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City of Port Arthur v. Southwestern Bell Telephone Company and Public Utility Commission of Texas
Citation: Not availableDocket: 03-99-00743-CV
Court: Court of Appeals of Texas; March 1, 2000; Texas; State Appellate Court
Original Court Document: View Document
The City of Port Arthur appeals the district court's decision to strike its plea in intervention regarding Southwestern Bell Telephone Company's (SWB) application for rate group reclassification, which had been approved by the Public Utility Commission of Texas (the Commission). The City did not participate in the initial administrative proceedings and filed its motion to intervene only after the Commission's decision was adopted. The Commission did not respond to the City's motion, which was deemed overruled by law, and the City failed to request a rehearing. SWB subsequently sought judicial review of the Commission's decision, prompting the City to file a petition for intervention and serve discovery requests, which SWB opposed. The district court ultimately struck the City’s petition and severed its action, leading to the current appeal. On appeal, the City argues that the denial of its intervention violates the Texas Constitution's Open Courts and Due Process provisions and asserts that the court erred in denying it the opportunity for discovery. The standard for reviewing the denial of intervention is whether the trial court abused its discretion, which involves assessing if the City had a justiciable interest, if its intervention would complicate the case, and if it was essential to protecting its interests. The City bears the burden to demonstrate its interest in the lawsuit, and it is generally required to file a motion to intervene before a judgment is rendered. Judicial review of a Commission decision necessitates a prior motion for rehearing in the administrative process, as outlined by the Public Utility Regulatory Act and associated rules. Parties to Commission proceedings are defined as applicants, complainants, respondents, intervenors, or general counsel. An entity that does not intervene or is denied permission to intervene is not considered a party. The City did not participate in the administrative hearing or obtain permission to intervene, making it ineligible for judicial review of the Commission's decision. Following the denial of its late motion to intervene, the City did not file a motion for rehearing, which is necessary for judicial review. Consequently, the City lacked standing to bring an action for judicial review and failed to show a right to intervene in district court. The City cited no authority supporting its intervention claim. Judicial review operates under the substantial evidence rule, where the court typically considers only the agency record. The court may receive evidence of procedural irregularities or remand for additional evidence if a party demonstrates good cause for its absence. The City is not a party and therefore lacks grounds to present new evidence or seek discovery. The City argued that its exclusion from court proceedings violated Open Courts and Due Process provisions. However, municipalities do not have due process rights, and the City could not demonstrate a common-law cause of action for judicial review, which undermined its Open Courts claim. The district court's judgment striking the City's petition in intervention was affirmed.