v.
Board of the Texas Department of Motor Vehicles, and Mazda Motor of North America, Inc. A/K/A Mazda Motor of America, Inc.// Cross-Appellee, All Star Imports, Inc. D/B/A World Car Mazda North
ACCEPTED 15-24-00017-CV FIFTEENTH COURT OF APPEALS AUSTIN, TEXAS 2/27/2025 12:42 PM No. 15-24-00017-CV CHRISTOPHER A. PRINE CLERK FILED IN IN THE COURT OF APPEALS FOR THE FIFTEENTH DISTRICT OF TEXAS 15th COURT OF APPEALS AUSTIN, TEXAS
ALL STAR IMPORTS, INC. D/B/A WORLD CAR MAZDA NORTH, 2/27/2025 12:42:00 PM CHRISTOPHER A. PRINE Appellant and Cross-Appellee, Clerk
v. MAZDA MOTOR OF NORTH AMERICA, INC. A/K/A MAZDA MOTOR OF AMERICA, INC., Cross-Appellant and Appellee, v. BOARD OF THE TEXAS DEPARTMENT OF MOTOR VEHICLES, Appellee and Cross-Appellee. Appeal from No. D-1-GN-23-005034, 345th Judicial District Court, Travis County
MAZDA’S COMBINED APPELLEE’S BRIEF AND CROSS-APPELLANT’S REPLY BRIEFS (TO WORLD CAR NORTH AND THE BOARD) Brit T. Brown Jeff Nobles [email protected] [email protected] Texas Bar No. 03094550 Texas Bar No. 15053050 Benjamin A. Escobar, Jr. HUSCH BLACKWELL LLP [email protected] 600 Travis Street, Suite 2350 Texas Bar No. 00787440 Houston, Texas 77002 AKERMAN LLP Telephone: (713) 647-6800 1300 Post Oak Blvd., Suite 2300 Facsimile: (713) 647-6884 Houston, Texas 77056-3000 Telephone: (713) 623-0887 Facsimile: (713) 960-1527 ATTORNEYS FOR MAZDA MOTOR OF NORTH AMERICA, INC. A/K/A MAZDA MOTOR OF AMERICA, INC.
TABLE OF CONTENTS TABLE OF CONTENTS ...........................................................................ii INDEX OF AUTHORITIES ..................................................................... iv STATEMENT OF FACTS ......................................................................... 1 SUMMARY OF THE ARGUMENT .......................................................... 1 ARGUMENT ............................................................................................. 3 I. As used in the APA, the word “act” has a particular meaning. ........................................................................................... 3 A. The technical and particular meaning of an “act” of an administrative board must be followed by this Court. ........... 3 B. An “act” of the Board is a quasi-judicial act that does not occur unless the Board follows the APA........................... 4 C. The Board’s quasi-judicial “acts” are different from the “acts” of its members and staff. .............................................. 6 D. The Board failed to follow the steps required by the Government Code. ................................................................... 7
[*2]ARGUMENT
The jurisdictional arguments in this case were offered by the Board in its plea to the jurisdiction. In general, WC North does not speak for itself on the question of jurisdiction. Instead, its briefs echo the arguments of the Board. For simplicity and brevity, in this brief Mazda will combine its answers to the arguments offered by the Board, echoed by WC North.
I. As used in the APA, the word “act” has a particular meaning.
Both the Board and WC North offer interpretations of the meaning of the word “act” in section 2001.146(c) of the Texas Government Code, which provides: “A state agency shall act on a motion for rehearing not later than the 55th day after the date the decision or order that is the subject of the motion is signed or the motion for rehearing is overruled by operation of law.”
A. The technical and particular meaning of an “act” of an administrative board must be followed by this Court.
The Board argues that “act” is not defined by statute and should be given its “plain and common meaning.” Board Br. 6-7. It cites three dictionaries and suggests “to act” means “to do something: to take action.” Id. at 8.
[*3]Whether the word “act” is defined by the Government Code is not the test. According to the Government Code itself: “Words and phrases that have acquired a technical or particular meaning, whether by legislative definition or otherwise, shall be construed accordingly.” TEX. GOV’T CODE § 311.011(b) (emphasis added). The Texas Supreme Court summarized those principles just last Friday, February 21, 2025:
When interpreting statutes, we look to the plain meaning of the enacted text and apply that plain meaning “unless a different meaning is apparent from the context or the plain meaning leads to absurd or nonsensical results.” We examine the technical or particular meaning the words have acquired and consider specific statutory language in context, “looking to the statute as a whole.”
REME, L.L.C., v. State of Texas, No. 23-0707, 2025 WL 567970, at *2 (Tex. Feb. 21, 2025) (emphasis added). Therefore, whether the Government Code defines “act” is not dispositive.
B. An “act” of the Board is a quasi-judicial act that does not occur unless the Board follows the APA.
WC North cites two more dictionaries, including Black’s Law Dictionary. WC North asserts that Black’s Law Dictionary states that an act is “[s]omething done or performed. Act, Black’s Law Dictionary (12th ed. 2024).” WC North Br. at 14. WC North’s quotation of Black’s is selective and incomplete.
[*4]Black’s actually offers a four-page definition of “act” that includes dozens of different meanings. See Appendix 1 (App. [1]), attached to this brief at Tab 1. Depending on the context in which it is used, “act” has dozens of different meanings. In the context of action by an administrative agency, an “act” is a “quasi-judicial act”:
quasi-judicial act (1840) 1. A judicial act 1 performed by an official who is not a judge. [2]. An act performed by a judge who is not acting entirely in a judicial capacity. See judicial act under act (2). Quasi-Judicial Act, Black’s Law Dictionary (12th ed. 2024) (App. [2]).
Administrative agencies fulfill a quasi-judicial function in contested cases. See Oncor Elec. Delivery Co. NTU, LLC v. Wilbarger Cnty. Appraisal Dist., 691 S.W.3d 890, 905 (Tex. 2024) (discussing quasi- judicial function of administrative bodies).State v. Thomas, 766 S.W.2d 217, 219 (Tex. 1989) (in contested cases, administrative agencies perform a quasi-judicial function); State Bd. of Ins. v. Prof’l & Bus. Men’s Ins. Co., 359 S.W.2d 312, 318 (Tex. App.—Austin 1962, writ ref’d n.r.e.) (same).
1 A “judicial act” is “An act involving the exercise of judicial power – Also termed act of court.” Act, Black’s Law Dictionary. (App. [1]).
[*5]C. The Board’s quasi-judicial “acts” are different from the “acts” of its members and staff.
The exercise of judicial power by a court or quasi-judicial power by an agency has a particular meaning that is different from the ordinary “acts” that any other individual or entity can perform. Recent Texas Supreme Court precedent confirms this. Baker v. Bizzle, 687 S.W.3d 285, 291–92 (Tex. 2024) (holding that a private email to the parties was not an act that resulted in a judgment).
In Baker v. Bizzle, the Court engaged in an exacting analysis of the specific judicial and clerical acts required for a final judgment:
Reducing a decision to final judgment has three phases: (1) rendition; (2) signing; and (3) entry. Rendition and signing are judicial acts that can, but need not, occur at the same time. Entry, on the other hand, is a clerical act undertaken by the clerk of the court. A judgment’s “rendition” is “the judicial act by which the court settles and declares the decision of the law upon the matters at issue.” Id. Here, the Board fulfilled a quasi-judicial role when it issued its orders in this contested case, analogous to the judicial role analyzed in Baker v. Bizzle.
[*6]D. The Board failed to follow the steps required by the Government Code.
The Board argues, and WC North concurs:
Due to the broad definition of “act,” the TXDMV acted under Texas Government Code section 2001.146(c) when the Board voted by email to grant the motions for rehearing. Board Br. at 8; WCN App. Br. at 16, WCN Cross Br. 8-9. This argument conflicts with the text of the relevant Government Code provisions, including section 2001.146 itself.
The Government Code includes a series of provisions that govern the requirements the Board must follow to “act” on a motion for rehearing. Each of them precludes the argument that “act” has no particular meaning.
1. The first step is for the members of the Board to vote.
To adopt a final decision or order of the Board, a majority vote of a quorum of the Board is required. TEX. OCC. CODE § 2301.709(c) (App. [3]). The board consists of nine members appointed by the governor with the advice and consent of the senate. TEX. TRANSP. CODE § 1001.021. This means five votes of the nine board members is required to adopt a Board order.
[*7][*8]decision is not a mere formalism but, rather, an official judicial action affording the decision legal significance.” Id. at 295.
This analysis applies here. Each of the three phases—decision- making and voting, writing and signing, and serving notice—must be completed before the Board has performed the quasi-judicial act of issuing an order. None of the three phases “is a mere formalism but, rather, an official [quasi-judicial] action affording the decision legal significance.” Id.
[*9]latest filed motion for rehearing is signed.” TEX. GOV’T CODE § 2001.144(a)(2)(A). If the Board does not timely rule, the motion for rehearing is overruled by operation of law. TEX. GOV’T CODE § 2001.144(a)(2)(A). Neither of these conditions is satisfied by a mere vote, unless an order is then signed, or after rehearing is overruled by operation of law.
[*10]First, the Board has the option of granting the motion “not later than the 55th day” after the challenged order was signed. Id. Because the Board is required to deliberate and vote, write and sign an order, and serve it on the parties, there is no reasonable interpretation of this provision that would allow an individual vote to satisfy the jurisdictional deadline simply by conducting a vote.
There is a second “act” the Board can perform to abate the 55-day deadline: by extending the deadline. The statute authorizes such an extension:
A state agency or a person authorized to act for the agency may, on its own initiative or on the motion of any party for cause shown, by written order extend the time for … agency action under this section, provided that the agency or person extends the time or takes the action not later than the 10th day after the date the period for … taking agency action expires. An extension may not extend the period for agency action beyond the 100th day after the date the decision or order that is the subject of the motion is signed. TEX. GOV’T CODE § 2001.146(e).
Under this statutory provision, the Board had the power to extend the deadline for granting rehearing, so long as it issued a written order no later than the 10th day following the 55-day deadline for granting the motion for rehearing. Under Third Court precedent, however, the Board was required to act on or before the date the motion for rehearing was overruled by operation of law. Jones v. State Bd. of Educ., 315 S.W.2d 237, 243 (Tex. App.—Austin 2010, pet. denied). Here, the Board never acted to extend the deadline for acting on the motion for rehearing.
[*11]Under sections 2001.144 and 2001.146, the motions for rehearing were overruled by operation of law on the 55th day. The Board did not complete the steps necessary to grant relief on or before that day, by issuing an order granting rehearing or extending the deadline, i.e., by issuing a written, signed order and serving it on the parties before that day. These steps are not mere formalisms but, rather, an official quasi- judicial action affording the decision legal significance. See Baker v. Bizzle, 687 S.W.3d at 295.
II. WC North’s other arguments are groundless. WC North raises other arguments that require only a brief response.
A. WC North’s remaining argument as an appellant is not supported by authority.
WC North argues, in its opening brief, that (1) Mazda’s petition for review in the trial court was not timely filed and (2) the trial court, not this Court, should entertain Mazda’s notice of removal. WC North Appellant Br. at 17-19.
[*12]These arguments do not include supporting legal authorities and should not be considered at this time. TEX. R. APP. P. 38.1(i). Because they are conditioned on the outcome of the pending appeal, it is premature to consider them.
B. WC North’s arguments as a cross-appellee are groundless.
WC North also raises four short arguments in its cross appellee’s brief. WCN Cross Br. at 5-12. Only a short response is necessary.
1. The votes of the individual members were not “acts” of the Board.
First, WC North argues that the Board “acted” because the members of the Board “actually voted to grant rehearing—and by a majority—before the operation-of-law date.” WCN Cross Br. 7. Second, and relatedly, it argues that the individual votes of the board members from remote places should count as “acts” of the Board. WCN Cross Br. 7-9.
As Mazda has argued above, the Board’s quasi-judicial act require it to comply with the text of the governing statutes, which leave no room for the Board to “act” individually rather than following the required steps of decision-making, writing and signing an order, and signing the order. Within any judicial or quasi-judicial entities, individual decision- makers and their staff perform “acts” in their processes that are not judicial or quasi-judicial acts.
[*13]For example, within a court of appeals, there are many “acts” involved in issuing a judgment. Court clerks handle case intake. Individual justices and their legal staff review the record and the briefs, conduct legal research, prepare memoranda, and draft opinions. The individual justices form tentative decisions and meet to discuss their views. Eventually, each justice reaches a decision on the proper result and the panels agree on a final opinion and any separate concurrences or dissents. But the Court does not issue an opinion or judgment until the final opinion is written and signed and those documents are published by the clerk’s office. Those three steps—decision-making, writing and signing, and publication—parallel the steps required by any judicial or quasi-judicial entity. At any time before publication, the outcome is tentative and may change.
Under Texas law, an entity must go through this full process before it executes a judicial or quasi-judicial act. For the “act” of an administrative board to be valid, the board must act as a body. Consent or acquiescence of the individual members does not bind the board unless the board has acted as a body.
[*14]The purpose of the rule [requiring] the board to act as a body at a regular meeting or at a called meeting, upon proper notice, is to afford each member of the body an opportunity to be present and to impart to his associates the benefit of his experience, counsel, and judgment, and to bring to bear upon them the weight of his argument on the matter to be decided by the Board, in order that the decision, when finally promulgated, may be the composite judgment of the body as a whole. Webster v. Texas & Pacific Motor Transport Co., 166 S.W.2d 131, 135 (Tex. 1942).
Here, the individual votes of the members of the Board did not represent the “composite judgment of the body as a whole” until they were counted, reduced to writing, signed, and served. Before an order was served, the Board’s action was preliminary, private, and subject to change. The votes of the individual members were not “acts” of the Board.
2. WC North’s distinctions of the relevant cases are not on point.
Next, WC North devotes three paragraphs to distinguishing cases cited in Mazda’s opening brief: Webster v. Texas & Pacific Motor Transport Co., 166 S.W.2d 131; Caldwell v. Tex. Bd. of Law Examiners, No. 03-21-00125-CV, 2023 WL 2976580 (Tex. App.—Austin Apr. 18, 2023, pet. denied); Taxpayers for Sensible Priorities v. City of Dallas, 79 S.W.3d 670 (Tex. App.—Dallas 2002, pet. denied). Each of these cases applies the general rule that a governmental entity, including an administrative board, “acts” only as a body and that the individual acts of its members do not qualify as an official acts of the entity.
[*15]WC North argues that this case is distinguishable because, unlike those, the Board followed a “statutorily approved process.” WC North Cross Br. at 10-11. But that is not true. The problem here is not that the members of the Board did not follow the correct process for registering their votes on the parties’ motions for rehearing; the problem is that the Board did not complete the statutorily approved process for granting motions for rehearing. The Board, through its members and staff, was then required to reduce its order to writing, have it signed by an authorized person, and serve notice to the parties. TEX. GOV’T CODE §§ 2001.141, 2001.142.
None of these additional requirements were fulfilled before the motions for rehearing were overruled by operation of law and the Board lost jurisdiction. The individual acts that preceded these missing steps do not qualify as an “act” of the Board, as the Government Code requires for a final order granting rehearing. These missing steps are “not a mere formalism but, rather, an official [quasi-]judicial action affording the decision legal significance.” Baker v. Bizzle, 687 S.W.3d at 295 (Tex. 2024).
[*16][*17]adherence” to the time limits specified in the Texas Administrative Procedure Act.
As the Third Court has repeatedly held:
We note the importance of construing the APA to allow parties to rely on the finality of agency decisions, and without a mandatory adherence to the time limits specified in the APA, the finality of administrative agency decisions would be uncertain and not in the public interest. Id. (quoting Jones v. State Bd. of Educator Certification, 315 S.W.3d at 243) (cleaned up). In administrative litigation, there will always be disputes over fairness, but the interests of finality are paramount when an agency’s jurisdiction has ended.
PRAYER
For these reasons, Mazda requests that this Court reverse the trial court’s order granting the Board’s plea to the jurisdiction. Mazda further requests all other relief it is entitled to receive from this Court.
[*18]Respectfully submitted, /s/ Brit T. Brown Brit T. Brown [email protected] Texas Bar No. 03094550 Benjamin A. Escobar, Jr. [email protected] Texas Bar No. 00787440 AKERMAN LLP 1300 Post Oak Blvd., Suite 2300 Houston, Texas 77056 Telephone: (713) 623-0887 Fax: (713) 960-1527 Jeff Nobles [email protected] Texas Bar No. 15053050 HUSCH BLACKWELL LLP 600 Travis Street, Suite 2350 Houston, Texas 77002 Telephone: 713-647-6800 Fax: 713-647-6884 ATTORNEYS FOR APPELLEE/CROSS- APPELLANT, MAZDA MOTOR OF NORTH AMERICA, INC. A/K/A MAZDA MOTOR OF AMERICA, INC.
[*20]Appendix 1 ACT, Black's Law Dictionary (12th ed. 2024)