Cecile Erwin Young, in Her Official Capacity as the Executive Commissioner of the Texas Health and Human Services Commission; Molina Healthcare of Texas, Inc.; And Aetna Better Health of Texas, Inc. v. Cook Children's Health Plan, Texas Children's Health Plan, Superior Health Plan, Inc., and Wellpoint Insurance Company
Court
Court of Appeals of Texas
Decided
August 4, 2025
Jurisdiction
SA
Importance
45%
Practice Areas
Case Summary
ACCEPTED 15-24-00114-CV FIFTEENTH COURT OF APPEALS AUSTIN, TEXAS 8/4/2025 5:51 PM No. 15-24-00114-CV CHRISTOPHER A. PRINE CLERK FILED IN IN THE FIFTEENTH COURT OF APPEALS 15th COURT OF APPEALS AUSTIN, TEXAS 8/4/2025 5:51:39 PM CHRISTOPHER A. PRINE CECILE ERWIN YOUNG, IN HER OFFICIAL CAPACITY AS EXECUTIVE Clerk COMMISSIONER OF THE TEXAS HEALTH AND HUMAN SERVICES COMMISSION, MOLINA HEALTHCARE OF TEXAS, INC., AND AETNA BETTER HEALTH OF TEXAS, INC., Appellants, v. COOK CHILDREN’S HEALTH PLAN, TEXAS CHILDREN’S HEALTH PLAN, SUPERIOR HEALTH PLAN, INC., AND WELLPOINT INSURANCE COMPANY Appellees. On Interlocutory Appeal from the 455th Judicial District Court, Travis County Cause No. D-1-GN-24-003839 APPELLEES’ JOINT REPLY IN SUPPORT OF MOTION TO DISMISS APPEALS OF AETNA BETTER HEALTH OF TEXAS, INC. AND MOLINA HEALTHCARE OF TEXAS, INC. FOR LACK OF JURISDICTION AND REQUEST FOR EXPEDITED CONSIDERATION TABLE OF CONTENTS Index of Authorities ..................................................................................................... 3 Introduction................................................................................................................... 7 Summary of the Reply ................................................................................................. 8 Argument .................................................................................................................... 10 I. Aetna and Molina do not have contracts with HHSC as a result of the challenged procurement, and halting the procurement does not harm the public but rather stabilizes the current program. ..................................... 10 II. Whether Aetna and Molina are proper parties is jurisdictional as to their participation in this appeal. .................................................................... 12 III. Aetna and Molina cannot appeal because they are neither parties in the trial court nor bound by the injunction..................................................... 15 A. Aetna’s and Molina’s attempts to intervene in the trial court are ineffective until Section 51.014(b)’s automatic stay is lifted. ........... 15 B. The Court should reject Molina’s argument that the stay did not apply because its intervention was filed on the same day as the notice of appeal. .................................................................................... 21 C. The trial court did not enjoin Aetna or Molina. .................................. 23 IV. For a non-party, being merely affected or aggrieved by an order does not confer a right to appeal. ............................................................................ 27 V. Aetna and Molina do not satisfy the stringent requirements of virtual representation................................................................................................... 29 VI. The equities do not favor Aetna’s and Molina’s participation. .................... 31 Conclusion .................................................................................................................. 33 Certificate of Service.................................................................................................. 36 Certificate of Compliance .......................................................................................... 37 2 INDEX OF AUTHORITIES Cases Barshop v. Medina Cnty. Underground Water Conservation Dist., 925 S.W.2d 618 (Tex. 1996) ........................................................................... 12, 13 Chambers-Liberty Cntys. Navigation Dist. v. State, 575 S.W.3d 339 (Tex. 2019) .....................................................................13, 14, 33 Ex parte Chambers, 898 S.W.2d 257 (Tex. 1995) ..............
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Decided
Date Decided
August 4, 2025
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SA
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Case Overview
This case involves Cecile Erwin Young, in her official capacity as the Executive Commissioner of the Texas Health and Human Services Commission, alongside Molina Healthcare of Texas, Inc. and Aetna Better Health of Texas, Inc. against Cook Children's Health Plan, Texas Children's Health Plan, Superior Health Plan, Inc., and Wellpoint Insurance Company. The case, decided on August 4, 2025, by the Court of Appeals of Texas, centers around an interlocutory appeal concerning the jurisdiction and standing of Aetna and Molina in a procurement dispute regarding Medicaid contracts.
Legal Issues
The court addressed several critical legal questions:
- Jurisdiction: Do Aetna and Molina have the right to appeal despite lacking contracts with HHSC?
- Party Status: Are Aetna and Molina proper parties to the appeal?
- Automatic Stay: Does the automatic stay under Texas Civil Practice and Remedies Code Section 51.014(b) apply to their intervention attempts?
- Virtual Representation: Can Aetna and Molina claim standing based on virtual representation?
Factual Background
- Aetna and Molina lack contracts with the Texas Health and Human Services Commission (HHSC), which is pivotal in determining their standing to appeal.
- The trial court issued an injunction that only restrains the Commissioner and her employees, not Aetna or Molina.
- Aetna and Molina filed their petitions in intervention after the notice of appeal was filed, triggering an automatic stay that rendered their petitions ineffective until the stay is lifted.
Court's Analysis
The court's reasoning included:
- Lack of Standing: Aetna and Molina do not have contracts with HHSC, which undermines their standing to appeal. Merely being affected by an order does not confer a right to appeal.
- Automatic Stay: The court emphasized that the automatic stay applies to all proceedings in the trial court, including petitions in intervention. The court rejected Molina's argument that actions taken on the same day as a notice of appeal are exempt from the stay.
- Virtual Representation: The court found that Aetna and Molina do not meet the criteria for virtual representation as they are not bound by the injunction, reinforcing that only parties to a lawsuit may appeal adverse judgments.
Holdings and Decision
The court held:
- Aetna and Molina's appeals are dismissed for lack of jurisdiction due to their non-party status in the trial court proceedings.
- The automatic stay applies broadly to all trial court proceedings, and Aetna and Molina do not have standing to appeal the injunction.
Legal Precedents
The court cited several important cases:
- Barshop v. Medina Cnty. Underground Water Conservation Dist., 925 S.W.2d 618 (Tex. 1996) - Emphasizes the necessity of being a party to appeal.
- In re Dallas Cnty., 697 S.W.3d 142 (Tex. 2024) - Clarifies requirements for intervention and appeal rights.
- Marino v. Ortiz, 484 U.S. 304 (1988) - Establishes that only parties to a lawsuit may appeal adverse judgments.
Practical Implications
This case underscores the importance of jurisdiction and standing in appeals, particularly in administrative and health law contexts. It highlights that non-parties cannot claim appeal rights based solely on being affected by an injunction. Legal practitioners must ensure that their clients are properly positioned as parties in litigation to maintain the right to appeal adverse decisions.
The ruling also reinforces the significance of the automatic stay in appellate procedures, which protects the integrity of the judicial process during appeals.
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Case Details
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Status
Decided
Date Decided
August 4, 2025
Jurisdiction
SA
Court Type
federal
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