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Volkswagen Group of America, Inc. And Audi of America, Inc. v. John Walker III, in His Official Capacity as Chairman of the Texas Department of Motor Vehicles Board The Honorable Michael J. O'Malley, the Honorable Penny A. Wilkov, in Their Official Capacities as Administrative Law Judges for the State Office
03-15-00285-CV
Tex. App.
Jun 25, 2015
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Background

  • Audi (Volkswagen Group of America, Inc. and Audi of America, Inc.) appealed the trial court’s dismissal of its ultra vires suit challenging TxDMV/SOAH administrative actions and later sought emergency temporary relief from this Court to enjoin further SOAH/TxDMV proceedings.
  • Trial court denied Audi’s prior temporary restraining requests, granted defendants’ pleas to the jurisdiction, and dismissed the case; Audi then filed a notice of appeal and subsequently sought injunctive relief in this Court.
  • Appellee John Walker (Chairman of TxDMV) opposes emergency relief, arguing the requested injunction is improper because Audi has adequate administrative and appellate remedies.
  • Walker contends the administrative remand and SOAH’s reopening were within TxDMV/SOAH statutory authority, not ultra vires, so sovereign immunity bars Audi’s suit and dismissal was proper.
  • Walker argues injunctive relief is discretionary and not warranted where (1) the appeal challenges a final dismissal based on jurisdiction, (2) administrative orders can be reviewed after a final agency action, and (3) temporary relief would improperly bypass statutory judicial-review remedies.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether this Court should issue emergency injunctive relief to halt SOAH/TxDMV proceedings Audi: Without an injunction, administrative actions could moot its appeal and deprive meaningful relief Walker: Audi has adequate remedies (rehearing, judicial review after final agency order); injunction unnecessary and improper Deny injunction; appellate remedy adequate, injunction inappropriate
Whether Rule 29.3 / Rule 43.6 authorize the requested temporary relief Audi: Seeks relief under appellate rules to protect jurisdiction Walker: Rule 29.3 applies to interlocutory appeals; rules do not support requested injunctive order here Rules inapplicable to this final-judgment appeal; relief not supported by those rules
Whether the requested relief is necessary to preserve this Court’s jurisdiction Audi: Administrative action may render appeal moot Walker: Court’s jurisdiction over the jurisdictional dismissal is unaffected by administrative proceedings; best remedy is remand or review after final agency action Court should not enjoin merely to preserve status quo; jurisdiction preserved without injunction
Whether Walker/SOAH acted ultra vires (allowing suit despite sovereign immunity) Audi: Board/Walker exceeded authority by remanding/reopening Walker: Remand/reopening are within TxDMV/SOAH statutory discretion; not ultra vires; sovereign immunity applies Actions not ultra vires; dismissal for lack of jurisdiction was proper

Key Cases Cited

  • In re Prudential Ins. Co. of Am., 148 S.W.3d 124 (Tex. 2004) (an adequate appellate remedy bars extraordinary writ relief)
  • In re Masonite Corp., 997 S.W.2d 194 (Tex. 1999) (delay/expense does not render appellate remedy inadequate)
  • Becker v. Becker, 639 S.W.2d 23 (Tex. App.—Houston [1st Dist.] 1982, no writ) (court’s inherent power to preserve jurisdiction via injunction is discretionary)
  • Pendleton Green & Assocs. v. Anchor Sav. Bank, 520 S.W.2d 579 (Tex. App.—Corpus Christi 1975, no writ) (temporary relief must relate to appeal’s subject matter)
  • City of El Paso v. Heinrich, 284 S.W.3d 366 (Tex. 2009) (ultra vires doctrine requires action beyond statutory authority or refusal of purely ministerial duty)
  • Coastal Habitat Alliance v. Pub. Util. Comm’n, 294 S.W.3d 276 (Tex. App.—Austin 2009, no pet.) (errors in agency procedure do not make action ultra vires)
  • Friends of Canyon Lake, Inc. v. Guadalupe-Blanco River Auth., 96 S.W.3d 519 (Tex. App.—Austin 2002, pet. denied) (agency action is ultra vires only if entirely outside statutory jurisdiction)
  • Madison v. Martinez, 42 S.W.2d 84 (Tex. Civ. App.—Dallas 1931, writ ref’d) (injunction unavailable to bar an administrative remedy that can be reviewed after a final order)
  • Smith v. Abbott, 311 S.W.3d 62 (Tex. App.—Austin 2010, pet. denied) (procedural path for judicial review of agency final orders)
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Case Details

Case Name: Volkswagen Group of America, Inc. And Audi of America, Inc. v. John Walker III, in His Official Capacity as Chairman of the Texas Department of Motor Vehicles Board The Honorable Michael J. O'Malley, the Honorable Penny A. Wilkov, in Their Official Capacities as Administrative Law Judges for the State Office
Court Name: Court of Appeals of Texas
Date Published: Jun 25, 2015
Docket Number: 03-15-00285-CV
Court Abbreviation: Tex. App.