BOB PEMBERTON, Justice.
After allegations surfaced that employees of the Texas Youth Commission (TYC) had sexually abused youths housed in that agency's facilities, the Eightieth Texas Legislature enacted Senate Bill 103, which amended a number of statutory provisions governing that agency.
Four current or former TYC employees who had begun working at the agency
A plea to the jurisdiction challenges a trial court's authority to decide the subject matter of a specific cause of action. See Texas Dep't of Parks & Wildlife v. Miranda, 133 S.W.3d 217, 225-26 (Tex.2004). Analysis of whether this authority exists begins with the plaintiff's live pleadings. Id. at 226. The plaintiff has the initial burden of alleging facts that affirmatively demonstrate the trial court's jurisdiction to hear the cause. Id. (citing Texas Ass'n of Bus. v. Texas Air Control Bd., 852 S.W.2d 440, 446 (Tex.1993)). Whether the plaintiff met this burden is a question of law that we review de novo. Id. We construe the pleadings liberally, taking them as true, and look to the pleader's intent. Id.; Texas Logos, L.P. v. Brinkmeyer, 254 S.W.3d 644, 659 (Tex. App.-Austin 2008, no pet.). Mere unsupported legal conclusions are insufficient. See Creedmoor-Maha Water Supply Corp. v. Texas Comm'n on Envtl. Quality, 307 S.W.3d 505, 515-16 & nn. 7 & 8 (Tex.App.-Austin 2010, no pet.). If the pleadings fail to allege sufficient facts to affirmatively demonstrate the trial court's jurisdiction but also fail to affirmatively demonstrate incurable defects in jurisdiction, the issue is one of pleading sufficiency, and the plaintiff should be afforded the opportunity to amend. Miranda, 133 S.W.3d at 226-27. If, on the other hand, the pleadings affirmatively negate the existence of jurisdiction, then a plea to the jurisdiction may be granted without allowing the plaintiff an opportunity to amend. Id. at 227.
We must also consider evidence the parties presented below that is relevant to the jurisdictional issues, Bland Indep. Sch. Dist. v. Blue, 34 S.W.3d 547, 555 (Tex.2000), including evidence that a party has presented to negate the existence of facts alleged in the plaintiff's pleading. See Miranda, 133 S.W.3d at 227; see also Combs v. Entertainment Publ'n, Inc., 292 S.W.3d 712, 719 (Tex.App.-Austin 2009, no pet.) (summarizing different standards governing evidentiary challenges to the existence of pleaded jurisdictional facts where such facts implicate both jurisdiction and the merits versus where they implicate only jurisdiction). Our ultimate inquiry is whether the plaintiff's pleaded and un-negated facts, taken as true and liberally construed with an eye to the pleader's intent, would affirmatively demonstrate a claim or claims within the trial court's subject-matter jurisdiction. See Miranda, 133 S.W.3d at 226; Creedmoor-Maha, 307 S.W.3d at 513, 516 n. 8. This is a question of law that we review de novo. See Miranda, 133 S.W.3d at 226; Creedmoor-Maha, 307 S.W.3d at 513, 516 n. 8.
Before turning to the record in this appeal, it is helpful first to briefly review the changes to the statute and TYC procedures that provide the context for Plaintiffs'
Section 37 of S.B. 103 amended the human resources code to replace the "for cause" requirement with a provision stating that "an employee of the commission is employed on an at-will basis."
After section 37 took effect, TYC, although retaining a grievance process for employees who are involuntarily terminated, amended its policies and procedures to emphasize that the process "does not create a property interest in agency employment, nor is it a promise or guarantee of any particular procedure." The agency also changed its grievance process to provide that a termination decision made directly by the executive director—i.e., the same official who would serve as the ultimate decisionmaker on any employee grievance concerning the termination— was "final and not appealable" via that administrative process.
The record in this case consists of Plaintiffs' live petition at the time of the hearing on the TYC Defendants' plea to the jurisdiction,
Two of the four Plaintiffs—Patricia Logterman and Dr. Corinne Alvarez-Sanders—allege that on April 19, 2007 (which, it is undisputed, is the day on which S.B. 103 passed the Texas Senate), they were each summoned to the office of TYC's then-acting chief of staff, Dimitria Pope, and given the choice of either resigning from their jobs with the agency or being fired. "When asked why," the two allege, "Pope replied that Plaintiffs would be told if and when they chose to be terminated." "Threatened with possible investigation by the Texas Rangers and the Office of the Inspector General," Logterman and Alvarez-Sanders further assert, they "chose to be constructively discharged rather than face the possibility of being vilified in the media." They add that although they "subsequently requested to withdraw their resignations, Pope denied their requests" and similarly denied grievances each subsequently attempted to file.
A third Plaintiff, Dr. Don Brantley, alleges that "Pope also requested [that he] quit or be fired on April 19, 2007." In contrast to Alvarez-Sanders and Logterman, Brantley demanded "due process and a hearing." In response, Brantley complains, TYC did not proceed with terminating him but instead suspended him until after section 37 took effect. Then, in July 2007, TYC and its acting executive director at the time, Ed Owens, "informed Dr. Brantley that because Senate Bill 103 took away his status as a for-cause employee, he was not entitled to due process or a termination hearing," and "then terminated Dr. Brantley without affording him due process or a hearing."
The fourth Plaintiff, Castillo, alleges that she has "been continuously employed by the TYC from 1994 to the date of the filing of this action." Castillo asserts that, S.B. 103 notwithstanding, she "was and remains at all times a for cause employee" but that "[t]he TYC, however, currently considers [her] to be an at will employee, despite the fact that she was employed by the TYC before the effective date of Senate Bill 103."
Based on these factual allegations, Plaintiffs collectively purport to assert three basic sets of liability theories. First, Alvarez-Sanders and Logterman allege that (1) they were for-cause employees as of the date of their resignations in April 2007; (2) they were constructively discharged; and (3) TYC discharged them without complying with its procedures governing involuntary termination of for-cause employees. Consequently, Alvarez-Sanders and Logterman reason, they were "wrongfully terminated" by being dispossessed of their "vested property interest" in their jobs without due process.
Second, all four Plaintiffs pled that section 37 is invalid and unenforceable because it violates constitutional prohibitions against retroactive legislation, ex post facto laws, and bills of attainder.
Third, Alvarez-Sanders, Logterman, and Brantley allege that in connection with the complained-of personnel actions, Pope and Owens "made several public and private defamatory statements" regarding them. In particular, the former employees complain, their TYC personnel files were "coded" to reflect that Alvarez-Sanders and Logterman had "resigned in lieu of termination" and that all three were "ineligible for rehire without reason." They pled that these "defamatory statements" have caused them to "be subject to public ridicule and hatred and ... suffer severe damage to their business and personal reputations."
Based on these allegations, Plaintiffs sought relief from the TYC Defendants
Additionally, Alvarez-Sanders and Logterman sought "a declaratory judgment as to their `for cause' status as TYC employees at the time of their termination, April 19, 2007." With these declarations, Plaintiffs prayed for attorney's fees as the UDJA permits.
Plaintiffs further requested "prospective injunctive and/or equitable relief" barring "TYC and its officials from enforcing Section 37 of Senate Bill 103" and "the TYC administrative regulations that [are] derived from Section 37." Finally, the three former employee Plaintiffs prayed for money damages, including compensation
The TYC Defendants responded with a single filing styled as a "Plea to the Jurisdiction and Motion for Summary Judgment."
In the "summary judgment" portion of the filing, the TYC Defendants asserted that "Plaintiffs' declaratory judgment claim against TYC [and its executive director], in her official capacity ... fails as a matter of law because [section 37] is not an ex post facto or retroactive law." In support of these grounds, the TYC Defendants asserted that the ex post facto law prohibition applies only to penal statutes, Rogers v. Tennessee, 532 U.S. 451, 456, 121 S.Ct. 1693,
In support of their plea to the jurisdiction, the TYC Defendants attached evidence that included, of relevance here, an affidavit from Dewey Poteet, a TYC in-house attorney who advises the agency on personnel matters.
• On April 19, 2007, Pope provided Brantley a two-page recommendation-to-terminate letter advising him of what Pope perceived as several failures by Brantley to perform four "essential job functions" and her conclusion that his "continued employment is not in the best interest of the agency as it moves toward reform." The letter further notified Brantley that he had the right to raise with Owens "any facts regarding why you believe your employment should not be terminated under these circumstances" before "any decision is made regarding your termination."
• On May 1, 2007, an attorney for Brantley wrote Owens asserting that the April 19, 2007 letter was insufficiently clear and specific regarding the factual bases for Brantley's termination, and requesting clarification.
• On May 15, 2007, Pope responded with a four-page amended recommendation-to-terminate letter that cited specific examples of what Pope regarded as Brantley's resistance to the reform initiatives of his superiors, failures to promptly respond to reports of physical abuse of youth in TYC facilities,
• On May 25, 2007, Brantley personally wrote Owens a seventeen-page letter taking issue with Pope's assertions.
• On the same day, Brantley and his attorney met with Owens. During this meeting, according to Poteet, "both Dr. Brantley and Mr. Durst [his attorney] addressed the recommendation to terminate
• Thereafter, as previously noted, S.B. 103 took effect on June 8, 2007. Subsequently, TYC amended its grievance policies, effective June 20, 2007, to eliminate the right to a grievance for employees who are terminated by the executive director.
• On June 22, 2007—two days after TYC amended its grievance policies to eliminate the right to a grievance for employees who (like Brantley) were terminated by the executive director—Owens wrote Brantley advising him that he was upholding Pope's recommendation to terminate his employment, and terminated Owens on that day. According to Poteet, "Dr. Brantley's response to the recommendation, both verbal and written, and the verbal and written response of Dr. Brantley's attorney, were considered by Mr. Owens before he acted on and accepted Ms. Pope's recommendation to terminate Dr. Brantley's employment."
Following his termination, the TYC Defendants' evidence reflects, Brantley attempted to file a grievance regarding his termination, as had been permitted under the agency's prior policies. However, TYC, Poteet explained, dismissed the grievance "on July 13, 2007, pursuant to the agency's grievance policy ... because under the agency's grievance policy in effect at the time of Dr. Brantley's discharge... a decision to terminate employment made by the agency's executive director is not subject to the full grievance process."
Finally, in addition to his testimony regarding Brantley, Poteet further averred that Castillo had been continuously employed by TYC since 1994, "remains a TYC employee in good standing," and that the agency "has not recommended that [her] employment be terminated, nor is she under a threat of termination."
Plaintiffs filed a response in which they joined issue with both the TYC Defendants' "plea to the jurisdiction" and "summary judgment" grounds. In support, they attached evidence that included affidavits from each Plaintiff.
Also of relevance, Brantley averred that, generally consistent with the TYC Defendants'
A hearing was held at which no further evidence was presented. The record reflects that the parties and the district court addressed only the grounds designated within the "plea to the jurisdiction" portion of the TYC Defendants' filing and did not reach those raised within the "motion for summary judgment." Following the hearing, the district court partially granted the plea and dismissed all of the claims asserted by Brantley and Castillo, as well as Alvarez-Sanders's and Logterman's "claims for defamation, constitutional takings, and declaratory judgment." The court did not elaborate as to the specific grounds on which it relied.
The district court's rulings left pending only Alvarez-Sanders's and Logterman's "claim for wrongful discharge." The court granted the plea and dismissed this "claim" "to the extent they seek to recover money damages" but denied it "to the extent they seek to recover equitable relief" under that theory. The court afforded Alvarez-Sanders and Logterman the opportunity "to replead their wrongful discharge claim to assert a claim for equitable relief against a proper state official, in his/her official capacity" within fifteen days thereafter. The district court did not, however, purport to immediately dismiss Alvarez-Sanders and Logterman's "claim for wrongful discharge to the extent they seek to recover equitable relief" from TYC, although compliance with the court's order would result in Plaintiffs non-suiting the agency by omission.
Both Plaintiffs and the TYC Defendants filed notices of appeal from the district court's order. See Tex. Civ. Prac. & Rem. Code Ann. § 51.014(a)(8) (West 2008); see also id. § 51.014(b) (West 2008) (automatic stay of trial court proceeding upon filing of notice of appeal under subsection (a)(8)).
Plaintiffs bring nine issues on appeal, while the TYC Defendants bring two.
Castillo, the sole Plaintiff currently employed at TYC, seeks only declaratory and injunctive relief predicated on a challenge to section 37's constitutionality. In their third issue, Plaintiffs urge that the district court erred in dismissing Castillo's claims for lack of ripeness.
Ripeness is in part an aspect of the justiciable controversy that is required before the judicial branch is constitutionally empowered to resolve a dispute. See Patterson v. Planned Parenthood, 971 S.W.2d 439, 442-43 (Tex.1998) (observing
As the basis for her claimed justiciable interest in obtaining declaratory and injunctive relief regarding section 37, Castillo pled that the agency "currently considers [her] to be an at will employee, despite the fact that she was employed by the TYC before the effective date of Senate Bill 103." Similarly, as evidence of her justiciable interest, Castillo averred that "since the effective date of Senate Bill 103, the TYC has classified me as an at will employee" and that agency officials had advised her that they no longer considered her a for-cause employee. However, Castillo has neither alleged nor presented evidence that section 37 has had or is threatening to have any tangible impact on her. In fact, the TYC Defendants presented unconverted evidence negating that fact. See Miranda, 133 S.W.3d at 227. Namely, Poteet testified that Castillo "remains a TYC employee in good standing" and that the agency "has not recommended that [her] employment be terminated, nor is she under a threat of termination."
In urging that she nonetheless possesses a ripe, justiciable interest in her claims, Castillo emphasizes that one's status as a for-cause public employee is considered to create a property right in continued employment that is protected by procedural due process requirements. See, e.g., Loudermill, 470 U.S. at 538-39, 105 S.Ct. 1487. Consequently, Castillo reasons, she incurred an immediate concrete injury at the moment section 37 took effect and "divested" her of that property right. As Castillo explains her view on appeal, "where once [she] was clothed in the protection of a vested right and due process before termination, she has been stripped of her protection and stands naked before TYC without the rights she previously enjoyed." (Emphasis in original.) But this is merely a restatement of the fact that Castillo comes within the class of individuals whose terms of employment were altered by section 37—and that fact alone does not establish that she presently has a ripe, justiciable interest in challenging that enactment. A justiciable interest in regard to a statute requires more, "some actual or threatened restriction under that statute." Texas Workers' Comp. Comm'n v. Garcia, 893 S.W.2d 504, 517-18 (Tex.1995) (discussing the related concept of standing). And whether section 37 will ever have anything more than merely a theoretical effect on Castillo turns on at least two sets of contingencies: (1) whether her termination will ever occur or be threatened, and (2) TYC's specific actions in that event. Consequently, Castillo's
Alvarez-Sanders and Logterman asserted theories of "wrongful termination" predicated on allegations that they were deprived of their procedural due process rights in their employment by being constructively discharged. While dismissing their claims under this theory to the extent they sought money damages, the district court denied the plea to the jurisdiction to the extent of permitting Alvarez-Sanders and Logterman to replead, if possible, a viable claim for equitable relief against a state official. In their first issue on appeal, the TYC Defendants urge that this ruling was error because the record demonstrates an incurable jurisdictional defect such that repleading would be futile. See Texas A & M Univ. Sys. v. Koseoglu, 233 S.W.3d 835, 846 (Tex.2007) (remanding to the trial court to dismiss claims with prejudice where pleadings were incurably defective). Specifically, the TYC Defendants contend that Plaintiffs' pleadings and the jurisdictional evidence negate an essential element of a viable due-process claim predicated on constructive discharge, that the employer forced the employees' resignations with the intent to deprive them of the procedural due process that would accompany involuntary termination. See Fowler v. Carrollton Pub. Library, 799 F.2d 976, 981 (5th Cir.1986); see University of Tex. Med. Sch. at Houston v. Than, 901 S.W.2d 926, 929 (Tex.1995) (holding that although Texas Constitution refers to "due course" rather than the U.S. Constitution's "due process," the phrases are not meaningfully distinct and federal interpretations of procedural due process are persuasive authority when interpreting Texas's "due course" guarantee).
As a threshold matter, we question whether we have jurisdiction to consider this ground for dismissal in the context of this interlocutory appeal where, as here, there is no indication in the record that the TYC Defendants ever raised it before the district court. See Austin Indep. Sch. Dist. v. Lowery, 212 S.W.3d 827, 834 (Tex.App.-Austin 2006, pet. denied) (we consider plea that was filed and do not address whether the district court erred in denying the plea on a ground that was not argued below); but see Texas State Bd. of Pub. Accountancy v. Bass, No. 03-09-00251-CV, 2010 WL 5575921, at *4, 2011 Tex.App. LEXIS 294, at *14-15 n. 2 (Tex. App.-Austin Jan. 14, 2011, no pet.) (noting apparent exception where plaintiff purported to assert an ultra vires claim directly against a state agency); Rusk State Hosp. v. Black, No. 12-09-00206-CV, 2010
The TYC Defendants further object that allowing Alvarez-Sanders and Logterman to replead to seek equitable relief under their wrongful-termination/due-process theory is futile because they cannot seek reinstatement and would still lack standing to challenge section 37 in any event. Although we ultimately agree that Alvarez-Sanders and Logterman's claims for equitable relief do not create a justiciable interest on their part in the constitutional challenges, as we explain below, that conclusion alone does not render futile their opportunity to replead claims for equitable relief based on their wrongful-termination/due-process theory. As the TYC Defendants emphasize, these claims of Alvarez-Sanders and Logterman are based on facts that occurred months before section 37 took effect. Furthermore, they could conceivably seek equitable remedies other than reinstatement. See Than, 901 S.W.2d at 933 ("In general, . . . the remedy for a denial of due process is due process.").
In short, the district court did not err in denying the TYC Defendants' plea to the jurisdiction to the extent of permitting Alvarez-Sanders and Logterman the opportunity to replead their wrongful-termination/due-process claims to seek equitable relief from an appropriate state official (i.e., TYC's executive director). Having so held, however, the district court erred in failing to dismiss Alvarez-Sanders and Logterman's wrongful-termination/due-process claims to the extent they sought equitable relief from TYC itself. As the Texas Supreme Court has recently made clear, a suit for equitable relief to restrain official conduct that is ultra vires of an agency's statutory or constitutional powers must be asserted against a state official, in his or her official capacity, and sovereign immunity bars such a claim if asserted against the agency itself. City of El Paso v. Heinrich, 284 S.W.3d 366, 372-73 (Tex.2009) (explaining that suits seeking to restrain illegal acts of state officials "cannot be brought against the state, which retains immunity, but must be brought against the state actors in
In their fifth issue, Plaintiffs urge that the district court erred in dismissing the defamation claims of Alvarez-Sanders and Logterman.
As a threshold matter, any claim for equitable relief from a constitutional violation would, again, be barred by sovereign immunity to the extent that Plaintiffs would purport to assert it against TYC. See Heinrich, 284 S.W.3d at 372-73. If any such claim were viable, it would lie instead against TYC's executive director. See id. And, as demonstrated by our detailed review of Plaintiffs' pleadings, and however liberally we might construe those pleadings, Plaintiffs did not plead any claim for equitable relief predicated on defamation or some related notion of stigmatization, much less one predicated on due process, the theory on which Plaintiffs apparently now rely. In this regard, we observe that, "[t]o assert a claim for the deprivation of this constitutional right to a name-clearing hearing, a plaintiff must allege that he was a public employee, that he was discharged, that
In their sixth issue, Plaintiffs urge that the district court erred in dismissing any of their claims predicated on the alleged "taking" of their property rights in continued employment.
Alvarez-Sanders and Logterman assert two sets of claims for declaratory
Second, Plaintiffs urge in their fourth issue that even though Alvarez-Sanders and Logterman were no longer TYC employees at the time section 37 took effect, their claims for equitable relief give rise to standing on their part to obtain declaratory and injunctive relief challenging that statute. Consequently, they reason, the district court erred in dismissing these claims. These arguments fail for reasons similar to their arguments regarding Castillo's claims.
As of the date section 37 took effect, Alvarez-Sanders and Logterman were no longer employees of TYC, and had not been for approximately two months. At that juncture, it was thus impossible for them to suffer the required "actual or threatened restriction under that statute" necessary for standing. Garcia, 893 S.W.2d at 517-18. That condition would continue to exist unless and until they could, in light of the foregoing holdings, (1) plead a viable claim for equitable relief based on wrongful termination, (2) prevail, and (3) the equitable relief they ultimately obtained would include reinstatement, such that section 37 would apply to them. These contingencies, to say the least, are far too remote and speculative at the present time to give rise to a justiciable interest on the part of Alvarez-Sanders and Logterman. Patterson, 971 S.W.2d at 442 (claim is unripe where the case involves "uncertain or contingent future events that may not occur as anticipated, or indeed may not occur at all"); see also Perry, 66 S.W.3d at 249-51 (even in instances where claim might eventually ripen based on subsequent events, trial court must dismiss claim if, at time of adjudication, it is not ripe). We overrule Plaintiffs' fourth issue.
Unlike the other Plaintiffs, Brantley was (1) formally terminated and (2) this event occurred after section 37 took effect. Like Alvarez-Sanders and Logterman, Brantley asserted "defamation" and "takings" claims and Plaintiffs challenge the dismissal of those claims on the same grounds they assert regarding the other two former employee Plaintiffs. We have already disposed of these contentions above.
Brantley also asserted a theory of wrongful termination predicated on the allegations that TYC discharged him without "due process," that is, without affording him the procedural protections to which for-cause TYC employees had been entitled. Additionally, like the other three Plaintiffs, Brantley asserted claims for declaratory and injunctive relief challenging section 37's constitutionality. The TYC Defendants attacked the district court's jurisdiction over these claims in part on the basis that the uncontroverted jurisdictional evidence establishes that Brantley
Although the jurisdictional evidence established that Brantley received pre-termination notice and an opportunity to respond consistent with TYC's former policies governing involuntary terminations, it remains that Brantley did not receive all of the process to which he claims due process would have entitled him as a for-cause employee. Namely, Brantley was denied an evidentiary hearing on the grounds for his termination. The TYC Defendants tacitly acknowledge this fact in emphasizing that Brantley was not entitled to an evidentiary hearing under the grievance procedures in effect after the agency amended them effective June 20, 2007 to eliminate the right to an evidentiary hearing where, as here, the executive director terminates the employee. Consequently, whatever interest Brantley possessed in obtaining the judicial relief he sought was not entirely extinguished by the process he received. The district court, therefore, would have erred in dismissing Brantley's claims based on a conclusion that they were moot.
On appeal, the TYC Defendants, in a supplemental brief, suggest that Brantley's claims should nonetheless be dismissed because he did not, as a matter of law, allege facts that constitute a constitutional violation. See Creedmoor-Maha, 307 S.W.3d at 513, 516 n. 8. The TYC Defendants essentially reurge their arguments—styled as "summary judgment" grounds in the district court—that the ex post facto law prohibition applies only to penal statutes, see Rogers, 532 U.S. at 456, 121 S.Ct. 1693; Barshop, 925 S.W.2d at 633-34, and that Plaintiffs possessed no vested property right in the Legislature's continuing to grant them for-cause employment status, only a mere expectancy based on the anticipated continuation of current law. See, e.g., McMurtray, 11 F.3d at 504. The mere fact that the TYC Defendants labeled this jurisdictional challenge as a "summary-judgment" ground, as opposed to a ground in their plea to the jurisdiction, is not in itself dispositive of the TYC Defendants' contention. See Austin State Hosp. v. Graham, 347 S.W.3d 298, 300-01 (Tex.2011) (explaining that an interlocutory appeal may be taken from a refusal to dismiss for want of jurisdiction whether the jurisdictional argument is presented by plea to the jurisdiction or some other procedural vehicle). But, as Plaintiffs emphasize, the district court did not reach this ground for dismissal, however labeled. Under the precedents of this Court, as previously noted, we do not have jurisdiction in the context of this interlocutory appeal to reach this ground for dismissal, whatever its merits. Lowery, 212 S.W.3d at 834 ("we . . . do not address whether the district court erred in denying the plea on a ground that was not argued below.").
Like Alvarez-Sanders and Logterman, Brantley should be permitted to replead his wrongful-termination/due-process claim to seek equitable relief against a proper state official. To this
We affirm the district court's order except in two respects. First, we reverse the district court's order to the extent it fails to dismiss the wrongful-termination/due-process claims of Alvarez-Sanders and Logterman against TYC. We render judgment dismissing those claims for want of subject-matter jurisdiction. Second, we reverse the district court's order dismissing Brantley's wrongful-termination/due-process claim to the extent it would seek equitable relief against an appropriate state official. We render judgment that Brantley is to replead said claim against a proper state official within fifteen days of the date of this Court's judgment.
Justice PATTERSON not participating.