Texas Supreme Court
James O. Gerst, Petitioners v. Orren L. Nixon, Respondents
November 30, 1966411 S.W.2d 350
Summary
The Texas Supreme Court affirmed the lower courts, holding that the Savings and Loan Commissioner’s negative findings under §2.08(3) and (4) were not supported by substantial evidence and therefore void. The Court declared the portion of §11.12(5)(b) requiring a pre‑ponderance of the evidence review unconstitutional but severable, leaving the remainder of the statute intact. Judicial review of the Commissioner’s order is to be conducted under the substantial‑evidence test using the record of the Commissioner’s hearing.