The Supreme Court of Texas is taking up two cases of the J-W Power Company saga. The two cases are J-W Power Company v. Irion County Appraial District and J-W Power Company v. Sterling County Appraisal District. The cases concern similar issues and have been consolidated for oral argument, which is set to be heard on February 20, 2024, at 9:00 am at 201 W. 14th Street, Austin, Texas 78701 (The Supreme Court Building).

For a brief, summarized reminder on these cases, J-W Power Company owned natural-gas compressors that it leased to customers who used them in Irion and Sterling counties. JWP protested the appraisal districts’ appraisal of that property under the procedures in Section 41.41. The protests were denied, and JWP did not appeal to district court. Later, JWP filed motions to correct the appraisal roll pursuant to Section 25.25(c)(2), (3), arguing that the appraisal districts should not have appraised the compressors because they were part of a “dealer’s heavy equipment inventory.” The motions were denied, and JWP appealed to district court and ultimately to the Austin 3rd Court of Appeals.

The Austin 3rd Court of Appeals denied JWP’s appeals under the doctrine of res judicata (a/ka/ claim preclusion). Under that doctrine, there are multiple elements to analyze. But without getting in the weeds, the doctrine bars claims that have already been determined or that, with reasonable diligence, could have been previously brought. The function of the Austin 3rd Court of Appeals’ decision was that JWP could have brought their dealer’s heavy equipment inventory claims by appealing the original Section 41.41 protest to district court, but they didn’t. So now, their Section 25.25(c)(2), (3) claims are barred.

Now, the Supreme Court of Texas has likely tasked itself with deciding the application of res judicata, which JWP says doesn’t apply and of course Irion and Sterling Appraisal Districts say it does. Stay tuned to what happens.

To follow this: click the following links (or copy and paste): https://search.txcourts.gov/Case.aspx?cn=22-0975&coa=cossup (J-W Power Company v. Irion County Appraisal District); https://search.txcourts.gov/Case.aspx?cn=22-0974&coa=cossup (J-W Power Company v. Sterling County Appraisal District).