Justice Boyd, delivered the opinion of the Court.
Sonia Herrera Marquez, Claudia Garcia, and Alicia Gomez (collectively, the parents) have children who attend schools within the Clint Independent School District. Relying on the district's own financial reports, the parents assert that the district allocates more money — as much as $3,512 more per student per year — to schools in the town of Clint than to comparable schools that their children attend in the communities of Montana Vista and Horizon City. According to the parents, their children's schools have more students who are "economically disadvantaged" or need bilingual education — two categories for which the State provides the district with additional funds. The parents believe more of those funds should go to their children's schools. Instead, the district allocates less to the schools that need more, and students at these "disfavored schools" do worse on standardized tests, drop out at higher rates, are less likely to graduate, and suffer other harms. The parents filed suit asking the court to enjoin the district from continuing its funding allocations, asserting in two causes of action that the district is violating the Texas Constitution's guaranties of "equal rights"
The district filed a plea to the jurisdiction, arguing that the trial court must dismiss the parents' claims because (1) the district enjoys governmental immunity, (2) the claims present a "political question" that courts cannot address, and (3) the parents failed to exhaust their administrative
When the Legislature creates an administrative agency, it may grant the agency authority to resolve disputes that arise within the agency's regulatory arena. See City of Houston v. Rhule, 417 S.W.3d 440, 442 (Tex. 2013). If the Legislature expressly or impliedly grants an agency sole authority to make an initial determination in such disputes, the agency has exclusive jurisdiction, and a party "must exhaust its administrative remedies before seeking recourse through judicial review." Id.; see also Subaru, of Am., Inc. v. David McDavid Nissan, Inc., 84 S.W.3d 212, 221 (Tex. 2002) (explaining that an agency impliedly obtains exclusive jurisdiction "when a pervasive regulatory scheme indicates that Congress intended for the regulatory process to be the exclusive means of remedying the problem to which the regulation is addressed" (quoting Andrew G. Humphrey, Antitrust Jurisdiction Remedies in an Electric Utility Price Squeeze, 52 U. CHI. L. REV. 1090, 1107 n.73 (1985))). If the party files suit before exhausting exclusive administrative remedies, the courts lack jurisdiction and must dismiss the case. Rhule, 417 S.W.3d at 442; see also Essenburg v. Dallas Cty., 988 S.W.2d 188, 189 (Tex. 1998) (per curiam) ("[A] plaintiff's failure to exhaust administrative remedies may deprive courts of subject matter jurisdiction in the dispute.").
The requirement that parties exhaust administrative remedies does not deprive parties of their legal rights. Rhule, 417 S.W.3d at 442; see TEX. EDUC. CODE § 7.057(b) (stating that an administrative appeal to the Commissioner of Education "does not deprive any party of any legal remedy"). Instead, it honors the Legislature's intent that "the appropriate body adjudicates the dispute" first, Essenburg, 988 S.W.2d at 189, and thereby "ensure[s] an orderly procedure to enforce those rights." Rhule, 417 S.W.3d at 442. By requiring the agency to address the complaints first, the law permits the agency to apply its expertise and exercise its discretion to resolve the issue and to develop a complete factual record if the courts later get involved. See McKart v. United States, 395 U.S. 185, 194, 89 S.Ct. 1657, 23 L.Ed.2d 194 (1969); see also Kenneth Culp Davis, Administrative Law Doctrines of Exhaustion of Remedies, Ripeness for Review, and Primary Jurisdiction: 1, 28 TEX. L. REV. 168, 169 (1949) ("Premature judicial intervention may defeat the basic legislative intent that full use should be made of the agency's specialized understanding within the particular field."). A party who obtains relief through the administrative process avoids the expense and delay of litigation. Woodford v. Ngo, 548 U.S. 81, 89, 126 S.Ct. 2378, 165 L.Ed.2d 368 (2006); McKart, 395 U.S. at 195, 89 S.Ct. 1657. And if the outcome of the administrative process leaves the party dissatisfied, it may file suit and have the courts review the agency's decision. Tex.
The Texas Constitution requires the Legislature to "establish and make suitable provision for the support and maintenance of an efficient system of public free schools." TEX. CONST. art. VII, § 1. To fulfill this duty, the Legislature has established the Texas Education Agency (TEA), the office of the Commissioner of Education, the State Board of Education (SBOE), and local school districts throughout the state.
Regarding disputes that arise within the education system, the Legislature has provided that, with limited statutory exceptions not at issue here,
Id. § 7.057(a). However, "[a] person is not required to appeal to the commissioner before pursuing a remedy under a law outside of [the school laws] to which [the school laws] make[] reference or with which [the school laws] require[] compliance." Id. § 7.057(a-1).
Although section 7.057(a) provides that a person "may" appeal to the Commissioner, we have interpreted the statute to require a person who chooses to appeal to first seek relief through the administrative process. Grounds v. Tolar Indep. Sch. Dist., 707 S.W.2d 889, 892-93 (Tex. 1986). "The decision to appeal is optional, but the place of trial is jurisdictional." Id.; see also Jones v. Clarksville Indep. Sch. Dist. (Clarksville ISD), 46 S.W.3d 467, 470-71 (Tex.App.-Texarkana 2001, no pet.)
However, we have also been clear that this exhaustion requirement applies only to complaints that the Legislature has authorized the Commissioner to resolve. See Warren, 288 S.W. at 160 (explaining that the Commissioner's "exclusive prior jurisdiction pertains only to such matters as are by law placed under the supervision of the school authorities"). If the parents' claims against their school district are the type of claims that section 7.057(a) describes, then the parents must first exhaust their administrative remedies unless section 7.057(a-1) or another exception to the exhaustion requirement applies.
In granting the plea to the jurisdiction, the trial court implicitly found that the parents' claims fall under the Commissioner's jurisdiction because they allege that the district's board of trustees' budgeting decisions violate the "school laws of this state." TEX. EDUC. CODE § 7.057(a)(2)(A). "School laws of this state" means all of the provisions of titles 1 and 2 of the Education Code and the administrative rules adopted under those titles. Id. § 7.057(f)(2). Title 2 includes chapters 41 through 46, which govern the state's funding of public schools, see id. §§ 41.001-46.061, and these sections are indisputably "school laws of this state," see id. § 7.057(f)(2). The trial court, therefore, dismissed the case and required the parents to appeal first to the Commissioner for relief.
The court of appeals, however, concluded that the parents complain "solely of violations of their children's state constitutional rights," not of violations of any statutes or rules. 445 S.W.3d at 456. Because constitutional provisions exist outside of the Education Code and are not "school laws of this state," the court held that section 7.057(a) does not authorize the Commissioner to hear the parents' complaints. Id. And because section 7.057(a) does not require the parents to appeal the district's decisions to the Commissioner, the court found it unnecessary to consider whether any exceptions to the exhaustion requirement apply. Id.
In support of the court of appeals' decision, the parents note that their petition expressly asserts only two "causes of action" — one for "Violations of Texas Constitution Article VII, Section 1" (alleging that the district fails to provide an "adequate," "efficient," or "suitable" system for the "general diffusion of knowledge"), see supra, n.4, and one for "Violations of Texas Constitution Article I, Section 3" (alleging that the district has no rational basis for failing to treat its students equally through its funding allocations), see supra, n.3.
We agree that the constitutional provisions are not "school laws of the state." We do not agree, however, that the way the parents pleaded their causes of action controls the outcome in this case. The nature of the claims, rather than the nomenclature, controls, and artful pleadings cannot circumvent statutory jurisdictional prerequisites. Cf. Blue Cross Blue Shield of Tex. v. Duenez, 201 S.W.3d 674, 676 (Tex. 2006) ("A party cannot circumvent an agency's exclusive jurisdiction by filing a declaratory-judgment action if the subject matter of the action is one `over which the Legislature intended the [administrative agency] to exercise exclusive jurisdiction.'" (alteration in original) (quoting Thomas v. Long, 207 S.W.3d 334, 342 (Tex. 2006))). To resolve jurisdictional questions, we construe the pleadings liberally in the plaintiffs' favor, looking for the pleaders' intent and reading the pleadings "as a whole." City of Houston v. Williams, 353 S.W.3d 128, 141 (Tex. 2011).
The parents' petition does identify only two "causes of action," both alleging only constitutional violations. But the petition as a whole reflects the true nature of the parents' complaint: that the district defies the Constitution's mandates by violating the requirements of the Education Code. Citing section § 4.001(a), the parents plead that "the `mission' of the Texas Education Code is a public education system that `ensur[es] that all Texas children have access to'" the kind of education the Constitution requires. Citing section 1.002(a), they assert that the Legislature "re-affirms" the Constitution's "emphasis on access and opportunity" through the Education Code by requiring all educational institutions to "provide equal opportunities to all individuals within its jurisdiction or geographical boundaries pursuant to this code." They explain, "It is through the local school districts that the will of the Texas legislature under Article VII, Section 1 is effectuated," and the Legislature has created statutory funding formulas to implement the constitutional requirements through its distribution of funds to the districts. Citing "sections 42.001 et seq.," and specifically sections 42.152 (addressing economically disadvantaged students) and 42.153 (addressing bilingual students), they plead that the Code outlines "several factors to consider in equalizing the distribution of funds to various districts, based on the population of higher-need students in each district," including bilingual and economically disadvantaged students.
And more importantly, the parents allege that the district contravenes the Constitution by violating the statutory provisions through which the Legislature has sought to fulfill the constitutional requirements. They assert, for example, that "sections 42.001 et seq." create funding disparities in favor of schools with more bilingual and economically disadvantaged students, but the district "reversed" that disparity by giving Clint schools a "disproportionate share of the expenditures." They allege that the district's "intra-district funding does not meet constitutional or statutory standards," and that the district has thus "thwarted the Legislature's implementation of its constitutional mandate... and thus violated [the students' constitutional rights]." (Emphases added.) For relief, they pray for a judgment:
The parents argue that their petition's references to the Education Code "are mere background, not causes of action," and are intended only to "highlight the magnitude of the funding disparity at issue." They emphasize that they "have never sought to prosecute claims under the [Education Code]." In fact, they contend, the Code only governs how funds are distributed between districts, and does not "require school districts to fund individual schools according to a formula or other measurable standard." As a result, they argue, the Education Code contains no provisions "upon which Parents could bring this particular suit," and therefore, the Constitution is the only possible vehicle for their claims.
Despite these arguments, the parents' petition can only be read to assert that the district is violating the Constitution by disregarding (or failing to "meet") "statutory standards," thereby "thwarting" the Legislature's efforts to fulfill its constitutional duties. The parents could not assert their claims in any other way. The Constitution provides that it is the "duty of the Legislature" to "make suitable provision for the support and maintenance of an efficient system of public free schools." TEX. CONST. art. VII, § 1. The Legislature created school districts to fulfill this duty, and as we have previously noted, it is the Legislature — not the Constitution — that imposes legal obligations on districts. Alanis, 107 S.W.3d at 584.
While we need not and do not hold that a school district or its board could never violate a constitutional provision, it is difficult to imagine any such violation, at least in the school-finance context, that would not result from a violation of the "school laws" that create and regulate the district. Here, at least, the parents' claims that the district is violating constitutional provisions necessarily allege constitutional violations resulting from violations of the "school laws of the state." In addition to the Code sections that the parents' petition references, their claims implicate many other laws that require districts to do their part to help the Legislature fulfill the constitutional requirements. For example, the Education Code:
Further, the "school laws of the state" include numerous rules that the TEA has adopted to regulate individual districts' financial practices and their effects on individual schools and individual students, including higher-need students. For example, the TEA rules:
As these examples demonstrate, if (as the parents allege) the district allocates funds among its schools in a manner that unequally and irrationally favors some schools and students to the unlawful detriment of others with higher educational needs, the district necessarily violates the "school laws of the state." The parents do not allege that any of these laws violate the Texas Constitution; they allege that the district violates the Constitution by failing to comply with the laws. Those same laws grant the Commissioner both the authority and the obligation to remedy the situation.
Under these circumstances, we conclude that the parents actually and necessarily claim to be "aggrieved by ... actions or decisions of [a] school district board of trustees that violate ... the school laws of this state." TEX. EDUC. CODE § 7.057(a)(2)(A). As a result, we conclude that the statute requires the parents to appeal to the Commissioner — as "the educational leader of the state," id. § 7.055(b)(1) — for relief. And absent an exception to that requirement, the courts lack jurisdiction to address the parents' claims until the parents exhaust their administrative remedies.
Even if section 7.057's exhaustion requirement applies, the parents argue, several exceptions negate that requirement in this case. The parents contend that their
Although the court of appeals concluded that section 7.057's exhaustion requirement does not apply to the parents' claims, it also stated that an exception to the requirement applies if "the claims are for a violation of a state or federal constitutional right." 445 S.W.3d at 454. The parents likewise contend that, even if their claims necessarily involve alleged violations of the school laws, thus granting the Commissioner authority to hear their appeal, the Commissioner's jurisdiction is not exclusive and their claims are excepted from the exhaustion-of-remedies requirement because they allege violations of the Texas Constitution. We do not agree.
In support of its conclusion that claims "for a violation of a state or federal constitutional right" are excepted from the exhaustion requirement, the court of appeals cited a string of opinions from other Texas courts of appeals.
In Cypress-Fairbanks, four districts jointly filed a suit challenging the Commissioner's authority to hear appeals in which district employees alleged federal due process violations and sought back-pay, attorney's fees, or other relief for deprivation of federal constitutional rights under 42 U.S.C. §§ 1981 & 1988. Id. at 89. The question we addressed was whether the predecessor to section 7.057(a) authorized the Commissioner to hear and resolve those federal claims in an administrative appeal. Like the current section 7.057(a), the predecessor statute authorized the Commissioner to hear appeals of "any person aggrieved by ... actions or decisions of any board of trustees," id. at 91 (quoting predecessor to TEX. EDUC. CODE § 7.057(a)), but unlike the current statute, it did not limit that authority to appeals from board decisions "that violate: (A) the school laws of this state; or (B) a provision of a written employment contract...." TEX. EDUC. CODE § 7.057(a). We concluded that the employees were "certainly" persons who claimed to be "aggrieved by ... actions or decisions of a[]
But the fact that the employees could pursue the constitutional claims with the Commissioner did not necessarily mean the exhaustion-of-remedies doctrine required them to do so. As to that issue, we relied on two United States Supreme Court decisions and concluded "that the employees' Title 42 and constitutional claims are not affected by the doctrine of exhaustion of administrative remedies such that they must be originally considered by the TEA." Id. at 91, n. 3 (citing Damico v. California, 389 U.S. 416, 417, 88 S.Ct. 526, 19 L.Ed.2d 647 (1967); McNeese v. Bd. of Educ. for Cmty. Unit School Dist. 187, 373 U.S. 668, 670-71, 83 S.Ct. 1433, 10 L.Ed.2d 622 (1963)). In these two cases, the Supreme Court held that a state-law exhaustion-of-remedies requirement does not apply to deprive federal courts of jurisdiction over a federal claim for constitutional violations under 42 U.S.C § 1983. Damico, 389 U.S. at 417, 88 S.Ct. 526; McNeese, 373 U.S. at 671, 83 S.Ct. 1433.
The Supreme Court explained in McNeese that the purpose of federal laws like section 1983 is "to override certain kinds of state laws, to provide a remedy where state law was inadequate, ... and to provide a remedy in the federal courts supplementary to any remedy any State might have." 373 U.S. at 672, 83 S.Ct. 1433. In light of this, the Court concluded that allowing a state exhaustion requirement to prevent a federal-law claim in federal court would "defeat those purposes." Id. Citing McNeese and Damico, we held in the Cypress-Fairbanks footnote that, "[b]ecause of the nature of" the employees' federal statutory and constitutional claims, "prior resort to the administrative process is not usually required." 830 S.W.2d at 91 n. 3.
Texas courts of appeals of have since reached different understandings of the Cypress-Fairbanks footnote. Some have construed it narrowly to hold that this exception to the exhaustion requirement applies only to federal claims (whether statutory or constitutional) asserted in federal courts, and even then only when the claims "do not involve issues of state law which control the disposition of the case." See Hicks v. Lamar Consol. Indep. Sch. Dist., 943 S.W.2d 540, 542 (Tex.App.-Eastland 1997, no writ) (rejecting other courts of appeals' decisions that "categorically create an exception to the general rule when constitutional questions are raised, regardless of whether those constitutional claims are federal or state claims"). Others have held that the exception applies only to federal claims (whether statutory or constitutional), but only if they involve solely questions of law. See Janik v. Lamar Consol. Indep. Sch. Dist., 961 S.W.2d 322, 323-24 (Tex.App.-Houston [1st Dist.] 1997, pet. denied) ("[F]ederal constitutional claims involving only questions of law, not questions of fact, bypass the requirement of exhaustion of administrative remedies not because the claims are constitutional, but because they are federal."). Yet others have said that the exception applies only when the party asserts "a federal constitutional claim or a claim under Title 42 of the United States Code." Gibson, 971 S.W.2d at 202; see also Jackson v. Hous. Indep. Sch. Dist., 994 S.W.2d 396, 402 (Tex.App.-Houston [14th Dist.] 1999, no pet.) (holding claim "arising under
Other courts of appeals, however, have held more broadly that all constitutional claims (whether federal or state) are exempt from the exhaustion requirement, unless they are "ancillary to and supportive of" a claim that section 7.057(a) authorizes the Commissioner to resolve. See Clarksville ISD, 46 S.W.3d at 474-75. These cases, however, do not technically recognize a constitutional-claims exception to the exhaustion requirement, as the Supreme Court did in McNeese, but instead conclude that section 7.057(a) simply does not apply to claims alleging constitutional violations at all. In Clarksville ISD for example, the Texarkana court reasoned that section 7.057(a) does not require exhaustion of state or federal constitutional claims because it does not provide an administrative appeal for such constitutional challenges to the actions or decisions of a school board "because those are not part of the school laws of the state." Id. at 474.
These courts reasoned, however, that if the plaintiff complains of a school board decision that violates the school laws or an employment contract as well as a constitutional provision, then section 7.057(a) authorizes the Commissioner to hear the complaint and the exhaustion requirement applies. In other words, "[i]f the constitutional claims are ancillary to and supportive of a complaint about the board's handling of an employment contract or application of school law, then the entire action should be amenable to administrative appeal." Id. (reasoning that "[i]f courts allow the avoidance of the [administrative] procedure by the simple allegation of constitutional misdeeds, it would likely corrupt the entire process"); see also El Paso Indep. Sch. Dist. v. McIntyre, 457 S.W.3d 475, 488-89 (Tex.App.-El Paso 2014, pet. granted) (quoting Dotson, 161 S.W.3d at 292 (quoting Clarksville ISD, 46 S.W.3d at 474)).
Although we need not articulate all of the parameters of the so-called constitutional-claims exception to the exhaustion-of-remedies requirement in this case, we draw two principles from these cases relevant to school-law claims and with which we agree.
We have already concluded that the parents' constitutional claims necessarily result from the school board's alleged violations of the school laws of the state. Section 7.057(a) therefore applies and requires the parents to exhaust their administrative remedies unless another exception applies. Because the parents do not assert federal claims in federal court, the McNeese exception does not apply. So we must consider the other exceptions on which the parents rely.
Section 7.057(a-1), which the parents contend applies here, provides: "A person is not required to appeal to the commissioner before pursuing a remedy under a law outside of Title 1 or [Title 2] or to which Title 1 or [Title 2] makes reference or with which Title 1 or [Title 2] requires compliance." TEX. EDUC. CODE § 7.057(a-1). Relying on section 7.057(a-1), the parents contend that their claims are constitutional and thus "outside" of titles 1 and 2 and that this is true even if title 2 "requires compliance" with the Texas Constitution. See id. This argument fails for the same reason as the parents' initial argument that the exhaustion-of-remedies statute does not cover their claims: while the parents allege that the school district has violated their children's constitutional rights, they necessarily assert that the district did this by failing to comply with title 2 of the Education Code. Thus, they are not pursuing claims "out-side" of title 2; they are pursuing claims that they are "aggrieved by ... actions or decisions of any school district board of trustees that violate ... the school laws of this state" — claims to which the exhaustion-of-remedies requirement directly applies. Id. § 7.057(a)(2)(A).
The Legislature enacted subpart (a-1) in response to a court of appeals' decision that required claimants to exhaust administrative remedies under the Education Code when bringing a claim against school officials for failure to comply with the Texas Open Meetings Act. See House Comm. on Pub. Edu., Bill Analysis, Tex. H.B. 829, 81st Leg., R.S. (2009) ("A recent court ruling interpreted the Education Code in a way that would require an individual who has a cause of action arising from the open meetings laws to exhaust administrative remedies by taking his or her complaint to the commissioner prior to filing a challenge in court. [House Bill] 829 specifies that an individual with a complaint arising from a law that is referenced but not codified in Titles 1 and 2 of the Education Code is not required to first present the claim to the commissioner before pursuing a judicial remedy ...."); see also Harrison v. Neeley, 229 S.W.3d 745, 746 (Tex. App.-San Antonio 2007, pet. denied) (holding
The parents are not pursuing a claim that the school board's actions and decisions violate the school laws of this state indirectly by violating some independent legal mandate incorporated into title 1 or 2 by reference, such as the Open Meetings Act. Under the Open Meetings Act, a school district is a "governmental body," TEX. GOV'T CODE § 551.001(3)(E), and "[e]very regular, special, or called meeting of a governmental body shall be open to the public, except as provided by this chapter," id. § 551.002. The Open Meetings Act thus imposes a duty directly on school districts, and it creates specific, independent enforcement mechanisms and remedies for violations of its mandates. See id. § 551.141-.146. A claim for a violation of the Open Meetings Act and remedies for such a violation thus exist "outside" of the school laws of this state, even though the school laws "reference" the act and "require[] compliance" with it. See TEX. EDUC. CODE § 7.057(a-1). The same cannot be said of the parents' constitutional claims against the school district.
As we have explained, the school district's obligation to provide a constitutionally adequate education derives not directly from the Constitution but from the Legislature's decision to "rely heavily on school districts to discharge its [constitutional] duty." Neeley, 176 S.W.3d at 770.
The parents' petition includes a request for temporary injunctive relief,
After a temporary injunction hearing, the trial court determined that the teachers would suffer "immediate and irreparable harm" if the program was implemented and issued a temporary injunction. Id. at 645-46. The court of appeals dissolved the temporary injunction and dismissed the suit, holding that the teachers were required to exhaust their administrative remedies before seeking a temporary injunction in the courts. Id. at 645. We disagreed, holding that "[p]arties are not required to pursue the administrative process regardless of the price." Id. at 646. We held that the trial court had jurisdiction to issue temporary injunctive relief before the teachers exhausted their administrative remedies because the "Commissioner of Education is not authorized to order immediate injunctive relief" and the trial court's finding that the teachers would suffer irreparable harm in the absence of a temporary injunction was "undisturbed" on appeal. Id. The order at issue in Houston Federation of Teachers was the trial court's temporary injunction, and we decided only the trial court's jurisdiction to issue that injunctive relief. We did not decide whether the trial court had jurisdiction over the teachers' other claims for permanent injunctive relief. See generally id.
Temporary injunctive relief, however, is not appropriate here. "A temporary injunction's purpose is to preserve the status quo of the litigation's subject matter pending a trial on the merits." Butnaru v. Ford Motor Co., 84 S.W.3d 198, 204 (Tex. 2002). The "status quo" is the "last, actual, peaceable, non-contested status which preceded the pending controversy." In re Newton, 146 S.W.3d 648, 651 (Tex. 2004) (quoting Janus Films, Inc. v. City of Fort Worth, 163 Tex. 616, 358 S.W.2d 589, 589 (1962)). Here, the parents seek not to preserve the status quo, but to force the district to change the way it distributes education funds. Specifically, the parents ask the trial court to "enjoin [the district] from failing and refusing to provide Plaintiffs' children and those similarly situated with equal education funding for all students at comparable grade levels, appropriately weighted according to the state funding formula."
The parents allege that the district has been distributing funds in an inappropriate manner for years, but contend that the existing distribution scheme cannot be the "status quo" because it is "illegal." While it is true that "the status quo cannot be a violation of the law," when the determination of whether the status quo is a violation of the law "is the central question of the suit," that question "should be determined with a full trial on the merits" and injunctive relief can be used only to preserve "the last peaceable uncontested status between the[] parties."
The Newton Court discussed two other cases that are helpful here: Janus Films and City of Arlington. In Janus Films, a movie company challenged a city ordinance and the city's denial of a permit to exhibit a film on the basis of obscenity. 358 S.W.2d 589; see also Janus Films, Inc. v. City of Fort Worth (Janus Films I), 354 S.W.2d 597, 598 (Tex.Civ.App.-Fort Worth 1962, writ ref'd n.r.e.) (court of appeals opinion). The company argued that the ordinance and denial of the permit violated its free speech rights. Janus Films I, 354 S.W.2d at 600. This Court held that the trial court properly denied injunctive relief because the requested injunction, which would have precluded the city from interfering with the company's showing of the film, would not preserve the status quo, which was a status in which the company lacked a permit and could not show the film:
Janus Films, 358 S.W.2d at 589-90.
In City of Arlington, the trial court awarded the City of Fort Worth a temporary injunction that prohibited the City of Arlington from placing water treatment plant sludge into the Fort Worth sewer system. 873 S.W.2d at 768. On interlocutory appeal, the court of appeals dissolved the injunction. Id. at 770. The
Here, as in Newton, Janus Films, and City of Arlington, the parents' contention that the district's current distribution methodology, which they concede has been in place for years, is illegal "is the central question of the suit," and the parents cannot obtain a temporary injunction forcing the district to change its distribution methodology before a trial on the merits. See Newton, 146 S.W.3d at 652; City of Arlington, 873 S.W.2d at 769. The parents thus cannot rely on the exception we recognized in Houston Federation of Teachers to avoid their statutory duty to exhaust administrative remedies before seeking judicial redress. Cf. Hous. Fed'n of Teachers, 730 S.W.2d at 646; see Foree v. Crown Cent. Petroleum Corp., 431 S.W.2d 312, 316 (Tex. 1968) ("Because the purpose of the doctrine is to assure that the agency will not be bypassed on what is especially committed to it, and because resort to the courts is still open after the agency has acted, the doctrine applies even if the agency has no jurisdiction to grant the relief sought." (quoting KENNETH CULP DAVIS, ADMINISTRATIVE LAW TEXT § 19.07 at 352 (1950))).
Finally, the parents assert that they are exempt from the exhaustion requirement because their claims present "pure questions of law." According to the parents, "an allegation that `a particular action' taken by a school board violates a statute is generally a question of law," and what they challenge here is "`a particular action' solely taken by [the district]: its funding scheme." They also assert that all of the factual allegations in their pleadings are merely background and are either undisputed or public record. The district, by contrast, asserts that this case "necessarily implicates a wide array of complicated financial matters including teacher and staff salaries, maintenance costs, utility costs, particular special education needs for each campus[,] and [a] variety of other factual matters that are necessarily a part of any determination of whether the District's funding decisions were in compliance with the school laws of the state." We agree with the district.
"Generally, the doctrine of exhaustion of administrative remedies does not apply when there are purely questions of law involved." Grounds, 707 S.W.2d at 892 (holding that the determination of teachers' and school districts' rights under contracts was "not a pure question of law" and requiring exhaustion of administrative remedies).
Mission Indep. Sch. Dist. v. Diserens, 144 Tex. 107, 188 S.W.2d 568, 570 (1945) (quoting State v. Sanderson, 88 S.W.2d 1069, 1070 (Tex.Civ.App.-Waco 1935, no writ)). This rule governs here.
We also reject the parents' contention that the district has waived its argument that constitutional claims are subject to administrative exhaustion if they involve fact issues. The issue in this appeal is the same issue that the district raised in the trial court: whether Texas law requires the parents to exhaust their administrative remedies before bringing the claims they assert in this lawsuit. Regardless, exhaustion of administrative remedies is an issue of subject-matter jurisdiction. See, e.g., Rhule, 417 S.W.3d at 442; Van Indep. Sch. Dist. v. McCarty, 165 S.W.3d 351, 354 (Tex. 2005). Subject-matter jurisdiction cannot be created by waiver, and parties may raise challenges to subject-matter jurisdiction for the first time on appeal. See McCarty, 165 S.W.3d at 354 (reversing court of appeals holding that district waived exhaustion requirement because exhaustion of remedies is a "prerequisite to the trial court's jurisdiction" and jurisdiction "cannot be conferred by waiver"); Waco Indep. Sch. Dist. v. Gibson, 22 S.W.3d 849, 851 (Tex. 2000) ("[B]ecause subject matter jurisdiction is essential to the authority of a court to decide a case, it cannot be waived and may be raised for the first time on appeal."). Thus, even if the district had failed to raise this argument below, it would not excuse the parents from exhausting their administrative remedies as the Education Code requires.
For the reasons explained above, we conclude that section 7.057(a) requires the parents to exhaust their administrative remedies with the Commissioner, and no exception applies to give the courts jurisdiction before the parents have done so. Although this holding would normally require us to dismiss the parents' claims for lack of jurisdiction, the parents ask us to remand this case to the trial court so that they can amend their pleadings to "cure" the jurisdictional defect by removing all references to the Education Code. Appellate courts generally must remand
In any event, the right to amend typically arises when the pleadings fail to allege enough jurisdictional facts to demonstrate the trial court's jurisdiction. Tex. Dep't of Transp. v. Ramirez, 74 S.W.3d 864, 867 (Tex. 2002) ("A plaintiff has a right to amend her pleadings to attempt to cure pleading defects if she has not alleged enough jurisdictional facts."). Here, the jurisdictional bar arises not from a lack of factual allegations but from the nature of the parents' claims. The parents do not propose to add more jurisdictional facts. Instead, they suggest they can "cure" the jurisdictional defect by changing the claims they are bringing. Generally, remand is a mechanism for parties, over whose claims the trial court may have jurisdiction, to plead facts tending to establish that jurisdiction, not for parties, over whose claims the trial court does not have jurisdiction, to plead new claims over which the trial court does have jurisdiction. See id.
Moreover, the parents' contention that they can avoid the Education Code's jurisdictional prerequisites by removing all references to the Code from their pleadings is not well founded. As we have explained and the parents' current pleadings reflect, the district's distribution of education funds is governed by an extensive regulatory scheme that the Legislature has embodied in title 2 of the Education Code. See TEX. EDUC. CODE §§ 41.001-46.061; see also id. § 7.057(f)(2). The district is a creature of the Legislature, see TEX. CONST. art. VII, § 3(d)-(e), endowed with only those powers and duties the Legislature has given it,
Because the parents do not challenge the constitutionality of the school laws that govern the district but instead allege that the district violates the constitution by failing to "meet" the school laws' requirements, their claims necessarily allege a violation of the "school laws of this state." Even if the parents amended their petition to delete all references to the Education Code, the true nature of their complaint would not change. We thus decline their request for a remand.
Whether the Clint ISD school board is distributing education funds in a manner that violates the Education Code and the Texas Constitution is "a matter properly belonging to the administration of the school laws." Warren, 288 S.W. at 160.
We reverse the court of appeals' judgment and dismiss this suit for lack of jurisdiction.