Carl MITZ, Dena Corbin, Randy Riedinger, Brady George, Gary Barnes and Tony Greaves, Appellants,
v.
TEXAS STATE BOARD OF VETERINARY MEDICAL EXAMINERS; Robert L. Lastovica, DVM, in his official capacity as President of the Texas State Board of Veterinary Medical Examiners; Bud E. Alldredge, Jr., DVM, in his official capacity as Vice President of the Texas State Board of Veterinary Medical Examiners; Patrick M. Allen, DVM, in his official capacity as Secretary of the Texas State Board of Veterinary Medical Examiners; Janie Allen Carpenter, DVM, David Wayne Heflin, DVM, Paul Martinez, Dawn E. Reveley, Cynthia Diaz, and Guy W. Johnsen, DVM, in their official capacities as members of the Texas State Board of Veterinary Medical Examiners, Appellees.
Court of Appeals of Texas, Austin.
*19 Clark Neily, Institute of Justice, Arlington, VA, Cindy Olson Bourland, Merica & Bourland, P.C., Austin, for appellants.
Marc Rietvelt, Asst. Dist. Gen., Austin, for appellees.
Before Justices PATTERSON, WALDROP and HENSON.
OPINION
DIANE M. HENSON, Justice.
Appellants, a group comprised of four non-veterinarian equine dental practitioners and two horse breeders who employ such practitioners to service their horses,[1] sought a declaratory judgment and injunctive relief against the Texas State Board of Veterinary Medical Examiners, alleging that the Board's regulation of equine dentistry under the Veterinary Licensing Act is unconstitutional. See Tex. Occ.Code *20 Ann. §§ 801.001-.509 (West 2004 & Supp. 2008). In this interlocutory appeal, Appellants contend that the trial court erred in granting the Board's plea to the jurisdiction and abating the case until the practitioners have exhausted their administrative remedies. Because we determine that the practitioners are not required to exhaust administrative remedies before bringing their constitutional claims, we will reverse the judgment of the trial court.
BACKGROUND
The practitioners provide various services to horse owners and breeders in Texas, including teeth extraction and "floating," which involves using a file to make teeth level and ensure proper alignment. Prior to 2007, the Board allowed equine teeth floating and extraction to be performed by non-veterinarians such as the practitioners. However, in early 2007, the Board determined that these services constituted the practice of veterinary dentistry under the Act, and therefore could only be performed by a licensed veterinarian.[2]See id. § 801.002(7) (West 2004) (defining "veterinary medicine" to include dentistry), § 801.251 (West 2004) (prohibiting non-veterinarians from practicing veterinary medicine).
In early 2007, the Board mailed letters to each of the practitioners, demanding that they cease and desist the practice of veterinary medicine without a license. When the practitioners refused to sign the voluntary cease-and-desist orders included in these letters, the Board referred the case to an informal conference.[3] On August 28, 2007, prior to the informal conference, Appellants filed suit for declaratory and injunctive relief, alleging that those provisions of the Act prohibiting non-veterinarians from performing equine dental services are unconstitutional. Appellants requested a declaratory judgment that the Act violated the due course of law,[4] monopoly *21 prohibition,[5] and equal protection[6] provisions of the Texas Constitution, and sought temporary and permanent injunctions preventing the Board from enforcing those portions of the Act that would prohibit non-veterinarian equine dentists from performing equine dental services.
The Board filed a plea to the jurisdiction, seeking dismissal on the grounds of ripeness, standing, failure to include necessary parties, exclusive agency jurisdiction, primary agency jurisdiction, and failure to exhaust administrative remedies. On October 30, 2007, after the Board's plea to the jurisdiction was filed but before it was heard by the trial court, the practitioners participated in an informal conference with the Board. The parties were unable to agree to a settlement, and on November 30, 2007, the Board again issued voluntary cease-and-desist orders, each accompanied by a letter stating, "After reviewing the facts, the Board Secretary, with the advice of the Committee, determined your client is in violation of the Veterinary Practice Act by practicing veterinary medicine without a license." The letter further stated that the case would be referred to SOAH if the cease-and-desist orders were not signed by January 2, 2008. The practitioners did not sign the cease-and-desist orders.
On January 2, 2008, the trial court held a hearing on the Board's plea to the jurisdiction. The trial court ultimately granted the plea on the grounds of failure to exhaust administrative remedies and primary agency jurisdiction, abating the case until the completion of contested case proceedings at SOAH. Appellants brought this interlocutory appeal from the trial court's order granting the Board's plea to the jurisdiction. See Tex. Civ. Prac. & Rem. Code Ann. § 51.014(a)(8) (West 2008).
STANDARD OF REVIEW
Because this is an appeal from a plea to the jurisdiction, "we will review the face of appellants' pleadings to determine whether they show a lack of jurisdiction or whether the pleadings, if liberally construed, favored jurisdiction." Atmos Energy Corp. v. Abbott,
DISCUSSION
The Board's Motion to Dismiss
As a preliminary matter, the Board argues in its brief that this appeal should be dismissed as an improper interlocutory appeal from a non-appealable order. The Board previously filed a motion to dismiss, which this Court overruled on the basis that any party may appeal from an order granting or denying a governmental entity's plea to the jurisdiction, as Appellants have done in the present case. See Tex. Civ. Prac. & Rem.Code Ann. § 51.014(a)(8). For that same reason, we shall again decline the Board's request to dismiss this appeal.
Agency Jurisdiction & Exhaustion of Administrative Remedies
Appellants argue that the trial court erred in abating their declaratory-judgment action until administrative proceedings have concluded because the Board has neither exclusive nor primary jurisdiction to resolve their constitutional challenges.
Texas district courts are courts of general jurisdiction and are presumed to have subject-matter jurisdiction over all claims unless a contrary showing is made. Dubai Petroleum Co. v. Kazi,
An agency has primary jurisdiction over a dispute when both the agency and the courts have authority to make an initial determination, and the trial court defers to the agency to decide the issue because (1) the agency has expertise in handling the complex problems in the agency's purview and (2) great benefit is derived from the agency uniformly interpreting its laws, rules, and regulations. Id. at 221. "If the primary jurisdiction doctrine requires a trial court to defer to an agency to make an initial determination, the court should abate the lawsuit and suspend finally adjudicating the claim until the agency has an opportunity to act on the matter." Id. In the present case, the trial court found that the Board had primary jurisdiction over the dispute presented by Appellants' declaratory-judgment action and abated the case accordingly.
An administrative agency has exclusive jurisdiction when the legislature has granted the agency the sole authority to make an initial determination in a dispute. See Cash Am. Int'l Inc. v. Bennett,
In bringing their declaratory-judgment action, Appellants challenge the constitutionality of portions of the Veterinary Licensing Act. The Board has jurisdiction to administer the Act, including making determinations regarding whether the Act has been violated. See Tex. Occ.Code *23 Ann. § 801.151 (West 2004) ("The board may adopt rules as necessary to administer this chapter."), § 801.456 (West 2004) ("[T]he board by order may determine that: (1) a violation has occurred and impose an administrative penalty; or (2) a violation did not occur."). However, there is no indication in the statute that the legislature intended to authorize the Board to resolve disputes regarding the constitutionality of the Act. See Texas State Bd. of Pharm. v. Walgreen Tex. Co.,
Given the circumstances of the present case, we find Juliff Gardens, L.L.C. v. Texas Commission on Environmental Quality,
Moreover, the determination of the constitutionality of a statute is unquestionably an issue fit for judicial reviewthe Commission admits it has no authority to determine the constitutionality of a statuteand refusing to entertain Juliff's request for declaratory relief would require Juliff to expend resources in defending its permit application against a statute that may . . . ultimately be found to be unconstitutional and unenforceable.
Id. at 278. This Court further held that while "the Commission is empowered to consider the underpinnings of Juliff's application, this in no way affects the district court's ability to determine the constitutionality" of the statute. Id. at 279.
Like the plaintiff in Juliff Gardens, Appellants bring only a constitutional challenge to the Veterinary Licensing Act and do not seek a determination from the trial court regarding whether their professional activities fall outside the scope of the Act. See id. at 279 n. 4 (observing that "Juliff's request for declaratory relief concerns only the constitutionality of [the statute] and does not ask the district court to make any determination regarding" the applicability of the statute to Juliff's proposed landfill site). In light of Juliff Gardens, we hold that the Board has neither exclusive nor primary jurisdiction to determine the constitutionality of the relevant portions of the Act and that therefore Appellants were not required to allow the Board to reach a final decision on the applicability of the Act to the practitioners before bringing a constitutional challenge. While the Board has agency jurisdiction to determine whether the Act has been violated, *24 "this in no way affects the district court's ability to determine the constitutionality" of the Act. Id. at 279; see also Walgreen,
While the Board argues that resolution of Appellants' claim requires the consideration of specific facts within agency expertise that have not yet been developed, we disagree. Where a party's claim turns entirely on an inherently judicial question, there is no need for the development of additional facts and therefore the primary-jurisdiction doctrine does not apply. Texas Dep't of Ins. v. Reconveyance Servs., Inc.,
Appellants' claim under the Uniform Declaratory Judgments Act (UDJA)[7] falls squarely within the class of claims that this Court has previously determined constitute purely legal inquiries that do not require the development of additional facts. Compare Reconveyance Servs.,
Ripeness and Standing
The Board argues on appeal that the trial court also lacked subject-matter jurisdiction over this suit on the grounds of standing and ripeness, and that the trial court erred in not granting the plea to the jurisdiction on these grounds as well. While the Board did not appeal the trial court's order on its plea to the jurisdiction, we must address its jurisdictional arguments because subject-matter jurisdiction is essential to the authority of a court to decide a case and cannot be waived by the parties. See Texas Ass'n of Bus. v. Texas Air Control Bd.,
Ripeness and standing are related doctrines of justiciability, as "each is a threshold question that implicates subject matter jurisdiction and each emphasizes the necessity of a concrete injury for a justiciable claim to be presented." Esquire,
The Board argues that this case is not ripe because the statute in question has not yet been enforced against the practitioners in a final agency action. However, in order to establish ripeness of their constitutionality challenge, the practitioners are not required to demonstrate that the statute has been enforced against them, but only "that an enforcement action is `imminent or sufficiently likely.'" Atmos Energy,
In the hearing on its plea to the jurisdiction, the Board cited Beacon National Insurance Company v. Montemayor,
Furthermore, the practitioners have established that they would suffer hardship if judicial review is withheld until administrative proceedings have concluded. Hardship is shown when a statute "requires an immediate and significant change in the plaintiffs' conduct of their affairs with serious penalties attached to noncompliance." Abbott Labs. v. Gardner,
The Board stipulated in the temporary-injunction hearing that it would not assess the authorized administrative penalty allowed for violations of the Act against the practitioners in this case. See Tex. Occ. Code Ann. § 801.451 (West 2004). However, beyond administrative penalties, the practitioners are subject to civil and criminal liability for practicing veterinary medicine without a license. See id. § 801.503 (West 2004) (providing that at Board's request, attorney general shall bring action to recover civil penalty of $1,000 for each day of violation of Act), § 801.504 (West Supp.2008) (providing that violation of Act constitutes class A misdemeanor). While the Board agreed not to seek administrative penalties against the practitioners until all administrative proceedings had concluded, it emphasized at the temporary-injunction hearing that this agreement was made "only with regard to [the] administrative penalty and [the agreement] was very clear we made no representations about anything else either way." Therefore, in light of the continuing threat of civil and criminal liability against the practitioners and the direct effect the Act has on their ongoing business enterprise, the practitioners have established that they would suffer hardship if judicial review was withheld. Because we find that the current controversy is fit for judicial review and that the practitioners would suffer hardship in the absence of judicial consideration, we hold that this case is ripe for review. See Perry,
In order to establish that they have standing to bring this declaratory-judgment action, the practitioners must show that there is a real controversy between the parties that will actually be determined by the judicial declaration sought. See Reconveyance Servs.,
The Board further argues that the breeders lack standing because they are not personally aggrieved by the Act. Because the practitioners and the breeders seek the same declaratory and injunctive relief, we need not address the breeders' standing and we express no opinion thereon. See Neeley v. West Orange-Cove Consol. Indep. Sch. Dist.,
CONCLUSION
Because we have determined that the trial court had subject-matter jurisdiction over this suit, we reverse the trial court's order granting the Board's plea to the jurisdiction and remand for further proceedings consistent with this opinion.
NOTES
Notes
[1] For convenience, we will refer to the practitioners and breeders collectively as "Appellants," except where it is necessary to distinguish between the two.
[2] In their response to the Board's plea to the jurisdiction, Appellants cited to the Board's July 2007 newsletter, stating that the practitioners were "advised via the Board's newsletter that it planned to commence administrative proceedings against them for `unauthorized practice of veterinary medicine.'" The Board does not appear to dispute Appellants' characterization of the policy change regarding equine teeth floating and extraction, stating in its brief, "In early 2007, pursuant to its authority under the Act, the Veterinary Board began sending letters to known unlicensed practitioners of equine dentistry, including the appellants, requesting that they voluntarily stop practicing veterinary dentistry without a license."
[3] Under the Board's administrative rules, a voluntary cease-and-desist order is the first step in taking action against a party that may have engaged in the unlicensed practice of veterinary medicine. See 22 Tex. Admin. Code § 575.40(c)(1). If the respondent chooses not to sign the initial order, the complaint is referred to an informal conference, where the conference committee may propose a second cease-and-desist order, including any settlement terms reached. Id. § 575.40(d)(1). If the respondent chooses not to sign the second order, the complaint is referred to the State Office of Administrative Hearings (SOAH) for a contested case proceeding. Id. § 575.40(d)(2). Following the contested case proceeding and the issuance of a proposal for decision by an administrative law judge, the Board makes its final decision and takes such action as appropriate. Id. The respondent may appeal this decision by filing a petition for judicial review in district court. Tex. Occ.Code Ann. § 801.457 (West 2004).
[4] Appellants contend that the Act violates the due course of law provision, both facially and as applied, because (1) it arbitrarily allows licensed veterinarians, but not equine dental practitioners, to provide equine dental care and (2) the provisions regulating the practice of equine dentistry were enacted in contravention of sections 318.001-.003 of the government code, which set forth certain criteria that must be considered in regulating occupations. See Tex. Const. art. I, § 19; Tex. Gov't Code Ann. §§ 318.001-.003 (West 2005).
[5] Appellants contend that the Act confers an unconstitutional monopoly on licensed veterinarians in the provision of equine dental services. See Tex. Const. art. I, § 26.
[6] Appellants argue that there is no reasonable basis for prohibiting equine dental practitioners from providing their services while allowing laypeople to provide similar services, such as horseshoeing, branding, birthing, dehorning, tail docking, castration, and artificial insemination, or while allowing the non-veterinarian owner of an animal or the owner's non-veterinarian employee to perform equine dental services. See id. art. I, § 3.
[7] See Tex. Civ. Prac. & Rem.Code Ann. §§ 37.001-.011 (West 2008).
