Volkswagen Group of America, Inc. And Audi of America, Inc. v. John Walker III, in His Official Capacity as Chairman of the Texas Department of Motor Vehicles Board The Honorable Michael J. O'Malley, the Honorable Penny A. Wilkov, in Their Official Capacities as Administrative Law Judges for the State Office
This case involves an appeal filed by Volkswagen Group of America, Inc. and Audi of America, Inc. (Appellants) against John Walker III, Chairman of the Texas Department of Motor Vehicles Board, and Administrative Law Judges Michael J. O'Malley and Penny A. Wilkov (Appellees). Appellants sought injunctive relief in district court to prevent Appellees from proceeding with an allegedly ultra vires remand of an administrative contested case after a Proposal for Decision (PFD) had been issued. The district court dismissed the lawsuit based on governmental immunity and failure to exhaust administrative remedies. Appellants argue that Appellees' actions, including ordering the remand and reopening evidence, exceeded their statutory authority under the Administrative Procedure Act and Texas Occupations Code, making governmental immunity inapplicable and exhaustion of remedies unnecessary.