacity as Texas Commissioner of Education And Michael Berry, in His Official Capacity as Deputy Commissioner of Education v. Progreso Independent School District, 03-16-00254-CV

Background

Following 2013 FBI arrests of district employees and a trustee for a bribery/kickback scheme, TEA conducted a Special Accreditation Investigation (SAI) of Progreso ISD (PISD) that found pervasive financial-control and governance failures.
TEA appointed a management team (conservators) in 2014 to oversee PISD; the team issued quarterly reports recommending continued oversight and, eventually, appointment of a board of managers.
A second SAI (2015) concluded systemic governance breakdown and recommended lowering PISD’s accreditation and appointing a board of managers; the Commissioner lowered PISD’s 2014–2015 accreditation to “accredited-warned” and ordered a board of managers and new superintendent.
PISD sought informal and formal review administratively; the Commissioner affirmed his decisions, which he and TEA rules characterized as final and unappealable.
PISD sued in state district court for declaratory and injunctive relief, alleging the Commissioner acted ultra vires in lowering accreditation and appointing a board of managers; the trial court denied the Commissioner’s plea to the jurisdiction.
The court of appeals reversed, holding PISD’s ultra vires claims were jurisdictionally barred because they sought retrospective relief undoing final, unappealable administrative actions.

Issues

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether PISD may pursue ultra vires relief against the Commissioner for lowering accreditation and appointing a board of managers	The Commissioner lacked statutory/regulatory authority to lower the 2014–15 accreditation or impose a board of managers; his actions were ultra vires	Actions were within the Commissioner’s statutory and regulatory authority; claims are barred by sovereign immunity	Court held PISD’s claims were jurisdictionally barred because they sought retrospective relief undoing final, unappealable administrative acts
Whether an ultra vires claim can be used to obtain retrospective relief against a final administrative decision	Ultra vires doctrine can remedy unlawful official action regardless of finality	Ultra vires relief must be prospective; courts cannot undo final decisions made unappealable by statute or rule	Court held ultra vires claims cannot be used to undo final, unappealable executive decisions; PISD sought retrospective relief and thus lacked jurisdiction
Whether the Commissioner’s determinations were reviewable despite statutory language making them final and unappealable	Statutory/regulatory text cited by the Commissioner does not authorize his actions for the 2014–15 year	Statute and TEA rules make accountability decisions final and unappealable, precluding judicial review	Court relied on precedent that the Legislature’s finality provisions bar judicial challenges absent a manifest and irreconcilable conflict; therefore no review
Whether the trial court abused its discretion by granting a temporary injunction against the Commissioner	Injunctive relief was necessary to prevent irreparable harm from the Commissioner’s alleged ultra vires acts	Injunction improperly sought to retroactively undo final administrative actions; jurisdictional bar	Court concluded injunction sought retrospective relief tied to final actions and was jurisdictionally improper; dismissed claims

Key Cases Cited

Houston Belt & Terminal Ry. Co. v. City of Houston, 487 S.W.3d 154 (Tex. 2016) (ultra vires doctrine and sovereign-immunity principles)
City of Austin v. Utility Assocs., Inc., 517 S.W.3d 300 (Tex. App.—Austin 2017) (elements required for ultra vires suits)
City of El Paso v. Heinrich, 284 S.W.3d 366 (Tex. 2009) (official-capacity pleading requirement for ultra vires claims)
Texas Educ. Agency v. American Youthworks, Inc., 496 S.W.3d 244 (Tex. App.—Austin 2016) (claims seeking undoing of final Commissioner action are jurisdictionally defective)
Morath v. Sterling City Indep. Sch. Dist., 499 S.W.3d 407 (Tex. 2016) (Commissioner decisions made final by statute are beyond judicial review)
Texas Parks & Wildlife Dep’t v. Sawyer Trust, 354 S.W.3d 384 (Tex. 2011) (limitations on remedies against the State and related immunity principles)
Klumb v. Houston Mun. Emps. Pension Sys., 458 S.W.3d 1 (Tex. 2015) (will not permit judicial challenge to executive action made final by statute absent manifest conflict)