Commercial Life Insurance Company v. Texas State Board of Insurance, et al., 774 S.W.2d 650 (Tex. 1989)
Commercial Life Insurance Company ("Commercial"), a foreign insurance corporation, applied to reserve the name "Commercial Life Insurance Company." The State Board of Insurance (the "Board") denied the name reservation on the statutory ground that the name was so similar to that of other insurance companies as to be likely to mislead the public. However, the Board failed to give Commercial notice of its order denying the request. Commercial sued for judicial review of the Board's order. Opposing insurance companies ("Bankers Commercial") and the Board moved for dismissal in district court on the basis that Commercial had not timely filed a motion with the Board for rehearing. The district court granted the dismissal and the court of appeals affirmed.
The Supreme Court ("Court") found that the statutory scheme for filing a motion for rehearing contemplates that the parties receive actual notice pursuant to section 16(b) of the Administrative Procedure and Texas Register Act ("APTRA"). Tex. Rev. Civ. Stat. Ann. Art. 6252-13a § 16(b) (Vernon Supp. 1989). The Court concluded that section 16(b) requires an agency to promptly notify the parties of its decisions and that the time period (fifteen days) for filing a motion for rehearing does not commence until the agency satisfies its statutory duty of notification.
Bankers Commercial also contended that section 16(b) required Commercial to request a copy of the decision from the Board, precluding any consideration of Commercial's motion for rehearing filed after the expiration of the fifteen-day period. The Court disagreed, stating that the Board had a duty to inform Commercial of its decision without regard to any request that was or was not made by the parties.
The Court therefore reversed the court of appeals and remanded the case to the trial court to consider the administrative appeal on its merits.
Commercial was represented by De Leon & Washburn attorneys.
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