OPINION
The City of New Braunfels appeals a final judgment from the district court striking down, as unconstitutional, the so-called “Disposable Container Ordinance” (a/k/a “Can Ban”) and a portion of the “Cooler and Container Ordinance.” The City argues chiefly that.the district court lacked subject-matter jurisdiction to decide the legal challenges that have been brought against the ordinances. Although this Court previously rejected jurisdictional arguments raised by the City at earlier junctures in this case, the City’s arguments now—which emphasize historical limitations on the power of civil courts to decide challenges to penal laws—differ from those that were the primary focus of the earlier appeals. Based on the Texas Supreme Court’s most recent binding precedents regarding limitations on civil court jurisdiction to decide challenges to penal laws, we must reverse and render judgment dismissing the challenges for want of subject-matter jurisdiction.
BACKGROUND
This appeal arises from the continuation of the underlying disputes and litigation that gave rise to the interlocutory appeals addressed in Stop The Ordinances Please v. City of New Braunfels,
In STOP I, the appeal was from a dis- ■ trict-court order granting the City’s plea challenging the standing of the plaintiffs in regard to ordinances that included the Cooler & Container Ordinance but not the Disposable Container Ordinance, which had not yet been enacted. The plaintiffs at that time included the current appellees— Stop the Ordinances Please (STOP), “ ‘an unincorporated association of business owners and other parties interested in the use and enjoyment of the Comal and Guadalupe Rivers which flow within the corporate city limits of the City of New Braun-fels’
After the case was remanded to district court, the surviving plaintiffs filed an amended petition that incorporated their claims challenging the cooler-size restriction in the Cooler & Container Ordinance, added largely parallel claims challenging the Disposable Container Ordinance (which had been enacted in the meantime), and attempted to plead an alternative standing theory whereby the plaintiffs purported to restrain the City from “illegally expending taxpayer funds to exert its police powers to enforce city ordinances that violated the Constitution of the State of Texas.”
After the case was remanded to district court, the parties conducted discovery and then presented competing motions for summary judgment with evidence that included affidavits and deposition excerpts. The City’s summary-judgment grounds included both new challenges to jurisdiction and challenges on the merits. After a hearing, the district court signed an order granting appellees’ motion for summary judgment, denying the City’s motion for summary judgment, granting a permanent injunction, and rendering judgment awarding declaratory relief and attorney’s fees,
• The “Disposable Container Ordinance” and that part of the “Cooler Ordinance” “that limits the size of coolers” “unconstitutional and void”; and
• The City “is illegally expending taxpayer funds to enforce the Ordi-’ nances.”
The district court also permanently enjoined the City from enforcing, spending public funds, or collecting fines or any other penalties as to the Disposable Container Ordinance and the cooler-size restriction in the Cooler & Container Ordinance. This appeal followed.
ANALYSIS
In the City’s first issue, it again challenges—albeit while emphasizing limitations different than the standing issues addressed in Stop I and Stop II—whether the district court possessed subject-matter jurisdiction over appellees’ claims challenging the validity of the Disposable Container Ordinance and the cooler-size restriction in the Cooler & Container Ordinance. Whether a court has subject-matter jurisdiction is a question of law that we review de novo,
The jurisdictional challenge that the City now emphasizes is based on longstanding principles that generally permit Texas courts to adjudicate challenges to the validity of penal enactments only in the context of criminal proceedings.
There is no dispute that both the Disposable Container and Cooler & Container ordinances are considered to be “penal” in nature—any person who violates the challenged prohibitions in the ordinances commits a misdemeanor offense and is subject to a fine.
“Property rights are created and defined by state law,”
This Court recognized as much in both STOP I and STOP II. Although the primary focus of the parties’ arguments and our opinions was the constitutional standing of the claimants,
Moreover, applying similar reasoning, this Court has also held that a fireworks vendor had no “vested property right” in the sale of its wares, so as to permit it to bring a declaratory-judgment action challenging a countywide burn ban (in Comal ■ County, it happens) that had criminalized the vendor’s sale, distribution, or use of fireworks.
Although Williams remains a party, ap-pellees do not contend at this juncture that he has suffered any irreparable injury to his vested property rights, so as to come within the exception. They rely instead on asserted injury to the “vested property rights” of the appellees that are engaged in the business of selling “disposable containers,” selling or renting coolers, or otherwise providing goods or services to river-bound customers. Their theory is not that they possess a “vested property right” to sell their wares, per se, that has been infringed by the ordinances, but that the ordinances inflict a broader range of economic harm to the value of their inventory and other business assets. Appellees emphasize evidence to the effect that the value of the businesses, real property, and inventory are tied to their locations near the rivers and the level of consumer demand from river-bound customers. They point to proof of lost sales of the coolers or disposable containers that the ordinances restrict, “loss of a customer base that diminishes their ability to sell or rent those items that are not otherwise restricted by the ordinance,” and “diminish[ed] value of the real property in that the restrictions are effective in driving away tourists, the mainstay of [appellees]’ trade.”
Appellees’ arguments emphasize a historical relationship between the requirement that a penal enactment threaten “irreparable injury to vested property rights” and the perceived “adequacy” of the alternative remedy of violating the enactment and raising invalidity as a defense in the criminal prosecution that follows.
This line of cases originated with an 1894 decision of the Texas Supreme Court, City of Austin v. Austin City Cemetery Association.
The supreme court determined that the ordinance caused the cemetery “irreparable injury” because “the effect of the ordinance is such that if its enforcement be not restrained it may result in a total destruction of the value of [the cemetery’s] property for the purpose for which it was acquired.”
Subsequently, in a 1988 case, Smith v. Decker, the Texas Supreme Court reached a similar holding with respect to an injunc-tive claim challenging a penal law requiring bail bondsmen practicing in certain geographic areas to obtain a license from the State.
Relying on Austin City Cemetery Association, some of our sister courts have since held that courts have jurisdiction to entertain equitable or declaratory claims challenging the constitutionality of penal laws when predicated on somewhat lesser economic harms to a business, such as the inability to sell a particular product or at a particular location, at least where the law (as in Austin City Cemetery Association) proscribes conduct of both the business and its customers. These cases have included a challenge brought by the owner of a sexually oriented business to local penal regulations that effectively banned possession or consumption of alcoholic beverages in his establishment,
In appellees’ view, this line of cases “demonstrate[s] that, for the past 100 years, Texas courts have found that an adverse economic impact on a business constitutes harm to a vested property right,” at least in circumstances where the business lacks an adequate remedy through criminal proceedings due to the deterrent effect on customers. In this regard, they suggest that the key consideration in Austin City Cemetery Association
But as the City urges, appellees must also grapple with the implications of the Texas Supreme Court’s intervening decision in State v. Morales. That case concerned a 1990s-era suit for injunctive and declaratory relief seeking to invalidate, on constitutional grounds, Texas’s criminal law proscribing sodomy.
The Morales court began by emphasizing “[t]he long-standing limitation on equity jurisdiction” that constrains power to construe a criminal statute only to “narrow circumstances.”
(1) the statute is enforced and the party is being prosecuted;
(2) the statute is enforced and the threat of prosecution is imminent, although the party has yet to be prosecuted;
(3) there is no actual or threatened enforcement of the statute and the party does not seek an injunction against its enforcement, but the statute is nonetheless integrally related to conduct subject to the court’s equity jurisdiction; or
(4)there is. no actual or threatened enforcement of the statute and no complaint of specific conduct remediable by injunction.71
In the first two categories of cases, according to the Morales court, it was “well settled” that equity courts could intervene only if “the statute is unconstitutional and its enforcement will result in irreparable injury to vested property rights”; otherwise, a person’s remedy is to “continue his activities until he is arrested and then procure his release by showing that the law is void.”
The supreme court also rejected any notion that injury to personal rights, as opposed to “vested property lights,” sufficed as a basis for a civil court’s equity jurisdiction over criminal statutes.
The Morales court classified the plaintiffs’ claims there as falling within the fourth category, where it concluded “equity jurisdiction is plainly lacking.”
Morales represents the Texas Supreme Court’s most recent substantive pronouncement regarding the limitations on equity jurisdiction to adjudicate challenges to penal enactments. And while Morales did not explicitly overrule any of the supreme court’s prior precedents in that area, such as Austin City Cemetery Association, those authorities must now be viewed in light of the characterizations and analyses the Morales court has given them—and these serve to undermine ap-pellees’ proposed applications of those precedents.
Given Morales' s apparent insistence that the relevant “irreparable injury to vested property rights” must flow from the actual or imminent enforcement of the penal statute against the claimant,
Nor have appellees even shown the degree of economic injury deemed significant by the Texas Supreme Court in Austin City Cemetery Association and Decker. Although appellees presented evidence that supported some of their pleading allegations, including evidence of economic loss, reduced sales, lost profits, reduced tourism on the rivers, and lost business opportunity,
While we recognize the businesses’ frustration with the ordinances’ economic impact upon them and the City’s persistence in raising jurisdictional barriers to a merits-based resolution of their constitu
As an alternative basis to support the district court’s subject-matter jurisdiction, appellees argue that their taxpayer standing supported the trial court’s jurisdiction over their claims and that the City waived any challenge to the district court’s jurisdiction on this basis by not raising or briefing the issue. Jurisdiction, however, cannot be waived.
Because we conclude that the summary-judgment evidence conclusively established that the district court did not have subject-matter jurisdiction over appellees’ claims, we must sustain the City’s first issue and need not reach other issues it raises.
Having concluded that Morales precludes the district court’s subject-matter jurisdiction over appellees’ claims, we must reverse the final summary judgment and render judgment dismissing appellees’ claims for want of subject-matter jurisdiction.
Notes
. See generally City of New Braunfels v. Stop The Ordinances Please, No. 03-12-00528-CV,
. See Stop I,
(a)(1) It shall be unlawful for anyone to use, carry, possess or dispose of a cooler that has a capacity greater than sixteen (16) quarts on or in the public waters of the portions of the Guadalupe River and Comal River that lie within the city limits and are defined herein....
. The Disposable Container Ordinance is currently codified at City of New Braunfels, Mun. Code § 8644(a)(2) and provides in relevant part:
(a)(2) It shall be unlawful for anyone to use, carry or possess food or beverages in a disposable container on or in the public waters of the Guadalupe River or Comal River....
. Stop I,
. Id. at 924-25.
. Id.
. Id. at 927-28.
. Id. at 931-32.
. Id. at 931.
. See STOP II,
. See id. at *3-4.
. See id. at *4.
. See id.
. See id. at *12.
. Texas Parks & Wildlife v. Miranda,
. Heckman v. Williamson Cty.,
. Bland Indep. Sch. Dist. v. Blue,
. Miranda,
. See, e.g., State v. Morales,
. See, e.g., Morales,
. See, e.g., Passel,
. See, e.g., Morales,
. See Morales,
. See Consumer Serv. All. of Tex., Inc. v. City of Dallas,
. See, e.g., Morales,
. Consumer Serv. All. of Tex.,
. Id. (citing Reese,
. Consumer Serv. All. of Tex.,
. Id. at 806 (stating that business has “a vested property right in the lawful possession of physical items of inventory that it owns” (citing Maldonado,
. See id. at 805-06 (citing Morrow,
. See Patel v. Texas Dep't of Licensing & Regulation,
. See STOP II,
. See STOP II,
. See STOP II,
. See id.
. See Mr. W. Fireworks, Inc. v. Comal Cty., No. 03-06-00638-CV,
. See id. at *7-8,
. See Morrow,
. See id. at 238.
. Id. at 239.
. Id. at 238.
. Id. at 239-40 (concluding that plaintiff “[had] not identified a vested property right but, at best, [had] only identified a personal right to sell and display fireworks" and that "a property owner has no absolute right to use his property for a particular purpose”),
. See id. at 240.
. See Logue,
. See id. (regarding attempted injunctive challenge to penal permitting statute brought by trucker subject to the statute, concluding "[t]here is nothing in the law which will result in any irreparable injury to his truck or his business. The mere fact that Williamson’s use of his truck will be interfered with by an arrest and prosecution for failure to have a permit ... will not entitle Williamson to an injunction.”).
. See id. at 571 (citing, with approval, Neal v. Boog-Scott,
.
. See id. at 529-30.
. Id. at 529.
. Id.
. See id. at 529-30. The court explained:
No one, we apprehend, without some considerable inducement will do an act which may cause him to be arrested and prosecuted, however clear he might be in his own mind that the act constituted no violation of the criminal law. A criminal prosecution is unpleasant to all people who have due respect for the law, and almost necessarily involves inconvenience and expense. As long as the ordinance remains undisturbed it acts in terrorem, and practically accomplishes a prohibition against the burial of the dead within the limits of the city of Austin, save in the excepted localities. Under these conditions, who would venture to bury, or be concerned in burying, a dead body in appellee's ground, or who would purchase a lot in its cemetery? Suppose a city, not having the power under its charter to do so, should pass an ordinance prohibiting the sale of butcher’s meat in a certain locality; and suppose it should also prohibit any one from selling meat to be there sold or from buying in the prohibited place. The ordinance would be void, but could any one say that the business of a market man in the locality might not be effectually destroyed by it? Under such circumstances, we are of opinion he should have the right to proceed against the corporation to enjoin its enforcement. If a penalty was denounced against no one but the market man who should sell, it would seem that his remedy would be to proceed with his business and defeat any prosecution that should be brought against him for the infraction of the void ordinance. But to deny a remedy in a court of equity in the case first supposed, or in the present, case analogous to it, would be, we think, to disregard the fundamental principle upon which such courts are established.
. Id. at 530.
. Smith v. Decker,
. See id.
. Id. at 633 (citing
. See id. at 634 (citing Austin City Cemetery Ass’n,
. Id.
. Id.
. See Robinson v. Jefferson Cty.,
. See Maldonado,
. See Air Curtain Destructor Corp. v. City of Austin,
. See Cabell's, Inc. v. City of Nacogdoches,
. Logue,
. Mr. W. Fireworks, Inc.,
. See Morrow,
. See Morales,
. See id. at 943.
. See id. at 953-54 (Gammage, J., dissenting).
. See id. at 943, 947.
. Id. at 944.
. Id. at 944-45 (formatting added).
. Id. at 945 (quoting Passel,
. Id. at 943 n.6.
. See id. at 944 n.7 (“[A]ll of the potential 'injuries’ discussed by the court in Austin City Cemetery Ass'n flow from potential enforcement of the statute.... If the cemetery owner, or as in the case of the hypothetical discussed ... a butcher, faced no threat of prosecution whatsoever, the ordinance would have no in terrorem effect.”).
. See id. at 945-46. In this regard, it may also be significant that the Morales court pointedly referenced Austin City Cemetery Association’s "injuries” in quotes, see id., as if to question whether that injury or harm would in fact suffice under the Morales court's understanding of injury to "vested property rights.” Such an inference tends to be confirmed by the context in which the reference appears. The Morales court was responding to arguments by the dissent, in reliance on its reading of Austin City Cemetery Association and Passel, that existing Texas law permitted the assertion of equity jurisdiction predicated on injury to personal rights. See id.; cf. id. at 949-51 (Gammage, J., dissenting, joined by Phillips, C.J., and Doggett, J., & Spector, J,). In attempting to distinguish Austin City Cemetery Association, the Morales court began by observing that "Austin City Cemetery Ass'n .., cites to authority requiring injury to property,” though does not go as far as to assert that Austin City Cemetery Association itself. in
. See id. (characterizing Passel as falling into this category).
. Id. at 946.
. Id. at 947.
. Id. at 942.
. Appellees' arguments parallel some themes from the Morales dissent. See id. at 949-51 (Gammage, J., dissenting) (accusing majority of "ignoring] the rule that an equity court’s primary concern in enjoining a criminal statute is whether there is irreparable harm,” urging “[tjhat issue—not whether property is involved—is and should be the overriding question,” (citing Logue,
. See id. at 943 n.6, 944 n.7.
. Morrow,
. Mr. W. Fireworks, Inc.,
. Appellees’ allegations in their pleadings included that STOP’S “members have businesses that are uniquely dependent on the 'tubing and tourism’ industry that is being negatively impacted by the ordinances”; the Outfitter Plaintiffs had been unable to sell their existing inventories in food and beverages in disposable containers, “thus causing a loss of the investment in existing inventories of the now-unmarketable items,” "are effectively prohibited from selling food and beverages in ‘disposable containers’ to their customers that intend to consume such items in the Comal and Guadalupe Rivers within the City limits,” "sustained a sharp, dramatic decrease in cooler rentals" causing "economic loss to the Outfitters in the form of rental revenues for coolers in stock," and "lost the value of their investments in coolers with a volume greater than 16 quarts”; the "Disposable Container Ordinance has significantly damaged or destroyed [the Outfitters’] market for food and beverage sales in ‘disposable containers’ to tubing customers within the City limits of New Braunfels”; the "Cooler Ordinance has restricted the use of Outfitters’ property, caused them additional expense to purchase 'regulation size’ coolers to rent, and destroyed the market for larger cooler rentals within the City limits”; and Tri-City Distributors, a wholesaler, had reduced sales and lost profits. In STOP I, we concluded that the allegations of "general economic impact from a decrease in tourism” did not confer standing because such an injury would be shared with other citizens of New Braunfels. See
. For example, when asked during his deposition if there were any products that he could not sell to customers that they could sell before the ordinance, a representative' of TriCity Distributors testified, "We can sell everything that we’ve always sold to the retailer. We just—our end consumer cannot take them in the river because that—they became illegal.” A representative of Landa River Trips also testified in his deposition, that the company “basically phased [the larger coolers] out,” that it no longer had any in stock, and that it now has an inventory of smaller coolers. As to items that the company sold in disposable containers, he testified that they still sell the same items but "less of them now,” but that they also sell reusable containers now.
. For example, a representative of Texas Tubes testified in his deposition that the company now sells non-disposable containers that it did not sell prior to the enactment of the Disposable Container Ordinance.
. Petco Animal Supplies, Inc. v. Schuster,
. See Good Shepherd Med. Ctr., Inc. v. State,
. See Williams v. Lara,
. Cf. Patel,
. See Tex. R. App. P. 47.1. The City raised five additional issues that challenge the final summary judgment.
