Opinion

Star Houston, Inc. v. Texas Department of Transportation, Motor Vehicle Division Saab Cars U.S.A., Inc. And Momentum BMW Limited

Court
Texas Court of Appeals, 3rd District (Austin)
Filed
Oct 16, 1997
Status
Published
Cited by
0 cases
Authority
More cited than 35.8%

when determining standing for first time on appeal, appellate court must view record in favor of appellant

How later courts described this case

  • when determining standing for first time on appeal, appellate court must view record in favor of appellant

Written by the judges who cited it.

The opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN

NO. 03-96-00675-CV

Star Houston, Inc., Appellant

v.

Texas Department of Transportation, Motor Vehicle Division; Saab Cars U.S.A., Inc.; and

Momentum BMW, Limited, Appellees

FROM THE DISTRICT COURT OF TRAVIS COUNTY, 200TH JUDICIAL DISTRICT

NO. 95-14402, HONORABLE PAUL R. DAVIS, JR., JUDGE PRESIDING

Appellant Star Houston, Inc., is a car dealer in Houston, Texas, that sold Saab vehicles

until late 1995 pursuant to a franchise agreement with appellee Saab Cars U.S.A., Inc. In early 1995,

Saab sought to enter into a franchise agreement with appellee Momentum BMW, Ltd., to sell Saab vehicles

in Houston. Momentum accordingly applied for a license to sell Saab cars. See Tex. Rev. Civ. Stat. Ann.

art. 4413(36), § 4.06 (West Supp. 1997) ("Texas Motor Vehicle Commission Code" or "TMVC Code").

After an administrative proceeding, the Motor Vehicle Division of the Texas Department of Transportation

("the Commission") (1) issued an order finding good cause to issue a license to Momentum.

Star challenged the issuance of the license and brought an administrative appeal of the order

in district court. Star also brought a declaratory judgment suit in conjunction with the administrative appeal.

The district court affirmed the Commission's order and Star again appeals to this Court. We will dismiss

the cause because Star no longer has standing to protest the issuance of Momentum's license.

At the same time Star was protesting Momentum's application for a license, Saab was

embroiled in a separate administrative proceeding before the Commission over Saab's proposal to

terminate Star's franchise. On September 7, 1997, the Commission issued a final order finding good cause

to terminate Star's Saab franchise. The Commission subsequently revoked Star's license to sell Saab

vehicles. Star sought judicial review of both actions in district court. The district court upheld the

Commission's actions. Star appealed that decision in a companion case, which we also decide today. See

Star Houston, Inc. v. Texas Dep't of Transp., Motor Vehicle Div. and Saab Cars U.S.A., Inc. , No.

03-96-676-CV (Tex. App.--Austin Oct. 16, 1997, no writ h.) (affirming the Commission's order

terminating Star's franchise to sell Saab vehicles).

The TMVC Code provides that a dealer who is franchised to sell a certain make of car has

standing to protest the issuance of a license to another dealer to sell the same make if the applicant dealer

is within a certain geographical proximity to the protesting dealer. See TMVC Code § 4.06(d). Star no

longer has a franchise to sell Saab cars and therefore no longer meets the requirements of the TMVC Code

standing provision for purposes of challenging other Saab franchises. Furthermore, we have reviewed the

pleadings and evidence and determined that, even when viewed in favor of Star, the record no longer

evidences any justiciable controversy between Star and the other parties in this proceeding. See Texas

Ass'n of Business v. Texas Air Control Bd. , 852 S.W.2d 440, 446 (Tex. 1993) (when determining

standing for first time on appeal, appellate court must view record in favor of appellant).

Standing is a component of subject matter jurisdiction and without it, we may not entertain

the case. Id. at 443-446 . Consequently, we vacate the trial court's judgment and dismiss this cause.

_____________________________________________

Jimmy Carroll, Chief Justice

Before Chief Justice Carroll, Justices Aboussie and B. A. Smith

Judgment Vacated and Cause Dismissed

Filed: October 16, 1997

Do Not Publish

1. The Motor Vehicle Board of the Texas Department of Transportation is also known as the Texas

Motor Vehicle Commission. Tex. Rev. Civ. Stat. Ann. art. 4413(36), § 2.01(b) (West Supp. 1997).

RD DISTRICT, AT AUSTIN

NO. 03-96-00675-CV

Star Houston, Inc., Appellant

v.

Texas Department of Transportation, Motor Vehicle Division; Saab Cars U.S.A., Inc.; and

Momentum BMW, Limited, Appellees

FROM THE DISTRICT COURT OF TRAVIS COUNTY, 200TH JUDICIAL DISTRICT

NO. 95-14402, HONORABLE PAUL R. DAVIS, JR., JUDGE PRESIDING

Appellant Star Houston, Inc., is a car dealer in Houston, Texas, that sold Saab vehicles

until late 1995 pursuant to a franchise agreement with appellee Saab Cars U.S.A., Inc. In early 1995,

Saab sought to enter into a franchise agreement with appellee Momentum BMW, Ltd., to sell Saab vehicles

in Houston. Momentum accordingly applied for a license to sell Saab cars. See Tex. Rev. Civ. Stat. Ann.

art. 4413(36), § 4.06 (West Supp. 1997) ("Texas Motor Vehicle Commission Code" or "TMVC Code").

After an administrative proceeding, the Motor Vehicle Division of the Texas Department of Transportation

("the Commission") (1) issued an order finding good cause to issue a license to Momentum.

Star challenged the issuance of the license and brought an administrative appeal of the order

in district court. Star also brought a declaratory judgment suit in conjunction with the administrative appeal.

The district court affirmed the Commission's order and Star again appeals to this Court. We will dismiss

the cause because Star no longer has standing to protest the issuance of Momentum's license.

At the same time Star was protesting Momentum's application for a license, Saab was

embroiled in a separate administrative proceeding before the Commission over Saab's proposal to

terminate Star's franchise. On September 7, 1997, the Commission issued a final order finding good cause

to terminate Star's Saab franchise. The Commission subsequently revoked Star's license to sell Saab

vehicles. Star sought judicial review of both actions in district court. The district court upheld the

Commission's actions. Star appealed that decision in a companion case, which we also decide today. See

Star Houston, Inc. v. Texas Dep't of Transp., Motor Vehicle Div. and Saab Cars U.S.A., Inc. , No.

03-96-676-CV (Tex. App.--Austin Oct. 16, 1997, no writ h.) (affirming the Commission's order

terminating Star's franchise to sell Saab vehicles).

The TMVC Code provides that a dealer who is franchised to sell a certain make of car has

standing to protest the issuance of a license to another dealer to sell the same make if the applicant dealer

is within a certain geographical proximity to the protesting dealer. See TMVC Code § 4.06(d). Star no

longer has a franchise to sell Saab cars and therefore no longer meets the requirements of the TMVC Code

standing provision for purposes of challenging other Saab franchises. Furthermore, we have reviewed the

pleadings and evidence and determined that, even when viewed in favor of Star, the record no longer

evidences any justiciable controversy between Star and the other parties in this proceeding. See Texas

Ass'n of Business v. Texas Air Control Bd. , 852 S.W.2d 440, 446 (Tex. 1993) (when determining

standing for first time on appeal, appellate court must view record in favor of appellant).

Standing is a component of subject matter jurisdiction and without it, we may not entertain

the case. Id. at 443-446 . Consequently, we vacate the trial court's judgment and dismiss this cause.

_____________________________________________

Jimmy Carroll, Chief Justice

Before Chief Justice Carroll, Justices Aboussie and B. A. Smith

Judgment Vacated and Cause Dismissed

Filed: October 16, 1997

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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