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Texas Workers' Compensation Commission v. City of Eagle Pass3/9/2000
Motion for rehearing of petition for review denied March 22, 2001.
TEXAS WORKERS' COMPENSATION COMMISSION, APPELLANT
v.
CITY OF EAGLE PASS/TEXAS MUNICIPAL LEAGUE WORKERS' COMPENSATION JOINT INSURANCE FUND; AND CAPITAL METRO TRANSPORTATION AUTHORITY/TEXAS MUNICIPAL LEAGUE WORKERS' COMPENSATION JOINT INSURANCE FUND, APPELLEES
FROM THE DISTRICT COURT OF TRAVIS COUNTY, 126TH JUDICIAL DISTRICT NO. 98-08549, HONORABLE JOHN K. DIETZ, JUDGE PRESIDING
Before Chief Justice Aboussie, Justices B. A. Smith and Yeakel
The opinion of the court was delivered by: Marilyn Aboussie, Chief Justice
Appellant, the Texas Workers' Compensation Commission ("the Commission"), appeals from a district court judgment reversing a Commission order assessing penalties. The judgment declared that appellees, as political subdivisions of the State, possess immunity from administrative penalties and that their immunity had not been waived. We will reverse the decision of the trial court and render judgment in accordance with the Commission's order.
BACKGROUND
The Commission is authorized to review and to audit the records of insurance carriers to determine if they are in compliance with the Workers' Compensation Act ("the Act"). See Tex. Lab. Code Ann. §§ 414.001-.007 (West 1996); 28 Tex. Admin. Code §§ 180.1-.8 (1999). The definition of insurance carrier includes political subdivisions that self-insure. See Tex. Lab. Code Ann. § 401.011(27)(C) (West Supp. 2000). Appellees are unquestionably political subdivisions of the State of Texas. In reviewing the records of the City of Eagle Pass ("Eagle Pass") and the Capital Metro Transportation Authority ("Capital Metro"), the Commission found that each appellee had twice violated section 409.023 of the Labor Code by making late payments of benefits. See id. § 409.023 (West 1996). Eagle Pass paid benefits four days late in March 1994 and one day late in November 1994. Capital Metro paid benefits eighteen days late in March 1995 and thirteen days late in April 1995. The Commission assessed administrative penalties against Eagle Pass in the amount of $1,875 and against Capital Metro in the amount of $7,275.
At an administrative hearing, appellees stipulated to the violations of section 409.023 and to the amount of the penalties imposed. Appellees' sole contention was that as political subdivisions, they were immune from the imposition of administrative penalties under the doctrine of sovereign immunity. The Administrative Law Judge ("ALJ") rejected appellees' argument and upheld the Commission's order assessing penalties. Appellees subsequently filed suit in district court in Travis County for judicial review of the ALJ's decision. In the suit, appellees again urged that the Commission could not assess administrative penalties against political subdivisions because the Legislature had not expressly waived the subdivisions' sovereign immunity from such penalties. In reversing the ALJ's decision, the district court concluded that sovereign immunity prevented the State's imposition of penalties absent the Legislature's express waiver of the subdivision's immunity. The Commission then appealed to this Court.
DISCUSSION
Sovereign Immunity
In its sole issue, the Commission contends that sovereign immunity does not apply to the present situation. As this issue is a pure question of law, we review the trial court's ruling de novo. See Republic W. Ins. Co. v. State, 985 S.W.2d 698, 701 (Tex. App.-Austin 1999, pet. dism'd w.o.j.).
The Commi
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