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

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