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In a matter of first impression, the Third Court of Appeals in Austin has held that the University Interscholastic League (UIL) is a governmental unit entitled to sovereign immunity.  The Texas Association of Sports Officials (TASO) sued the UIL over a change in UIL Rule 1204 that now requires sports officials of UIL-sponsored varsity team contests to register and pay dues to the UIL.  Previously, Rule 1204 stated simply that member schools should use TASO-registered sports officials for UIL-sponsored events.  TASO’s suit alleged that in changing the rule, the UIL was (1) attempting to exercise an unauthorized delegation of power, (2) improperly imposing an occupation tax, and (3) tortiously interfering with the contractual relationship between TASO and its members.

The UIL sought dismissal of the suit arguing that it was entitled to sovereign immunity because it was a governmental entity.  The trial court rejected the UIL’s argument and the UIL appealed.  The main issues on appeal were whether the UIL was a “governmental unit” entitled to sovereign immunity and, if so, whether immunity had been waived.  TASO argued that the UIL is a private, voluntary association and therefore is not protected by sovereign immunity.

According to the appeals court, a “governmental unit” includes, among other things, the state and its agencies, and any other institution of the government the status and authority of which are derived from the Texas Constitution or from laws passed by the legislature under the Constitution. 

Under Education Code § 33.083(b), the UIL “is part of The University of Texas at Austin.”  The University of Texas was created by the Texas Constitution and is entitled to sovereign immunity.  In addition, Education Code § 33.083 requires the UIL to submit its rules and procedures for approval by the Commissioner of Education, deposit its funds with The University of Texas, and submit to audits.  The Education Code grants the UIL rulemaking authority with respect to certain state education policies, as well as the authority to impose sanctions for noncompliance.  Like other governmental entities, lawsuits against the UIL must be filed in Travis County.  Further, the Attorney General has required UIL to release records under the Texas Public Information Act, which applies to public information that is collected, assembled, or maintained by or for a governmental body.  According to the appeals court, all of these factors weighed in favor of its determination that the UIL was a governmental unit entitled to sovereign immunity. 

The appeals court went on to hold that the UIL’s right to sovereign immunity had not been waived by TASO’s claims.  Under the Texas Tort Claims Act, sovereign immunity was not waived by the tortious interference of contract claims.  TASO simply failed to demonstrate a waiver of immunity with respect to its claims.

The decision, The University Interscholastic League v. Southwest Officials Association, Inc., d/b/a Texas Association of Sports Officials, was issued August 27, 2010.

To view this opinion click here: http://www.3rdcoa.courts.state.tx.us/opinions/htmlopinion.asp?OpinionId=19506